Full text of Federal Reserve Bulletin : May 1997
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VOLUME 83 • NUMBER 5 •
MAY 1997
FEDERAL RESERVE
BULLETIN
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C.
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn
• J. Virgil Mattingly, Jr. • Michael J. Prell • 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 officiaJ 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
357 U.S. INTERNATIONAL TRANSACTIONS
IN 1996
After stabilizing in 1995, the U.S. current
account deficit widened in 1996 to $165 billion.
The deficit increased sharply in the first three
quarters of the year, but, because of strong
export growth, narrowed significantly in the
fourth quarter. The widening of the deficit by
$17 billion was the net result of moderate-tostrong growth in all the key components of the
current account: exports and imports of goods
and services, income from U.S. and foreign portfolio and direct investments, and net unilateral
transfers.
368 INDUSTRIAL PRODUCTION AND CAPACITY
UTILIZATION FOR MARCH 1997
Industrial production advanced 0.9 percent in
March, to 119.6 percent of its 1992 average,
after a revised gain of 0.6 percent in February.
The utilization of industrial capacity increased
0.5 percentage point in March, to 84.1 percent,
the highest level since March 1995.
371 STATEMENTS TO THE CONGRESS
Alan Greenspan, Chairman, Board of Governors
of the Federal Reserve System, discusses the
Federal Reserve's semiannual report to the Congress on monetary policy and also the issue of
the bias in the consumer price index (CPI) and
says that we have an overarching national interest in building a better measure of consumer
prices and in implementing more rational indexation procedures and that these efforts are essential if we are to ensure that the original intent of
the relevant pieces of legislation will be fulfilled
in insulating taxpayers and benefit recipients
from the effects of ongoing changes in the cost
of living, before the House Committee on the
Budget, March 4, 1997.
373 Chairman Greenspan presents the views of the
Board on the supervision of the nation's banking
organizations should they be authorized by the
Congress to engage in a wider range of activities
and says that the Board believes that financial
modernization should not undermine the ability
and authority of the central bank of the United
States to manage crises, ensure an efficient and
safe payment system, and conduct monetary policy, and that these responsibilities require the
Federal Reserve to retain a significant and
important role as a bank supervisor, before the
Subcommittee on Capital Markets, Securities
and Government-Sponsored Enterprises of the
House Committee on Banking and Financial
Services, March 19, 1997.
378 Chairman Greenspan highlights some of the key
aspects of the current economic situation and
says that the current expansion, now entering its
seventh year, is a long upswing by historical
standards, and yet, in looking ahead the prospects for sustaining the expansion are quite
favorable, before the Joint Economic Committee
of the U.S. Congress, March 20, 1997.
381 Susan M. Phillips, Member, Board of Governors, discusses the Board's section 20 firewalls, which are imposed on bank holding companies engaged in underwriting and dealing in
securities, and says that the Board has recently
proposed to eliminate a majority of those restrictions after having completed a comprehensive review of the twenty-eight firewalls and
having benefited from ten years of experience,
since firewalls were first erected in 1987,
in supervising section 20 affiliates, before the
Subcommittee on Financial Institutions and
Regulatory Relief of the Senate Committee
on Banking, Housing, and Urban Affairs,
March 20, 1997.
387 ANNOUNCEMENTS
Meeting of the Consumer Advisory Council.
Reductions of automated clearinghouse fees of
the Federal Reserve Banks.
Revisions to Regulation M and its official staff
commentary.
Final amendment to Regulation O.
Amendments to Regulation CC.
Adoption of final rules on standard practices
regarding transactions in government securities
by depository institutions.
Proposal to amend Regulations D and I; proposal to amend Regulations H and P; proposal
by the Federal Reserve Board, along with the
Office of the Comptroller of the Currency and
the Federal Deposit Insurance Corporation, to
adopt uniform regulations to implement section 109 of the Riegle-Neal Interstate Banking
and Efficiency Act of 1994; and request for
additional comments on possible legislative
changes to the Truth in Lending Act.
Availability of a report on the processing of
applications in 1996 by the Federal Reserve.
Changes in Board staff.
390 MINUTES OF THE FEDERAL OPEN MARKET
COMMITTEE MEETING HELD ON
FEBRUARY 4-5, 1997
At its meeting on February 4-5, 1997, the Committee approved without change the tentative
ranges for 1997 that it had established in
July of last year. In keeping with its usual procedures under the Humphrey-Hawkins Act, the
Committee would review its ranges at midyear,
or sooner if interim conditions warranted, in
light of the growth and velocity behavior of the
aggregates and ongoing economic and financial
developments.
For the intermeeting period ahead, the Committee adopted a directive that called for maintaining the existing degree of pressure on reserve
positions and that retained a bias toward the
possible finning of reserve conditions during the
intermeeting period.
401 LEGAL DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and pending cases.
451 DIRECTORS OF THE FEDERAL RESERVE
BANKS AND BRANCHES
List of Directors, by Federal Reserve District.
AI FINANCIAL AND BUSINESS STATISTICS
These tables reflect data available as of
March 27, 1997.
A3 GUIDE TO TABULAR PRESENTATION
A4 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A50 International Statistics
A63 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
A76 INDEX TO STATISTICAL TABLES
A78 BOARD OF GOVERNORS AND STAFF
A80 FEDERAL OPEN MARKET COMMITTEE AND
STAFF; ADVISORY COUNCILS
A82 FEDERAL RESERVE BOARD PUBLICATIONS
A84 MAPS OF THE FEDERAL RESERVE SYSTEM
A86 FEDERAL RESERVE BANKS, BRANCHES,
AND OFFICES
U.S. International Transactions in 1996
Guy V.G. Stevens, of the Board's Division of International Finance, prepared this article. Virginia Carper
provided research assistance.
After stabilizing in 1995, the U.S. current account
deficit widened in 1996 to $165 billion. The deficit
increased sharply in the first three quarters of the
year, but, because of strong export growth, narrowed
significantly in the fourth quarter (chart 1). The widening of the deficit by $17 billion was the net result
of moderate-to-strong growth in all the key components of the current account: exports and imports of
goods and services, income from U.S. and foreign
portfolio and direct investments, and net unilateral
transfers.
A $14 billion increase in the deficit on traded
goods and a smaller increase in the surplus on trade
in services netted out to an overall increase in the
deficit for trade in goods and services of $9 billion
(table 1). The value of exported goods grew at more
than 6 percent; however, robust U.S. growth, a
strengthening U.S. dollar, and a higher price for oil
resulted in import growth that was equally strong in
percentage terms but, because of the higher initial
level of imports, higher in value terms. A similar
arithmetic affected the change in the value of net
services, but in the opposite direction. Service exports
and imports grew at about the same 6 percent rate,
but the higher initial value of service exports resulted
in a $5 billion increase in the net services balance.
1.
U.S. cxtcrn;iI tv
, ILJ85-%
Billions of dollars
—
198S
1990
1992
1994
50
1996
NOTE. The data are quarterly al seasonally adjusted annual rates. Current
account data exclude foreign cash grants received in 1990-92.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
Net investment income changed only marginally in
1996. The net change, again, was the outcome of a
balancing of positive and negative effects, as a $7 billion increase in net direct investment income nearly
offset a growing net deficit for portfolio investment
income. The former was attributable to the continued
growth of, and remarkable profitability of, U.S. direct
investment abroad, and the latter primarily to the
large increase in net portfolio liabilities.
U.S. L'xurruiL k i \ ; i n c c s ,
Billions of dollars
1991
1992
1993
1994
1995
1996
Change,
1995 to 1996
Trade in goods and services, net
Goods, net
Services, net
-29.9
-74.1
44.2
-38.3
-96.1
57.8
-72.0
-132.6
60.6
-HH.4
-166.1
61.7
-105.1
-173.4
68.4
-114.2
-187.7
73.5
-9.1
-14.3
5.1
Investment income, net
Portfolio investment, net ...
Direct investment, net
15.8.
-39.8
55.6
11.2
-40.4
51.6
9.7
-46.2
55.9
-4.2
-51.6
47.4
-8.0
-65.5
57.5
-8.4
-72.9
64.4
-.4
-7.4
7.0
Unilateral transfers, net
Foreign cash grants: to the United States
Other transfers,, net
4.5
42.5
-38.0
-35.5
1.3
-36.8
-37.6
.0
-37.6
-39.9
.0
-39.9
-35,1
.0
-35.1
-42,5
.0
-42.5
-7.4
.0
-7.4
-99.9
-148.4
-148.2
-165.1
-16.9
-99.9
-148.4
-148.2
-165.1
-16.9
Item
Current account balance ..
-9.5
MEMO:
Current account balance excluding foreign
cash grants
-52.0
-63.9
NOTE. In this and the tables that follow, components may not sum to totals
because of rounding.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
358
Federal Reserve Bulletin • May 1997
The change in the deficit on net unilateral transfers
contributed about $7 billion to the overall deficit on
the current account. The large size of this increase
should be a one-time occurrence; it was caused by
delays in the disbursement of U.S. government grants,
mainly because of the budget impasse at the end of
1995.
Recorded net capital inflows, both official and private, more than financed the $165 billion current
account deficit; as a result, the statistical discrepancy
was negative for the first year since 1992. Of the
capital inflows, about $123 billion represented an
increase in net foreign official holdings in the United
States and $89 billion an increase in net foreign
private holdings.
MAJOR ECONOMIC INFLUENCES
ON U.S. INTERNATIONAL TRANSACTIONS
The proximate determinants of the changes in the
U.S. current account include economic growth in the
United States and abroad, trends in U.S. international
price competitiveness, movements in the U.S. international investment position, and changes in the rates of
return on financial assets at home and abroad. The
first two of these factors explain much of the deterioration of the trade balance in 1996 and earlier years,
and the latter two explain the changes in portfolio and
direct investment income.
2.
Growth of real CuP in the United States and selected
foreign economies, 1994—96
Percenlage change, year over year
Country
1994
1995
United States
3.5
2.0
2.4
Total foreign.
4,4
2.5
3.3
Industrial countries3
3.2
4.1
3.0
.7
6.6
8.2
4.4
4.5
4.2
2.3
2.3
2.5
1.3
3.0
7.8
-3.8
-6.2
2.3
2.1
1,5
1.9
3.7
5.7
6,6
4.4
5.1
2.7
Canada
Western Europe
Japan
Developing countries ' ...
Asia
Latin America
Mexico
Other Latin America
1996'
NOTE. Aggregate measures are weighted by bilateral shares in U.S. nonagricultural merchandise exports in 1987-89.
1. Data for 1996 are partly estimated.
2. The industrial countries index includes Australia and New Zealand in
addition to Canada, Japan, and Western Europe. The index for Western Europe
comprises Belgium, France, Germany, Italy, the Netherlands, Sweden, Switzerland, the United Kingdom, Austria, Denmark, Finland, Greece, Ireland, Norway,
Portugal, Spain, and Turkey.
3. The developing countries in the index for Asia are the Peoples Republic
of China, Hong Kong, Korea, Malaysia, the Philippines, Singapore, and Taiwan.
The countries in "Other Latin America" are Argentina, Brazil, Chile, and
Venezuela.
SOURCE. Various national sources.
tries and a strong expansion in the developing countries. Growth in the developing countries of Asia
continued at almost the strong 1995 pace. In Latin
America, Mexico and Argentina rebounded from
negative growth in 1995 to register year-over-year
rates of 5.1 percent and 4.4 percent respectively.
Relative Rates of Economic Growth
U.S. Price Competitiveness
In 1996 growth picked up significantly in both the
United States and major foreign countries, with U.S.
growth, at 2.4 percent year over year, about a percentage point below average foreign growth (table 2).
Over the postwar period, in years when the U.S.
economy and foreign economies have grown at
approximately the same rate, U.S. imports have
tended to increase significantly faster than U.S.
exports. In fact, because the response of U.S. imports
to changes in U.S. growth is considerably greater than
the corresponding response of U.S. exports to changes
in foreign growth, the U.S. trade balance has deteriorated even when foreign growth has been significantly stronger than that in the United States. This
differential response, in conjunction with a starting
point at which imports substantially exceed exports,
is a major factor in explaining the change in the U.S.
balance of trade in goods for 1996.
The overall foreign growth of 3.3 percent was an
average of moderate growth in the industrial coun-
Broad measures of U.S. price competitiveness, such
as the CPI-adjusted foreign exchange value of the
dollar, have shown a moderate lessening of U.S.
competitiveness since the middle of 1995 (chart 2).
This real foreign exchange value of the dollar, in
terms of the currencies of eighteen of our major
trading partners, is computed as the ratio of U.S.
consumer prices to foreign consumer prices translated into dollars at current nominal exchange rates.
The rise in this measure over the past one and onehalf years is primarily the result of the appreciation of
the dollar relative to the currencies of our major
trading partners. The movements of direct measures
of relative export and import prices confirm this
moderate loss of U.S. price competitiveness (chart 3).
U.S. exports lost some of their competitiveness visa-vis foreign goods; similarly, imports into the United
States became somewhat more competitive with
respect to U.S. domestic goods, primarily because
of the continued appreciation of the U.S. dollar.
U.S. International Transactions in 1996
2.
Cl'l-adjusted foreign exchange value of the U.S. dollar,
1074-96
3.
359
Relative prices of exports am! imports,
Index. \W)= 1.0
I
Ralio scale. I9S6:Q4 = 100
1
Increasing price competitiveness
of U.S. .goods
g
•—
80
i M I1 1II! I II Ii II I I 1i M
1975
1980
1985
1990
1995
NOTE. Index based on the Group of Ten (G-10) countries (excluding the
United Slates) and eight developing countries. The data are quarterly.
Because of lags in the impact of the rise of the dollar
on the trade balance, the effects of this reduced
competitiveness are likely to continue into 1997. In
fact, the net effect of exchange rate changes on
the trade balance in 1996 was probably positive, as
the lagged effects of the dollar depreciation in early
1995 dominated those of the more recent dollar
appreciation.
The U.S. Net Investmen! Position and
Differential Rates of Return
on U.S. Claims and Liabilities
Because of the run of current account deficits going
back to the early 1980s, U.S. liabilities to
foreigners—portfolio and direct—have grown much
more rapidly than our claims on foreigners. Net
liabilities grew by the end of 1996 to a total of
approximately $1 trillion (chart 4). This negative
overall net investment position is a major factor
explaining why net investment income is now
negative.
The relatively small deficit on net investment
income of $8.4 billion in 1996, an amount little
changed from 1995, illustrates the important influence of different rates of return on U.S. claims and
liabilities. If the rate of return on all U.S. claims and
liabilities had been the same in 1996, net investment
income would have been equal to that common rate
of return times the net investment position; for a
5 percent rate of return, about the 1996 average for
portfolio claims and liabilities, net investment income
would have been approximately negative $50 billion,
Increasing price competitiveness
of U.S.
US goods
1988
1990
1992
1994
1996
NOTE. For exports, the index is the ratio of foreign prices to U.S. export
prices of nonagricultural products, excluding computers. For imports, the index
is the ratio of U.S. import prices of non-oil imports, excluding computers, to the
U.S. GDP deflator. The data are quarterly.
rather than the actual negative $8.4 billion. The primary reason for the smaller size of the actual deficit
is the consistently high rate of return on U.S. direct
investment assets abroad, which, at almost 11 percent
in 1996, was double the rates of return on nonresident
holdings of portfolio and direct investment assets in
the United States.
Changes in rates of return from 1995 to 1996,
particularly the fall in the rates of return on portfolio
liabilities and foreign direct investment in the United
States, explain why net investment income changed
so little in 1996 even as net liabilities increased
substantially. Despite the fact that variations in rates
of return on the various claims and liabilities had a
4.
Net investment position, 1972 %
Billions of dollars
Direct investment
250
1,250
I I
! I 1! I 1 II
1975
1980
1985
1990
U
1995
NOTE. For 1972-95, the data are end-of-year totals for net direct investment,
net portfolio investment, and their difference (shown as the "net position"). The
year-end position for 1996 was constructed by adding the recorded investment
flows during 1996 to the recorded year-end position for 1995.
SOURCE. U. S. Department of Commerce, Bureau of Economic Analysis.
360
Federal Reserve Bulletin • May 1997
large positive effect on net investment income in
1996, the large and increasingly negative net investment position predisposes the United States to
increasing deficits in the future.
DEVELOPMENTS IN TRADE IN GOODS AND
SERVICES
The values of exports and imports of goods grew
between 6 percent and 7 percent in 1996, down from
the double-digit growth rates of 1995 (table 3). The
deficit on traded goods increased $14 billion, however, because the value of imports grew faster from
a larger initial level (table 1). Service exports grew
somewhat faster than imports, again from a higher
base, leading to a $5 billion increase in the surplus
for net services.
Exports
The value of exports of goods and services, at
$836 billion for 1996, rose slightly more than 6 percent for the year—less than half the strong rate of
almost 13 percent in 1995 (table 3). Although the
export value of goods and of services advanced at
nearly the same rate, because of the relative size of
3.
these two categories, the change in the value of
exported goods accounted for three-fourths of the
total change. The categories of exports showing the
sharpest increases in value were agricultural products, capital goods, and consumer goods.
Shipments of aircraft and parts led the increase in
the value of exported capital goods, with a jump of
more than 18 percent. After a period of sluggish
sales, deliveries of large jet aircraft rebounded, especially toward the end of the year, as a result of robust
growth in world air traffic, high airline profits, and
projections of strong replacement demands. Because
of the backlog of existing orders from foreign airlines, this strength in aircraft exports is expected to
continue throughout 1997.
Exports of machinery also expanded vigorously in
1996, in response to strengthening investment expenditures abroad. Relatively large increases were registered in a wide range of categories, notably computers (including peripherals and parts), scientific and
medical equipment, and various types of powergenerating equipment. The growth of machinery
exports moderated a bit in response to a slowing in
shipments of semiconductors and telecommunications equipment during the first part of the year;
however, sales turned up toward the end of the year,
and small annual increases were recorded in both
U.S. international trade in goods and services, 1994-96
Billions of dollars
Percentage change
Item
1994 to 1995
Balance on goods and services .
-104
-105
-114
Exports of goods and services
Services
Goods
Agricultural products
Nonagricultural goods
Capita! goods
Aircraft and parts
Computers, pieripherafe, and parts
Semiconductors
Other capital goods
Consumer goods
Automotive products
Industrial supplies
Other exports
698
196
502
47
435
205
31
33
25
115
60
58
113
20
787
211
576
57
519
234
26
40
34
836
224
135
23
64
138
25
Imports of goods and services
Services
Goods
Petroleum and products
NonpetiBleum goods
Capital goods
Aircraft and parts
Computers, peripherals, and parts
Semiconductors
Other capital goods
Consumer goods
Automotive products
Industrial supplies
Foods and other exports
803
134
669
51
950
150
799
68
731
229
13
62
37
118
171
130
114
892
142
749
55
694
221
II
56
39
115
160
125
129
55
59
«5
617
184
11
46
26
101
146
118
NOTE. Percentage changes in this and subsequent tables may differ from
those calculated from data shown in the tables because of rounding.
134
64
62
612
61
550
253
31
44
36
143
70
m
12.6
7.5
14.6
2J.6
13.9
13.9
-17.0
19.0
35.6
16.1
7.4
7.0
20.4
17.0
11.1
6.1
12.1
7.4
12,5
20.1
-5.2
21.S
49.3
14.5
9.3
5.5
13.3
8.4
lWSto 1996
«.2
f>.3
6.2
14
6.1
8.2
18.1
10.2
4.5
6.6
8.9
4.3
1.6
7.9
6.5
5.8
6.7
24.0
5.3
3.4
17.9
9.3
-6.0
2.3
6.9
4.3
5.7
9.2
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
U.S. International Transactions in 1996
categories. An important element in the expansion of
these high tech categories is the rapid penetration of
personal computers (PCs) into emerging markets
(especially in Asia), indications of the beginning of a
computer upgrade cycle by corporations, and the
increasing role PCs play in communications.
The value of consumer goods exports grew 9 percent in 1996, a somewhat faster pace than in 1995.
About 30 percent of the increase went to Mexico,
40 percent went to major industrial countries, and the
remaining 30 percent went largely to Korea, China,
Eastern Europe, and other countries in Latin America.
The increase in the value of agricultural exports
was due entirely to price increases; the quantity of
shipments declined, on balance, below the levels of
1995. Real exports fell sharply in the first three
quarters of 1996, after disappointing U.S. harvests of
corn and soybeans in the fall of 1995 and of wheat in
the spring of 1996. These production shortfalls also
pushed inventories of grain and oilseed to historic
lows. As inventories were drawn down to critically
low levels, prices of many agricultural exports rose
to record highs. However, following the improved
U.S. harvests in the fall of 1996, exports of agricultural products recovered strongly and prices fell
substantially.
By area, nearly one-third of the increase in the
value of merchandise exports in 1996 went to
Mexico. Spurred by the restoration of robust economic growth, shipments to Mexico jumped more
than 23 percent (table 4), with the sharpest increases
in automotive products and consumer goods. Smaller
increases went to Canada, Japan, Asia, and other
countries in Latin America. Weak GDP growth in
Western Europe held down the expansion of U.S.
exports to that area.
4.
361
In terms of quantity, exports of goods and services
grew 6'/2 percent in 1996 (table 5). Service exports,
however, expanded more slowly than goods exports.
With only small increases in receipts from royalties
and license fees and little change in the value of
military sales, total service receipts increased about
3'/2 percent in real terms in 1996. The drop in agricultural exports and the marked slowdown in exports of
semiconductors held down overall growth in the
quantity of merchandise exports. Real merchandise
exports, exclusive of agricultural products, semiconductors, and computers, grew 6 percent in 1996—the
same rate as in 1995. Overall, exports of goods and
services contributed 0.7 percentage point to U.S. real
GDP growth in 1996 (year over year).
Imports
In 1996 total imports of goods and services rose in
value at about the same rate as exports—little more
than half the rate of growth in 1995 (table 3). The
value of imported services and of imported goods
increased at about the same rate. Varying stories for
different import categories combined to produce this
outcome.
Oil Imports
Although the volume of oil imports increased only
Vi percent from 1995 to 1996, the value of oil imports
rose 24 percent because of a 23 percent increase in
the average price of imported oil. Several factors
contributed to what appears to have been a temporary, though large, increase. At the time of this writing, prices have dropped back sharply from the levels
prevailing at the end of 1996.
US. exports of goorh to its major trailing pari.iu.-rs.
1994-96
Billions of dollars
1994
1995
1996
Percentage
change,
1995 to 1996
Total
503
576
6\Z
6.2
Industrial countries1
Canada
Western Europe .
Japan
293
115
115
52
335
128
132
63
351
134
137
66
4.6
5,0
3.6
4.5
Developing countries- ...
Asia
Latin America
Mexico
Other Latin America.
209
104
92
51
41
241
131
96
46
50
261
135
109
57
8.5
3.8
13.9
23.4
4.8
.Importing region
5.
Change in the quantity of U.S. exports, 191)4-96
Percentage change, year over year
Type of export
1. See note 2 to table 2.
2. See note 3 to table 2.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
AH exports
Services
Goods
Agricultural products
NonagricuUurai goods
Computers, peripherals, and parts
Semiconductors
Other
1994
1995
1996
8.2
8.9
6.5
3.7
)0.1
3.4
10.8
26.9
61.2
7.3
4.7
10.6
11.7
10.5
41.0
43.1
6.3
3.7
7.6
-2.2
8.7
43.8
7.5
5.7
MEMO:
Contribution of exports to U.S. GDP
growth (percentage points) . . . .
1.0
NOTE. Quantities are measured in chained (1992) dollars.
SOURCE. U.S. Department of Commerce, Bureau of the Census.
362
5.
Federal Reserve Bulletin • May 1997
Oil prices, 1984-96
Dollars per barrel
West Texas intermediate
20
barrel in 1996, about $3.67 above the average for
1995. Spot prices fell back during late January and
February of this year when Iraqi oil was finally
offered on the spot market and warmer-than-normal
weather softened demand for home heating oil.
The quantity of oil imports rose from a rate of
8.8 million barrels per day in 1995 to 9.4 million
barrels per day in 1996 (table 6). The higher level of
imports more than accounted for an increase in U.S.
consumption in the range of I/2 million barrels per
day.
Non-oil 1 m pods
1986
1988
1990
1992
1994
1996
NOTE. The data are monthly.
SOURCE. Petroleum Intelligence Weekly, various issues; and U.S. Department
of Commerce, Bureau of Economic Analysis.
Changes in the prices of imported oil have tended
to mirror changes in spot oil prices (West Texas
intermediate) with a lag of several weeks (chart 5).
Spot prices fell during the fourth quarter of 1995 but
then rose at the beginning of 1996 to almost $19 per
barrel. This rise in price reflected increased demand
for heating oil and depleted heating oil stocks as a
result of a winter season that was much colder than
usual throughout the Northern Hemisphere. At the
same time, Iraq approached the United Nations with
a plan to export a limited, although significant,
amount of oil under U.N. supervision in return for
permission to use the proceeds primarily for the
purchase of humanitarian supplies. Refiners, uncertain about the availability of crude oil supplies from
Iraq and concerned about the effect that such supplies
might have on the price of oil, tended to keep their
stocks low. With the oil industry operating at minimal, just-in-time inventory levels, oil prices reacted
quite strongly to unanticipated shocks. Two such
events, the delay in the startup of several North Sea
fields and stronger-than-anticipated economic activity in the United States drove up oil prices during the
second half of the year. Oil import prices mirrored
the changes in spot prices and averaged $19.76 per
6.
The value of non-oil imports rose about 5'/2 percent
in 1996 (table 3). Imports grew in response to the
strength of U.S. economic activity and to the slight
boost from the small increase in their price competitiveness; increases were recorded in almost all major
import categories. One notable exception was imports of semiconductors. There was a large buildup in
inventories in the semiconductor industry in 1995
and early 1996 that was drawn down beginning in
early spring. After rising strongly during 1995, U.S.
imports of semiconductors dropped during almost all
of 1996 and turned up only at year-end. The deficit in
the net semiconductor trade balance that had emerged
in 1995 and continued into 1996 fell sharply during
the year, as imports dropped and as exports turned up
in the second half of the year.
In terms of quantity, imports of goods and services
grew almost 6'/2 percent in 1996, with imports of
services expanding more slowly than goods (table 7).
Overall, imports of goods and services subtracted
0.8 percentage point from U.S. real GDP growth in
1996 (year over year).
Developments in Trade in Services
Unlike the balance on trade in goods, in 1996 the
balance on trade in services was positive and actually
increased $5 billion (table 8). The United States
U.S. on consumption. pmdilution, and imports. sclcclcd yc ars, [9X0-96
Millions of barrels per day
Item
Production
1980
1985
1993
1994
1995
1996
17.1
10.8
6.9
15.7
11.2
5.1
17.2
9.6
8.6
17.7
9.4
9.0
17.7
9.4
8.8
18.2
9.4
9.4
SOURCE. U.S. Department of Energy, Energy Information Administration,
U.S. International Transactions in 1996
7.
363
Change in the quantity of U.S. imports, 1994-96
DEVELOPMENTS IN THE NONTRADE CURRENT
Percentage change, year over year
ACCOUNT
Type of impon
1994
j
1995
1
1996
All imports
12.0
8.0
6.4
Services
4.8
13.5
6.2
14.2
36.3
41.5
11.5
3.7
8.9
-1.7
9.8
38.8
57.2
5.4
3.6
6.9
.5
7.4
33.8
-1.4
-1.0
Goods
Petroleum and products
Nonpelroleum goods
Computers, peripherals, and parts
Semiconductors
Other
6.2
5.1
MEMO:
Contribution of imports to US. GDP
growth (percentage points)
NOTE. Quantities are measured in chained (1992) dollars.
SOURCE. U.S. Department of Commerce, Bureau of the Census.
continues to have a substantial positive balance of
trade with respect to travel and passenger fares, business, professional, and technical services, royalties
and license fees, and other private services. With
respect to these last two categories, almost 60 percent
of the $77 billion of U.S. exports in 1996 represented
transactions between "affiliated" enterprises—U.S.
parent firms and their foreign subsidiaries; for royalties and license fees alone, the proportion was 80 percent. Much of the increase in royalties in recent years
has been associated with affiliated companies in the
computer technology and pharmaceuticals industries.
In some respects, these exports can be viewed as an
additional component of the already robust return on
U.S. direct investment abroad.
The two major components of the nontrade current
account are net unilateral transfers and net investment income (table 1). Net unilateral transfers include
government grant and pension payments as well as
net private transfers to foreigners. Net investment
income is the difference between the amount that U.S.
residents earn on their assets abroad (receipts) and
the amount that foreigners earn on their assets in the
United States (payments). As mentioned earlier, the
deficit on unilateral transfers increased $7 billion
because of disbursement delays for U.S. government
grants caused by the budget impasse and government
shutdown at the end of 1995. For 1996, the balance
on investment income, which first went into deficit in
1994, was virtually unchanged, as an increase in the
deficit on portfolio income was almost offset by the
increase in the surplus on direct investment income
(table 9).
Net Portfolio investment Income
The first component of investment income, the balance on portfolio income, registered a deficit of
$73 billion in 1996, about $7 billion higher than that
recorded in 1995 (table 9). The balance on portfolio
income has been in deficit since 1985, and its size
has broadly mirrored the net portfolio investment
Transactions in services, 1993-96
Billions of dollars
Item
Services transactions, net
Military, net
Sales
Expenditures
1994
1995
1996
61
62
68
73
10
4
13
10
3
14
11
-1
0
1
196
80
28
1
209
84
29
2
17
29
48
13
4
1
0
1
2
4
I
13
12
Exports of private services
Travel and passenger fares
Other transportation
Insurance1
Business, professional, technical services ..
Royalties and license fees
Other private services
U.S. government receipts of
miscellaneous services
172
74
24
Imports of private services
Travel and passenger fares
Other transportation
Insurance2
Business, professional, technical services ..
Royalties and license fees
Other private services
U.S. government payments for
miscellaneous services
111
52
26
3
4
5
21
1 Premiums received less losses paid.
2. Premiums paid less amounts recovered.
Change.
1995 to 1996
1993
1
13
20
40
183
75
26
2
16
22
42
16
27
44
1
121
57
28
4
4
6
22
130
60
29
5
5
6
25
137
63
29
5
5
7
28
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
364
Federal Reserve Bulletin • May 1997
9. U.S. invjMment income, IWJ -V6
7.
Rules
on U.S.
puf I To 1 rr> rin-i~v[nienl.
Billions of dollars
1993
Item
Investment income, net
1994
1995 ! 1996
-46
58
53
5
105
63
42
-52
73
69
4
125
78
47
-66
94
89
5
159
98
61
-73
98
94
5
172
100
71
56
62
47
69
21
58
89
31
64
98
34
10
Portfolio investment income, net
Receipts
Private
Government
Payments
Private
Government
Direct investment income, net
Receipts
Payments
-8
J._..J
1988
position—claims minus liabilities (chart 6). The net
portfolio position deteriorated significantly last year,
with the net liability position increasing $245 billion,
or 24 percent (chart 4). The 11 percent increase in net
investment payments to foreigners was relatively
modest by comparison, as a general decline in interest rates dampened the increase (chart 7).
iWi't Direct Inrc.utnent
l portfolio wvestment: Posiimn and income, [972-%
H illtfflii .if dollar
1975
1980
1985
199Q
1995
NOTE. The net position data are averages of the end-of-year net positions for
the current and previous years. The year-end position for 1996 was constructed
by adding the recorded portfolio investment flows during 1996 to the recorded
year-end position for 1995.
SOURCE. US. Department of Commerce. Bureau of Economic Analysis; and
the Federal Reserve Board.
1990
1982
1994
19-96
NOTE. The rates of return are annualized versions of quarterly rates calculated as follows: For claims (or liabilities), the numerator is total receipts (or
payments) from the U.S. international transactions accounts, measured on a
quarterly basis. The denominator is the average of end-of-quarter claims (or
liabilities) for the current and previous quarters. To compute the numerator and
denominator of the annualized rate of return, the numerators and denominators
from the four quarterly rates of return are averaged.
The rate of return on the net position is calculated as the ratio of net
investment income (annual receipts minus payments) to the annualized net
position (annualized claims minus annualized liabilities).
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts and U.S. international investment position;
and the Federal Reserve Board.
Income
The second component of net investment income, the
balance on net direct investment income, increased
$6 billion to a positive $64 billion. Given that U.S.
direct investment abroad and foreign direct investment in the United States increased by roughly equal
amounts in 1996, the increase in net receipts was
primarily the result of the higher rate of return earned
on U.S. direct investment abroad (chart 8); a sec-
6.
— 4
Claims
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
ondary reason was the small reduction in the rate
of return on foreign direct investment in the
United States.
Various alternatives for measuring the rate of
return on direct investment all lead to the same result
for 1996 and for earlier years, as shown in table 10:
Rates of return changed little from 1995 to 1996, and
the rate of return on U.S. direct investment abroad
continued to be more than double that on foreign
direct investment in the United States. Given the
importance of this differential, as noted previously, in
mitigating the effect of the negative net investment
position on the current account deficit, important and
perennial questions are whether the differential will
persist and whether it reflects biases in measurement
rather than a true differential in underlying profitability. Researchers have investigated potential biases in
both the numerator of the rate of return—direct
investment receipts and payments from the U.S. international transactions accounts (table 9)—and its
denominator—some measure of the value of the U.S.
(foreign) ownership position in subsidiaries and
branches abroad (in the United States).
Three measures of the value of direct investment
have been constructed by the Bureau of Economic
Analysis (BEA) and are used as alternative denominators in calculating the rates of return in table 10.
BEA's original method of valuing direct investment,
U.S. International Transactions in 1996
365
D i r e c l i n v s s l m u i u abruaii: r'oMliun mid mi/unic 1 . ! L )7K ')fi
8.
Bill taw
Millions o
U.S. direct investment abroad
Millions of dollars
Receipts f
m> -
~
wiu —
— 60
41X1 —
— 40
—
f. ,'U
80
Foreign direct investment
HOfl — in the Untied States
20
IJ-lEUiPil ; U .fil'j
+
0
Payments
I
I I t I I I I I I
1980
1985
I
1990
1995
[
I
I
1980
I
I
I
I
I
I
I
I
I
1985
I
I
I
I
1990
I
I
|
I I
[995
NOTE. The position data are averages using the current-cost measures as of
year-end for the current and previous years. The year-end data for 1996 were
constructed by adding the recorded direct investment flows during 1996 to the
recorded year-end position for 1995.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis; and
the Federal Reserve Board.
the historical cost method, values the assets of direct
investors at the prices at which the assets were purchased. The other two measures attempt to correct for
the biases inherent in the first. The value of direct
investment at current cost adjusts the historical,
accounting values for inventories and for plant and
equipment to reflect current replacement values. The
value of direct investment at market prices adjusts the
ownership position using indexes of stock market
prices. The estimated value of direct investment
abroad is significantly higher when measured by
either of these latter alternatives than it is when
measured at historical costs; in 1995 the current cost
measure was 23 percent higher and the market price
measure 83 percent higher than the historical cost
measure. For direct investment in the United States,
the historical cost and the current cost measures differ
by only 14 percent; however, because of the recent
U.S. stock market increases, the market value measure is 82 percent greater than the historical cost
measure.
For direct investment abroad, using the two alternative measures as denominators results in a significantly lower rate of return than when the historical
cost measure is used; in 1996, for example, the rates
of return for the current cost and market price measures differed from the historical cost measures by
2.3 and 5.7 percentage points respectively. In contrast, for direct investment in the United States, using
either of the alternatives to the historical cost measure in the denominator reduces the rate of return in
1996 much less. This smaller reduction of the calculated rate of return is to be expected given the shorter
length of time that the average foreign subsidiary in
the United States has been in existence. In summary,
the use of corrected measures for direct investment
rather than the historical cost measure does in fact
narrow the difference between the rates of return on
direct investment abroad and in the United States;
for 1996, a difference of 7.4 percentage points is
reduced to 5.7 percentage points when the current
cost measure is used and to 4.1 percentage points when
10.
liaio-i ol' roiurti on J i i v a iii\L'>imcm, I'•
Percent
1990
1991
1992
1993
1994
1995
1996
15.2
10.2
7.3
14.5
10.0
7.5
11.6
8.3
6.7
10.7
8.0
6.4
11.5
8.9
6.8
11.6
9.2
6.6
13.3
10.7
7.5
13.0
10.7
7,3
1.9
1.6
1.4
.6
.5
4.4
3.8
2.8
5.9
5.2
3.5
5.6
5.0
3.2
Measure used in calculating the rate of return'
US. invtsaneni abroad
Historical cost
Current coat
Market value
Foreign investment in the United Stales
Historical cost
Current cost
Market value
1. The rates of return are calculated as follows: The numerator is direct
investment receipts or payments, from the U.S. international transactions
accounts. The denominator is the average of year-end figures for the current and
previous year for the particular measure of Ihe value of direct investment shown.
Each denominator for 1996 is constructed by adding the recorded direct investment flows during 1996 to the recorded year-end positions for 1995.
.1
.1
.0
For u discussion of BEA's measure of "direct investment at current cost" and
"direct investment at market value," see J. Steven Landefeld and Ann M.
Lawson, "Valuation of the U.S. Net International Investment Position," Survey
of Current Business, vol. 71 (May 1991), pp. 40-49.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts and U.S. international investment position.
366
Federal Reserve Bulletin • May 1997
the market value measure is used. However, the
adjusted rates of return for U.S. direct investment
abroad in 1996 remain almost twice those for foreign
direct investment in the United States.
As for the numerator, a number of potential sources
of either bias or systematic difference have been
identified by researchers. Because of problems in the
comparability of the rate-of-return data, however,
there now exists only indirect evidence on the size
and importance of these factors. In particular, a recent
study by Grubert, Goodspeed, and Swenson, has
made significant progress in providing such indirect
evidence by using corporate tax return data to analyze differences in rates of return between foreign
subsidiaries in the United States and domestically
owned firms in the United States.1 Because the study
used two sets of firms in the United States, it does not
provide a direct comparison of the rate of return for
these firms with the rate of return on foreign investment abroad. It does explain about 50 percent of the
difference between the rates of return for the two sets
of firms by the following factors: (1) the revaluation
of the assets of foreign subsidiaries in the United
States after they are acquired, which, because of
higher depreciation flows, lowered their rate of
return; (2) the relative age of the subsidiary, with
more mature firms earning higher rates of return;
(3) the effects of exchange rate changes on the prices
of imported inputs; (4) the amount of repatriated
dividends and royalties from foreign operations controlled by the domestically owned U.S. firms, which
raised the rate of return disproportionately for these
firms; and (5) the effects of transfer pricing, by which
firms shift reported profits to jurisdictions that have
lower tax rates.
The first two of these factors suggest that, over
time, the rates of return on foreign direct investment
in the United States will rise—narrowing, therefore,
the difference in the rates of return seen in table 10.
The third and fourth factors shed no light on longterm differences in the rates of return. Finally, the
effects of transfer pricing may distort the rates of
return on direct investment in the United States and
abroad, as profits are shifted to low-tax jurisdictions;
how this factor will affect the difference in the rate of
return is unknown. However, while the particular
1. Harry Grubert, Timothy Goodspeed, and Deborah Swenson,
"Explaining the Low Taxable Income of Foreign-Controlled Companies in the United States," in Alberto Giovannini, R. Glenn Hubbard,
and Joel Slemrod, eds., Studies in International Taxation (University
of Chicago Press, 1993). See also the update of this study: Harry
Grubert, Another Look at the Low Taxable Income of ForeignControlled Companies in the United States (U.S. Department of the
Treasury, 1996).
distortion caused by transfer pricing may affect direct
investment receipts and payments in the balance of
payments to an unknown degree, it will not affect the
current account balance: Lower (or higher) direct
investment profits caused by transfer pricing will
be offset one-to-one by higher (or lower) import
payments.
CAPITAL ACCOUNT IMNSACTIONS
Record inflows of official capital and large net foreign purchases of U.S. Treasury and corporate bonds
in 1996 more than offset both the $165 billion deficit
on the U.S. current account and substantial net capital
outflows through banks and for the purchase of foreign securities (table 11). For the first year since
1992, the statistical discrepancy turned negative and
ended the year at $53 billion.
Foreign official assets held in the United States
increased by a record $123 billion in 1996, surpassing the previous record set just the year before. Part
of the increase was associated with exchange market
intervention and the accumulation of interest receipts
by the Group of Ten countries, and another small part
reflected the effect of favorable oil price developments on the holdings of OPEC countries. However,
more than half the increase was in official holdings of
other countries.
Private foreign net purchases of Treasury securities
and corporate bonds exceeded the already high purchases in 1995. Net purchases of Treasury securities,
at $154 billion, reached a new high; most of the
transactions were with financial institutions in the
United Kingdom, so the nationality of the ultimate
investors is unclear. Net purchases of Treasury securities by financial centers in the Caribbean were large
and volatile, but the net of purchases and sales in
1996 was only about two-thirds the size recorded in
1995.
Private foreign net purchases of U.S. corporate and
U.S. government agency bonds were also large for
the year. However, private foreign net purchases of
U.S. corporate stocks continued to be very small. In
contrast, U.S. investors remained interested in both
foreign stocks and bonds and purchased a net of
$58 billion and $45 billion respectively.
Large direct investment capital flows occurred in
both directions. Foreign direct investment in the
United States surged to a record high $84 billion,
reflecting a pickup in foreign acquisitions of U.S.
firms. U.S. direct investment flows abroad were even
stronger, at $88 billion, although off slightly from the
record rate of 1995.
U.S. International Transactions in 1996
1 I.
367
(.'iiiiipOMtiiin of I '.V aipiUtl l l m w
Billions of dollars
Item
Current account balance ...
1992
1993
1994
1995
1996
Change.
1995 to 1996
-63
-100
-148
-148
-165
-17
Official capita], net
Foreign official assets in the United States ..
U.S. official reserve assets
Other US. government assets
43
41
4
-2
70
72
-1
0
45
40
5
0
100
110
-10
0
129
123
7
-1
29
13
17
-1
Private capital, net
Net inflows reported by U.S. banking offices
Securities transactions, net
Private foreign net purchases of U.S. securities
Treasury securities
Corporate and other bonds'
Corporate stocks
U.S. net purchases of foreign securities
Stocks
Bonds
Direct investmenl, net
Foreign direct investment in the United States.
US. direct investment abroad1
Other
45
36
14
64
37
31
-4
-49
-32
-16
-21
18
-39
14
-14
51
-42
104
24
61
19
17
-44
95
193
99
81
13
-99
-50
-48
-35
60
-96
0
89
-90
180
285
154
119
12
-146
89
104
31
91
34
54
3
-60
-48
-9
3
72
-46
85
92
55
38
-1
-6
-8
3
31
24
7
3
Statistical discrepancy
-23
44
-53
-85
-63
-80
-33
43
-76
12
_c
50
-55
^11
32
-105
-58
-45
-4
84
-88
1. For 1992, transactions with finance affiliates in the Netherlands Antilles
are excluded from direct investment outflows and included in foreign purchases
of U.S. securities. This adjustment was discontinued in 1993 oo the assumption
that by then virtually all the Eurobonds issued by Netherlands Antilles had come
due.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S.
international transactions accounts.
PiiOSfCCTS FOR
exports to economic growth, along with the recent
appreciation of the U.S. dollar, suggests that the current account deficit in 1997 will be larger than
in 1996. Whether the deficit actually increases in
1997 will also depend on many other factors, including changes in the price of oil and in the rates of
return that will be earned on existing U.S. claims and
liabilities.
•
Given the prospects for continued moderate growth
abroad and the strength of foreign demand for U.S.
computer products and aircraft, U.S. exports of goods
and services, in both nominal and real terms, should
continue to expand in 1997. However, the tendency
for U.S. imports to be more sensitive than U.S.
368
Industrial Production and Capacity Utilization
for March 1997
production grew at an annual rate of 5.6 percent after
an increase of 4.5 percent in the final quarter of 1996,
when growth had been held down by strike-related
losses in the motor vehicle industry. Excluding motor
vehicles and parts, manufacturing output grew at
the same strong rate in both quarters; the output
at utilities declined in the first quarter as a result
of unseasonably mild weather. The utilization
of industrial capacity increased 0.5 percentage point
Released for publication April 16
Industrial production advanced 0.9 percent in March
after a revised gain of 0.6 percent in February. In
recent months, as in the past year, the gains have
been mostly in durable manufacturing. At 119.6 percent of its 1992 average, total industrial production in
March was 5.6 percent higher than it was in March
1996. For the first quarter as a whole, industrial
Industrial production indexes
Twelve-month percent change
Twelve-month percent change
Manufacturing
Total industry
0
5
+
0
5
5
5
i
i
1
1
Materials
-
-
A
-
10
1
1
1
Durable
— manufacturing
10
5
5
0
+
0
Products
Nondurable
manufacturing
5
1
1991
1992
1993
1
1994
1
1
1
1995
1996
1997
1991
1992
1993
~
1
1994
5
1
1995
1996
1997
Capacity and industrial production
Ratio scale, 1992 production = 100
Ratio scale, 1992 production = 100
160
— Total industry
Capacity
160
— Manufacturing
Capacity
140
140
120
^
•
100
Production
J
100
Production
L
J
L
1
1
1
1
:
1
Percent of capacity
80
1
Percent of capacity
Manufacturing
Total industry
Utilization!
90
-
70
/
'-
Utilization
90
80
J
I
70
I
I
I
1983
1985
1987
1989
1991
1993
1995
1997
1983
1985
1987
are seasonally adjusted. Latest series, March. Capacity is an index of potential industrial production.
DigitizedAllforseries
FRASER
120
-~~
^s^~
— —
=
1
1989
1991
1
i
1993
i
i
1995
1997
369
Industrial production and capacity utilization, March 1997
Industrial production, index, 1992=100
Percentage change
Category
1996
1997
1
1996
Dec.
1
Jan.'
Feb.'
Mar. i"
119.6
Total
117.7
117.8
118.5
Previous estimate
117.7
117.6
118.1
Major market groups
Products, total2
Consumer goods
Business equipment
Construction supplies
Materials
114.3
112.7
130.7
117.8
123.1
114.3
112.0
132.1
117.6
123.3
114.9
111.8
133.8
119.8
124.4
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
119.2
128.8
108.8
104.5
112.6
119.3
129.4
108.4
104.2
113.5
120.4
131.3
108.7
105.7
109.7
Dec.'
1997
Jan.
.4
.1
.4
— I
115.9
112.6
135.6
120.6
125.4
.2
.4
.7
-2.4
.8
.1
-.7
1.0
121.4
133.1
109.1
106.7
110.6
.6
3
.8
1.0
-1.6
.1
.5
—4
-3
.8
Feb.'
Mar. >>
5.6
.9
1.3
1.9
.9
1.5
3
1.5
-3.4
.7
1.4
.7
.9
1.3
.3
.9
1997
1996
Total
82.1
Low,
1982
71.1
High,
1988-89
85.3
81.2
80.6
82.3
87.5
87.2
69.0
70.4
66.2
80.3
75.9
85.7
84.2
88.9
86.8
92.6
NOTFI. Data seasonally adjusted or calculated from seasonally adjusted
monthly data.
I. Change from preceding month.
in March, to 84.1 percent, the highest level since
March 1995.
When analyzed by market group, the data show
that the output of consumer goods advanced 0.7 percent, led by another increase of 1.5 percent in the
output of durable consumer goods. Gains were especially notable for household appliances, home computing equipment, and furniture. The production
of automotive products rose 0.8 percent for a second
consecutive month. After declines in January
and February, the production of nondurable consumer goods increased 0.5 percent, with gains
in gasoline, paper, food, tobacco, and residential
utilities.
The output of business equipment rose 1.4 percent
further, its third consecutive monthly increase of
1 percent or more. Solid gains were evident in all
the major categories within business equipment,
with commercial aircraft, office and computing equipment, and business vehicles again accounting
for much of the monthly increase. The output of
6.6
9.2
3.5
3.8
-3.3
Capacity,
percentage
change.
Mar. 1996
to
Mar. 1997
Mar.
Dec'
Jan.r
Feb.'
Mar. i'
82.6
83.5
83.4
83.6
84.1
3.7
83.5
83.2
83.3
82.5
80.8
86.6
91.9
89.3
82.3
80.7
86.1
91.6
89.9
82.8
81.1
86.7
92.9
86.7
83.3
81.6
87.2
93.7
87.3
4.1
4.9
2.3
.0
2.0
Previous estimate
Manufacturing
Advanced processing
Primary processing .
Mining
Utilities
5.0
2.9
10.6
4.4
6.6
MEMO
Capacity utilization, percent
Average,
1967-96
Mar. 1996
to
Mar. 1997
81.3
79.4
85.6
90.3
92.2
2. Contains components in addition to those shown,
r Revised,
p Preliminary.
defense and space equipment edged down; on balance, this series is close to the low it reached early
last year.
The output of construction supplies rebounded further; over February and March, it recouped the
2'/2 percent drop of the previous two months. On
balance, the production in this sector has been at a
high level since last summer. The production of materials rose 0.8 percent for a second month. Gains of
about 1 Vi percent in February and March in the
output of durable goods materials dominated the
advance. Among the components of durable materials, the output of equipment parts rose more than
2 percent for a second month; semiconductors again
contributed much of the increase. The production of
basic metals and parts for motor vehicles and other
consumer durables also increased again. The output
of nondurable goods materials edged down 0.1 percent and has changed little since the end of last year.
The production of energy materials, which fell in
February because of the benign weather conditions,
370
Federal Reserve Bulletin D May 1997
recovered only a bit as weather remained mild. The
output of coal, which is heavily used to generate
electricity, declined.
When analyzed by industry group, the data show
that manufacturing output rose 0.9 percent in March,
the same amount as in February. The gain was concentrated in durables; the output in this sector rose
1.3 percent in March and 1.5 percent in February,
with sizable increases in both months for most major
groups. The production of nondurables rose 0.3 percent; this group has changed little, on balance, so far
this year. The output at utilities rose, but it recovered
only a fraction of the sharp drop in February. Mining
output increased substantially again, propelled by
the continued strong gains in oil and gas drilling
activity.
The factory operating rate rose 0.5 percentage
point, to 83.3 percent, 2 percentage points above both
its 1967-96 average and its level in March 1996.
Within the durable manufacturing category, rates
remain relatively high for primary metals, light
trucks, and industrial machinery and equipment. The
capacity utilization rate for nondurable manufacturing is at its long-term average; relatively low rates for
apparel, leather and products, and textiles balance
operating rates that exceed 90 percent for petroleum
refining and rubber and plastics products. The utilization rates for mining industries, with the exception of
coal mining, are high.
This release and the history for all published series
are available on the Internet at the Board's World
Wide Web site, http://www.bog.frb.fed.us.
•
371
Statements to the Congress
Statement by Alan Greenspan, Chairman, Board of
Governors of the Federal Reserve System, before the
Committee on the Budget, U.S. House of Representatives, March 4, 1997
I appreciate the opportunity to appear before you
today. As you know, my colleagues and I who serve
on the Federal Reserve Board just recently submitted
to the Congress our semiannual report on monetary
policy and the economy.1 In brief, the performance of
the U.S. economy over the past year has been quite
favorable, with few signs of the imbalances that
might typically have been expected by the sixth year
of a cyclical expansion. Indeed, we believe that the
most likely prospect is for continued sustainable economic growth accompanied by low and stable inflation, and our objective will be to foster the conditions
most likely to produce that outcome.
In that regard, continued low levels of inflation and
inflation expectations have been a key support for the
healthy economic performance of the past year. They
have helped to create a financial and economic environment conducive to strong capital spending and
longer-range planning generally and so to sustained
economic expansion. Consequently, it is crucial to
keep inflation contained in the near term and ultimately to move toward price stability.
If we are successful, a stable macroeconomic environment will contribute to your efforts to place the
fiscal health of the nation on a firmer footing. But
achieving your fiscal objectives will require that this
committee confront additional issues of extraordinary
complexity and importance. I would like to devote
the remainder of my prepared remarks to one of these
issues, namely the bias in the consumer price index
(CPI).
I want to begin by commending this committee for
your continuing interest in this subject. Indeed, our
conversation about potential bias in the CPI goes
back about two years, when I testified before a joint
meeting of this committee and your counterparts
from the Senate. The topic remains just as important
now as it was then.
1. See "Monetary Policy Report to the Congress," Federal Reserve
Bulletin, vol. 83 (March 1997), pp. 173-87.
A useful starting point for discussion of this issue
is to be clear that any index that endeavors to measure the cost of living should aim to be unbiased.
That is, a serious examination of all available evidence should yield the conclusion that there is just as
great a chance that the index understates the rate of
growth of the true cost of living as there is that it
overstates it. The present-day consumer price index
does not meet this standard. In fact, the best available
evidence suggests that there is almost a 100 percent
probability that we are overcompensating the average
social security recipient for increases in the cost of
living and almost a 100 percent probability that we
are causing the inflation-adjusted burden of the
income tax system to decline more rapidly than I
presume the Congress intends.
A major reason for this is that consumers respond
to changes in relative prices by changing the composition of their actual market basket. At present, however, the market basket used in constructing the CPI
changes only once every decade or so. Moreover,
new goods and services deliver value to consumers
even at the relatively elevated prices that often prevail early in their life cycles; currently, that value is
not reflected in the CPI.
For these and other reasons outlined in the Boskin
Commission report and other studies, we know with
near certainty that the current CPI is off. Although we
do not know precisely by how much, there is a very
high probability that the upward bias ranges between
Vi percentage point per year and \lh percentage
points per year.
In thinking about how to remedy this situation, we
must recognize that there is no sharp dividing line
between a pristine estimate of a price and one that is
not. Although the concept of price is clear enough
in theory, it is often extremely difficult to implement
in practice. To construct a fully satisfactory measure
of the price of a given item, one would first have
to specify all the characteristics of that item that
deliver value to consumers. Then one would have
to reprice the identical bundle of characteristics
month in and month out. In practice, both of these
steps are difficult because we are often not precisely
certain about what consumers value and because
the items that are available to consumers are constantly changing, often in subtle ways. As a result,
372
Federal Reserve Bulletin • May 1997
virtually all of the components that make up the
CPI are approximations, in some cases very rough
approximations. But the essential fact remains that
even combinations of very rough approximations can
give us a far better judgment of the overall cost of
living than would holding to a false precision of
accuracy and thereby delimiting the range of goods
and services evaluated. We would be far better served
following the wise admonition of John Maynard
Keynes that "it is better to be roughly right than
precisely wrong."
Estimates of the magnitude of the bias in our price
measures are available from a number of sources.
Most have been developed from detailed examinations of the microstatistical evidence. However,
recent work by staff economists at the Federal
Reserve Board has added strong corroborating evidence of price mismeasurement using a macroeconomic approach that is essentially independent of
the exercises performed by other researchers, including those on the Boskin Commission. In particular,
employing the statistical system from which the
Commerce Department estimates the national income
and product accounts, this research finds that the
measured growth of real output and productivity in
the service sector are implausibly weak, given that
the return to owners of businesses in that sector
apparently has been well maintained. Taken at face
value, the published data indicate that the level of
output per hour in a number of service-producing
industries has been falling for more than two decades.
In other words, the data imply that firms in these
industries have been becoming less and less efficient
for more than twenty years.
These circumstances simply are not credible. On
the reasonable assumption that nominal output and
hours worked and paid of the various industries are
accurately measured, faulty price statistics are by far
the most likely cause of the implausible productivity
trends. The source of a very large segment of these
prices is the CPI.
Some observers who are skeptical that the bias in
the CPI could be very large have noted that the
evidence on the magnitude of unmeasured quality
change and the importance of new items bias is
incomplete and inconclusive. Without a doubt, quality change and new items are among the most difficult of the problems currently confronting the Bureau
of Labor Statistics (BLS). But since I raised this issue
two years ago, the accumulating evidence continues
to support the view that the current treatment of
quality change and new items in the CPI results in an
overstatement of the rate of growth of the cost of
living.
An even more difficult quality-related issue is
whether changes in broad environmental and social
conditions should be reflected in price measures that
are used for indexing various components of federal
outlays and receipts. That is, should the CPI reflect
the influence of factors such as the level of crime, the
quality of air and water, and the emergence of new
diseases, which are not specifically related to products that consumers purchase? Little in the record
suggests that, when the Congress enacted the indexation of social security benefits in 1972, it meant to
insure the beneficiaries of that program against
changes in such environmental and social factors.
Nor do these issues appear to have been raised when
the Congress debated the indexation of various tax
parameters during the 1980s. Taking account of such
conditions, particularly those that lie outside the markets for goods and services, would be an interesting
exercise in its own right but would appear to extend
well beyond the original intent of the Congress.
A considerable professional consensus already
exists for at least two actions that would almost
surely bring the CPI into closer alignment with a true
cost-of-living index. First, we should move away
from the concept of a fixed market basket at the
upper level of aggregation and move toward an
aggregation formula that takes into account the tendency of consumers to alter the composition of their
purchases in response to changes in relative prices.
Second, we should selectively move away from the
current aggregation formula at the lower level of
aggregation.
Beyond these rather limited steps, most of the
needed developments will require time, effort, and
quite possibly additional resources. It is important
that the Congress provide the Bureau with sufficient
resources to pursue the agenda vigorously.
Where will this longer-term effort be required?
One of the key areas, by all accounts, is quality
adjustment. As the Bureau has rightly noted, they do
indeed already employ a variety of methods to control for quality change, but available evidence suggests that these are not sufficient to the task. Unfortunately, making improvements on this front will be
difficult: Each item will have to be considered on its
own, and there may well be limited transfer of knowledge from one item to the next.
The longer-term agenda should also include concentrated attention to the methods for introducing
new items into the index; the development of new
sources of data such as the information collected by
bar code scanners; and the analysis of time use, the
latter being important in understanding the value of
time-saving and convenience-enhancing innovations.
Statements to the Congress
373
Even if the BLS moves aggressively, some upward
bias will almost surely remain in the CPI, at least for
the next several years. Two years ago, I suggested
that a workable structure for dealing with this situation might involve a two-track approach. That suggestion still seems to me to make sense. The first
track would involve action by the BLS to address
those aspects of the bias that can be dealt with in
relatively short order, say within the next year. The
second track would involve the establishment of an
independent national commission to set annual costof-living adjustment factors for federal receipt and
outlay programs. The Commission would examine
available evidence on a periodic basis and estimate
the bias in the CPI, taking into account both the latest
research on the sources and magnitudes of the bias
and any corrective actions that had been taken by the
BLS. This type of approach would have the benefit of
being objective, nonpartisan, and sufficiently flexible
to take full account of the latest information. More-
over, there is no reason why the two tracks could not
proceed in parallel.
Without the second track, we are implicitly assuming, contrary to overwhelming evidence, that the
most accurate estimate of the bias due to quality
adjustment problems and introduction of new items is
zero. There has been considerable objection that such
a second track procedure would be a political fix. To
the contrary, assuming zero for the remaining bias is
the political fix. On this issue, we should let evidence, not politics, drive policy.
We have an overarching national interest in building a better measure of consumer prices and in implementing more rational indexation procedures. These
efforts are essential if we are to ensure that the
original intent of the relevant pieces of legislation
will be fulfilled in insulating taxpayers and benefit
recipients from the effects of ongoing changes in the
cost of living. At present this objective is not being
met.
Statement by Alan Greenspan, Chairman, Board of
Governors of the Federal Reserve System, before the
Subcommittee on Capital Markets, Securities and
Government-Sponsored Enterprises of the Committee
on Banking and Financial Services, U.S. House of
Representatives, March 19, 1997
SUPERVISION AND CENTRAL BANKING
Thank you for inviting me to present the views of the
Federal Reserve Board on the supervision of our
nation's banking organizations should they be authorized by the Congress to engage in a wider range of
activities. As you know, the Board has supported
financial modernization for many years and hopes
that the Congress will act to facilitate reforms that, by
enhancing competition within the financial services
industry, would benefit the consumers of financial
products in the United States.
Financial modernization may well mean that future
banking organizations will be sufficiently different
from today as to require perhaps substantial changes
in the supervisory process for the entire organization.
Just how much modification may be needed will
depend on the kinds of reforms the Congress adopts.
In evaluating those modifications, I would like to
underline the significant supervisory role required by
the Federal Reserve to carry out its central bank
responsibilities. I also would like briefly to discuss
the continued importance of umbrella supervision
and the implications of a wider role for bank subsidiaries in the modernization process.
There are compelling reasons why the central bank of
the United States—the Federal Reserve—should continue to be involved in the supervision of banks. The
supervisory activities of the Federal Reserve, for
example, have benefited from its economic stabilization responsibilities and its recognition that safety
and soundness goals for banks must be evaluated
jointly with its responsibilities for the stability and
growth of the economy. The Board believes that
these joint responsibilities make for better supervisory and monetary policies than would result from
either a supervisor divorced from economic responsibilities or a macroeconomic policymaker with no
practical experience in the review of individual bank
operations.
To carry out its responsibilities, the Federal
Reserve has been required to develop extensive,
detailed knowledge of the intricacies of the U. S.,
and indeed the world, financial system. That expertise is the result of dealing constantly over many
decades with changing financial markets and
institutions and their relationships with each other
and with the economy and from exercising supervisory responsibilities. It comes as well from ongoing
interactions with central banks and financial
institutions abroad. These international contacts
are critical because today crises can spread more
rapidly than in earlier times—in large part reflecting
374
Federal Reserve Bulletin • May 1997
new technologies—and require a coordinated international response.
CRISIS MANAGEMENT AND SYSTEMIC RISK
Second only to its macrostability responsibilities is
the central bank's responsibility to use its authority
and expertise to forestall financial crises (including
systemic disturbances in the banking system) and to
manage such crises once they occur. In a crisis, the
Federal Reserve, to be sure, could always flood the
market with liquidity through open market operations
and discount window loans; at times it has stood
ready to do so, and it does not need supervisory and
regulatory responsibilities to exercise that power. But
while sometimes necessary in times of crises, such an
approach may be costly and distortive to economic
incentives and long-term growth as well as an insufficient remedy. Supervisory and regulatory responsibilities give the Federal Reserve both the insight and
the authority to use techniques that are less blunt and
more precisely calibrated to the problem at hand.
Such tools improve our ability to manage crises and,
more important, to avoid them. The use of such
techniques requires both the authority that comes
with supervision and regulation and the understanding of the linkages among supervision and regulation,
prudential standards, risk-taking, relationships among
banks and other financial market participants, and
macroeconomic stability.
Our financial system—market oriented and characterized by innovation and rapid change—imparts
significant benefits to our economy. But one of the
consequences of such a dynamic system is that it is
subject to episodes of stress. In the 1980s and early
1990s we faced a series of international debt crises, a
major stock market crash, the collapse of the most
important player in the junk bond market, the virtual
failure of the savings and loan industry, and extensive
losses at many banking institutions. More recently,
we faced another Mexican crisis and, while in the
event less disruptive, the failure of a large British
merchant bank. In such situations the Federal Reserve
stands ready to provide liquidity, if necessary, and
monitors continuously the condition of depository
institutions to contain the secondary consequences of
any problem. The objectives of the central bank in
crisis management are to contain financial losses and
prevent a contagious loss of confidence so that difficulties at one institution do not spread more widely to
others. The focus of its concern is not to avoid the
failure of entities that have made poor decisions or
have had bad luck but rather to see that such
failures—or threats of failures—do not have broad
and serious impacts on financial markets and the
national, and indeed the global, economy.
The Federal Reserve's ability to respond expeditiously to any particular incident does not necessitate
comprehensive information on each banking institution. But it does require that the Federal Reserve have
in-depth knowledge of how institutions of various
sizes and other characteristics are likely to behave
and what resources are available to them in the event
of severe financial stress. Even for those events that
might, but do not, precipitate financial crises, the
authorities turn first to the Federal Reserve, not only
because, as former Chairman Volcker noted last
month, we have the money but also because we have
the expertise and the experience. We currently gain
the necessary insight by having a broad sample of
banks subject to our supervision and through our
authority over bank holding companies.
PAYMENT AND SETTLEMENT SYSTEMS
Virtually all of the U.S. dollar transactions made
worldwide—for securities transfers, foreign exchange
and other international capital flows, and for payment
for goods and services—are settled in the U.S. banking system. A small number of transactions that
comprise the vast proportion of the total value of
transactions are transferred over large-dollar payment
systems. Banks use two of these systems—Fedwire,
operated by the Federal Reserve, and CHIPS (Clearing House Interbank Payments System), operated by
the New York Clearing House—currently to transfer
$1.6 trillion and $1.3 trillion a day respectively.
CHIPS settles its members' net positions on Fedwire.
These interbank transfers, for banks' own accounts
and for those of their customers, occur and are settled
over a network and structure that is the backbone of
the U.S. financial system. Indeed, it is arguably the
linchpin of the international system of payments that
relies on the dollar as the major international currency for trade and finance. Disruptions and disturbances in the U.S. payment system thus can easily
have global implications. Fedwire, CHIPS, and the
specialized depositories and clearinghouses for securities and other financial instruments are crucial to the
integrity and stability not only of our financial markets and economy but those of the world. Similarly,
adverse developments in transfers in London, Tokyo,
Singapore, and a host of other centers could rapidly
be transferred here, given the financial interrelationships among the individual trading nations.
Statements to the Congress
In all these payment and settlement systems, commercial banks play a central role, both as participants
and providers of credit to nonbank participants. Day
in and day out, the settlement of payment obligations
and securities trades requires significant amounts of
bank credit. In periods of stress, such credit demands
surge just at the time when some banks are least
willing or able to meet them. These demands, if
unmet, could produce gridlock in payment and settlement systems, halting activity in financial markets.
Indeed, it is in the cauldron of the payments and
settlement systems, where decisions involving large
sums must be made quickly, that all of the risks and
uncertainties associated with problems at a single
participant become focused as participants seek to
protect themselves from uncertainty. Better solvent
than sorry, they might well decide, and refuse to
honor a payment request. Observing that, others
might follow suit. And that is how crises often begin.
Limiting, if not avoiding, such disruptions and
ensuring the continued operation of the payment system requires broad and in-depth knowledge of banking and markets, as well as detailed knowledge and
authority with respect to the payment and settlement
arrangements and their linkages to banking operations. This type of understanding and authority—
as well as knowledge about the behavior of key
participants—cannot be created on an ad hoc basis. It
requires broad and sustained involvement in both the
payment infrastructure and the operation of the banking system. Supervisory authority over the major
bank participants is a necessary element.
MONETARY POLICY
While financial crises and payment systems disruptions arise only sporadically, the Federal Reserve
conducts monetary policy on an ongoing basis. In
this area, too, the Federal Reserve's role in supervision and regulation provides an important perspective to the policy process. Monetary policy works
through financial institutions and markets to affect
the economy, and depository institutions are a key
element in those markets. Indeed, banks and thrift
institutions are more important in this regard than
might be suggested by a simple arithmetic calculation
of their share of total credit flows. While diverse
securities markets handle the lion's share of credit
flows these days, banks are the backup source of
liquidity to many of the securities firms and large
borrowers participating in these markets. Moreover,
banks at all times are the most important source of
credit to most small and intermediate-sized firms that
375
do not have ready access to securities markets. These
firms are the catalyst for U.S. economic growth and
the prime source of new employment opportunities
for our citizens. The Federal Reserve must make
its monetary policy with a view to how banks are
responding to the economic environment. This was
especially important during the "credit crunch" of
1990. Our supervisory responsibilities give us important qualitative and quantitative information that not
only helps us in the design of monetary policy but
provides important feedback on how our policy
stance is affecting bank actions.
The macroeconomic stabilization responsibilities
of the Federal Reserve make us particularly sensitive
to how regulatory and supervisory postures can influence bank behavior and hence how banks respond to
monetary policy actions. For example, capital, liquidity, loan-loss reserve, and asset quality evaluation
policies of supervisors will directly influence the
manner and speed with which monetary policy
actions work. In the development of interagency rules
and policies, the Federal Reserve brings to the table
its unique concerns about the impact of these rules on
credit availability, potential responses to changes in
interest rates, and the consequences for the economy.
We believe that, as a result, supervisory policy is
improved.
FEDERAL RESERVE'S SUPERVISORY ROLE
For all of these reasons, the Board believes the Federal Reserve needs to retain a significant supervisory
role in the banking system. Just exactly how that is
achieved depends critically on the types of reforms
the Congress enacts and the direction the banking
industry takes in structuring and conducting its activities. In the Board's view, its current authority is
adequate for the current structure. For today's financial system, we are able to meet our obligations by
the intelligence we gain from and the authorities we
have over the modest number of large banks we
directly supervise and the holding companies of these
and other large banks over which we have a direct
umbrella supervisory role. Our information is importantly supplemented by our supervision of a number
of other banks of all sizes, namely state member
banks. Currently, the latter group gives us a good
representative sample of organizations of all sizes
outside the largest entities.
The large entities are essential if we are to address
the Federal Reserve's crisis management and systemic risk responsibilities, deal with international
financial issues involving foreign central banks, man-
376
Federal Reserve Bulletin • May 1997
age risk exposures in payment systems, and retain
our practical knowledge and skill base in rapidly
changing financial markets. Large bank holding companies are typically at the forefront in financial innovation and in developing sophisticated techniques for
managing risks. It is crucial that the Federal Reserve
stay informed of these events and understand directly
how they work in practice. Directly supervising both
these large organizations and a sample of others is
also critical to our ability to conduct monetary policy
by permitting us to gain firsthand, on-the-spot intelligence on how changes in financial markets—
including those induced by monetary policy—are
affecting money and credit flows.
If in the future the holding company becomes a
less clear window into the banking system, the Board
believes that the Congress would need to change the
supervisory structure if the central bank is to carry
out the responsibilities I have discussed today.
UMBRELLA SUPERVISION
The Congress, in its review of financial modernization, must consider legal entity supervision alone
versus legal entity supervision supplemented by
umbrella supervision. The Board believes that
umbrella supervision is a realistic necessity for the
protection of our financial system and to limit any
misuse of the sovereign credit, that is, the government's guarantees that support the banking system
through the safety net.
The bank holding company organization increasingly is being managed so as to take advantage of the
synergies between its component parts in order to
deliver better products to the market and higher
returns to stockholders. Such synergies cannot occur
if the model of the holding company is one in which
the parent is just, in effect, a portfolio investor in its
subsidiary. Indeed, virtually all of the large holding
companies now operate as integrated units and are
managed as such, especially in their management of
risk.
One could argue that regulators should be interested only in the entities they regulate and, hence,
review the risk-evaluation process only as it relates
to their regulated entity. Presumably each regulator of each entity—the bank regulators, the Securities and Exhange Commission, the state insurance
and any state finance company authorities—would
look only at how the risk-management process
affected their units. It is our belief that this
simply will not be adequate. Risks managed on
a consolidated basis cannot be reviewed on an
individual legal entity basis by different supervisors.
The latter logic motivated the congressional decision just five years ago to require that foreign banks
could enter the United States if, and only if, they
were subject to consolidated supervision. This decision, which is consistent with the international standards for consolidated supervision of banking organizations, was a good decision then. It is a good
decision today, especially for those banking organizations whose disruption could cause major financial
disturbances in U.S. and foreign markets. For foreign
and for U.S. banking organizations, retreat from consolidated supervision would, the Board believes, be a
significant step backward.
We have to be careful, however, that consolidated
umbrella supervision does not inadvertently so hamper the decisionmaking process of banking organizations as to render them ineffectual. The Federal
Reserve Board is accordingly in the process of
reviewing its supervisory structure and other procedures in order to reflect a market-directed shift from
conventional balance sheet auditing to evaluation
of the internal risk-management process. Although
focused on the key risk-management processes, it
would sharply reduce routine supervisory umbrella
presence in holding companies. As the committee
knows, the Board has recently published for comment proposals to expedite the applications process,
and the legislation the Congress enacted last year
eased such procedures as well. Nonetheless, the
Board requests even greater modification to its existing statutory mandate so that the required applications process could be sharply cut back, particularly
in the area of nonbank financial services.
In the Board's view, those entities interested in
banks are really interested in access to the safety net,
since it is far easier to engage in the nonsafety net
activities of banks without acquiring a bank. If an
organization chooses to deliver some of its services
with the aid of the sovereign credit by acquiring a
bank, it should not be excused from efforts of the
government to look out for the stability of the overall
financial system. For bank holding companies, this
implies umbrella supervision. Although that process
will increasingly be designed to reduce supervisory
presence and be as nonintrusive as possible, umbrella
supervision should not be eliminated but recognized
for what it is: the cost of obtaining a subsidy.
Nonetheless, we would hope that should the Congress authorize wider activities for financial services
holding companies that it recognize that a bank which
is a minor part of such an organization (and its
associated safety net) can be protected through
Statements to the Congress
adequate bank capital requirements and the application of sections 23A and 23B of the Federal Reserve
Act. The case is weak, in our judgment, for umbrella
supervision of a holding company in which the bank
is not the dominant unit and is not large enough to
induce systemic problems should it fail.
SUBSIDIARIES, SUBSIDIES, AND SAFETY NETS
The members of this subcommittee are, I think, aware
of the Board's concerns that the safety net constructed for banks inherently contains a subsidy, that
conducting new activities in subsidiaries of banks
will inadvertently extend that subsidy, and that extension of any subsidy is undesirable. The subcommittee
recently heard testimony that there is no net subsidy
and, therefore, the authorization of nonbank activities
in bank subsidiaries would neither inadvertently
extend this undesirable side effect of the safety net
nor reduce the importance of the holding company as
a consequence of the increased incentives to shift
activities from the holding company to the bank.
I would like briefly to comment on these latter
views.
Subsidy values—net or gross—vary from bank to
bank; riskier banks clearly get a larger subsidy from
the safety net than safer banks. In addition, the value
of the subsidy varies over time; in good times, markets incorporate a low risk premium and when
markets turn weak, financial asset holders demand to
be compensated by higher yields for holding claims
on riskier entities. It is at this time that subsidy values
are the most noticeable. What was it worth in the late
1980s and early 1990s for a bank with a troubled loan
portfolio to have deposit liabilities guaranteed by the
Federal Deposit Insurance Corporation (FDIC), to be
assured that it could turn illiquid to liquid assets at
once through the Federal Reserve discount window,
and to tell its customers that payment transfers would
be settled on a riskless Federal Reserve Bank? For
many, it was worth not basis points but percentage
points. For some, it meant the difference between
survival and failure.
It is argued by some that the cost of regulation
exceeds the subsidy. I have no doubt that the costs of
regulation are large, too large in my judgment. But no
bank has turned in its charter in order to operate
without the cost of banking regulation, which would
require that it operate also without deposit insurance
or access to the discount window or payments system. To do so would require both higher deposit costs
and higher capital. Indeed, it is a measure of the size
311
of banks' net subsidy that most nonbank financial
institutions are required by the market to operate with
significantly higher capital-to-asset ratios than banks.
Most finance companies, for example, with credit
ratings and debenture interest costs equal to banks are
forced by today's market to hold 6 or 7 percentage
points higher capital-to-asset ratios than those of
banks.
It is instructive that there are no private deposit
insurers competing with the FDIC. For the same
product offered by the FDIC, private insurers would
have to charge premiums far higher than those of
government insurance, and still not be able to match
the certainty of payments in the event of default, the
hallmark of a government insurer backed by the
sovereign credit of the United States.
The Federal Reserve has a similar status with
respect to the availability of the discount window and
riskless final settlement during a period of national
economic stress. Providing such services is out of the
reach of all private institutions. The markets place
substantial values on these safety net subsidies,
clearly in excess of the cost of regulation. To repeat,
were it otherwise, some banks would be dropping
their charters if there were not a net subsidy.
In fact, it is apparently the lower funding costs at
banks, that benefit directly from the subsidy of the
safety net, that has created the tendency for banking
organizations to return to the bank and its subsidiaries many activities that are authorized to banks.
These activities previously had been conducted in
nonbank affiliates for reasons such as geographic and
other inflexibilities, which have gradually eased.
Indeed, over the past decade the share of consolidated assets of bank holding companies associated
with nonbank affiliates—other than section 20 securities affiliates—has declined almost half to just
5.2 percent. This tendency reflects the fact that asset
growth that earlier had been associated with nonbank affiliates of bank holding companies—consumer
and commercial finance, leasing, and mortgage
banking—has most recently occurred largely in the
bank or in a subsidiary of the bank. To be sure, as
Chairman Heifer indicated to the subcommittee earlier this month, many banking organizations still
retain nonbank subsidiaries. Our discussions with
bank holding companies, however, suggest that in
some cases, these affiliates were acquired in the past
and have established names and an interstate network
whose value would be reduced if subsumed within a
bank. There are also often adverse tax implications
for the shift. And, finally, some of these activities
may not be asset intensive and hence may not benefit
significantly from bank funding.
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Federal Reserve Bulletin • May 1997
Clearly, the authorization of new activities in bank
subsidiaries that are not now permitted either to banks
or their affiliates would tend to accelerate the trend to
reduce holding company activity, even if these activities were also permitted to holding company subsidiaries. The subsidy inherent in the safety net would
assure that result, extending the spread of the safety
net and requiring that the Federal Reserve's authority
and ability to meet its responsibilities be shifted to a
different paradigm.
Such a result is reason enough for our concern
about the spreading of the safety net subsidy. But we
should also be concerned because of the distortions
that subsidies bring to the financial system more
generally. After all, the broad premise underlying
financial modernization—with its removal of legislative and regulatory restrictions—is that free and often
intense competition will create the most efficient and
customer-oriented business system.
This principle has proved itself, generation by generation, with ever higher standards of living.
In financial, as well as most other, markets the
principle is rooted in another premise—that the interaction of private competitive forces will, with rare
exceptions, create a stable error self-correcting system. This premise is very seriously called into question if government subsidies are supplied at key
balancing points. By their nature, subsidies distort the
establishment of competitive market prices and create incentives that misalign private risks with private
gains. Such distortions undermine the error selfcorrecting mechanisms that support strong financial
markets.
We must be very careful that in the name of free
market efficiency we do not countenance greater
powers and profits subsidized directly or indirectly
by government.
Statement by Alan Greenspan, Chairman, Board of
Governors of the Federal Reserve System, before the
Joint Economic Committee, U.S. Congress, March 20,
1997
As I told the Congress last month, the performance
of the U.S. economy remains quite favorable. Real
GDP growth picked up to more than 3 percent
over the four quarters of 1996. Moreover, recently
released data suggest that activity has retained a great
deal of vigor in early 1997. In addition, nominal
hourly wages and salaries have risen faster than
prices over the past several quarters, meaning that
workers have reaped some of the benefits of rising
productivity and thus gained ground in real terms.
Outside the food and energy sectors, increases in
consumer prices have actually continued to edge
lower, with core CPI inflation of only 2l/i percent
over the past twelve months.
The low inflation of the past year is both a symptom and a cause of the good economy. It is symptomatic of the balance and solidity of the expansion and
I am pleased to appear here today. Last month, the
Federal Reserve Board submitted its semiannual
report on monetary policy to the Congress.1 That
report and my accompanying testimony covered in
detail our assessment of the outlook for the U.S.
economy. This morning, I would like to highlight
some of the key aspects of the current economic
situation.
1. See "Monetary Policy Report to the Congress," Federal Reserve
Bulletin, vol. 83 (March 1997), pp. 173-87.
CONCLUSION
In conclusion, the Board believes that as the Congress moves toward financial modernization the
newly created structure of financial organizations
should limit, insofar as possible, the real and perceived transfer of the subsidy inherent in the safety
net to nonbank activities. To maintain a level playing
field for all competitors, nonbank activities must be
financed at market, not subsidized, rates.
The Board also believes that financial modernization should not undermine the ability and authority of
the central bank of the United States to manage
crises, ensure an efficient and safe payment system,
and conduct monetary policy. We believe all of these
require that the Federal Reserve retain a significant
and important role as a bank supervisor. In today's
structure, we have adequate authority and coverage to
meet our responsibilities. But should erosion occur,
as would likely be the case if new activities are
authorized in bank subsidiaries, the Congress would
have to consider what changes would be required
in the Board's supervisory authority to ensure that
it continues to be able to meet its central bank
responsibilities.
Statements to the Congress
the evident absence of major strains on resources. At
the same time, continued low levels of inflation and
inflation expectations have been a key support for
healthy economic performance. They have helped to
create a financial and economic environment conducive to strong capital spending and longer-range
planning generally and so to sustained economic
expansion. These types of results are why we stressed
in our monetary policy testimony the importance of
acting promptly—ideally preemptively—to keep
inflation low over the intermediate term and to promote price stability over time.
For some, the benign inflation outcome of the past
year might be considered surprising, as resource utilization rates—particularly of labor—have been in the
neighborhood of those that historically have been
associated with building inflation pressures. To be
sure, nominal hourly labor compensation, especially
its wage component, accelerated in 1996. But the rate
of pay increase still was markedly less than historical
relationships with labor market conditions would
have predicted.
Atypical restraint on compensation increases has
been evident for a few years now. Almost certainly,
it reflects a number of factors, including the sharp
deceleration in health care costs and the heightened
pressure on firms and workers in industries that compete internationally. Domestic deregulation has also
intensified the competitive forces in some industries.
But, as I outlined in some detail in testimony last
month, I believe that job insecurity has played the
dominant role. For example, in 1991, at the bottom of
the recession, a survey of workers at large firms by
International Survey Research Corporation indicated
that 25 percent feared being laid off. In 1996, despite
the sharply lower unemployment rate and the tighter
labor market, the same survey organization found
that 46 percent were fearful of a job layoff.
Whatever the reasons for its persistence, job insecurity cannot suppress wage growth indefinitely.
Clearly, there is a limit to how long workers will
remain willing to accept smaller increases in living
standards in exchange for additional job security.
Even if real wages were to remain permanently on a
lower upward track than otherwise as a result of the
greater sense of insecurity, the rate of change of
wages would revert at some point to a normal relationship with price inflation. The unknown is when a
more normal pattern will resume.
Indeed, the labor markets bear especially careful
watching for signs that such a process is under way.
So far this year, the demand for labor has stayed
strong. Payroll employment grew briskly in January
and February, and the unemployment rate remained
379
around 5 VA percent—roughly matching the low of the
last cyclical upswing, in the late 1980s. Also, initial
claims for unemployment insurance remained low
into March. In addition, the percentage of households
telling the Conference Board that jobs are plentiful
has risen sharply of late, which suggests that workers
may be growing more confident about the job situation. Finally, wages rose faster in 1996 than in 1995
by most measures—in fact, the acceleration was quite
sizable by some measures. This, too, raises questions
about whether the transitional period of unusually
slow wage gains may be drawing to a close. In any
event, further increases in labor utilization rates
would heighten the risk of additional upward pressure on wage costs, and ultimately prices.
To be sure, the pickup in wage gains to date has
not shown through to underlying price inflation.
Increases in the core CPI, as well as in several other
broad measures of prices, have stayed subdued or
even edged off further of late. As best I can judge,
faster productivity growth last year offset the pressure from rising compensation gains on labor costs
per unit of output. And nonlabor costs, which are
roughly a quarter of total consolidated costs of the
nonfinancial corporate sector, were little changed in
1996.
Owing in part to this subdued behavior of unit
costs, profits and rates of return on capital have risen
to high levels. As a consequence, a substantial number of businesses apparently believe that, were they
to raise prices to boost profits further, competitors
with already ample profit margins would not follow
suit; instead, they would use the occasion to capture
a greater market share. This interplay is doubtless a
significant factor in the evident loss of pricing power
in U.S. business. Intensifying global competition may
also be limiting the ability of domestic firms to hike
prices as well as wages.
Competitive pressures here and abroad should continue to act as a restraint on inflation in the months
ahead. In addition, crude oil prices have largely
retraced last year's run-up, and, with the worldwide
supply of oil having moved up relative to demand,
futures markets project stable prices over the near
term. Food prices should also rise less rapidly than
they did in 1996 as some of last year's supply limitations ease. Nonetheless, the trends in the core CPI
and in broader price measures are likely to come
under pressure from a continued tight labor market,
whose influence on costs will be augmented by the
scheduled increase in the minimum wage later in the
year. And, with considerable health care savings
already having been realized, larger increases in
fringe benefits could put upward pressure on overall
380
Federal Reserve Bulletin • May 1997
compensation. Moreover, although non-oil import
prices should remain subdued in 1997 as the sharp
rise in the dollar over the past year and a half continues to feed through to domestic prices, their damping
effects on U.S. inflation probably will not be as great
as in 1996.
The lagged effects of the increase in the exchange
value of the dollar will also likely restrain real U.S.
net exports this year. In addition, declines in real
federal government purchases should exert a modest
degree of restraint on overall demand, and residential
construction will probably not repeat the gains of
1996. On the other hand, financial conditions overall
remain supportive to the real economy, and creditworthy borrowers are finding funding to be readily
available from intermediaries and in the securities
markets. Moreover, we do not see evidence of widespread imbalances either in business inventories or in
stocks of capital equipment and consumer durables
that would lead to a substantial cutback in spending.
The trends in consumer spending on items other
than durables also look solid. Retail sales posted
robust gains in January and February, and, according
to various surveys, sentiment is decidedly upbeat.
Moreover, consumers have enjoyed healthy increases
in their real incomes over the past couple of years,
along with the extraordinary stock-market-driven rise
in their financial wealth.
Should the higher wealth be sustained, it could
provide important support to consumption in 1997.
But, looking at the data through 1996, the surging
stock market does not seem to have imparted as big a
boost to spending as past relationships would have
predicted. The lack of a more substantial wealth
effect is especially surprising because we have also
seen a noticeable widening in the ownership of stocks
over the past several years. Indeed, the Federal
Reserve's recently released Survey of Consumer
Finances suggests that of the total value of all families' holdings of publicly traded stocks and mutual
funds, the share held by those with incomes below
$100,000 (in 1995 dollars) rose from 32 percent in
1989 to 46 percent in 1995.
It is possible, however, that the wealth effect is
being offset by other factors. In particular, families
may be reluctant to spend their added wealth because
they see a greater need to keep it to support spending
in retirement. Many have expressed heightened concern about their financial security in old age, in part
because of growing skepticism about the viability of
the social security system. This concern has reportedly led to stepped-up saving for retirement.
The sharp increase in debt burdens in recent years
may also be constraining spending by some families.
Indeed, although our consumer survey showed that
debt usage rose between 1992 and 1995 for almost all
income groups, changes in financial conditions were
not uniform across families. Notably, the median
ratio of debt payments to income for families with
debt—a useful measure of the typical debt burden—
held steady or declined for families with incomes of
at least $50,000, but it rose for those with incomes
below $50,000. We do not know whether these latter
families took on the additional debt because they
perceived brighter future income prospects or simply
to accelerate purchases they would have made later.
Nonetheless, these families are probably the most
vulnerable to disruptions in income, and the rise in
their debt burdens is likely to make both borrowers
and lenders a bit more cautious as we move forward.
Both household and business balance sheets have
expanded at a pace considerably faster than income
and product flows over the past decade. Accordingly,
any percentage change in assets or liabilities has a
greater effect on economic growth than it used to.
However, identifying such influences in the aggregate
data is not always easy. At present, the difficulty is
compounded by concern that the currently published
national statistics may not provide an accurate reading of the trends in recent years, especially for
productivity.
In any event, other data suggest that wealth and
debt effects may be exerting a measurable influence
on the consumption and saving decisions of different
segments of the population. According to the Consumer Expenditure Survey conducted by the Bureau
of Labor Statistics, saving out of current income by
families in the upper-income quintile evidently has
declined in recent years. At the same time. Federal
Reserve estimates suggest that the use of credit for
purchases has leveled off after a sharp run-up from
1993 to 1996, perhaps because some families are
becoming debt constrained and, as a result, are curtailing their spending.
The Federal Reserve, of course, will be weighing
these and other influences as it makes future policy
decisions. Demand has been growing quite strongly
in recent months, and the Federal Open Market Committee (FOMC), at its meeting next week, will have
to judge whether that pace of expansion will be
maintained, and, if so, whether it will continue to be
met by solid productivity growth, as it apparently has
been—official figures to the contrary notwithstanding. Alternatively, if strong demand is expected to
persist and does not seem likely to be matched by
productivity improvement, the FOMC will have to
decide whether increased pressures on supply will
eventually produce the types of inflationary imbal-
Statements to the Congress
381
ances that, if not addressed early, will undermine the
long expansion.
Should we choose to alter monetary policy,
we know from past experience that, although the
financial markets may respond immediately, the main
effects on inflationary pressures may not be felt until
late this year and in 1998. Because forecasts that far
out are highly uncertain, we rarely think in terms of a
single outlook. Rather, we endeavor to assess the
likely consequences of our decisions in terms of a
reasonable range of possible outcomes. Part of our
evaluation is to judge not only the benefits that are
likely to result from appropriate policy but also the
costs should we be wrong. In any action—including
leaving policy unchanged—we seek to assure ourselves that the expected benefits are large enough to
risk the cost of a mistake.
In closing, I would like to note that the current
economic expansion is now entering its seventh year.
That makes it already a long upswing by historical
standards. And yet, looking ahead, the prospects for
sustaining the expansion are quite favorable. The
flexibility of our market system and the vibrancy of
our private sector remain examples for the whole
world to emulate. We will endeavor to do our part by
continuing to foster a monetary framework under
which our citizens can prosper to the fullest possible
extent.
Statement by Susan M. Phillips, Member, Board of
Governors of the Federal Reserve System, before the
Subcommittee on Financial Institutions and Regulatory Relief of the Committee on Banking, Housing,
and Urban Affairs, U.S. Senate, March 20, 1997
director, and employee interlocks between two such
companies.
I am pleased to be here today to discuss the Board's
section 20 firewalls—that is, the restrictions the
Board has imposed on bank holding companies
engaged in underwriting and dealing in securities. As
the name suggests, the purpose of firewalls is to
insulate a bank and its customers from the potential
hazards of combining commercial and investment
banking.
Since last year the Board has been engaged in a
comprehensive review of the twenty-eight firewalls it
erected in the late 1980s, and the Board has recently
proposed to eliminate a majority of those restrictions.
This oversight hearing provides a constructive opportunity for comment and analysis of the Board's proposal. Furthermore, if financial modernization is to
move forward, the issue of firewalls will have to be
confronted again. I hope that the Board's review and
the public comment process can inform the legislative process as well.
Today, I would like to explain why the Board
proposed changes to the firewalls. I will also discuss the final changes the Board made last year to
the revenue test that the Board uses to determine
compliance with section 20 of the Glass-Steagall
Act and to firewalls regarding cross-marketing
between a bank and a securities affiliate, and officer,
THE FIREWALLS IN CONTEXT: INDEPENDENT
PROTECTIONS FOR BANKS AND CONSUMERS
Before I begin this discussion, 1 think it is important
to place the firewalls in their historical and regulatory
context. Although the firewalls have served an important role, they are not the only protection against the
hazards of affiliation of commercial and investment
banks.
One important protection is the placement of securities activities in a separate subsidiary of the bank
holding company, rather than in the bank itself or a
subsidiary of the bank. Because nonbank subsidiaries
of a bank holding company operating under section
20 of the Glass-Steagall Act are affiliates of a bank,
they are not under the bank's control, do not have
their profits or losses consolidated with the bank's,
and are less liable to have their creditors recover
against the bank. A bank therefore has less incentive
to risk its own reputation or expose itself or its
customers to loss to assist a troubled section 20
affiliate or a failed underwriting by that affiliate.
Also, because securities activities are conducted in
an affiliate, banks are limited in their ability to fund
those activities by sections 23A and 23B of the
Federal Reserve Act. These restrictions are vitally
important. Section 23A limits the total value of transactions with any one affiliate to 10 percent of the
382
Federal Reserve Bulletin • May 1997
bank's capital and limits transactions with all affiliates to 20 percent of capital. It also requires that
substantial collateral be pledged to the bank for any
extension of credit. Section 23B requires that interaffiliate transactions be at arm's length and on marketterms and imposes other restrictions designed to limit
conflicts of interest.
Thus, affiliate status prevents the bank from passing along the federal subsidy inherent in the federal
safety net to its section 20 affiliate by extending
credit. Regulators could conceivably limit a bank's
ability to use credit to subsidize a direct securities
subsidiary of the bank as well by applying sections
23A and 23B. But the equity investment in the subsidiary would still be funded from subsidized
resources backed by the federal safety net. Even if
the investment were deducted from the capital of the
bank, the subsidy inherent in the transfer would
remain.
A second protection is examination of the bank
holding company, including the effect of securities
activities on insured depository institution subsidiaries. The Federal Reserve as holding company regulator monitors compliance with sections 23A and
23B and other aspects of the relationship between a
bank and its section 20 affiliate. In its supervision of
bank holding companies, the Board increasingly pays
attention to risk-management systems and policies
that are centralized at the holding company level and
govern both the bank and its section 20 affiliate.
A final series of protections is the regulatory
regime that applies to all broker-dealers, including
section 20 subsidiaries. The Securities Act of 1933
and the Securities Exchange Act of 1934 impose
registration, capital and disclosure requirements, antifraud protections, and other investor-protection measures. These laws, and their enforcement by the Securities and Exchange Commission, address many of
the safety and soundness and conflict-of-interest concerns about affiliation of commercial and investment
banks.
I note that most of these important protections
were not in place when the Glass-Steagall Act passed
in 1933. Thus, although proponents of high firewalls
frequently cite the subtle hazards of affiliation discussed in the legislative history of that act, the regulatory environment was far different then. I believe that
the drafters of the Glass-Steagall Act would have had
a very different discussion—and passed a very different act—had today's statutory and regulatory protections been present in 1933.
Not only were these protections largely absent in
1933, some were not even present in 1987 when the
Board first erected its firewalls. Section 23B of the
Federal Reserve Act had not been adopted at the time
of the Board's first section 20 order in 1987. As a
result, many of the firewalls overlap the restrictions
of section 23B, which, as I noted, requires interaffiliate transactions to be at arm's length and on market
terms but also prohibits a section 20 affiliate from
representing that an affiliated bank is responsible for
its obligations and prohibits a bank from purchasing
certain products from a section 20 affiliate. Similarly,
risk-based capital standards did not exist in 1987, and
those standards now require a bank to hold capital
against many of the on- and off-balance-sheet exposures it maintains in conjunction with a section 20
affiliate. Finally, the Interagency Statement on
Retail Sales of Nondeposit Investment Products was
not adopted until 1994. The Interagency Statement
includes disclosure and other requirements that are
now the primary means by which the federal banking
agencies seek to ensure that retail customers are not
misled about the nature of nondeposit products they
are purchasing on bank premises.
THE BOARD'S REVIEW
Thus, when the Board last year decided to reexamine
the firewalls, we felt it important to do so with a fresh
eye, benefiting from our ten years of experience
supervising the section 20 affiliates, acknowledging
regulatory and legal developments since 1987, and
focusing on the relevance of the firewalls in today's
financial markets. As we began to look at the concerns the firewalls were designed to address, we
asked two questions. Does the affiliation of a commercial and an investment bank cause safety and
soundness or other concerns not present with any
other commercial bank affiliation—concerns not
addressed by general bank holding company regulation? Does operation of a broker-dealer within a
bank holding company cause concerns that independent operation does not—concerns not addressed by
broker-dealer regulation? In some areas—most
notably, consumer protection—we believed that the
answer was "yes." In most other areas, however, the
Board believed, at least pending public comment,
that the answer was "no."
The answers to these questions are important
because the firewalls are far from costless. They
impose operational inefficiencies on bank holding
companies that increase their costs and reduce their
competitiveness, and they limit a bank holding company's ability to market its products in a way that is
both most profitable and desired by its customers. As
Statements to the Congress
such, the firewalls have served as a significant barrier
to entry for small and midsize bank holding companies because those companies cannot realize sufficient synergies or achieve adequate operating revenues to justify establishing a section 20 subsidiary.
The loss is not just to these companies but also to
their customers and market competition.
Let me now discuss the most important of the
firewalls to which the Board has proposed changes.
The comment period closed on this proposal last
week, and the comments were overwhelmingly favorable. I will not discuss all twenty-eight firewalls but
have attached a summary list and their proposed
disposition.1
RESTRICTIONS ON FUNDING
The Board proposed to eliminate a series of firewalls
that constitute a blanket prohibition on a bank's funding its section 20 affiliate and to rely instead on the
protections of sections 23A and 23B of the Federal
Reserve Act. The firewalls in question prohibit a
bank from extending credit to a section 20 affiliate,
purchasing corporate and other nongovernmental
securities being underwritten by the section 20 affiliate, or purchasing from the section 20 affiliate such
securities in which the affiliate makes a market. These
firewalls were intended to prevent a bank from assisting a troubled affiliate by lending to it on preferential
terms or by bailing out a failed underwriting by
purchasing securities that cannot otherwise be sold.
Except for the prohibition on purchasing securities
during the underwriting period, none of these funding
firewalls was applied under the Board's original 1987
order but were added in 1989 when the range of
permissible securities activities was expanded. Bank
subsidiaries of the fourteen companies operating
under the 1987 order have therefore been free to
fund, and have in fact funded, their section 20 affiliates subject to sections 23A and 23B. The Board has
not encountered problems arising from such funding.
If the Board were to eliminate the funding restrictions for the remaining section 20 subsidiaries, sections 23A and 23B would continue to impose quantitative and qualitative restrictions on interaffiliate
transactions. In addition to requiring that the transaction be on market terms, section 23B specifically
prohibits a bank from purchasing any security for
1, The attachment to this statement is available from Publications
Services, Mail Stop 127, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
383
which a section 20 affiliate is a principal underwriter
during the existence of the underwriting or selling
syndicate unless such a purchase has been approved
by a majority of the bank's board of directors who
are not officers of any bank or any affiliate. If the
purchase is as fiduciary, the purchase must be permitted by the instrument creating the fiduciary relationship, court order, or state law. We believe that these
are substantial protections and have proposed to rely
on them in place of a firewall.
PROHIBITIONS ON A BANK EXTENDING OR
ENHANCING CREDIT IN SUPPORT OF
UNDERWRITING OR DEALING BY A
SECTION 20 AFFILIATE
Three of the Board's firewalls restrict the ability of a
bank to assist a section 20 affiliate indirectly, by
enhancing the marketability of its products or lending to its customers. These firewalls prohibit a bank
from extending credit or offering credit enhancements in support of corporate and other nongovernmental securities being underwritten by its section 20
affiliate or in which the section 20 affiliate makes a
market; extending credit to issuers of securities to
repay principal or interest on securities previously
underwritten by a section 20 affiliate; or extending
credit to customers to purchase securities currently
being underwritten by a section 20 affiliate. The
firewalls share a common purpose: to prevent a
bank from imprudently exposing itself to loss to
benefit the underwriting or dealing activities of its
affiliate.
However, as financial intermediation has evolved,
corporate customers frequently seek to obtain a variety of funding mechanisms from one source. By
prohibiting banks from providing routine credit or
credit enhancements in tandem with a section 20
affiliate, these firewalls hamper the ability of bank
holding companies to serve as full-service financial
services providers. The firewall thereby reduces
options for their customers. For example, existing
corporate customers of a bank may wish to issue
commercial paper or issue debt in some other form.
Although the bank may refer the customer to its
section 20 affiliate, the bank is prohibited from providing credit enhancements even though it is the
institution best suited to perform a credit analysis—
and, with smaller customers, perhaps the only institution willing to do so. As another example, the restriction on lending for repayment of securities causes a
bank compliance problems when renewing a compa-
384
Federal Reserve Bulletin • May 1997
ny's revolving line of credit if a section 20 affiliate
has underwritten an offering by that company since
the credit was first extended. The bank must either
recruit other lenders to participate in the renewal or
amend the line of credit to specify that its purpose
does not include repayment of interest or principal on
the newly underwritten securities.
Notably, even if these firewalls were lifted, a bank
would still be required to hold capital against all
credit enhancements and credit extended to customers of its section 20 affiliate. Section 23B of the
Federal Reserve Act would require that such credit
and credit enhancements be on an arm's length basis.
Similarly, the federal antitying statute would prohibit
a bank from offering discounted credit enhancements
on the condition that an issuer obtain investment
banking services from a section 20 affiliate. Thus, for
example, a bank could not offer such credit enhancements below market prices, or to customers who
were poor credit risks, to generate underwriting business for a section 20 affiliate.
The firewall prohibiting lending to retail customers
for securities purchases during the underwriting
period addresses one of the most important potential
conflicts of interests arising from the affiliation of
commercial and investment banking: the possibility
that a bank would extend credit at below-markel rates
to induce consumers to purchase securities underwritten by its section 20 affiliate. The concern here is not
only safety and soundness but customer protection.
The Securities Exchange Act of 1934 already prohibits a broker-dealer (including a section 20 affiliate) from extending or arranging for credit to its
customers during the underwriting period. Still, we
recognize that the act would not apply in the absence
of arranging and, unlike the firewall, would not cover
loans to purchase a security in which a section 20
affiliate makes a market. Section 23B of the Federal
Reserve Act, and to some extent section 23A, would
address some of these remaining concerns, but perhaps not all. The Board will be reviewing the comments on this firewall carefully.
CAPITAL REQUIREMENTS
The next group of firewalls I will discuss imposes
capital requirements on a bank holding company and
its section 20 subsidiary. These firewalls require a
bank holding company to deduct from its capital any
investment in a section 20 subsidiary and most unsecured extensions of credit to a section 20 subsidiary
engaged in debt and equity underwriting; they also
require the section 20 subsidiary to maintain its
own capital in keeping with industry norms. These
requirements apply only to section 20 subsidiaries
and not to any other nonbank subsidiary of a bank
holding company.
The Board proposed to eliminate the capital deductions for investments in, or credit extended to, a
section 20 subsidiary. The original purpose of the
deduction was to ensure that the holding company
maintained sufficient resources to support its federally insured depository institutions. In practice, however, the deductions have created regulatory burden
without strengthening the capital levels of the insured
institutions.
The deduction is inconsistent with Generally
Accepted Accounting Principles, which require consolidation of subsidiaries for accounting purposes.
The deduction therefore has created confusion and
imposed costs by requiring bank holding companies
to prepare statements on two bases. The deduction
does not strengthen the capital of either the bank or
its section 20 affiliate, and elimination of the deduction would not create or expose any incentive for a
bank holding company to divert necessary capital
from a depository institution to a section 20 subsidiary. One of the purposes of the system of prompt
corrective action adopted in 1992 is to ensure that a
bank holding company maintains the capital of its
subsidiary banks.
The Board also sought comment on whether it
should continue to impose a special capital requirement on section 20 subsidiaries in addition to the
Securities and Exchange Commission's (SEC's) net
capital rules. The purpose of this requirement was to
prevent a section 20 subsidiary from being able to
leverage itself more than, and gain a competitive
advantage over, its independent competitors by trading on the reputation of its affiliated bank. Although
the SEC imposes capital requirements on all brokerdealers, these are minimum levels that are far below
the industry norm.
This capital firewall has proved confusing and
controversial, as "industry norms" are difficult to
determine. Federal Reserve examiners have expected
section 20 subsidiaries to maintain capital to cover
risk exposure in an amount approximately twice what
the SEC requires, but some section 20 subsidiaries
have complained that this is more than their competitors maintain. They also argue that whereas SEC
capital requirements allow all capital to be concentrated in the broker-dealer and dedicated to meeting
capital requirements, a bank holding company must
meet capital requirements at the bank and holding
company levels as well.
Statements to the Congress
Indeed, bank holding company capital is measured
on a consolidated basis and thus includes the capital
and assets of the section 20 subsidiary. Therefore, the
Board believes it may be unnecessary to impose a
separate capital requirement on the bank holding
company's section 20 subsidiary.
REMAINING RESTRICTIONS
Before leaving the Board's proposal, I should also
note which restrictions the Board proposed to
retain. The Board proposed to reserve its authority to
reimpose the funding, credit extension, and credit
enhancement firewalls in the event that an affiliated
bank or thrift institution becomes less than well capitalized and the bank holding company does not
promptly restore it to the well-capitalized level. The
Board considered proposing to reimpose the firewalls
on less than well capitalized banks automatically—as
some recent bills introduced in the Congress would—
but decided against it because a decline in a bank's
capital ratios may be wholly unrelated to the bank's
dealings with its section 20 affiliate. Thus, for
example, forcing a bank suffering serious losses on
real estate lending to desist from credit enhancements may be unproductive or—if the business is
profitable—counterproductive.
The Board also proposed to retain existing firewalls requiring adequate internal controls and documentation, including a requirement that a bank exercise independent and thorough credit judgment in any
transaction involving an affiliate. Although we expect
banking organizations to have such internal controls
and look for them during examinations, we believe
that they are sufficiently important to warrant reinforcement through the operating standards. They are
especially important in the section 20 context
because of the likelihood that a bank and its section 20 affiliate may be selling similar products to the
same customer.
Because of the potential for customer confusion as
to which products are federally insured, the Board
proposed to require a section 20 affiliate to make
disclosures to customers similar to those that the
Interagency Statement requires of a bank selling nondeposit products on bank premises. The proposal
would also continue to prohibit an affiliated bank
from knowingly advising a customer to purchase
securities underwritten or dealt in by a section 20
affiliate unless it notifies the customer of its affiliate's
role. The proposal also continues to prohibit a bank
and its section 20 affiliate from sharing any non
385
public customer information without the customer's
consent.
EARLIER BOARD ACTION ON OTHER FIREWALLS
AND THE REVENUE LIMIT
In addition to describing the Board's recent proposal,
you also asked me to discuss other changes the Board
finalized last year: increasing the section 20 revenue
limit from 10 percent to 25 percent; allowing crossmarketing between a bank and a section 20 affiliate;
permitting employee interlocks between a bank and a
section 20 affiliate; and scaling back a restriction on
officer and director interlocks.
The review that led to changes to the crossmarketing and interlocks firewalls was akin to what
the Board recently went through for all the firewalls.
The Board acted on these firewalls before the rest
because it had previously sought comment on them
some years ago and because they were identified by
commenters as among the most unduly burdensome
of all the firewalls. After reviewing its experience
administering these firewalls, the Board decided that
they caused inefficiencies that could not be justified
by any benefit to safety and soundness, and commenters agreed overwhelmingly. Repeal of the interlocks
and cross-marketing restrictions allows increased
synergies in the operation of a section 20 subsidiary
and its bank affiliates. Persons may be employed by
both companies, and the trend toward coordinated
management of like business functions can accelerate, with reporting lines running between companies.
Companies need not fund dual back offices or trading
floors, for example. To the extent that senior bank
managers may now oversee related operations at a
section 20 affiliate, risk management and safety and
soundness may be improved.
Moreover, existing disclosure requirements adequately address concerns about customer confusion
arising from increased cross-marketing and employee
interlocks. Most notably, the Interagency Statement
on Retail Sales of Nondeposit Products states that,
before the initial sale of a nondeposit product by a
bank employee or on bank premises, the customer
must receive and acknowledge a written statement
that the product being sold is not federally insured, is
not a deposit or other obligation of the bank, is not
guaranteed by the bank, and is subject to investment
risks including loss of principal.
Finally, with regard to the revenue limit, section 20
of the Glass-Steagall Act prohibits a bank from being
affiliated with any company "engaged principally" in
underwriting and dealing, and the Board was obliged
386
Federal Reserve Bulletin • May 1997
to make a narrow, legal determination of the level of
revenue at which a company becomes "engaged principally." The Board interpreted the statute to allow
25 percent of total revenue to be derived from underwriting and dealing in bank-ineligible securities. In
reviewing the revenue limit, the Board was not deciding what level of underwriting and dealing was consistent with safety and soundness or public policy. If
it were, the Board may well have raised the limit to
100 percent, which would have been consistent with
the Board's support of repeal of section 20.
I am pleased to report that early indications of the
effects of these changes have been favorable. The
Board currently has pending three applications
to establish a section 20 subsidiary. As we had anticipated, two of these are small to midsize bank holding
companies that may previously have either found
it too expensive to fund the dual staffing required
by the interlocks restrictions or too difficult to generate sufficient eligible revenue to maintain compliance with a 10 percent revenue limit. Furthermore, existing section 20 subsidiaries have indicated
that they have been able to rationalize their organization and expand their activities given the
added flexibility with respect to both staffing and
revenue.
•
387
Announcements
MEETING OF THE CONSUMER ADVISORY
COUNCIL
The Federal Reserve Board announced on March 31,
1997, that the Consumer Advisory Council would
hold its next meeting on Thursday, April 17. The
council's function is to advise the Board on the
exercise of the Board's responsibilities under the
Consumer Credit Protection Act and on other matters
on which the Board seeks its advice.
REDUCTIONS OF AUTOMATED CLEARINGHOUSE
FEES OF THE FEDERAL RESERVE BANKS
The Federal Reserve Board on March 21, 1997,
announced further reductions in the Reserve Banks'
automated clearinghouse (ACH) fees. The new ACH
fee schedule was effective May 1, 1997.
The Federal Reserve has reduced its ACH fees
three times within the past twelve months. These
price reductions reflect the efficiencies of the Federal Reserve's centralized Fed ACH processing
environment.
Under the new ACH volume-based fee schedule,
the cost to originate ACH transactions will decline an
average of 17 percent. Customers that deposit files of
fewer than 2,500 items will be assessed a file fee of
$1.75 and a per item fee of $0,009. Customers that
deposit files of more than 2,500 items will be
assessed a file fee of $6.75 and a per item fee of
$0,007. The cost to receive ACH transactions will
decline 10 percent, to $0,009 for all customers.
The Federal Reserve Board also adopted guidelines for the use of volume-based fee structures for
Reserve Bank payment services, which were effective March 25, 1997. Volume-based fees are an extension of multipart fees currently used by the Reserve
Banks. The use of volume-based fees has the potential to improve payment system efficiency.
REGULATION M: REVISIONS AND REVISED
OFFICIAL STAFF COMMENTARY
The Federal Reserve Board on March 27, 1997,
announced revisions to Regulation M (Consumer
Leasing) to implement amendments to the Consumer
Leasing Act.
The act requires lessors to provide uniform cost
and other disclosures for car leasing and other types
of consumer lease transactions. The revisions were
effective April 1, 1997, but compliance is optional
until October 1, 1997.
The revisions primarily implement amendments to
the act contained in the Economic Growth and Regulatory Paperwork Reduction Act of 1996, which
streamline the advertising disclosures for lease transactions. The revisions make the disclosure of upfront
costs in connection with a specific lease agreement
parallel to statutory changes to the advertising rules.
The revisions also contain several technical amendments to the regulation.
The Federal Reserve Board on March 27, 1997,
issued a revised version of the official staff commentary to Regulation M. The revised commentary was
effective April 1, 1997, but compliance is optional
until October 1, 1997.
Regulation M was revised in September 1996
under the Board's Regulatory Planning and Review
Program, which calls for the periodic review of Board
regulations. The commentary applies and interprets
the requirements of Regulation M, as amended in
March 1997.
REGULATION O: FINAL AMENDMENT
The Federal Reserve Board on March 17, 1997,
announced a final amendment to Regulation O (Loans
to Executive Officers, Directors, and Principal Shareholders of Member Banks), which limits how much
and on what terms a bank may lend to its own
insiders and insiders of its affiliates. The final rule
was effective April 1, 1997.
Under the final rule, Regulation O will not apply to
extensions of credit by a bank to an executive officer
or to a director of an affiliate, provided that the
executive officer or director is not engaged in major
policymaking functions of the bank and that the
affiliate does not account for more than 10 percent of
the consolidated assets of the bank's parent holding
company.
388
Federal Reserve Bulletin • May 1997
This rule is consistent with changes to the exemptive authority of the Board made by the Economic
Growth and Regulatory Paperwork Reduction Act of
1996.
REGULATION CC: AMENDMENTS
The Federal Reserve Board on March 18, 1997,
announced approval of clarifying and technical
amendments to its Regulation CC (Availability of
Funds and Collection of Checks).
Among other things, the amendments, which were
effective April 28, reduce compliance burden for
depository institutions in some cases and permit institutions to satisfy the requirements to provide notice
and disclosure by electronic means if certain conditions are met.
A review of the regulation was made under section 303 of the Riegle Community Development and
Regulatory Improvement Act of 1994. That section
directs the federal banking agencies to review their
rules to improve efficiency, reduce unnecessary costs,
and remove inconsistencies and outmoded and duplicative requirements.
ADOPTION OF FINAL RULES ON STANDARD
PRACTICES REGARDING TRANSACTIONS
IN GOVERNMENT SECURITIES BY DEPOSITORY
INSTITUTIONS
Regulation D (Reserve Requirements of Depository
Institutions) and Regulation I (Issue and Cancellation
of Capital Stock of Federal Reserve Banks) to define
the location of a depository institution to facilitate
interstate branching. Comments were requested by
April 18, 1997.
The Federal Reserve Board on March 21, 1997,
requested comments on proposed amendments to
Regulation H (Membership of State Banking Institutions in the Federal Reserve System) and Regulation P (Minimum Security Devices for Federal
Reserve Banks and State Member Banks). Comments
were requested by May 27, 1997.
The Federal Reserve Board, along with the Office
of the Comptroller of the Currency and the Federal
Deposit Insurance Corporation, on March 12, 1997,
requested comments on a proposal to adopt uniform
regulations to implement section 109 of the RiegleNeal Interstate Banking and Branching Efficiency
Act of 1994 (Interstate Act). Comments were
requested by May 2, 1997.
The Federal Reserve Board on March 31, 1997,
announced that it was seeking additional public comments on possible legislative changes to the Truth in
Lending Act. Comments were requested by June 30,
1997.
AVAILABILITY OF A REPORT ON THE
PROCESSING OF APPLICATIONS IN 1996 BY THE
FEDERAL RESERVE
The Federal Reserve Board on March 12, 1997,
announced adoption of final standard practice rules
regarding transactions in government securities by
depository institutions. The final rule is effective
July 1, 1997.
The Office of the Comptroller of the Currency and
the Federal Deposit Insurance Corporation are adopting similar rules. The agencies are adopting the final
rules to provide consistent treatment for customers of
both bank and nonbank dealers and brokers in government securities.
The rules are substantively identical to the Business Conduct and Suitability Rules of the National
Association of Securities Dealers (NASD) and the
NASD Suitability Interpretation that apply to nonbank brokers and dealers in government securities.
PROPOSED ACTIONS
The Federal Reserve Board on March 6, 1997,
requested comments on proposed amendments to
The Federal Reserve Board on March 27, 1997,
issued a report on the timing of its processing of
applications during 1996.
The System last year acted on 4,390 applications
and notices filed by bank holding companies and
state-chartered member banks. The total number of
applications increased 25 percent over 1995. However, after adjusting for the effect of certain large
multiple applications in 1995 and 1996, there was a
12 percent increase overall in activity.
A breakdown of applications by category processed showed the following percentages:
• To expand banking operations (other than
branching), about 13 percent of total
• For nonbanking expansion, almost 15 percent
• Bank branch notices, 47 percent
• Bank holding company formations and change
of control notices for state member banks and bank
holding companies, about 11 percent
• International activities of U.S. banking organizations, about 5 percent
Announcements
389
Performance of the Federal Reserve in 1996 in processing applications and notices filed by bank holding companies (BHCs) and
state-chartered member banks (SMBKs)
Accepted for processing
Type of application
or notice
Domestic
BHC-SMBK mergers and acquisitions . . . .
BHC nonbank acquisitions
BHC-SMBK changes in control
Other SMBK actions
Other BHC actions
Total domestic and international
Filed
4.045
413
573
638
219
1.863
339
186
4.231
Number
Average
number of days
since filing
Number
Average
number of days
since acceptance
Number
Percent
3.789
356
552
579
168
1,830
304
173
3,962
15
20
25
7
0
16
12
66
17
4,167
336
586
645
162
2.147
291
223
4,390
35
33
30
47
42
33
32
56
36
4.090
330
573
611
152
2,141
283
189
4.279
98
98
98
95
94
100
97
85
97
• Various applications, such as those from banks
to become members of the Federal Reserve System
or to invest in bank premises, or bank holding companies seeking relief from commitments or to redeem
stock, about 9 percent.
The Federal Reserve maintains target dates and
procedures for the processing of applications filed
under the Bank Holding Company Act, the Bank
Merger Act, or the Change in Bank Control Act. The
time allowed for a decision is sixty days after acceptance of an application. In 1996, action was taken on
97 percent of all applications within the established
time frame. Extra time required to allow for supervisory comments from other regulatory agencies and to
investigate questions raised about performance with
regard to relevant laws and regulations accounted for
a majority of the applications that were not processed
within the target time frame.
On average, the 4,390 applications and notices
were processed in 36 calendar days from the date of
acceptance and 53 days from the date of filing, an
Decided within
60 days of acceptance
Decided
improvement from 38 days and 56 days respectively
in 1995. The average total processing time for international applications increased from 117 days in 1995
to 122 days in 1996, and the average total processing
time for domestic applications improved from
54 days in 1995 to 50 days in 1996.
CHANGES IN BOARD STAFF
The Federal Reserve Board announced that
Charles W. Bennett, Assistant Director, Division of
Reserve Bank Operations and Payment Systems, and
most recently assigned to the Office of Board Members, retired on April 14, after having been at the
Board for more than thirty years.
The Board also announced that John H. Parrish,
Assistant Director, Division of Reserve Bank Operations and Payment Systems, had resigned to accept
the position of General Auditor at the Federal
Reserve Bank of San Francisco.
•
390
Minutes of the
Federal Open Market Committee Meeting
Held on February 4-5, 1997
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
Tuesday, February 4, 1997, at 2:30 p.m. and continued on Wednesday, February 5, 1997, at 9:00 a.m.
Present:
Mr. Greenspan, Chairman
Mr. McDonough, Vice Chairman
Mr. Broaddus
Mr. Guynn
Mr. Kelley
Mr. Meyer
Mr. Moskow
Mr. Parry
Ms. Phillips
Ms. Rivlin
Messrs. Hoenig, Jordan, Melzer, and Ms. Minehan,
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. Baxter, Deputy General Counsel'
Mr. Prell, Economist
Mr. Truman, Economist
Messrs. Beebe, Eisenbeis, Goodfriend, Hunter,
Lindsey, Mishkin, Promisel, Siegman, Slifman,
and Stockton, Associate Economists
Mr. Fisher, Manager, System Open Market Account
Mr. Ettin, Deputy Director, Division of Research and
Statistics, Board of Governors
Mr. Winn, Assistant to the Board, Office of Board
Members, Board of Governors
Messrs. Madigan and Simpson, Associate Directors,
Divisions of Monetary Affairs and Research and
Statistics respectively, Board of Governors
1. Attended Tuesday session only.
Ms. Johnson,2 Assistant Director, Division of
International Finance, Board of Governors
Messrs. Brady2 and Reifschneider,2 Section Chiefs,
Divisions of Monetary Affairs and Research and
Statistics respectively, Board of Governors
Messrs. Brayton2 and Rosine,2 Senior Economists,
Division of Research and Statistics, Board of
Governors
Ms. Garrett, Economist, Division of Monetary Affairs,
Board of Governors
Ms. Low, Open Market Secretariat Assistant,
Division of Monetary Affairs, Board of
Governors
Ms. Browne, Messrs. Dewald, Hakkio, Lang,
Rosenblum, and Sniderman, Senior Vice
Presidents, Federal Reserve Banks of Boston,
St. Louis, Kansas City, Philadelphia, Dallas, and
Cleveland respectively
Mr. Miller and Ms. Perelmuter, Vice Presidents,
Federal Reserve Banks of Minneapolis and
New York respectively
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, 1997,
and ending December 31, 1997, 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 Ernest T. Patrikis, First Vice
President of the Federal Reserve Bank of New York,
as alternate;
J. Alfred Broaddus, Jr., President of the Federal Reserve
Bank of Richmond, with Cathy E. Minehan, President
of the Federal Reserve Bank of Boston, as alternate;
Michael H. Moskow, President of the Federal Reserve
Bank of Chicago, with Jerry L. Jordan, President of
the Federal Reserve Bank of Cleveland, as alternate;
Jack Guynn, President of the Federal Reserve Bank of
Atlanta, with Thomas C. Melzer, President of the
Federal Reserve Bank of St. Louis, as alternate;
2. Attended portions of meeting relating to the Committee's review
of the economic outlook and establishment of its monetary and debt
ranges for 1997.
391
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, 1997,
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.
Thomas C. Baxter, Jr.
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, Robert A. Eisenbeis, Marvin S.
Goodfriend, William C. Hunter, David E. Lindsey,
Frederic S. Mishkin, Larry J. Promisel, Charles J.
Siegman, Lawrence Slifman, and David J. Stockton,
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, 1997.
By unanimous vote, Peter R. Fisher was selected to
serve at the pleasure of the Committee as Manager,
System Open Market Account, on the understanding
that his selection was subject to being satisfactory to
the Federal Reserve Bank of New York.
Secretary's note: Advice subsequently was received that
the selection of Mr. Fisher as Manager was satisfactory
to the board of directors of the Federal Reserve Bank of
New York.
By unanimous vote, the Authorization for Domestic Open Market Operations shown below was
reaffirmed.
AUTHORIZATION FOR DOMESTIC
OPEN MARKET OPERATIONS
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 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 Kb) 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
392
Federal Reserve Bulletin • May 1997
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 shortterm 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 l(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 l(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.
With Mr. Broaddus dissenting, the Authorization
for Foreign Currency Operations shown below was
reaffirmed.
AUTHORIZATION FOR FOREIGN CURRENCY
OPERATIONS
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 Banks and Bankers, and with the
approval of the Committee to renew such arrangements on
maturity:
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
3,000
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
Minutes of the Federal Open Market Committee
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 to ensure
that adequate liquidity is maintained to meet anticipated
needs and so that each currency portfolio shall generally
have an average duration of no more than 18 months
(calculated as Macaulay duration). When appropriate in
connection with arrangements to provide investment facilities for foreign currency 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, 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
U.S. 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 U.S. Treasury
Department.
9. All Federal Reserve Banks shall participate in the
foreign currency operations for System Account in accordance with paragraph 3 G(l) of the Board of Governors'
Statement of Procedure with Respect to Foreign Relationships of Federal Reserve Banks dated January 1, 1944.
With Mr. Broaddus dissenting, the Foreign Currency Directive shown below was reaffirmed.
393
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 U.S.
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 U.S. 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.
Mr. Broaddus dissented in the votes on the Authorization and the Directive because they provide the
foundation for foreign exchange market intervention.
He believed that the Federal Reserve's participation
in foreign exchange market intervention compromises its ability to conduct monetary policy effectively. Because sterilized intervention cannot have
sustained effects in the absence of conforming monetary policy actions, Federal Reserve participation in
foreign exchange operations in his view risks one of
two undesirable outcomes. First, the independence of
monetary policy is jeopardized if the System adjusts
its policy actions to support short-term foreign
exchange objectives set by the U.S. Treasury. Alternatively, the credibility of monetary policy is damaged if the System does not follow interventions with
compatible policy actions, the interventions consequently fail to achieve their objectives, and the System is associated in the mind of the public with the
failed operations.
By unanimous vote, the Procedural Instructions
with Respect to Foreign Currency Operations shown
below were reaffirmed.
FOREIGN CURRENCY DIRECTIVE
PROCEDURAL INSTRUCTIONS WITH RESPECT TO
FOREIGN CURRENCY OPERATIONS
1. System operations in foreign currencies shall generally be directed at countering disorderly market conditions,
In conducting operations pursuant to the authorization
and direction of the Federal Open Market Committee as set
394
Federal Reserve Bulletin • May 1997
forth in the Authorization for Foreign Currency Operations
and the Foreign Currency Directive, the Federal Reserve
Bank of New York, through the Manager, 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 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.
By unanimous vote, the Committee reduced from
$20 billion to $5 billion the amount of eligible foreign currencies that the System was prepared to
"warehouse" for the U.S. Treasury and the Exchange
Stabilization Fund (ESF). Warehousing involves spot
purchases of foreign currencies from the U.S. Treasury or the ESF and simultaneous forward sales of
the same currencies to the U.S. Treasury or the ESF
at the then-current forward market rates. The effect
of warehousing is to supplement the U.S. dollar
resources of the U.S. Treasury and the ESF for
financing the purchase of foreign currencies and
related international operations. The agreement had
been enlarged from $5 billion to $20 billion in early
1995 to facilitate U.S. participation in the Multilateral
Program to Restore Financial Stability in Mexico. No
use of the warehousing facility had been made by the
U.S. Treasury or the ESF during this period, and in
light of Mexico's repayment to the U.S. Treasury of
all the financing provided under the Program and the
termination of that Program, the Committee agreed
that the size of the warehousing arrangement should
revert to $5 billion.
The Report of Examination of the System Open
Market Account, conducted by the Board's Division
of Reserve Bank Operations and Payment Systems as
of the close of business on October 31, 1996, was
accepted.
By unanimous vote, the Program for Security of
FOMC Information was amended to update the document with regard to certain security classifications,
access to FOMC information, and attendance at
FOMC meetings.
On January 23, 1997, the continuing rules and
other standing instructions of the Committee were
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 4-5 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 documents in question
placed on the agenda for consideration at this meeting, and no requests for consideration were received.
By unanimous vote, the minutes of the meeting of
the Federal Open Market Committee held on December 17, 1996, were approved. The Committee also
discussed its long-standing practice of releasing
the minutes a few days after the meeting at which
they were approved, usually on the following Friday.
The members agreed with a proposal to advance
the normal release to Thursday to facilitate the
dissemination and public understanding of these
decisions.
The Manager of the System Open Market Account
reported on developments in foreign exchange markets since the meeting on December 17, 1996. There
were no transactions in foreign currencies for System
account during this period, and thus no vote was
required of the Committee.
The Manager also reported on developments in
domestic financial markets and on System open market transactions in government securities and federal
agency obligations during the period December 18,
1996, through February 4, 1997. By unanimous vote,
the Committee ratified these transactions.
The Manager advised the Committee that the
anticipated pattern of reserve needs was such that he
might want to add considerably to the System's out-
Minutes of the Federal Open Market Committee
right holdings of U.S. government securities over the
coming intermeeting period. By unanimous vote, the
Committee amended paragraph l(a) of the Authorization for Domestic Open Market Operations to raise
the limit on intermeeting changes in such holdings
from $8 billion to $12 billion for the period ending
with the close of business on the date of the next
meeting, March 25, 1997.
The Committee then turned to a discussion of the
economic and financial outlook, the ranges for the
growth of money and debt in 1997, 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 suggested that the growth of the economy had strengthened markedly in the fourth quarter of 1996. To a
large extent the gain in final demand during the
quarter reflected a surge in exports, but consumer
spending also increased substantially after having
risen at a much reduced pace in the third quarter.
Despite some slowing in the growth of business fixed
investment and some easing in housing activity, the
overall economy had expanded briskly as reflected in
data on production and employment. The tightness in
labor markets had persisted and was evidenced by
some continued acceleration in labor compensation
in the fourth quarter. There was no discernible change
in the underlying trend in price inflation, although a
spurt in energy prices had resulted in faster increases
in overall consumer and producer prices than in the
third quarter.
Private payroll employment rose appreciably further in December after having recorded sizable
increases over October and November. The gains
remained widespread among employment categories
and continued to be led by large advances in the
services and trade industries. Aggregate hours of
private production workers and the average workweek edged higher in the fourth quarter. The civilian
unemployment rate was unchanged in December at
5.3 percent, its average level for the second half of
the year.
Industrial production increased sharply in November and December. The gains in December were
widely distributed across manufacturing industries
but were held down by a steep decline in the output
of utilities after a surge in November. The production
of aircraft and parts extended a strong uptrend. The
utilization of total manufacturing capacity rose con
395
siderably further in December, to a level slightly
above its long-term average.
Consumer spending registered a sizable increase
over the fourth quarter after having grown little during the summer. In December total nominal retail
sales rose considerably following a small decline
in November. The December increases were spread
across all major categories except for some further
decline in sales of building materials and supplies.
The most recent data on services expenditures
pointed to moderate advances in October and November. Surveys indicated that consumer confidence had
remained elevated in late 1996 and early 1997.
Housing starts fell appreciably in December, evidently reflecting unusually adverse weather conditions in several parts of the country, and were down
somewhat for the fourth quarter as a whole. The
declines were concentrated in single-family units.
Permits for new home construction were little
changed in December but edged lower for the fourth
quarter as a whole. Available data indicated a somewhat slower pace of sales of new and existing homes
in the fourth quarter.
Growth of business fixed investment moderated
considerably in the fourth quarter after having
advanced sharply in the previous quarter. The slowdown reflected a small decline in spending on producer durable equipment that was more than offset by
an apparent surge in outlays for nonresidential structures. Growth in spending on office, computing, and
communications equipment slowed somewhat from
the third-quarter pace but remained on a steep
uptrend. Business investment in transportation equipment was weak in the fourth quarter, as sales of
heavy trucks fell further and work stoppages at a
major manufacturer prompted cuts in fleet auto sales
in October and November.
Business inventory investment picked up somewhat on average in October and November, with
most of the increase occurring in manufacturing.
Trade inventories increased moderately on balance
over the two-month period. Reflecting considerable
strength in shipments and sales, however, inventorysales ratios for most industries and trade groupings
edged lower from their third-quarter levels.
The nominal deficit on U.S. trade in goods and
services narrowed considerably in October and
November from its rate in the third quarter. Nearly all
the improvement was accounted for by a very large
increase in exports of goods and services. The rise
was spread among all major trade categories except
automotive products. Economic activity in the major
foreign industrial countries appeared to have continued to expand at a moderate rate on average in the
396
Federal Reserve Bulletin • May 1997
fourth quarter. Available indicators suggested relatively strong economic performances in Japan, Canada, and the United Kingdom and slower growth in
the major continental European countries. Further
expansion was reported for several large Latin
American and some Asian economies.
Recent data pointed to little change in underlying
inflation trends. Overall consumer prices had continued under upward pressure in November and December, boosted by large advances in energy prices.
Excluding food and energy items, consumer prices
rose modestly over the two months and increased less
over the twelve months ending in December than
over the previous twelve months. At the producer
level, a similar pattern prevailed in prices of finished
goods, and there was no evidence of increased price
pressures at earlier stages of production. Worker compensation as measured by the employment cost index
(ECI) and average hourly earnings of production and
nonsupervisory workers rose considerably further
during the closing months of 1996. For the year, both
measures were up appreciably more than in 1995,
though much of the acceleration in the ECI occurred
in the first half of the year.
At its meeting on December 17, 1996, the Committee issued a directive that called for maintaining the
existing degree of pressure on reserve positions. The
directive included a bias toward the possible firming
of reserve conditions to reflect a consensus among
the members that the risks remained biased toward
higher inflation and that the next policy move was
more likely to be toward some tightening than toward
easing. In this regard, 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, somewhat greater
reserve restraint would be acceptable and slightly
lesser reserve restraint might be acceptable during the
intermeeting period. The reserve conditions associated with this directive were expected to be consistent with some slowing of the growth of M2 and M3
over coming months.
Open market operations during the intermeeting
period continued to be directed toward maintaining
the existing degree of pressure on reserve positions.
The federal funds rate rose briefly in response to
year-end pressures, but it otherwise tended to remain
close to the 5lA percent level expected with an unchanged policy stance. Other short-term interest rates
generally were unchanged to slightly higher over the
intermeeting period. Rates on intermediate- and longterm securities edged higher on balance in reaction to
incoming data on economic activity that were on the
firm side of market expectations; the increases in
such rates appeared to be tempered, however, by
favorable market reactions to new data on wages and
prices. The generally positive news on economic
growth and inflation along with favorable reports on
earnings appeared to reinforce the optimism of equity
market investors, and major indexes of stock prices
increased markedly further over the intermeeting
period.
In foreign exchange markets, the trade-weighted
value of the dollar in terms of the other G-10 currencies rose substantially over the intermeeting period.
The rise, which was most pronounced against the
Japanese yen and continental European currencies,
appeared to reflect market perceptions of unexpectedly strong economic growth in the United States and
a risk of faltering growth in the other countries. The
dollar appreciated less against sterling and declined
somewhat against the Canadian dollar in apparent
response to expectations of relative strength in the
economies of those countries.
After having grown at a considerably faster rate in
the fourth quarter, M2 and M3 apparently increased
at a more moderate but still brisk pace in January.
The expansion of both aggregates likely was boosted
by strong income growth, and the relatively rapid
expansion of M3 reflected heavy bank reliance on the
managed liabilities in M3 to fund robust loan growth.
From the fourth quarter of 1995 to the fourth quarter
of 1996, M2 was estimated to have grown at a rate
near the upper end of the Committee's annual range
and M3 at a rate appreciably above the top of its
range. Total domestic nonfmancial debt had expanded
moderately on balance over recent months and was
estimated to have grown last year at a rate near the
midpoint of its range.
The staff forecast prepared for this meeting suggested that the expansion would be sustained at a rate
a bit above the economy's estimated growth potential. The increase in consumer spending was projected to moderate somewhat from its pace in the
fourth quarter to a rate generally in line with the
expected rise in disposable income. Homebuilding
was forecast to decline somewhat but to stabilize at a
relatively high level in the context of continued
income growth and the generally favorable cash flow
affordability of home ownership. Business spending
on equipment and structures was projected to expand
less rapidly in light of some anticipated slowing in
the growth of sales and profits. Fiscal policy and the
external sector were expected to exert small restraining influences on economic activity over the year
ahead. With resource utilization high and rising,
consumer price inflation, as measured by the CPI
Minutes of the Federal Open Market Committee
excluding the relatively volatile food and energy
components of the index, was forecast to increase
slightly this year in the context of some further
pickup in the growth of labor compensation that
would include another legislated rise in the federal
minimum wage.
In the Committee's discussion of current and prospective economic developments, members commented that the robust performance of the economy
in the fourth quarter partly reflected some sources of
strength, notably a surge in exports, that were evidently temporary, and they anticipated substantial
moderation in the pace of the expansion over the
period ahead. The outlook was subject to considerable uncertainty, but as they assessed the numerous
factors bearing on prospective developments, the
members generally concluded as they had at previous
meetings that further growth in aggregate demand at
a rate averaging near or a bit above the economy's
potential remained a reasonable expectation. Many
observed, however, that the risks to such an outlook
appeared to be tilted to the upside. The strength of the
expansion in the fourth quarter, and in fact over 1996
as a whole, had heightened concerns that the economy had considerable forward momentum at a time
when it was already operating at a level, especially
with regard to labor resources, that could tend to
generate rising inflationary pressures. Indeed, in the
view of at least some members, growth of aggregate
demand in line with increases in potential output
posed a risk of rising price inflation because the
recent relatively favorable price performance was
seen in this view as reflecting at least in part the
behavior of special factors that could dissipate over
the projection horizon.
In keeping with the practice at meetings when the
Committee establishes its long-run ranges for the
growth of money and debt aggregates, the members
of the Committee and the Federal Reserve Bank
presidents not currently serving as members had provided individual projections of the growth in real and
nominal GDP, the rate of unemployment, and the rate
of inflation for the year 1997. The forecasts of the
rate of expansion in real GDP had a central tendency
of 2 to 2lA percent and a full range of 2 to 2Vi percent. The projections of the civilian unemployment
rate associated with these growth expectations were
all in a range of 5lA to 5'/2 percent for the fourth
quarter of the year. With regard to nominal GDP
growth in 1997, the forecasts were mainly in a range
of 4lA to 43/4 percent, with an overall range of AlA to
5!/4 percent. Nearly all the members anticipated a
small decline in the rate of inflation in 1997, as
measured by the consumer price index, from that
397
recorded in 1996. Specifically, the projections converged on rates of 23A to 3 percent and a full range
of 23/4 to 3'/2 percent in 1997. These forecasts took
account of expected developments in the food and
energy sectors and further technical improvements in
the index by the Bureau of Labor Statistics, both of
which were expected to trim the reported rate. The
projections were based on individual views concerning what would be an appropriate policy over the
projection horizon to further progress toward the
Committee's goals.
In their review of developments in key sectors of
the economy, members observed that the available
data and anecdotal information indicated considerable strength in consumer spending in recent months,
and they referred to a number of underlying factors
that should help to sustain at least moderate further
growth in such spending. The latter included the solid
expansion in employment and incomes, the increased
financial wealth of many consumers, and the high
level of consumer confidence as indicated by recent
surveys. However, members also cited some factors
that would tend to restrain the growth in consumer
spending. Among these factors were the effects of the
high level of consumer debt and rising repayment
problems on both the willingness of households to
borrow and of financial intermediaries to lend, the
likely absence of pent-up demands after an extended
period of expansion, and the possibility of a setback
in the stock market. It was difficult to evaluate how
these differing factors would on balance affect consumer spending, but the members concluded that the
consumer sector was likely to provide important support for sustained economic expansion.
The growth in business capital spending was
expected to moderate somewhat in 1997 in association with slower growth in sales, profits, and cash
flows. It also seemed likely after several years of
robust investment expenditures that many business
firms now had high levels of up-to-date capital stock
relative to planned production. Members referred,
however, to a number of favorable factors that should
continue to support at least moderate further growth
in business investment, including the attractive pricing of and ongoing rapid technological improvements
in computer and communications equipment and the
wide availability of equity and debt financing on
favorable terms to business firms. Members also
reported that commercial building activity had
improved in many areas. Some noted a tendency to
underestimate the strength of overall business investment in recent years, including the stimulus provided
by efforts to improve productivity in highly competitive markets.
398
Federal Reserve Bulletin • May 1997
While indicators of housing activity had been
somewhat erratic over the past several months, members sensed a somewhat softer tone on balance in this
sector of the economy. This assessment was supported by anecdotal observations in several regions
across the country. Against the background of the
increase that had occurred earlier in mortgage financing costs and forecasts of some slowing in the growth
of jobs and incomes, the housing sector was likely to
weaken slightly over the coming year, but some
members commented that surprises on the upside of
current forecasts, as in 1996, could not be ruled out.
Fiscal policy and foreign trade also were seen as
likely to exert some modest restraint on overall economic activity. Federal purchases of goods and services still appeared to be on a declining trend.
Although fiscal policy negotiations were likely to be
difficult and their outcome was uncertain, members
felt that there was some basis for anticipating the
enactment of further legislation this year to help
bring the federal budget into eventual balance. The
large increase in exports in the fourth quarter clearly
was associated with temporary developments, and net
exports were expected to weaken this year, reflecting
both some reversal of recent developments and the
earlier appreciation of the dollar. Some members
reported that business contacts had already communicated concerns about increased competitive pressures
from imports because of the rise in the foreign
exchange value of the dollar.
Members commented that inflation had remained
remarkably subdued, but they expressed considerable
concern about the risks of rising inflation in the
context of high levels of resource use. They referred
in particular to statistical indications, supported by
anecdotal reports from around the nation, of very
tight conditions in labor markets and some upward
pressures on wages. Thus far, the rise in compensation had been held down by diminishing increases
in worker benefit costs, and productivity gains also
appeared to have had a favorable effect on unit labor
costs. In addition, the increases in wages themselves
had continued to be restrained by apparent worker
concerns about job security. To date, there was no
evidence that pressures stemming from tight labor
markets had been passed through to a measurable
extent to higher prices,
While the absence of increasing price inflation was
a welcome development, members were concerned
that the break with historical patterns might not persist. If labor markets remained under pressure, nominal compensation costs were likely to pick up at some
point as one-time savings in worker benefit costs ran
out and as workers became less willing to trade off
lower wages for increased security; such a development would foster increases in labor costs that ultimately would feed through to higher prices. The
members did not anticipate a sudden surge in inflation, but many expressed concern about the possibility of a gradual upcreep in coming quarters that might
become more considerable later. They generally
expected a small decline in overall price inflation this
year, reflecting favorable developments in food and
energy and, for the CPI, further technical improvements by the Bureau of Labor Statistics; however,
they believed that the risks to their forecasts were in
the direction of greater inflation, and several noted
in particular that projected declines in energy
prices might not materialize as soon or to the extent
assumed in many forecasts.
In keeping with the requirements of the Full
Employment and Balanced Growth Act of 1978 (the
Humphrey-Hawkins Act), the Committee reviewed
the ranges for growth of the monetary and debt
aggregates in 1997 that it had established on a tentative basis at its meeting in July 1996. Those ranges
included expansion of 1 to 5 percent for M2 and 2 to
6 percent for M3, measured from the fourth quarter
of 1996 to the fourth quarter of 1997. The monitoring
range for growth of total domestic nonfinancial debt
was provisionally set at 3 to 7 percent for 1997. The
tentative ranges for 1997 were unchanged from the
actual ranges adopted for 1995 (in July of that year
for M3) and 1996.
In reviewing the tentative ranges, the members
took note of a staff projection indicating that M2 and
M3 likely would grow in 1997 at rates close to the
upper limit of those ranges, given the Committee's
expectations for the performance of the economy and
prices and assuming no major changes in interest
rates. The staff analysis anticipated that the velocities
of the broad monetary aggregates would continue to
behave in the relatively stable and predictable manner that had re-emerged in the last few years and that
was closer to historical norms than had been the case
in the early 1990s.
The greater measure of predictability in velocity
recently was an encouraging development, but in
view of the substantial changes in financial markets
and the increased availability of investment alternatives it would be premature to assume that the pattern
would necessarily continue going forward. Given the
substantial uncertainty still attached to projections of
money growth consistent with the Committee's basic
objectives for monetary policy, the members agreed
that there was no firm basis for changing the tentative
ranges set in July 1996. Adopting higher ranges,
which would be more closely centered on money
Minutes of the Federal Open Market Committee
growth thought likely to be consistent with the Committee's expectations for economic activity and
prices, could be misinterpreted as indicating that the
Committee had become much more confident of the
predictability of velocity and was placing greater
emphasis on M2 and M3 as gauges of the thrust of
monetary policy. One member, while agreeing with
this assessment, emphasized that a continuation of a
stable and predictable pattern of velocity behavior
would raise the question as to whether the Committee
should return to setting ranges consistent with its
expectations for economic developments. Nonetheless, from a longer-run perspective, the tentative
ranges readily encompass rates of growth of M2 and
M3 that, if velocity were to behave in line with
historical experience, could be expected to be associated with approximate price stability and a sustainable rate of real economic growth. In that regard, they
continue to serve the useful purpose of benchmarking
money growth consistent with the Committee's longrun goal of price stability.
At the conclusion of its discussion, the Committee
voted to approve without change the tentative ranges
for 1997 that it had established in July of last year.
In keeping with its usual procedures under the
Humphrey-Hawkins Act, the Committee would
review its ranges at midyear, or sooner if interim
conditions warranted, in light of the growth and
velocity behavior of the aggregates and ongoing economic and financial developments. Accordingly, the
following statement of longer-run policy for 1997
was approved 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 2 to 6 percent respectively, measured from the fourth
quarter of 1996 to the fourth quarter of 1997. The monitoring range for growth of total domestic nonfinancial debt
was set at 3 to 7 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, Guynn, Kelley, Meyer, Moskow, Parry, Mses.
Phillips and Rivlin. Votes against this action: None.
Absent and not voting: Mr. Lindsey and Ms. Yellen.
In the Committee's discussion of policy for the
intermeeting period ahead, all the members favored
or could support a proposal to maintain an unchanged
policy stance; the members also strongly supported
399
the retention of a bias toward restraint. An unchanged
policy seemed appropriate with inflation still quiescent, with few signs of emerging price pressures,
with growth in economic activity seen as likely to
moderate appreciably from the unexpectedly strong
and unsustainable pace of the fourth quarter, and with
considerable uncertainty about future inflationary developments. However, the members emphasized that
the extent of the slowdown in economic expansion
was unclear and that the persisting, or even greater,
tightness of labor markets, coupled with potentially
faster growth in worker benefits and diminishing
worker insecurity, could put added upward pressure
on labor costs and induce some increase in price
inflation over time. Even so, most members thought
that inflation likely would remain contained for some
period ahead and that any strengthening in inflation
pressures probably would be gradual, allowing the
Committee to respond in a timely manner. Several
also commented that a tightening policy action was
not generally anticipated in financial markets, and a
move at this time could have exaggerated repercussions. A few members emphasized, however, that the
recent surge in economic activity had raised the probability that the level of economic output was now
above the economy's long-run potential, and without
a significant slowing in economic growth, inflationary pressures were more likely to increase over the
forecast horizon. While an immediate tightening of
policy would help to forestall such a buildup of
pressures, the members agreed that current uncertainties about the outlook for both the rate of expansion
and inflation warranted a continuing "wait and see"
policy stance, or at least made such a policy acceptable at this juncture.
In their discussion of possible adjustments to policy during the intermeeting period, the members recognized that an asymmetric directive tilted toward
tightening was consistent with their general view that
the risks were now more clearly in the direction of an
upward trend in inflation. They agreed that the current environment called for careful monitoring of
new developments and for prompt action by the
Committee to counter any tendency for price inflation
to rise and for higher inflation expectations to become
embedded in financial markets and economic
decisionmaking more generally. Indeed, in the interest of fostering a continuation of sustainable growth
of the economy, it would be desirable to tighten
before any sign of actual higher inflation were to
become evident.
At the conclusion of the Committee's discussion,
all the members indicated that they supported a directive that called for maintaining the existing degree of
400
Federal Reserve Bulletin • May 1997
pressure on reserve positions and that retained a bias
toward the possible firming of reserve conditions
during the intermeeting period. Accordingly, 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, the Committee decided
that somewhat greater reserve restraint would be
acceptable and slightly lesser reserve restraint might
be acceptable during the intermeeting period. The
reserve conditions contemplated at this meeting were
expected to be consistent with some moderation in
the expansion of M2 and M3 over coming months.
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 suggests that
the economic expansion strengthened markedly in the
fourth quarter. Private nonfarm payroll employment
increased appreciably further in December after sizable
gains over October and November. The civilian unemployment rate remained at 5.3 percent in December. Industrial
production rose sharply in November and December. Consumer spending posted a large increase in the fourth quarter after a summer lull. Housing activity moderated somewhat over the closing months of the year. Growth in
business fixed investment slowed substantially in the fourth
quarter after a sharp rise in the third quarter. The nominal
deficit on U.S. trade in goods and services narrowed considerably in October and November from its rate in the
third quarter. Advances in labor compensation trended up
in 1996, but price inflation generally diminished apart from
enlarged increases in food and energy prices.
Most market interest rates have changed little or risen
slightly since the Committee meeting on December 17,
1996. In foreign exchange markets, the trade-weighted
value of the dollar in terms of the other G-10 currencies
has increased substantially over the intermeeting period.
Growth of M2 and M3 strengthened considerably in the
fourth quarter and appeared to have continued at a fairly
brisk, though diminished, pace in January. From the fourth
quarter of 1995 to the fourth quarter of 1996, M2 is
estimated to have grown near the upper end of the Committee's annual range and M3 well above the top of its range.
Total domestic nonfinancial debt has expanded moderately
on balance over recent months and is estimated to have
grown last year near the midpoint of its 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 2 to
6 percent respectively, measured from the fourth quarter of
1996 to the fourth quarter of 1997. The monitoring range
for growth of total domestic nonfinancial debt was set at
3 to 7 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 maintain the 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, somewhat greater reserve restraint would or slightly lesser
reserve restraint might be acceptable in the intermeeting
period. The contemplated reserve conditions are expected
to be consistent with some moderation in the expansion of
M2 and M3 over coming months.
Votes for this action: Messrs. Greenspan, McDonough,
Broaddus, Guynn, Kelley, Meyer, Moskow, Parry, Mses.
Phillips and Rivlin. Votes against this action: None.
Absent and not voting: Mr. Lindsey and Ms. Yellen.
It was agreed that the next meeting of the Committee would be held on Tuesday, March 25, 1997.
The meeting adjourned at 11:35 a.m.
Donald L. Kohn
Secretary
401
Legal Developments
FINAL RULE-^AMENDMENT TO GOVERNMENT
SECURITIES SALES PRACTICES
Section 13.2—Definitions.
The Office of the Comptroller of the Currency ("OCC"),
Board of Governors of the Federal Reserve System
("Board"), and Federal Deposit Insurance Corporation
("FDIC") (collectively, "the agencies") are amending 12
C.F.R. Parts 13, 208,211, and 368 (Government Securities
Sales Practices). They are issuing rules regarding sales
practices concerning government securities by depository
institutions within their respective jurisdictions. The agencies are adopting the final rules in light of recent statutory
changes authorizing the agencies to adopt rules governing
transactions in government securities in order to provide
consistent treatment for government securities customers.
The final rules minimize regulatory burdens to the extent
feasible, consistent with the goal of providing purchasers
of government securities with consistent treatment regardless of whether they engage in transactions in government
securities with banks or nonbank government securities
brokers and dealers.
Effective July 1, 1997, 12 C.F.R. Parts 13, 208, 211, and
368 are amended as follows:
(a) Bank that is a government securities broker or dealer
means a national bank that hasfilednotice, or is required to
file notice, as a government securities broker or dealer
pursuant to section 15C of the Securities Exchange Act
(15 U.S.C. 78o-5) and Department of the Treasury rules
under section 15C (17 C.F.R. 400. l(d) and part 401).
(b) Customer does not include a broker or dealer or a
government securities broker or dealer.
(c) Government security has the same meaning as this term
has in section 3(a)(42) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a)(42)).
(d) Non-institutional customer means any customer other
than:
(1) A bank, savings association, insurance company, or
registered investment company;
(2) An investment adviser registered under section 203
of the Investment Advisers Act of 1940 (15 U.S.C.
80b-3); or
(3) Any entity (whether a natural person, corporation,
partnership, trust, or otherwise) with total assets of at
least $50 million.
Part 13—Government Securities Sales Practices
Section 13.3—Business conduct.
Section
A bank that is a government securities broker or dealer
shall observe high standards of commercial honor and just
and equitable principles of trade in the conduct of its
business as a government securities broker or dealer.
13.1 Scope.
13.2 Definitions.
13.3 Business conduct.
13.4 Recommendations to customers.
13.5 Customer information.
Interpretations
13.100
Obligations concerning institutional customers.
Authority: 12 U.S.C. 1 et seq., and 93a; 15 U.S.C. 78o-5.
Section 13.1—Scope.
This part applies to national banks that havefilednotice as,
or are required to file notice as, government securities
brokers or dealers pursuant to section 15C of the Securities
Exchange Act (15 U.S.C. 78o-5) and Department of the
Treasury rules under section 15C (17 C.F.R. 400. l(d) and
part 401).
Section 13.4—Recommendations to customers.
In recommending to a customer the purchase, sale or
exchange of a government security, a bank that is a government securities broker or dealer shall have reasonable
grounds for believing that the recommendation is suitable
for the customer upon the basis of the facts, if any, disclosed by the customer as to the customer's other security
holdings and as to the customer's financial situation and
needs.
Section 13.5—Customer information.
Prior to the execution of a transaction recommended to a
non-institutional customer, a bank that is a government
securities broker or dealer shall make reasonable efforts to
obtain information concerning:
(a) The customer'sfinancialstatus;
(b) The customer's tax status;
(c) The customer's investment objectives; and
402 Federal Reserve Bulletin • May 1997
(d) Such other information used or considered to be reasonable by the bank in making recommendations to the customer.
Interpretations
Section 13.100—Obligations concerning
institutional customers.
(a) As a result of broadened authority provided by the
Government Securities Act Amendments of 1993
(15 U.S.C. 78o-3 and 78o-5)), the OCC is adopting sales
practice rules for the government securities market, a market with a particularly broad institutional component. Accordingly, the OCC believes it is appropriate to provide
further guidance to banks on their suitability obligations
when making recommendations to institutional customers.
(b) The OCC's suitability rule (section 13.4) is fundamental to fair dealing and is intended to promote ethical sales
practices and high standards of professional conduct.
Banks' responsibilities include having a reasonable basis
for recommending a particular security or strategy, as well
as having reasonable grounds for believing the recommendation is suitable for the customer to whom it is made.
Banks are expected to meet the same high standards of
competence, professionalism, and good faith regardless of
the financial circumstances of the customer.
(c) In recommending to a customer the purchase, sale, or
exchange of any government security, the bank shall have
reasonable grounds for believing that the recommendation
is suitable for the customer upon the basis of the facts, if
any, disclosed by the customer as to the customer's other
security holdings and financial situation and needs.
(d) The interpretation in this section concerns only the
manner in which a bank determines that a recommendation
is suitable for a particular institutional customer. The manner in which a bank fulfills this suitability obligation will
vary, depending on the nature of the customer and the
specific transaction. Accordingly, the interpretation in this
section deals only with guidance regarding how a bank
may fulfill customer-specific suitability obligations under
section 13.4.1
(e) While it is difficult to define in advance the scope of a
bank's suitability obligation with respect to a specific institutional customer transaction recommended by a bank, the
OCC has identified certain factors that may be relevant
when considering compliance with section 13.4. These
factors are not intended to be requirements or the only
factors to be considered but are offered merely as guidance
in determining the scope of a bank's suitability obligations.
(f) The two most important considerations in determining
the scope of a bank's suitability obligations in making
1. The interpretation in this section does not address the obligation
related to suitability that requires that a bank have " . . . a 'reasonable
basis' to believe that the recommendation could be suitable for at least
some customers." In the Matter of the Application of FJ. Kaufman
and Company of Virginia and Frederick J. Kaufman, Jr., 50 SEC 164
(1989).
recommendations to an institutional customer are the customer's capability to evaluate investment risk independently and the extent to which the customer is exercising
independent judgement in evaluating a bank's recommendation. A bank must determine, based on the information
available to it, the customer's capability to evaluate investment risk. In some cases, the bank may conclude that the
customer is not capable of making independent investment
decisions in general. In other cases, the institutional customer may have general capability, but may not be able to
understand a particular type of instrument or its risk. This
is more likely to arise with relatively new types of instruments, or those with significantly different risk or volatility
characteristics than other investments generally made by
the institution. If a customer is either generally not capable
of evaluating investment risk or lacks sufficient capability
to evaluate the particular product, the scope of a bank's
customer-specific obligations under section 13.4 would not
be diminished by the fact that the bank was dealing with an
institutional customer. On the other hand, the fact that a
customer initially needed help understanding a potential
investment need not necessarily imply that the customer
did not ultimately develop an understanding and make an
independent investment decision.
(g) A bank may conclude that a customer is exercising
independent judgement if the customer's investment decision will be based on its own independent assessment of
the opportunities and risks presented by a potential investment, market factors and other investment considerations.
Where the bank has reasonable grounds for concluding that
the institutional customer is making independent investment decisions and is capable of independently evaluating
investment risk, then a bank's obligations under section 13.4 for a particular customer are fulfilled.2 Where a
customer has delegated decision-making authority to an
agent, such as an investment advisor or a bank trust department, the interpretation in this section shall be applied to
the agent.
(h) A determination of capability to evaluate investment
risk independently will depend on an examination of the
customer's capability to make its own investment decisions, including the resources available to the customer to
make informed decisions. Relevant considerations could
include:
(1) The use of one or more consultants, investment
advisers, or bank trust departments;
(2) The general level of experience of the institutional
customer in financial markets and specific experience
with the type of instruments under consideration;
(3) The customer's ability to understand the economic
features of the security involved;
(4) The customer's ability to independently evaluate
how market developments would affect the security; and
(5) The complexity of the security or securities involved,
(i) A determination that a customer is making independent
investment decisions will depend on the nature of the
2. See footnote 1 in paragraph (d) of this section.
Legal Developments
relationship that exists between the bank and the customer.
Relevant considerations could include:
(1) Any written or oral understanding that exists between the bank and the customer regarding the nature of
the relationship between the bank and the customer and
the services to be rendered by the bank;
(2) The presence or absence of a pattern of acceptance of
the bank's recommendations;
(3) The use by the customer of ideas, suggestions, market views and information obtained from other government securities brokers or dealers or market professionals, particularly those relating to the same type of
securities; and
(4) The extent to which the bank has received from the
customer current comprehensive portfolio information
in connection with discussing recommended transactions or has not been provided important information
regarding its portfolio or investment objectives.
(j) Banks are reminded that these factors are merely guidelines that will be utilized to determine whether a bank has
fulfilled its suitability obligation with respect to a specific
institutional customer transaction and that the inclusion or
absence of any of these factors is not dispositive of the
determination of suitability. Such a determination can only
be made on a case-by-case basis taking into consideration
all the facts and circumstances of a particular bank/
customer relationship, assessed in the context of a particular transaction.
(k) For purposes of the interpretation in this section, an
institutional customer shall be any entity other than a
natural person. In determining the applicability of the
interpretation in this section to an institutional customer,
the OCC will consider the dollar value of the securities that
the institutional customer has in its portfolio and/or under
management. While the interpretation in this section is
potentially applicable to any institutional customer, the
guidance contained in this section is more appropriately
applied to an institutional customer with at least $10 million invested in securities in the aggregate in its portfolio
and/or under management.
403
Section 208.25—Government securities sales
practices.
Authority: 12 U.S.C. 36, 248(a), 248(c), 321-338a, 37Id,
461, 481-486, 601, 611, 1814, 18230, 1828(o), 1831o,
1831p-l, 3105,3310,3331-3351 and 3906-3909; 15 U.S.C.
78b, 781(b), 781 (g), 781(i), 78o-4(c)(5), 78o-5, 78q, 78q-l,
and 78w: 31 U.S.C. 5318; 42 U.S.C. 4012a, 4104a, 4104b,
4106, and 4128.
(a) Scope. This subpart is applicable to state member banks
that have filed notice as, or are required to file notice as,
government securities brokers or dealers pursuant to section 15C of the Securities Exchange Act (15 U.S.C. 78o-5)
and Department of the Treasury rules under section 15C
(17 C.F.R. 400.1(d) and part 401).
(b) Definitions. (1) Bank that is a government securities
broker or dealer means a state member bank that has
filed notice, or is required to file notice, as a government
securities broker or dealer pursuant to section 15C of the
Securities Exchange Act (15 U.S.C. § 78o-5) and Department of the Treasury rules under section 15C (17 C.F.R.
400.1(d) and part 401).
(2) Customer does not include a broker or dealer or a
government securities broker or dealer.
(3) Government security has the same meaning as this
term has in section 3(a)(42) of the Securities Exchange
Act of 1934 (15 U.S.C. 78c(a)(42)).
(4) Non-institutional customer means any customer other
than:
(i) A bank, savings association, insurance company,
or registered investment company;
(ii) An investment adviser registered under section
203 of the Investment Advisers Act of 1940
(15U.S.C.80b-3);or
(iii) Any entity (whether a natural person, corporation,
partnership, trust, or otherwise) with total assets of at
least $50 million.
(c) Business conduct. A bank that is a government securities broker or dealer shall observe high standards of commercial honor and just and equitable principles of trade in
the conduct of its business as a government securities
broker or dealer.
(d) Recommendations to customers. In recommending to a
customer the purchase, sale or exchange of a government
security, a bank that is a government securities broker or
dealer shall have reasonable grounds for believing that the
recommendation is suitable for the customer upon the basis
of the facts, if any, disclosed by the customer as to the
customer's other security holdings and as to the customer's
financial situation and needs.
(e) Customer information. Prior to the execution of a
transaction recommended to a non-institutional customer, a
bank that is a government securities broker or dealer shall
make reasonable efforts to obtain information concerning:
(1) The customer'sfinancialstatus;
(2) The customer's tax status;
(3) The customer's investment objectives; and
(4) Such other information used or considered to be
reasonable by the bank in making recommendations to
the customer.
2. A new section 208.25 is added to subpart A to read as
follows:
3. A new section 208.129 is added to subpart E to read as
follows:
Part 208—Membership of State Banking
Institutions in the Federal Reserve System
(Regulation H)
1. The authority citation for Part 208 is revised to read as
follows:
404 Federal Reserve Bulletin D May 1997
Section 208.129—Obligations concerning
institutional customers.
(a) As a result of broadened authority provided by the
Government Securities Act Amendments of 1993
(15 U.S.C. 78o-3 and 78o-5)), the Board is adopting sales
practice rules for the government securities market, a market with a particularly broad institutional component. Accordingly, the Board believes it is appropriate to provide
further guidance to banks on their suitability obligations
when making recommendations to institutional customers.
(b) The Board's Suitability Rule, section 208.25(d), is
fundamental to fair dealing and is intended to promote
ethical sales practices and high standards of professional
conduct. Banks' responsibilities include having a reasonable basis for recommending a particular security or strategy, as well as having reasonable grounds for believing the
recommendation is suitable for the customer to whom it is
made. Banks are expected to meet the same high standards
of competence, professionalism, and good faith regardless
of the financial circumstances of the customer.
(c) In recommending to a customer the purchase, sale, or
exchange of any government security, the bank shall have
reasonable grounds for believing that the recommendation
is suitable for the customer upon the basis of the facts, if
any, disclosed by the customer as to the customer's other
security holdings and financial situation and needs.
(d) The interpretation in this section concerns only the
manner in which a bank determines that a recommendation
is suitable for a particular institutional customer. The manner in which a bank fulfills this suitability obligation will
vary, depending on the nature of the customer and the
specific transaction. Accordingly, the interpretation in this
section deals only with guidance regarding how a bank
may fulfill customer-specific suitability obligations under
section 208.25(d).'
(e) While it is difficult to define in advance the scope of a
bank's suitability obligation with respect to a specific institutional customer transaction recommended by a bank, the
Board has identified certain factors that may be relevant
when considering compliance with section 208.25(d).
These factors are not intended to be requirements or the
only factors to be considered but are offered merely as
guidance in determining the scope of a bank's suitability
obligations.
(f) The two most important considerations in determining
the scope of a bank s suitability obligations in making
recommendations to an institutional customer are the customer's capability to evaluate investment risk independently and the extent to which the customer is exercising
independent judgment in evaluating a bank's recommendation. A bank must determine, based on the information
1. The interpretation in this section does not address the obligation
related to suitability that requires that a bank have " . . . a 'reasonable
basis' to believe that the recommendation could be suitable for at least
some customers." In the Matter of the Application of FJ. Kaufman
and Company of Virginia and Frederick J. Kaufman, Jr., 50 SEC 164
(1989).
available to it, the customer's capability to evaluate investment risk. In some cases, the bank may conclude that the
customer is not capable of making independent investment
decisions in general. In other cases, the institutional customer may have general capability, but may not be able to
understand a particular type of instrument or its risk. This
is more likely to arise with relatively new types of instruments, or those with significantly different risk or volatility
characteristics than other investments generally made by
the institution. If a customer is either generally not capable
of evaluating investment risk or lacks sufficient capability
to evaluate the particular product, the scope of a bank's
customer-specific obligations under section 208.25(d)
would not be diminished by the fact that the bank was
dealing with an institutional customer. On the other hand,
the fact that a customer initially needed help understanding
a potential investment need not necessarily imply that the
customer did not ultimately develop an understanding and
make an independent investment decision,
(g) A bank may conclude that a customer is exercising
independent judgement if the customer's investment decision will be based on its own independent assessment of
the opportunities and risks presented by a potential investment, market factors and other investment considerations.
Where the bank has reasonable grounds for concluding that
the institutional customer is making independent investment decisions and is capable of independently evaluating
investment risk, then a bank's obligations under section 208.25(d) for a particular customer are fulfilled.2
Where a customer has delegated decision-making authority
to an agent, such as an investment advisor or a bank trust
department, the interpretation in this section shall be
applied to the agent.
(h) A determination of capability to evaluate investment
risk independently will depend on an examination of the
customer's capability to make its own investment decisions, including the resources available to the customer to
make informed decisions. Relevant considerations could
include:
(1) The use of one or more consultants, investment
advisers, or bank trust departments;
(2) The general level of experience of the institutional
customer in financial markets and specific experience
with the type of instruments under consideration;
(3) The customer's ability to understand the economic
features of the security involved;
(4) The customer's ability to independently evaluate
how market developments would affect the security; and
(5) The complexity of the security or securities involved,
(i) A determination that a customer is making independent
investment decisions will depend on the nature of the
relationship that exists between the bank and the customer.
Relevant considerations could include:
(1) Any written or oral understanding that exists between the bank and the customer regarding the nature of
2. See footnote 1 in paragraph (d) of this section.
Legal Developments
the relationship between the bank and the customer and
the services to be rendered by the bank;
(2) The presence or absence of a pattern of acceptance of
the bank's recommendations;
(3) The use by the customer of ideas, suggestions, market views and information obtained from other government securities brokers or dealers or market professionals, particularly those relating to the same type of
securities; and
(4) The extent to which the bank has received from the
customer current comprehensive portfolio information
in connection with discussing recommended transactions or has not been provided important information
regarding its portfolio or investment objectives.
(j) Banks are reminded that these factors are merely guidelines that will be utilized to determine whether a bank has
fulfilled its suitability obligation with respect to a specific
institutional customer transaction and that the inclusion or
absence of any of these factors is not dispositive of the
determination of suitability. Such a determination can only
be made on a case-by-case basis taking into consideration
all the facts and circumstances of a particular bank/
customer relationship, assessed in the context of a particular transaction.
(k) For purposes of the interpretation in this section, an
institutional customer shall be any entity other than a
natural person. In determining the applicability of the
interpretation in this section to an institutional customer,
the Board will consider the dollar value of the securities
that the institutional customer has in its portfolio and/or
under management. While the interpretation in this section
is potentially applicable to any institutional customer, the
guidance contained in this section is more appropriately
applied to an institutional customer with at least $10 million invested in securities in the aggregate in its portfolio
and/or under management.
Part 211—International Banking Operations
(Regulation K)
1. The authority citation for Part 211 is revised to read as
follows:
Authority: 12 U.S.C. 221 et seq., 1818, 1841 et seq., 3101
et seq., 3109 et seq.; 15 U.S.C. 78o-5.
2. Section 211.24 is amended by revising the section
heading and adding a new paragraph (g) to read as follows:
Section 211.24—Approval of offices of foreign
banks; procedures for applications; standards for
approval; representative-office activities and
standards for approval; preservation of existing
authority; reports of crimes and suspected crimes;
government securities sales practices.
405
required to give notice to the Board under section 15C of
the Securities Exchange Act of 1934 (15 U.S.C. 78o-5) and
the Department of the Treasury rules under section 15C
(17 C.F.R. 400. l(d) and part 401) shall be subject to the
provisions of 12 C.F.R. 208.25 to the same extent as a state
member bank that is required to give such notice.
Part 368—Government Securities Sales Practices
Section
368.1 Scope.
368.2 Definitions.
368.3 Business conduct.
368.4 Recommendations to customers.
368.5 Customer information.
368.100 Obligations concerning institutional customers.
Authority: 15 U.S.C. 78o-5.
Section 368.1—Scope.
This part is applicable to state nonmember banks and
insured state branches of foreign banks that have filed
notice as, or are required to file notice as, government
securities brokers or dealers pursuant to section 15C of the
Securities Exchange Act (15 U.S.C. 78o-5) and Department of the Treasury rules under section 15C (17 C.F.R.
400.1(d) and part 401).
Section 368.2—Definitions.
(a) Bank that is a government securities broker or dealer
means a state nonmember bank or an insured state branch
of a foreign bank that has filed notice, or is required to file
notice, as a government securities broker or dealer pursuant to section 15C of the Securities Exchange Act
(15 U.S.C. 78o-5) and Department of the Treasury rules
under section 15C (17 C.F.R. 400.1(d) and part 401).
(b) Customer does not include a broker or dealer or a
government securities broker or dealer.
(c) Government security has the same meaning as this term
has in section 3(a)(42) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a)(42)).
(d) Non-institutional customer means any customer other
than:
(1) A bank, savings association, insurance company, or
registered investment company;
(2) An investment adviser registered under section 203
of the Investment Advisers Act of 1940 (15 U.S.C.
80b-3); or
(3) Any entity (whether a natural person, corporation,
partnership, trust, or otherwise) with total assets of at
least $50 million.
Section 368.3—Business conduct.
(g) Government securities sales practices. An uninsured
state-licensed branch or agency of a foreign bank that is
A bank that is a government securities broker or dealer
shall observe high standards of commercial honor and just
406 Federal Reserve Bulletin • May 1997
and equitable principles of trade in the conduct of its
business as a government securities broker or dealer.
Section 368.4—Recommendations to customers.
In recommending to a customer the purchase, sale or
exchange of a government security, a bank that is a government securities broker or dealer shall have reasonable
grounds for believing that the recommendation is suitable
for the customer upon the basis of the facts, if any, disclosed by the customer as to the customer's other security
holdings and as to the customer's financial situation and
needs.
Section 368.5—Customer information.
Prior to the execution of a transaction recommended to a
non-institutional customer, a bank that is a government
securities broker or dealer shall make reasonable efforts to
obtain information concerning:
(a) The customer'sfinancialstatus;
(b) The customer's tax status;
(c) The customer's investment objectives; and
(d) Such other information used or considered to be reasonable by such bank in making recommendations to the
customer.
Section 368.100—Obligations concerning
institutional customers.
(a) As a result of broadened authority provided by the
Government Securities Act Amendments of 1993
(15 U.S.C. 78o-3 and 78o-5)), the FDIC is adopting sales
practice rules for the government securities market, a market with a particularly broad institutional component. Accordingly, the FDIC believes it is appropriate to provide
further guidance to banks on their suitability obligations
when making recommendations to institutional customers.
(b) The FDIC's suitability rule (section 368.4) is fundamental to fair dealing and is intended to promote ethical
sales practices and high standards of professional conduct.
Banks' responsibilities include having a reasonable basis
for recommending a particular security or strategy, as well
as having reasonable grounds for believing the recommendation is suitable for the customer to whom it is made.
Banks are expected to meet the same high standards of
competence, professionalism, and good faith regardless of
thefinancialcircumstances of the customer.
(c) In recommending to a customer the purchase, sale, or
exchange of any government security, the bank shall have
reasonable grounds for believing that the recommendation
is suitable for the customer upon the basis of the facts, if
any, disclosed by the customer as to the customer's other
security holdings and financial situation and needs.
(d) The interpretation in this section concerns only the
manner in which a bank determines that a recommendation
is suitable for a particular institutional customer. The manner in which a bank fulfills this suitability obligation will
vary, depending on the nature of the customer and the
specific transaction. Accordingly, the interpretation in this
section deals only with guidance regarding how a bank
may fulfill customer-specific suitability obligations under
section 368.4.'
(e) While it is difficult to define in advance the scope of a
bank's suitability obligation with respect to a specific institutional customer transaction recommended by a bank, the
FDIC has identified certain factors that may be relevant
when considering compliance with section 368.4. These
factors are not intended to be requirements or the only
factors to be considered but are offered merely as guidance
in determining the scope of a bank's suitability obligations.
(f) The two most important considerations in determining
the scope of a bank's suitability obligations in making
recommendations to an institutional customer are the customer's capability to evaluate investment risk independently and the extent to which the customer is exercising
independent judgement in evaluating a bank's recommendation. A bank must determine, based on the information
available to it, the customer's capability to evaluate investment risk. In some cases, the bank may conclude that the
customer is not capable of making independent investment
decisions in general. In other cases, the institutional customer may have general capability, but may not be able to
understand a particular type of instrument or its risk. This
is more likely to arise with relatively new types of instruments, or those with significantly different risk or volatility
characteristics than other investments generally made by
the institution. If a customer is either generally not capable
of evaluating investment risk or lacks sufficient capability
to evaluate the particular product, the scope of a bank's
customer-specific obligations under section 368.4 would
not be diminished by the fact that the bank was dealing
with an institutional customer. On the other hand, the fact
that a customer initially needed help understanding a potential investment need not necessarily imply that the customer did not ultimately develop an understanding and
make an independent investment decision.
(g) A bank may conclude that a customer is exercising
independent judgement if the customer's investment decision will be based on its own independent assessment of
the opportunities and risks presented by a potential investment, market factors and other investment considerations.
Where the bank has reasonable grounds for concluding that
the institutional customer is making independent investment decisions and is capable of independently evaluating
investment risk, then a bank's obligations under section 368.4 for a particular customer are fulfilled.2 Where a
customer has delegated decision-making authority to an
1. The interpretation in this section does not address the obligation
related to suitability that requires that a bank have " . . . a 'reasonable
basis' to believe that the recommendation could be suitable for at least
some customers." In the Matter of the Application of FJ. Kaufman
and Company of Virginia and Frederick J. Kaufman, Jr., 50 SEC 164
(1989).
2. See footnote 1 in paragraph (d) of this section.
Legal Developments
agent, such as an investment advisor or a bank trust department, the interpretation in this section shall be applied to
the agent.
(h) A determination of capability to evaluate investment
risk independently will depend on an examination of the
customer's capability to make its own investment decisions, including the resources available to the customer to
make informed decisions. Relevant considerations could
include:
(1) The use of one or more consultants, investment
advisers, or bank trust departments;
(2) The general level of experience of the institutional
customer in financial markets and specific experience
with the type of instruments under consideration;
(3) The customer's ability to understand the economic
features of the security involved;
(4) The customer's ability to independently evaluate
how market developments would affect the security; and
(5) The complexity of the security or securities involved,
(i) A determination that a customer is making independent
investment decisions will depend on the nature of the
relationship that exists between the bank and the customer.
Relevant considerations could include:
(1) Any written or oral understanding that exists between the bank and the customer regarding the nature of
the relationship between the bank and the customer and
the services to be rendered by the bank;
(2) The presence or absence of a pattern of acceptance of
the bank's recommendations;
(3) The use by the customer of ideas, suggestions, market views and information obtained from other government securities brokers or dealers or market professionals, particularly those relating to the same type of
securities; and
(4) The extent to which the bank has received from the
customer current comprehensive portfolio information
in connection with discussing recommended transactions or has not been provided important information
regarding its portfolio or investment objectives.
(j) Banks are reminded that these factors are merely guidelines that will be utilized to determine whether a bank has
fulfilled its suitability obligation with respect to a specific
institutional customer transaction and that the inclusion or
absence of any of these factors is not dispositive of the
determination of suitability. Such a determination can only
be made on a case-by-case basis taking into consideration
all the facts and circumstances of a particular bank/
customer relationship, assessed in the context of a particular transaction.
(k) For purposes of the interpretation in this section, an
institutional customer shall be any entity other than a
natural person. In determining the applicability of the
interpretation in this section to an institutional customer,
the FDIC will consider the dollar value of the securities
that the institutional customer has in its portfolio and/or
under management. While the interpretation in this section
is potentially applicable to any institutional customer, the
guidance contained in this section is more appropriately
applied to an institutional customer with at least $10 mil
407
lion invested in securities in the aggregate in its portfolio
and/or under management.
FINAL RULE—AMENDMENT
TO REGULATION M
The Board of Governors is amending 12 C.F.R. Part 213,
its Regulation M (Consumer Leasing), which implements
the Consumer Leasing Act. The act requires lessors to
provide uniform cost and other disclosures about consumer
lease transactions. The revisions primarily implement
amendments to the act contained in the Economic Growth
and Regulatory Paperwork Reduction Act of 1996, which
streamline the advertising disclosures for lease transactions. In addition, the final rule makes the disclosure of
upfront costs in connection with a specific lease agreement
parallel statutory changes to the advertising rules disclosing upfront costs — which now include total amounts due
by lease signing or delivery, if delivery occurs later. Several technical amendments also have been made to the
regulation.
Effective April 1, 1997, 12 C.F.R. Part 213 is amended
as follows:
Part 213—Consumer Leasing (Regulation M)
1. The authority citation for part 213 continues to read as
follows:
Authority: 15 U.S.C. 1604.
2. Section 213.1 is amended by revising paragraph (a) to
read as follows:
Section 213.1—Authority, scope, purpose, and
enforcement.
(a) Authority. The regulation in this part, known as Regulation M, is issued by the Board of Governors of the Federal
Reserve System to implement the consumer leasing provisions of the Truth in Lending Act, which is Title I of the
Consumer Credit Protection Act, as amended (15 U.S.C.
1601 et seq.). Information collection requirements contained in this regulation have been approved by the Office
of Management and Budget under the provisions of
44 U.S.C. 3501 et seq. and have been assigned OMB
control number 7100-0202.
3. Section 213.2 is amended by revising the first sentence
of paragraph (f) to read as follows:
Section 213.2—Definitions.
* * * * *
(f) Gross capitalized cost means the amount agreed upon
by the lessor and the lessee as the value of the leased
property and any items that are capitalized or amortized
during the lease term, including but not limited to taxes,
408 Federal Reserve Bulletin • May 1997
insurance, service agreements, and any outstanding prior
credit or lease balance. * * *
Section 213.5—Renegotiations, extensions, and
assumptions.
* * * * *
4. Section 213.4 is amended as follows:
a. Paragraph (b) is revised;
b. Paragraph (f)(l) is revised.
c. Paragraph (n) is revised;
d. The headings of paragraphs (o)(l) and (o)(2) are revised;
and
e. New paragraph (t) is added.
The revisions and additions read as follows:
Section 213.4—Content of disclosures.
(b) Amount due at lease signing or delivery. The total
amount to be paid prior to or at consummation or by
delivery, if delivery occurs after consummation, using the
term "amount due at lease signing or delivery." The lessor
shall itemize each component by type and amount, including any refundable security deposit, advance monthly or
other periodic payment, and capitalized cost reduction; and
in motor-vehicle leases, shall itemize how the amount due
will be paid, by type and amount, including any net trade-in
allowance, rebates, noncash credits, and cash payments in
a format substantially similar to the model forms in Appendix A of this part.
(f) Payment calculation. * * *
(1) Gross capitalized cost. The gross capitalized cost,
including a disclosure of the agreed upon value of the
vehicle, a description such as "the agreed upon value of
the vehicle [state the amount] and any items you pay for
over the lease term (such as service contracts, insurance,
and any outstanding prior credit or lease balance)," and
a statement of the lessee's option to receive a separate
written itemization of the gross capitalized cost. If requested by the lessee, the itemization shall be provided
before consummation.
(n) Fees and taxes. The total dollar amount for all official
and license fees, registration, title, or taxes required to be
paid in connection with the lease,
(o) Insurance. * * *
(1) Through the lessor. ***
(2) Through a third party. * * *
(t) Non-motor vehicle open-end leases. Non-motor vehicle
open-end leases remain subject to section 182(10) of the
act regarding end of term liability.
5. Section 213.5 is amended by revising paragraph (d)(l)
to read as follows:
( d ) E x c e p t i o n s . ***
(1) A reduction in the rent charge;
* * * * *
6. Section 213.7 is amended as follows:
a. Paragraph (b)(l) is revised;
b. Paragraph (d)(l)(i) is revised, paragraph (d)(l)(ii) is
removed and republished, and paragraph (d)(l)(iii) is redesignated as (d)(l)(ii);
c. Paragraphs (d)(2)(ii) and (d)(2)(iii) are revised, paragraph (d)(2)(iv) is removed, paragraphs (d)(2)(v) and
(d)(2)(vi) are revised and redesignated as paragraphs
(d)(2)(iv) and (d)(2)(v) and paragraph (d)(2)(i) is republished, respectively.
The revisions and republications read as follows:
Section 213.7—Advertising.
(b) Clear and conspicuous standard. * * *
(1) Amount due at lease signing or delivery. Except for
the statement of a periodic payment, any affirmative or
negative reference to a charge that is a part of the
disclosure required under paragraph (d)(2)(ii) of this
section shall not be more prominent than that disclosure.
(d) Advertisement of terms that require additional disclosure.
(1) Triggering terms. An advertisement that states any of
the following items shall contain the disclosures required by paragraph (d)(2) of this section, except as
provided in paragraphs (e) and (f) of this section:
(i) The amount of any payment; or
(ii) A statement of any capitalized cost reduction or
other payment required prior to or at consummation
or by delivery, if delivery occurs after consummation.
(2) Additional terms. An advertisement stating any item
listed in paragraph (d)(l) of this section shall also state
the following items:
(i) That the transaction advertised is a lease;
(ii) The total amount due prior to or at consummation
or by delivery, if delivery occurs after consummation;
(iii) The number, amounts, and due dates or periods of
scheduled payments under the lease;
(iv) A statement of whether or not a security deposit is
required; and
(v) A statement that an extra charge may be imposed
at the end of the lease term where the lessee's liability
(if any) is based on the difference between the residual
value of the leased property and its realized value at
the end of the lease term.
Legal Developments
7. Appendix A to Part 213 is amended by revising Appendix A-l and Appendix A-2 to read as follows:
FINAL RULE—AMENDMENT
TO REGULATION O
The Board of Governors is amending 12 C.F.R. Part 215,
its Regulation O (Loans to Executive Officers, Directors,
and Principal Shareholders of Member Banks; Loans to
Holding Companies and Affiliates), which implements section 22(h) of the Federal Reserve Act and limits how much
and on what terms a bank may lend to its own insiders and
insiders of its affiliates. Under the final rule, Regulation O
will not apply to extensions of credit by a bank to an
executive officer or director of an affiliate, provided that the
executive officer or director is not engaged in major policymaking functions of the bank and the affiliate does not
account for more than 10 percent of the consolidated assets
of the bank's parent holding company. Extensions of credit
to executive officers of an affiliate that accounts for more
than 10 percent of the consolidated assets of the bank's
parent holding company are covered by Regulation O as a
result of the Economic Growth and Regulatory Paperwork
Reduction Act of 1996.
Effective April 1, 1997, 12 C.F.R. Part 215 is amended
as follows:
Part 215—Loans to Executive Officers, Directors
and Principal Shareholders of Member Banks
(Regulation O)
1. The authority citation for part 215 continues to read as
follows:
Authority: 12 U.S.C. 248(i), 375a(10), 375b(9) and (10),
1817(k)(3) and 1972(2)(G)(ii); Pub. L. 102-242, 105 Stat.
2236.
2. Section 215.2 is amended as follows:
a. Paragraph (d) introductory text and paragraphs (d)(l)
through (d)(3) are redesignated as paragraph (d)(l) introductory text and paragraphs (d)(l)(i) through (d)(l)(iii),
respectively;
b. New paragraphs (d)(2) and (d)(3) are added;
c. Paragraph (e)(2) is revised; and
d. A new paragraph (e)(3) is added.
The additions and revisions read as follows:
409
bank, from participation in major policymaking functions of the bank, and the director does not actually
participate in such functions;
(ii) The affiliate does not control the bank;
(iii) As determined annually, the assets of the affiliate
do not constitute more than 10 percent of the consolidated assets of the company that—
(A) Controls the bank; and
(B) Is not controlled by any other company; and
(iv) The director of the affiliate is not otherwise subject to sections 215.4,215.6, and 215.8.
(3) For purposes of paragraph (d)(2)(i) of this section, a
resolution of the board of directors or a corporate bylaw
may—
(i) Include the director (by name or by title) in a list of
persons excluded from participation in such functions;
or
(ii) Not include the director in a list of persons authorized (by name or by title) to participate in such
functions.
(e)(l) * * *
(2) Extensions of credit to an executive officer of an
affiliate of a bank are not subject to sections 215.4,
215.6, and 215.8 if—
(i) The executive officer is excluded, by resolution of
the board of directors or by the bylaws of the bank,
from participation in major policymaking functions of
the bank, and the executive officer does not actually
participate in such functions;
(ii) The affiliate does not control the bank;
(iii) As determined annually, the assets of the affiliate
do not constitute more than 10 percent of the consolidated assets of the company that—
(A) Controls the bank; and
(B) Is not controlled by any other company; and
(iv) The executive officer of the affiliate is not otherwise subject to sections 215.4, 215.6, and 215.8.
(3) For purposes of paragraphs (e)(l) and (e)(2)(i) of this
section, a resolution of the board of directors or a
corporate bylaw may—
(i) Include the executive officer (by name or by title)
in a list of persons excluded from participation in such
functions; or
(ii) Not include the executive officer in a list of
persons authorized (by name or by title) to participate
in such functions.
3. Section 215.4 is amended by revising paragraph (a)(2)
introductory text to read as follows:
Section 215.2—Definitions.
* * * * *
(d)(l) * * *
(2) Extensions of credit to a director of an affiliate of a
bank are not subject to sections 215.4, 215.6, and 215.8
if—
(i) The director of the affiliate is excluded, by resolution of the board of directors or by the bylaws of the
Section 215.4—General prohibitions.
(a) * * *
(2) Exception. Nothing in this paragraph (a) or paragraph (e)(2)(ii) of this section shall prohibit any extension of credit made pursuant to a benefit or compensation program—
410
Federal Reserve Bulletin • May 1997
Appendix A-l Model Open-End or Finance Vehicle Lease Disclosures
Federal Consumer Leasing Act Disclosures
Date
Lessee(s)
Lessor(s)
Amount Due at
Lease Signing
or Delivery
(Itemized below)*
Other Charges (not part of your monthly
payment)
Monthly Payments
Your first monthly payment of $
is due on
, followed by
. payments of $ .
due on
of each month. The total of your
the.
monthly payments is $
Disposition fee (if you do
not purchase the vehicle)
Total of Payments
(The amount you will have
paid by the end of the lease)
$
You will owe an additional
amount if the actual value of
the vehicle is less than the
residual value.
Total
* Hemization of Amount Due at Lease Signing or Delivery
How the Amount Due at Lease Signing or Delivery will be paid:
Amount Due At Lease Signing or Delivery:
Capitalized cost reduction
First monthly payment
Refundable security deposit
Title fees
Registration fees
$
Total
Net trade-in allowance
Rebates and noncash credits
Amount to be paid in cash
$
Total $
Your monthly payment is determined as shown below:
_) and any items
Gross capitalized cost. The agreed upon value of the vehicle ($_
you pay over the lease term (such as service contracts, insurance, and any outstanding prior credit
or lease balance)
If you want an itemization of this amount, please check this box. D
Capitalized cost reduction. The amount of any net trade-in allowance, rebate, noncash credit, or cash you pay
that reduces the gross capitalized cost
Adjusted capitalized cost. The amount used in calculating your base monthly payment
Residual value. The value of the vehicle at the end of the lease used in calculating your base monthly payment
Depreciation and any amortized amounts. The amount charged for the vehicle's decline in value
through normal use and for other items paid over the lease term
Rent charge. The amount charged in addition to the depreciation and any amortized amounts
Total of base monthly payments. The depreciation and any amortized amounts plus the rent charge
Lease term. The number of months in your lease
Base monthly payment
Monthly sales/use tax
Total monthly payment
Rent and other charges. The total amount of rent and other charges imposed in connection with your lease $ .
Early Termination. You may have to pay a substantial charge if you end this lease early. The charge may be up to several
thousand dollars. The actual charge will depend on when the lease is terminated. The earlier you end the lease, the greater
this charge is likely to be.
Excessive Wear and Use. You may be charged for excessive wear based on our standards for normal use [and for mileage in excess
of
miles per year at the rate of
per mile].
Purchase Option at End of Lease Term. [You have an option to purchase the vehicle at the end of the lease term for $
land a purchase option fee of $
|.[ [You do not have an option to purchase the vehicle at the end of the lease term.]
Other Important Terms. See your lease documents for additional information on early termination, purchase options and maintenance
responsibilities, warranties, late and default charges, insurance, and any security interest, if applicable.
Legal Developments
Appendix A-l Model Open-End or Finance Vehicle Lease Disclosures
411
Page 2 of 2
[The following provisions are the nonsegregated disclosures required under Regulation M.]
Year
Description of Leased Property
Model
Body Style
Make
Vehicle ID #
Official Fees and Taxes. The total amount you will pay for official and license fees, registration, title, and taxes over the term of your lease, whether
included with your monthly payments or assessed otherwise: $
.
Insurance. The following types and amounts of insurance will be acquired in connection with this lease:
We (lessor) will provide the insurance coverage quoted above for a total premium cost of $
.
You (lessee) agree to provide insurance coverage in the amount and types indicated above.
End of T e r m Liability, (a) The residual value ($
) of the vehicle is based on a reasonable, good faith estimate of the value of the vehicle at the
end of the lease term. If the actual value of the vehicle at that time is greater than the residual value, you will have no further liability under this lease, except for
other charges already incurred [and are entitled to a credit or refund of any surplus.] If the actual value of the vehicle is less than the residual value, you will be
liable for any difference up to $
(3 times the monthly payment). For any difference in excess of that amount, you will be liable only if:
1. Excessive use or damage [as described in paragraph
] [representing more than normal wear and use] resulted in an unusually low value at the end of
the term.
2. The matter is not otherwise resolved and we win a lawsuit against you seeking a higher payment.
3. You voluntarily agree with us after the end of the lease term to make a higher payment.
Should we bring a lawsuit against you, we must prove that our original estimate of the value of the leased property at the end of the lease term was reasonable and
was made in good faith. For example, we might prove that the actual was less than the original estimated value, although the original estimate was reasonable,
because of an unanticipated decline in value for that type of vehicle. We must also pay your attorney's fees.
(b) If you disagree with the value we assign to the vehicle, you may obtain, at your own expense, from an independent third party agreeable to both of us, a
professional appraisal of the
value of the leased vehicle which could be realized at sale. The appraised value shall then be used as the actual value.
Standards for W e a r and Use. The following standards are applicable for determining unreasonable or excess wear and use of the leased vehicle:
Maintenance.
[You are responsible for the following maintenance and servicing of the leased vehicle:
[We are responsible for the following maintenance and servicing of the leased vehicle:
Warranties. The leased vehicle is subject to the following express warranties:
Early Termination and Default, (a) You may terminate this lease before the end of the lease term under the following conditions:
The charge for such early termination is:
(b) We may terminate this lease before the end of the lease term under the following conditions:
Upon such termination we shall be entitled to the following charge(s) for:
(c) To the extent these charges take into account the value of the vehicle at termination, if you disagree with the value we assign to the vehicle, you may obtain,
at your own expense, from an independent third party agreeable to both of us, a professional appraisal of the
value of the leased vehicle
which could be realized at sale. The appraised value shall then be used as the actual value.
Security Interest. We reserve a security interest of the following type in the property listed below to secure performance of your obligation under this lease:
Late Payments. The charge for late payments is:
Option to Purchase Leased Property Prior to the End Of the Lease. [You have an option to purchase the leased vehicle prior to the end of the term.
The price will be [$
/[the method of determining the price].] [You do not have an option to purchase the leased vehicle.]
412
Federal Reserve Bulletin • May 1997
Appendix A-2 Model Closed-End or Net Vehicle Lease Disclosures
Federal Consumer Leasing Act Disclosures
Date
Lessee(s)
Lessor(s)
Amount Due at
Lease Signing
or Delivery
(Itemized below)*
Monthly Payments
Other Charges (not part of your monthly
payment)
Your first monthly payment of $
is due on
., followed by
payments of $
due on
of each month. The total of your
the.
monthly payments is $ .
Disposition fee (if you do
not purchase the vehicle)
Total of Payments
(The amount you will have
paid by the end of the lease)
$
Total
* Itemi/ation of Amount Due at Lease Signing or Delivery
Amount Due At Lease Signing or Delivery:
I low the Amount Due at Lease Signing or Delivery will be paid:
Capitalized cost reduction
First monthly payment
Refundable security deposit
Title fees
Registration fees
$
Total
"
Net trade-in allowance
Rebates and noncash credits
Amount to be paid in cash
$
$
Total
$
Your monthly payment is determined as shown below:
~~
Gross capitalized cost. The agreed upon value of the vehicle ($
) and any items
you pay over the lease term (such as service contracts, insurance, and any outstanding prior credit
or lease balance)
$
If you want an itemization of this amount, please check this box. LJ
Capitalized cost reduction. The amount of any net trade-in allowance, rebate, noncash credit, or cash you pay
that reduces the gross capitalized cost
Adjusted capitalized cost. The amount used in calculating your base monthly payment
Residual value. The value of the vehicle at the end of the lease used in calculating your base monthly payment
Depreciation and any amortized amounts. The amount charged for the vehicle's decline in value
through normal use and for other items paid over the lease term
Rent charge. The amount charged in addition to the depreciation and any amortized amounts
Total of base monthly payments. The depreciation and any amortized amounts plus the rent charge
Lease term. The number of months in your lease
Base monthly payment
Monthly sales/use tax
~
'
+
=$
Total monthly payment
Early Termination. You may have to pay a substantial charge if you end this lease early. The charge may be up to several
thousand dollars. The actual charge will depend on when the lease is terminated. The earlier you end the lease, the greater
this charge is likely to be.
Excessive Wear and Use. You may be charged for excessive wear based on our standards for normal use [and for mileage in excess
of
miles per year at the rate of
per milej.
Purchase Option at End of Lease Term. [You have an option to purchase the vehicle at the end of the lease term for $
[and a purchase option fee of $
].] [You do not have an option to purchase the vehicle at the end of the lease term.]
Other Important Terms. See your lease documents for additional information on early termination, purchase options and maintenance
responsibilities, warranties, late and default charges, insurance, and any security interest, if applicable.
Legal Developments
Appendix A-2 Model Closed-End or Net Vehicle Lease Disclosures
413
Page 2 of 2
[The following provisions are the nonsegregated disclosures required under Regulation M.I
Year
Make
Description of Leased Properly
Model
Body Style
Vehicle ID #
Official Fees and Taxes. The total amount you will pay for official and license fees, registration, title, and taxes over the term of your lease, whether
included with your monthly payments or assessed otherwise: $
.
Insurance. The following types and amounts of insurance will be acquired in connection with this lease:
We (lessor) will provide the insurance coverage quoted above for a total premium cost of S
.
You (lessee) agree to provide insurance coverage in the amount and types indicated above.
Standards for W e a r and Use. The following standards are applicable for determining unreasonable or excess wear and use of the leased vehicle:
Maintenance.
[You are responsible for the following maintenance and servicing of the leased vehicle:
[We are responsible for the following maintenance and servicing of the leased vehicle:
Warranties. The leased vehicle is subject to the following express warranties:
Early Termination and Default, (a) You may terminate this lease before the end of the lease term under the following conditions:
The charge for such early termination is:
(b) We may terminate this lease before the end of the lease term under the following conditions:
Upon such termination we shall be entitled to the following charge(s) for:
(c) To the extent these charges take into account the value of the vehicle at termination, if you disagree with the value we assign to the vehicle, you may obtain,
at your own expense, from an independent third party agreeable to both of us, a professional appraisal of the
which could be realized at sale. The appraisal value shall then be used as the actual value.
value of the leased vehicle
Security Interest. We reserve a security interest of the following type in the property listed below to secure performance of your obligation under this lease:
Late P a y m e n t s . The charge for late payments is:
Option to P u r c h a s e Leased Property Prior to the E n d of the Lease. [You have an option to purchase the leased vehicle prior to the end of the term.
The price will be [$
/[the method of determining the price], | [You do not have an option to purchase the leased vehicle.]
414 Federal Reserve Bulletin • May 1997
FINAL RULE-AMENDMENT TO REGULATION CC
The Board of Governors is amending 12 C.F.R. Part 229,
its Regulation CC (Availability of Funds and Collection of
Checks). The amendments relate to the availability of
funds and collection of checks. The amendments do not
represent any major policy changes and are intended to
clarify the regulation and, in some cases, reduce the compliance burden for depository institutions.
Effective April 28, 1997, 12 C.F.R. Part 229 is amended
as follows:
d. Paragraph (g)(4) is redesignated as paragraph (g)(5) and
new paragraph (g)(4) is added; and
e. Paragraph (h)(4) is revised.
The addition and revisions read as follows:
Section 229.13—Exceptions.
(g) Notice of exception—(1) * * *
(i) * * *
(B) The date of the deposit;
Part 229—Availability of Funds and Collection of
Checks (Regulation CC)
1. The authority citation for part 229 continues to read as
follows:
Authority: 12 U.S.C. 4001 et seq.
2. In section 229.2, the first sentence in paragraph (e)
concluding text is revised, paragraph (s) is revised, paragraph (pp) is redesignated as paragraph (qq), and a new
paragraph (pp) is added to read as follows:
Section 229.2—Definitions.
(e) * * *
For purposes of subpart C of this part and, in connection
therewith, this subpart A, the term bank also includes any
person engaged in the business of banking, as well as a
Federal Reserve Bank, a Federal Home Loan Bank, and a
state or unit of general local government to the extent that
the state or unit of general local government acts as a
paying bank. * * *
(s) Local paying bank means a paying bank that is located
in the same check-processing region as the physical location of the branch, contractual branch, or proprietary ATM
of the depositary bank in which that check was deposited.
(pp) Contractual branch, with respect to a bank, means a
branch of another bank that accepts a deposit on behalf of
the first bank.
3. Section 229.13 is amended as follows:
a. In paragraphs (g)(l) introductory text and (g)(l)(ii)(A),
the phrase "paragraphs (b) through (f)" is revised to read
"paragraphs (b) through (e)";
b. Paragraphs (g)(l)(i)(B) and (g)(l)(i)(E) are revised;
c. Paragraph (g)(l)(ii)(B) is removed and the paragraph
designation (g)(l)(ii)(A) is removed;
(E) The time period within which the funds will be
available for withdrawal.
(4) Emergency conditions exception notice. When a depositary bank extends the time when funds will be
available for withdrawal based on the application of the
emergency conditions exception contained in paragraph
(f) of this section, it must provide the depositor with
notice in a reasonable form and within a reasonable time
given the circumstances. The notice shall include the
reason the exception was invoked and the time period
within which funds shall be made available for withdrawal, unless the depositary bank, in good faith, does
not know at the time the notice is given the duration of
the emergency and, consequently, when the funds must
be made available. The depositary bank is not required
to provide a notice if the funds subject to the exception
become available before the notice must be sent.
(h) Availability of deposits subject to exceptions. * * *
(4) For the purposes of this section, a "reasonable period" is an extension of up to one business day for checks
described in section 229.10(c)(l)(vi), five business days
for checks described in section 229.12(b)(l) through (4),
and six business days for checks described in section
229.12(c)(l) and (2) or section 229.12(f). A longer extension may be reasonable, but the bank has the burden
of so establishing.
4. Section 229.16(c)(2)(i)(B) is revised to read as follows:
Section 229.16—Specific availability policy
disclosure.
* * * * *
(c) Longer delays on a case-by-case basis. * * *
i
J \
*r*
*t*
T^
i l l
^^
^^
(B) The date of the deposit;
* * * * *
5. In section 229.19, paragraph (a)(l) and the first sentence
of paragraph (a)(5)(ii) are revised to read as follows:
Legal Developments
Section 229.19—Miscellaneous.
(a) * * *
(1) Funds deposited at a staffed facility, ATM, or contractual branch are considered deposited when they are
received at the staffed facility, ATM, or contractual
branch;
(ii) After a cut-off hour set by the depositary bank for
the receipt of deposits of 2:00 p.m. or later, or, for the
receipt of deposits at ATMs, contractual branches, or
off-premise facilities, of 12:00 noon or later. * * *
6. In section 229.30, paragraph (c) is revised to read as
follows:
415
ment amount against subsequent settlements for checks
presented, or for returned checks for which it is the
depositary bank, that it receives from the other bank.
(0 Notice of claim. Unless a claimant gives notice of a
claim for breach of warranty under this section to the bank
that made the warranty within 30 days after the claimant
has reason to know of the breach and the identity of the
warranting bank, the warranting bank is discharged to the
extent of any loss caused by the delay in giving notice of
the claim.
8. In section 229.36, the heading and the last sentence of
paragraph (c) and paragraph (e)(l)(ii) are revised to read as
follows:
Section 229.36—Presentment and issuance of
checks.
Section 229.30—Paying bank's responsibility for
return of checks.
(c) Extension of deadline. The deadline for return or notice
of nonpayment under the U.C.C. or Regulation J (12 C.F.R.
part 210), or section 229.36(0(2) is extended to the time of
dispatch of such return or notice of nonpayment where a
paying bank uses a means of delivery that would ordinarily
result in receipt by the bank to which it is sent —
(1) On or before the receiving bank's next banking day
following the otherwise applicable deadline, for all deadlines other than those described in paragraph (c)(2) of
this section; this deadline is extended further if a paying
bank uses a highly expeditious means of transportation,
even if this means of transportation would ordinarily
result in delivery after the receiving bank's next banking
day; or
(2) Prior to the cut-off hour for the next processing cycle
(if sent to a returning bank), or on the next banking day
(if sent to the depositary bank), for a deadline falling on
a Saturday that is a banking day (as defined in the
applicable U.C.C.) for the paying bank.
7. In section 229.34, the section heading and paragraph (c)(4) are revised and a new paragraph (f) is added to
read as follows:
Section 229.34—Warranties.
* * * * *
(c) Warranty of settlement amount, encoding, and offset.
* **
(4) If a bank settles with another bank for checks presented, or for returned checks for which it is the depositary bank, in amount exceeding the total amount of the
checks, the settling bank may set off the excess settle-
(c) Electronic presentment. * * * An electronic presentment agreement may not extend return times or otherwise
vary the requirements of this part with respect to parties
interested in the check that are not party to the agreement.
(e) Issuance of payable-through checks.
(1)***
(ii) The words "payable through" followed by the
name of the payable-through bank.
9. In section 229.39, paragraph (b) is revised to read as
follows:
Section 229.39—Insolvency of bank.
* * * * *
(b) Preference against paying or depositary bank. If a
paying bank finally pays a check, or if a depositary bank
becomes obligated to pay a returned check, and suspends
payment without making a settlement for the check or
returned check with the prior bank that is or becomes final,
the prior bank has a preferred claim against the paying
bank or the depositary bank.
* * * * *
10. Section 229.42 is revised to read as follows:
Section 229.42—Exclusions.
The expeditious-return (sections 229.30(a) and 229.31 (a)),
notice-of-nonpayment (section 229.33), and same-day settlement (section 229.36(0) requirements of this subpart do
not apply to a check drawn upon the United States Treasury, to a U.S. Postal Service money order, or to a check
drawn on a state or a unit of general local government that
is not payable through or at a bank.
416
Federal Reserve Bulletin • May 1997
1 ]. A new section 229.43 is added to read as follows:
Section 229.43—Checks payable in Guam,
American Samoa, and the Northern Mariana
Islands.
disclosure requirements of Regulation CC (12 C.F.R.
Part 229). Although use of these models is not required,
banks using them properly to make disclosures required by
the Regulation CC are deemed to be in compliance.
MODEL AVAILABILITY POLICY DISCLOSURES
(a) Definitions. The definitions in section 229.2 apply to
this section, unless otherwise noted. In addition, for the
purposes of this section—
(1) Pacific island bank means an office of an institution
that would be a bank as defined in section 229.2(e) but
for the fact that the office is located in Guam, American
Samoa, or the Northern Mariana Islands;
(2) Pacific island check means a demand draft drawn on
or payable through or at a Pacific island bank, which is
not a check as defined in section 229.2(k).
(b) Rules applicable to Pacific island checks. To the extent
a bank handles a Pacific island check as if it were a check
defined in section 229.2(k), the bank is subject to the
following sections of this part (and the word "check" in
each such section is construed to include a Pacific island
check)—
(1) Section 229.31, except that the returning bank is not
subject to the requirement to return a Pacific island
check in an expeditious manner;
(2) Section 229.32;
(3) Section 229.34(c)(2), (c)(3), (d), and (e);
(4) Section 229.35; for purposes of section 229.35(c),
the Pacific island bank is deemed to be a bank;
(5) Section 229.36(d);
(6) Section 229.37;
(7) Section 229.38(a) and (c) through (h);
(8) Section 229.39(a), (b), (c) and (e); and
(9) Sections 229.40 through 229.42.
12. Appendix C to Part 229 is amended as follows:
a. The appendix heading is revised;
b. The introductory text is revised;
c. The heading above the contents listing for models C-l
through C-5 is revised;
d. A new item is added to the end of the contents listing for
Model Clauses;
e. The heading immediately above model policy disclosure
"C-l—Next-day availability" is revised; and
f. Model Availability Policy Disclosures C-l through C-5,
Model Clauses C-9 and C-10, and Model Notices C-12
through C-16 are revised, and a new Model Clause C-11A
is added.
The revisions and additions read as follows:
APPENDIX C TO PART 229—MODEL AVAILABILITY
POLICY DISCLOSURES, CLAUSES, AND NOTICES
This Appendix contains model availability policy disclosures, clauses, and notices to facilitate compliance with the
MODEL CLAUSES
C-11A Availability of funds deposited at other locations
* * * * *
MODEL AVAILABILITY POLICY DISCLOSURES
C-l—Next-day availability
YOUR ABILITY TO WITHDRAW FUNDS
Our policy is to make funds from your cash and check
deposits available to you on the first business day after
the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit.
Once the funds are available, you can withdraw them in
cash and we will use them to pay checks that you have
written.
For determining the availability of your deposits,
every day is a business day, except Saturdays, Sundays,
and federal holidays. If you make a deposit before (time
of day) on a business day that we are open, we will
consider that day to be the day of your deposit. However, if you make a deposit after (time of day) or on a
day we are not open, we will consider that the deposit
was made on the next business day we are open.
C-2—Next-day availability and section 229.13 exceptions
YOUR ABILITY TO WITHDRAW FUNDS
Our policy is to make funds from your cash and check
deposits available to you on the first business day after
the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit.
Once they are available, you can withdraw the funds in
cash and we will use the funds to pay checks that you
have written.
For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays,
and federal holidays. If you make a deposit before (time
of day) on a business day that we are open, we will
consider that day to be the day of your deposit. However, if you make a deposit after (time of day) or on a
day we are not open, we will consider that the deposit
was made on the next business day we are open.
Legal Developments
LONGER DELAYS MAY APPLY
Funds you deposit by check may be delayed for a
longer period under the following circumstances:
• We believe a check you deposit will not be paid.
• You deposit checks totaling more than $5,000 on any
one day.
• You redeposit a check that has been returned unpaid.
• You have overdrawn your account repeatedly in the
last six months.
• There is an emergency, such as failure of computer or
communications equipment.
We will notify you if we delay your ability to withdraw
funds for any of these reasons, and we will tell you when
the funds will be available. They will generally be
available no later than the (number) business day after
the day of your deposit.
SPECIAL RULES FOR NEW ACCOUNTS
If you are a new customer, the following special rules
will apply during the first 30 days your account is open.
Funds from electronic direct deposits to your account
will be available on the day we receive the deposit.
Funds from deposits of cash, wire transfers, and the first
$5,000 of a day's total deposits of cashier's, certified,
teller's, traveler's, and federal, state and local government checks will be available on the first business day
after the day of your deposit if the deposit meets certain
conditions. For example, the checks must be payable to
you (and you may have to use a special deposit slip).
The excess over $5,000 will be available on the ninth
business day after the day of your deposit. If your
deposit of these checks (other than a U.S. Treasury
check) is not made in person to one of our employees,
the first $5,000 will not be available until the second
business day after the day of your deposit.
Funds from all other check deposits will be available
on the (number) business day after the day of your
deposit.
417
ever, if you make a deposit after (time of day) or on a
day we are not open, we will consider that the deposit
was made on the next business day we are open.
LONGER DELAYS MAY APPLY
In some cases, we will not make all of the funds that
you deposit by check available to you on the first business day after the day of your deposit. Depending on the
type of check that you deposit, funds may not be available until the fifth business day after the day of your
deposit. The first $100 of your deposits, however, may
be available on the first business day.
If we are not going to make all of the funds from your
deposit available on the first business day, we will notify
you at the time you make your deposit. We will also tell
you when the funds will be available. If your deposit is
not made directly to one of our employees, or if we
decide to take this action after you have left the premises, we will mail you the notice by the day after we
receive your deposit.
If you will need the funds from a deposit right away,
you should ask us when the funds will be available.
In addition, funds you deposit by check may be delayed for a longer period under the following circumstances:
• We believe a check you deposit will not be paid.
• You deposit checks totaling more than $5,000 on any
one day.
• You redeposit a check that has been returned unpaid.
• You have overdrawn your account repeatedly in the
last six months.
• There is an emergency, such as failure of computer or
communications equipment.
We will notify you if we delay your ability to withdraw
funds for any of these reasons, and we will tell you when
the funds will be available. They will generally be
available no later than the (number) business day after
the day of your deposit.
SPECIAL RULES FOR NEW ACCOUNTS
C-3—Next-day availability, case-by-case holds to
statutory limits, and section 229.13 exceptions
YOUR ABILITY TO WITHDRAW FUNDS
Our policy is to make funds from your cash and check
deposits available to you on the first business day after
the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit.
Once they are available, you can withdraw the funds in
cash and we will use the funds to pay checks that you
have written.
For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays,
and federal holidays. If you make a deposit before (time
of day) on a business day that we are open, we will
consider that day to be the day of your deposit. How-
If you are a new customer, the following special rules
will apply during the first 30 days your account is open.
Funds from electronic direct deposits to your account
will be available on the day we receive the deposit.
Funds from deposits of cash, wire transfers, and the first
$5,000 of a day's total deposits of cashier's, certified,
teller's, traveler's, and federal, state and local government checks will be available on the first business day
after the day of your deposit if the deposit meets certain
conditions. For example, the checks must be payable to
you (and you may have to use a special deposit slip).
The excess over $5,000 will be available on the ninth
business day after the day of your deposit. If your
deposit of these checks (other than a U.S. Treasury
check) is not made in person to one of our employees,
the first $5,000 will not be available until the second
business day after the day of your deposit.
418
Federal Reserve Bulletin • May 1997
Funds from all other check deposits will be available
on the (number) business day after the day of your deposit.
C-4—Holds to statutory limits on all deposits (includes
chart)
YOUR ABILITY TO WITHDRAW FUNDS
Our policy is to delay the availability of funds from
your cash and check deposits. During the delay, you may
not withdraw the funds in cash and we will not use the
funds to pay checks that you have written.
DETERMINING THE AVAILABILITY OF A DEPOSIT
The length of the delay is counted in business days
from the day of your deposit. Every day is a business
day except Saturdays, Sundays, and federal holidays. If
you make a deposit before (time of day) on a business
day that we are open, we will consider that day to be the
day of your deposit. However, if you make a deposit
after (time of day) or on a day we are not open, we will
consider that the deposit was made on the next business
day we are open.
The length of the delay varies depending on the type
of deposit and is explained below.
Other Check Deposits
To find out when funds from other check deposits will
be available, look at the first four digits of the routing
number on the check:
Personal Check
19
Pay to the
order of
1S
dollars
(Bank name and
Location)
123456789
0000000000
Routine number
Business Check
Name of Company
Address, City, State
Next-Day Availability
Funds from the following deposits are available on
the first business day after the day of your deposit:
• U.S. Treasury checks that are payable to you.
• Wire transfers.
• Checks drawn on (hank name) [unless (any limitations related to branches in different states or check
processing regions)].
If you make the deposit in person to one of our
employees, funds from the following deposits are also
available on the first business day after the day of your
deposit:
• Cash.
• State and local government checks that are payable to
you [if you use a special deposit slip available from
(where deposit slip may be obtained)].
• Cashier's, certified, and teller's checks that are payable to you [if you use a special deposit slip available
from (where deposit slip may be obtained)].
• Federal Reserve Bank checks, Federal Home Loan
Bank checks, and postal money orders, if these items
are payable to you.
If you do not make your deposit in person to one of
our employees (for example, if you mail the deposit),
funds from these deposits will be available on the second business day after the day we receive your deposit.
19
Pay to the
order of
$
dollars
(Bank name and
Location)
000000000
123456789
Same-Day Availability
Funds from electronic direct deposits to your account
will be available on the day we receive the deposit.
000
0000000000
000
Routing number
Some checks are marked "payable through" and have
a four- or nine-digit number nearby. For these checks,
use this four-digit number (or the first four digits of the
nine-digit number), not the routing number on the bottom of the check, to determine if these checks are local
or nonlocal. Once you have determined the first four
digits of the routing number (1234 in the examples
above), the following chart will show you when funds
from the check will be available:
First four digits
from routing
number
[local numbers]
All other numbers
When funds are
available
When funds are
available if a deposit
is made on a Monday
$100 on the first
business day after the
day of your deposit.
Tuesday.
Remaining funds on
the second business
day after the day of
your deposit.
Wednesday.
$100 on the first
business day after the
day of your deposit.
Tuesday.
Remaining funds on
the fifth business day
after the day of your
deposit.
Monday of the
following week.
Legal Developments
If you deposit both categories of checks, $100 from
the checks will be available on the first business day
after the day of your deposit, not $100 from each category of check.
LONGER DELAYS MAY APPLY
Funds you deposit by check may be delayed for a
longer period under the following circumstances:
• We believe a check you deposit will not be paid.
• You deposit checks totaling more than $5,000 on any
one day.
• You redeposit a check that has been returned unpaid.
• You have overdrawn your account repeatedly in the
last six months.
• There is an emergency, such as failure of computer or
communications equipment.
We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you
when the funds will be available. They will generally be
available no later than the (number) business day after
the day of your deposit.
SPECIAL RULES FOR NEW ACCOUNTS
If you are a new customer, the following special rules
will apply during the first 30 days your account is open.
Funds from electronic direct deposits to your account
will be available on the day we receive the deposit.
Funds from deposits of cash, wire transfers, and the first
$5,000 of a day's total deposits of cashier's, certified,
teller's, traveler's, and federal, state and local government checks will be available on the first business day
after the day of your deposit if the deposit meets certain
conditions. For example, the checks must be payable to
you (and you may have to use a special deposit slip).
The excess over $5,000 will be available on the ninth
business day after the day of your deposit. If your
deposit of these checks (other than a U.S. Treasury
check) is not made in person to one of our employees,
the first $5,000 will not be available until the second
business day after the day of your deposit.
Funds from all other check deposits will be available
on the (number) business day after the day of your deposit.
C-5—Holds to statutory limits on all deposits
419
you make a deposit before (time of day) on a business
day that we are open, we will consider that day to be the
day of your deposit. However, if you make a deposit
after (time of day) or on a day we are not open, we will
consider that the deposit was made on the next business
day we are open.
The length of the delay varies depending on the type
of deposit and is explained below.
Same-Day Availability
Funds from electronic direct deposits to your account
will be available on the day we receive the deposit.
Next-Day Availability
Funds from the following deposits are available on the
first business day after the day of your deposit:
• U.S. Treasury checks that are payable to you.
• Wire transfers.
• Checks drawn on (bank name) [unless (any limitations related to branches in different states or check
processing regions)].
If you make the deposit in person to one of our employees, funds from the following deposits are also available on
the first business day after the day of your deposit:
• Cash.
• State and local government checks that are payable to
you [if you use a special deposit slip available from
(where deposit slip may be obtained)].
• Cashier's, certified, and teller's checks that are payable to you [if you use a special deposit slip available
from (where deposit slip may be obtained)].
• Federal Reserve Bank checks, Federal Home Loan
Bank checks, and postal money orders, if these items
are payable to you.
If you do not make your deposit in person to one of our
employees (for example, if you mail the deposit), funds
from these deposits will be available on the second business day after the day we receive your deposit.
Other Check Deposits
The delay for other check deposits depends on whether
the check is a local or a nonlocal check. To see whether a
check is a local or a nonlocal check, look at the routing
number on the check:
YOUR ABILITY TO WITHDRAW FUNDS
Our policy is to delay the availability of funds from
your cash and check deposits. During the delay, you may
not withdraw the funds in cash and we will not use the
funds to pay checks that you have written.
DETERMINING THE AVAILABILITY OF A DEPOSIT
The length of the delay is counted in business days
from the day of your deposit. Every day is a business
day except Saturdays, Sundays, and federal holidays. If
If the first four digits of the routing number (1234 in
the examples above) are (list of local numbers), then the
check is a local check. Otherwise, the check is a nonlocal check. Some checks are marked "payable through"
and have a four- or nine-digit number nearby. For these
checks, use the four-digit number (or the first four digits
of the nine-digit number), not the routing number on the
bottom of the check, to determine if these checks are
local or nonlocal. Our policy is to make funds from local
and nonlocal checks available as follows.
1. Local checks. The first $100 from a deposit of local
420
Federal Reserve Bulletin • May 1997
Personal Check
19
Pay to the
order of
first business day after the day of your deposit, not $100
from each category of check.
SPECIAL RULES FOR NEW ACCOUNTS
dollars
(Bank name and
Location)
|~123456789J
0000000000 000
Routing number
Business Check
Name of Company
Address, City, State
Pay to the
order of
19
dollars
(Bank name and
Location)
000000000
123456789
0000000000
000
Routing number
checks will be available on the first business day after
the day of your deposit. The remaining funds will be
available on the second business day after the day of
your deposit.
For example, if you deposit a local check of $700 on a
Monday, $100 of the deposit is available on Tuesday.
The remaining $600 is available on Wednesday.
2. Nonlocal checks. The first $100 from a deposit of
nonlocal checks will be available on the first business
day after the day of your deposit. The remaining funds
will be available on the fifth business day after the day
of your deposit.
For example, if you deposit a $700 nonlocal check on
a Monday, $100 of the deposit is available on Tuesday.
The remaining $600 is available on Monday of the
following week.
LONGER DELAYS MAY APPLY
Funds you deposit by check may be delayed for a longer
period under the following circumstances:
• We believe a check you deposit will not be paid.
• You deposit checks totaling more than $5,000 on any
one day.
• You redeposit a check that has been returned unpaid.
• You have overdrawn your account repeatedly in the
last six months.
• There is an emergency, such as failure of computer or
communications equipment.
We will notify you if we delay your ability to withdraw
funds for any of these reasons, and we will tell you when
the funds will be available. They will generally be
available no later than the {number) business day after
the day of your deposit. If you deposit both categories of
checks, $100 from the checks will be available on the
If you are a new customer, the following special rules
will apply during the first 30 days your account is open.
Funds from electronic direct deposits to your account
will be available on the day we receive the deposit.
Funds from deposits of cash, wire transfers, and the first
$5,000 of a day's total deposits of cashier's, certified,
teller's, traveler's, and federal, state and local government checks will be available on the first business day
after the day of your deposit if the deposit meets certain
conditions. For example, the checks must be payable to
you (and you may have to use a special deposit slip).
The excess over $5,000 will be available on the ninth
business day after the day of your deposit. If your
deposit of these checks (other than a U.S. Treasury
check) is not made in person to one of our employees,
the first $5,000 will not be available until the second
business day after the day of your deposit.
Funds from all other check deposits will be available
on the {number) business day after the day of your
deposit.
MODEL CLAUSES
C-9—Automated teller machine deposits (extended hold)
DEPOSITS AT AUTOMATED TELLER MACHINES
Funds from any deposits (cash or checks) made at automated teller machines (ATMs) we do not own or operate
will not be available until the fifth business day after the
day of your deposit. This rule does not apply at ATMs
that we own or operate.
{A list of our ATMs is enclosed, or A list of ATMs
where you can make deposits but that are not owned or
operated by us is enclosed, or All ATMs that we own or
operate are identified as our machines.)
C-10—Cash withdrawal limitation
CASH WITHDRAWAL LIMITATION
We place certain limitations on withdrawals in cash. In
general, $100 of a deposit is available for withdrawal in
cash on the first business day after the day of deposit. In
addition, a total of $400 of other funds becoming available on a given day is available for withdrawal in cash at
or after (time no later than 5:00 p.m.) on that day. Any
remaining funds will be available for withdrawal in cash
on the following business day.
Legal Developments
C-llA—Availability
of funds deposited at other locations
DEPOSITS AT OTHER LOCATIONS
This availability policy only applies to funds deposited
at {location). Please inquire for information about the
availability of funds deposited at other locations.
MODEL NOTICES
C-12—Exception hold notice
NOTICE OF HOLD
Account number: (number)
Date of deposit: (date)
We are delaying the availability of %(amount being
held) from this deposit. These funds will be available on
the (number) business day after the day of your deposit.
We are taking this action because:
— A check you deposited was previously returned unpaid.
— You have overdrawn your account repeatedly in the
last six months.
— The checks you deposited on this day exceed $5,000.
— An emergency, such as failure of computer or communications equipment, has occurred.
— We believe a check you deposited will not be paid for
the following reasons [*]:
421
— The check is drawn on an account with repeated
overdrafts.
— We are unable to verify the endorsement of a joint
payee.
— Some information on the check is not consistent with
other information on the check.
— There are erasures or other apparent alterations on the
check.
— The routing number of the paying bank is not a
current routing number.
— The check is postdated or has a stale date.
— Information from the paying bank indicates that the
check may not be paid.
— We have been notified that the check has been lost or
damaged in collection.
— Other:
[If you did not receive this notice at the time you made the
deposit and the check you deposited is paid, we will refund
to you any fees for overdrafts or returned checks that result
solely from the additional delay that we are imposing. To
obtain a refund of such fees, (description of procedure for
obtaining refund).]
C-14—One-time notice for large deposit and redeposited
check exception holds
NOTICE OF HOLD
If you deposit into your account:
[*If you did not receive this notice at the time you made
the deposit and the check you deposited is paid, we will
refund to you any fees for overdrafts or returned checks
that result solely from the additional delay that we are
imposing. To obtain a refund of such fees, (description of
procedure for obtaining refund).]
C-13—Reasonable cause hold notice
NOTICE OF HOLD
Account number: (number)
Date of deposit: (date)
We are delaying the availability of the funds you
deposited by the following check: (description of check,
such as amount and drawer.)
These funds will be available on the (number) business day after the day of your deposit. The reason for the
delay is explained below:
— We received notice that the check is being returned
unpaid.
— We have confidential information that indicates that
the check may not be paid.
• Checks totaling more than $5,000 on any one day, the
first $5,000 deposited on any one banking day will be
available to you according to our general policy. The
amount in excess of $5,000 will generally be available on
the (number) business day after the day of deposit for
checks drawn on (bank name), the (number) business day
after the day of deposit for local checks and (number)
business day after the day of deposit for nonlocal checks. If
checks (not drawn on us) that otherwise would receive
next-day availability exceed $5,000, the excess will be
treated as either local or nonlocal checks depending on the
location of the paying bank. If your check deposit, exceeding $5,000 on any one day, is a mix of local checks,
nonlocal checks, checks drawn on (bank name), or checks
that generally receive next-day availability, the excess will
be calculated by first adding together the (type of check),
then the (type of check), then the (type of check), then the
(type of check).
• A check that has been returned unpaid, the funds will
generally be available on the (number) business day after
the day of deposit for checks drawn on (bank name), the
(number) business day after the day of deposit for local
checks and the (number) business day after the day of
deposit for nonlocal checks. Checks (not drawn on us) that
otherwise would receive next-day availability will be
422
Federal Reserve Bulletin • May 1997
treated as either local or nonlocal checks depending on the
location of the paying bank.
C-15—One-time notice for repeated overdraft
exception hold
NOTICE OF HOLD
Account Number: {number)
Date of Notice: (date)
We are delaying the availability of checks deposited
into your account due to repeated overdrafts of your
account. For the next six months, deposits will generally
be available on the (number) business day after the day
of your deposit for checks drawn on (bank name), the
(number) business day after the day of your deposit for
local checks, and the (number) business day after the
day of deposit for nonlocal checks. Checks (not drawn
on us) that otherwise would have received next-day
availability will be treated as either local or nonlocal
checks depending on the location of the paying bank.
2. * * * For example, a bank does not violate its obligations
under this subpart by holding funds to satisfy a garnishment, tax levy, or court order restricting disbursements
from the account; or to satisfy the customer's liability
arising from the certification of a check, sale of a cashier's
or teller's check, guaranty or acceptance of a check, or
similar transaction to be debited from the customer's account.
S. 229.2(s) Local Paying Bank
1. "Local paying bank" is defined as a paying bank located
in the same check-processing region as the branch, contractual branch, or proprietary ATM of the depositary bank.
For example, a check deposited at a contractual branch
would be deemed local or nonlocal based on the location of
the contractual branch with respect to the location of the
paying bank.
* * * * *
HH. 229.2(hh) Traveler's Check
C-16—Case-by-case hold notice
NOTICE OF HOLD
Account number: (number)
Date of deposit: (date)
We are delaying the availability of $(amount being
held) from this deposit. These funds will be available on
the (number) business day after the day of your deposit
[(subject to our cash withdrawal limitation policy)].
[If you did not receive this notice at the time you
made the deposit and the check you deposited is paid,
we will refund to you any fees for overdrafts or returned
checks that result solely from the additional delay that
we are imposing. To obtain a refund of such fees,
(description of procedure for obtaining refund).]
2. * * * Sometimes traveler's checks that are not issued by
banks do not have any words on them identifying a bank as
drawee or paying agent, but instead bear unique routing
numbers with an 8000 prefix that identifies a bank as
paying agent.
PP. 229.2(pp) Contractual Branch
1. When one bank arranges for another bank to accept
deposits on its behalf, the second bank is a contractual
branch of the first bank. For further discussion of contractual branch deposits and related disclosures, see sections
229.2(s) and 229.19(a) of the regulation and the commentary to sections 229.2(s), 229.10(c), 229.14(a), 229.16(a),
229.18(b), and 229.19(a).
13. In Appendix E to Part 229, under section II,
a. In paragraph E.2., the last sentence is revised;
b. Paragraph S.I., is revised
c. In paragraph HH.2., the last sentence is revised; and
d. A new paragraph PP. is added.
The revisions and additions read as follows:
14. In Appendix E, under section IV, in paragraph D.3.a.,
two new sentences are added to the end of the paragraph to
read as follows:
IV. Section 229.10—Next-Day Availability
* * * * *
APPENDIX E TO PART 229 - COMMENTARY
D. 229.10(c) Certain Check Deposits
* * * * *
II. Section 229.2—Definitions
* * * * *
E. 229.2(d) Available for Withdrawal
* * * * *
2 ** *
a. * * * Employees of a contractual branch would not be
considered employees of the depositary bank for the purposes of this regulation, and deposits at contractual
branches would be treated the same as deposits to a proprietary ATM for the purposes of this regulation. (See also,
Commentary to section 229.19(a).)
Legal Developments
15. In Appendix E, under section VII:
a. In paragraph H. 1 .a, the first sentence is revised and two
new sentences are added to the end of the paragraph;
b. Paragraph H.l.e. is removed and paragraph H.l.f. is
redesignated as paragraph H.l.e.;
c. Paragraph H.4. is redesignated as paragraph H.5. and
new paragraph H.4. is added;
d. The second sentence in paragraph I.I. is revised; and
e. The first sentence in paragraph 1.4. is revised.
The additions and revisions read as follows:
* * * * *
VII. Section 229.13—Exceptions
* * * * *
H. 229.J3(g) Notice of Exception
423
balances, notices are not required if the funds are made
available before the notices must be sent.
/. 229.13(h) Availability of Deposits Subject to Exceptions
1. * * * This provision establishes that an extension of up
to one business day for "on us" checks, five business days
for local checks, and six business days for nonlocal checks
and checks deposited in a nonproprietary ATM is reasonable. * * *
4. One business day for "on us" checks, five business days
for local checks, and six business days for nonlocal checks
or checks deposited in a nonproprietary ATM, in addition
to the time period provided in the schedule, should provide
adequate time for the depositary bank to learn of the
nonpayment of virtually all checks that are returned. * * *
16. In Appendix E, under section VIII, a new sentence is
added to the end of paragraph A.I. to read as follows:
j * * *
a. If a depositary bank invokes any of the safeguard exceptions to the schedules listed above, other than the new
account or emergency conditions exception, and extends
the hold on a deposit beyond the time periods permitted in
sections 229.10(c) and 229.12, it must provide a notice to
its customer. * * * A depositary bank satisfies the written
notice requirement by sending an electronic notice that
displays the text and is in a form that the customer may
keep, if the customer agrees to such means of notice.
Information is in a form that the customer may keep if, for
example, it can be downloaded or printed.
4. Emergency conditions exception notice.
a. If an account is subject to the emergency conditions
exception under section 229.13(f), the depositary bank
must provide notice in a reasonable form within a reasonable time, depending on the circumstances. For example, a
depositary bank may learn of a weather emergency or a
power outage that affects the paying bank's operations.
Under these circumstances, it likely would be reasonable
for the depositary bank to provide an emergency conditions exception notice in the same manner and within the
same time as required for other exception notices. On the
other hand, if a depositary bank experiences a weather or
power outage emergency that affects its own operations, it
may be reasonable for the depositary bank to provide a
general notice to all depositors via postings at branches and
ATMs, or through newspaper, television, or radio notices.
b. If the depositary bank extends the hold placed on a
deposit due to an emergency condition, the bank need not
provide a notice if the funds would be available for withdrawal before the notice must be sent. For example, if on
the last day of a hold period the depositary bank experiences a computer failure and customer accounts cannot be
updated in a timely fashion to reflect the funds as available
VIII. Section 229.14—Payment of Interest
A. 229,14(a) In General
1. * * * In the case of a deposit at a contractual branch,
credit is received on the day the depositary bank receives
credit for the amount of the deposit, which may be different
from the day the contractual branch receives credit for the
deposit.
17. In Appendix E, under section IX, two new sentences
are added immediately following the second sentence of
paragraph A. 1. to read as follows:
IX. Section 229.15—General Disclosure
Requirements
A. 229.15(a) Form of Disclosures
1. * * * A depositary bank satisfies the written disclosure
requirement by sending an electronic disclosure that displays the text and is in a form that the customer may keep,
if the customer agrees to such means of disclosure. Information is in a form that the customer may keep if, for
example, it can be downloaded or printed. * * *
18. In Appendix E, under section X, three new sentences
are added to the end of paragraph A.2., one new sentence is
added to the end of paragraph B.6., and the last sentence of
paragraph C.2.a. is revised to read as follows:
424
Federal Reserve Bulletin • May 1997
X. Section 229.16—Specific Availability Policy
Disclosure
A. 229.16(a) General
2. * * * A bank may establish different availability policies
for different groups of customers, such as customers in a
particular geographic area or customers of a particular
branch. For purposes of providing a specific availability
policy, the bank may allocate customers among groups
through good faith use of a reasonable method. A bank
may also establish different availability policies for deposits at different locations, such as deposits at a contractual
branch.
B. 229.16(b) Content of Specific Policy Disclosure
6. * * * If a bank does not have a cut-off time prior to its
closing time, the bank need not disclose a cut-off time.
C. 229.16(c) Longer Delays on a Case-by-Case Basis
2 ***
a. * * * In addition, the notice must include the account
number, the date of the deposit, and the amount of the
deposit being delayed.
19. In Appendix E, under section XII, a sentence is added
to the end of paragraph B. 1. to read as follows:
2 * * * Funds received at a contractual branch are considered deposited when received by a teller at the contractual
branch or deposited into a proprietary ATM of the contractual branch. (See also, Commentary to section 229.10(c)
on deposits made to an employee of the depositary
bank.) * * *
6. **
a. *
For receipt of deposits at ATMs, contractual
branches, or other off-premise facilities, such as night
depositories or lock boxes, the depositary bank may establish a cut-off hour of 12:00 noon or later (either local time
of the branch or other location of the depositary bank at
which the account is maintained or local time of the ATM,
contractual branch, or other off-premise facility). The depositary bank must use the same timing method for establishing the cut-off hour for all ATMs, contractual branches,
and other off-premise facilities used by its customers. The
choice of cut-off hour must be reflected in the bank's
internal procedures, and the bank must inform its customers of the cut-off hour upon request. This earlier cut-off for
ATM, contractual branch, or other off-premise deposits is
intended to provide greater flexibility in the servicing of
these facilities.
E. 229.19(e) Holds on Other Funds
3 * * * when a customer cashes a check over the counter
and the bank places a hold on an account of the customer,
the bank must give whatever notice would have been
required under sections 229.13 or 229.16 had the check
been deposited in the account.
XII. Section 229.18—Additional Disclosure Requirements
B. 229.18(b) Locations Where Employees Accept Consumer Deposits
1. * * * A bank that acts as a contractual branch at a
particular location must include the availability policy that
applies to its own customers but need not include the
policy that applies to the customers of the bank for which it
is acting as a contractual branch.
21. In Appendix E, under section XVI, a new sentence is
added to the end of paragraphs C.I.a. and C. 1 .b. to read as
follows:
XVI. Section 229.30—Paying Bank's
Responsibility for Return of Checks
C. 229.30(c) Extension of Deadline
20. In Appendix E, under section XIII, two new sentences
are added immediately following the first sentence of paragraph A.2., the last four sentences of paragraph A.6.a. are
revised, and a new sentence is added to the end of paragraph E.3. to read as follows:
XIII. Section 229.19—Miscellaneous
A. 229.19(a) When Funds Are Considered Deposited
* * * * *
j * * *
a. * * * This paragraph applies to the extension of all
midnight deadlines except Saturday midnight deadlines
(see paragraph C.l.b of this appendix).
b. * * * This paragraph applies exclusively to the extension
of Saturday midnight deadlines.
* * * #
22. In Appendix E, under section XVII, the second sentence of paragraph A.7.b. is revised to read as follows:
Legal Developments
425
b. In paragraph E., the first sentence of paragraph E.I. is
revised to read as follows:
XVII. Section 229.31—Returning Bank's
Responsibility for Return of Checks
A. 22931 (a) Return of Cheeks
XXII. Section 229.36—Presentment and Issuance
of Checks
7 * * *
b. * * * If the returning bank makes an encoding error in
creating a qualified returned check, it may be liable under
section 229.38 for losses caused by any negligence or
under section 229.34(c)(3) for breach of an encoding warranty. * * *
23. In Appendix E, under section XX, the first sentence of
paragraph A.I. and paragraph C.5. are revised, and a new
paragraph F. is added as follows:
XX. Section 229.34—Warranties
A. 229.34(a) Warranty of Returned Cheek
1. This paragraph includes warranties that a returned check,
including a notice in lieu of return, was returned by the
paying bank, or in the case of a check payable by a bank
and payable through another bank, the bank by which the
check is payable, within the deadline under the U.C.C.
(subject to any claims or defenses under the U.C.C, such
as breach of a presentment warranty). Regulation J
(12 C.F.R. Part 210), or section 229.30(c); that the paying
or returning bank is authorized to return the check: that the
returned check has not been materially altered; and that, in
the case of a notice in lieu of return, the original check has
not been and will not be returned for payment. * * *
C. 229.34(c) Warranty of Settlement Amount.
and Offset
C. 229.36(c) Electronic Presentment
1. Under an electronic presentment agreement, presentment takes place when the paying bank receives an electronic transmission of information describing the check
rather than upon delivery of the physical check. Electronic
presentment agreements may include a variety of procedures in which the physical check is held (truncated) or
delayed by the depositary or collecting bank. U.C.C. 4-110
and 4^K)6(b) make express provision for truncation and
electronic presentment.
2. This paragraph allows electronic presentment by agreement with the paying bank; however, such agreement may
not prejudice the interests of other parties to the check. For
example, an electronic presentment agreement may not
extend the paying bank's time for return. Such an extension could damage the depositary bank, which must make
funds available to its customers under mandatory availabilitv schedules.
E. 229.36(e) Issuance of Payable-Through Checks
1. If a bank arranges for checks payable by it to be payable
through another bank, it must require its customers to use
checks that contain conspicuously on their face the name,
location, and first four digits of the nine-digit routing
number of the bank by which the check is payable and the
legend "payable through" followed by the name of the
payable-through bank. * * *
Encoding,
5. Paragraph (c)(4) provides that a paying bank or a depositary bank may set off excess settlement paid to another
bank against settlement owed to that bank for checks
presented or returned checks received (for which it is the
depositary bank) subsequent to the excess settlement.
25. In Appendix E, section XXIV is amended as follows:
a. In paragraph A.2., the third sentence is revised; and
b. In paragraph D.2.b.. the second sentence is removed and
two new sentences are added immediately following the
first sentence to read as follows:
XXIV. Section 229.38—Liability
F. 229.34(f) Notice of Claim
1. This paragraph adopts the notice provisions of U.C.C.
sections 4-207(d) and 4-208(e). The time limit set forth in
this paragraph applies to notices of claims for warranty
breaches only. As provided in section 229.38(g), all actions
under this section must be brought within one year after the
date of the occurrence of the violation involved.
24. In Appendix E, section XXII is amended as follows:
a. Paragraph C. is revised: and
A. 229.38(a) Standard of care; liability; measure of damages
2. * * * The measure of damages provided in this section
(loss incurred up to amount of check, less amount of loss
party would have incurred even if bank had exercised
ordinary care) is based on U.C.C. 4-H)3(e) (amount of the
item reduced by an amount that could not have been
realized by the exercise of ordinary care), as limited by
426
Federal Reserve Bulletin • May 1997
4-202(c) (bank is liable only for its own negligence and
not for actions of subsequent banks in chain of collection).
D. 229.38(d) Responsibility for Certain Aspects of Checks
2.***
b. * * * Under section 229.33(a), a paying bank that returns
a check in the amount of $2,500 or more must provide
notice of nonpayment to the depositary bank by 4:00 p.m.
on the second business day following the banking day on
which the check is presented to the paying bank. Even if a
payable-through check in the amount of $2,500 or more is
not returned through the payable-through bank as quickly
as would have been required had the check been received
by the bank by which it is payable, the depositary bank
should not suffer damages unless it has not received timely
notice of nonpayment. * * *
26. In Appendix E, under section XXV, the first sentence in
paragraph C.I. is revised to read as follows:
XXV. Section 229.39—Insolvency of Bank
C. 229.39(b) Preference Against Paying or Depositary
Bank
1. This paragraph gives a bank a preferred claim against a
closed paying bank that finally pays a check without settling for it or a closed depositary bank that becomes
obligated to pay a returned check without settling for
27. In Appendix E, under section XXVIII, the first sentence of paragraph A. is revised to read as follows:
XXVIII. Section 229.42—Exclusions
A. Checks drawn on the United States Treasury, U.S.
Postal Service money orders, and checks drawn on states
and units of general local government that are presented
directly to the state or unit of general local government and
that are not payable through or at a bank are excluded from
the coverage of the expeditious-return, notice-ofnonpayment, and same-day settlement requirements of subpart C of this part. * * *
28. In Appendix E, section XXIX is redesignated as section XXX, a new section XXIX is added, and newly
designated section XXX is revised to read as follows:
XXIX. Section 229.43—Checks Payable in Guam,
American Samoa, and the Northern Mariana Islands
A. 229.43(a) Definitions
1. Bank offices in Guam, American Samoa, and the Northern Mariana Islands (which Regulation CC defines as
Pacific island banks) do not meet the definition of bank in
section 229.2(e) because they are not located in the United
States. Some checks drawn on Pacific island banks (defined as Pacific island checks) bear U.S. routing numbers
and are collected and returned by banks in the same
manner as checks payable in the U.S.
B. 229.43(b) Rules Applicable to Pacific Island Checks
1. When a bank handles a Pacific island check as if it were
a check as defined in section 229.2(k), the bank is subject
to certain provisions of Regulation CC, as provided in this
section. Because the Pacific island bank is not a bank as
defined in section 229.2(e), it is not a paying bank as
defined in section 229.2(z) (unless otherwise noted in this
section). Pacific island banks are not subject to the provisions of Regulation CC.
2. A bank may agree to handle a Pacific island check as a
returned check under section 229.31 and may convert the
returned Pacific island check to a qualified returned check.
The returning bank is not, however, subject to the
expeditious-return requirements of section 229.31. The
returning bank may receive the Pacific island check directly from a Pacific island bank or from another returning
bank. As a Pacific island bank is not a paying bank under
Regulation CC. section 229.3 l(c) does not apply to a
returning bank settling with the Pacific island bank.
3. A depositary bank that handles a Pacific island check is
not subject to the provisions of subpart B of Regulation
CC, including the availability, notice, and interest accrual
requirements, with respect to that check. If, however, a
bank accepts a Pacific island check for deposit (or otherwise accepts the check as transferee) and collects the
Pacific island check in the same manner as other checks,
the bank is subject to the provisions of section 229.32,
including the provisions regarding time and manner of
settlement for returned checks in section 229.32(b). in the
event the Pacific island check is returned by a returning
bank. If the depositary bank receives the returned Pacific
island check directly from the Pacific island bank, however, the provisions of section 229.32(b) do not apply,
because the Pacific island bank is not a paying bank under
Regulation CC. The depositary bank is not subject to the
notice of nonpayment provisions in section 229.33 for
Pacific island checks.
4. Banks that handle Pacific island checks in the same
manner as other checks are subject to the indorsement
provisions of section 229.35. Section 229.35(c) eliminates
the need for the restrictive indorsement "pay any bank."
For purposes of section 229.35(c), the Pacific island bank
is deemed to be a bank.
5. Pacific island checks will often be intermingled with
other checks in a single cash letter. Therefore, a bank that
handles Pacific island checks in the same manner as other
checks is subject to the transfer warranty provision in
Legal Developments
section 229.34(c)(2) regarding accurate cash letter totals
and the encoding warranty in section 229.34(c)(3). A bank
that acts as a returning bank for a Pacific island check is
not subject to the warranties in section 229.34(a). Similarly, because the Pacific island bank is not a "bank" or a
"paying bank" under Regulation CC, section 229.34(b),
(c)(l), and (c)(4) do not apply. For the same reason, the
provisions of section 229.36 governing paying bank responsibilities such as place of receipt and same-day settlement do not apply to checks presented to a Pacific island
bank, and the liability provisions applicable to paying
banks in section 229.38 do not apply to Pacific island
banks. Section 229.36(d), regarding finality of settlement
between banks during forward collection, applies to banks
that handle Pacific island checks in the same manner as
other checks, as do the liability provisions of section
229.38, to the extent the banks are subject to the requirements of Regulation CC as provided in this section, and
sections 229.37 and 229.39 through 229.42.
XXX. Appendix C—Model Availability Policy
Disclosures, Clauses, and Notices
A. Introduction
1. Appendix C contains model disclosures, clauses, and
notices that may be used by banks to meet their disclosure
responsibilities under the regulation. Banks using the models properly will be in compliance with the regulation's
disclosure requirements.
2. Information that must be inserted by a bank using the
models is (italicized) within parentheses in the text of the
models. Optional information is enclosed in brackets.
3. Banks may make certain changes to the format or
content of the models, including deleting material that is
inapplicable, without losing the Act's protection from liability for banks that use the models properly. For example,
if a bank does not have a cut-off hour prior to it's closing
time, or if a bank does not take advantage of the section
229.13 exceptions, it may delete the references to those
provisions. Changes to the models may not be so extensive
as to affect the substance, clarity, or meaningful sequence
of the models. Acceptable changes include, for example:
a. Using "customer" and "bank" instead of pronouns.
b. Changing the typeface or size.
c. Incorporating certain state law "plain English" requirements.
4. Shorter time periods for availability may always be
substituted for time periods used in the models.
5. Banks may also add related information. For example, a
bank may indicate that although funds have been made
available to a customer and the customer has withdrawn
them, the customer is still responsible for problems with
the deposit, such as checks that were deposited being
returned unpaid. Or a bank could include a telephone
421
number to be used if a customer has an inquiry regarding a
deposit.
6. Banks are cautioned against using the models without
reviewing their own policies and practices, as well as state
and federal laws regarding the time periods for availability
of specific types of checks. A bank using the models will
be in compliance with the Act and the regulation only if the
bank's disclosures correspond to its availability policy.
7. Banks that have used earlier versions of the models
(such as those models that gave Social Security benefits
and payroll payments as examples of preauthorized credits
available the day after deposit, or that did not address the
cash withdrawal limitation) are protected from civil liability under section 229.2l(e). Banks are encouraged, however, to use current versions of the models when reordering
or reprinting supplies.
B. Model Availability Policy Disclosures, Models C-l
through C-5
1. Models C-l through C-5 generally.
a. Models C-l through C-5 are models for the availability
policy disclosures described in section 229.16. The models
accommodate a variety of availability policies, ranging
from next-day availability to holds to statutory limits on all
deposits. Model C-3 reflects the additional disclosures discussed in sections 229.16 (b) and (c) for banks that have a
policy of extending availability times on a case-by-case
basis.
b. As already noted, there are several places in the models
where information must be inserted. This information includes the bank's cut-off times, limitations relating to nextday availability, and the first four digits of routing numbers
for local banks. In disclosing when funds will be available
for withdrawal, the bank must insert the ordinal number
(such as first, second, etc.) of the business day after deposit
that the funds will become available.
c. Models C-l through C-5 generally do not reflect any
optional provisions of the regulation, or those that apply
only to certain banks. Instead, disclosures for these provisions are included in Models C-6 through C-l 1 A. A bank
using one of the model availability policy disclosures
should also consider whether it must incorporate one or
more of Models C-6 through C-l 1 A.
d. While section 229.10(b) requires next-day availability
for electronic payments. Treasury regulations (31 C.F.R.
Part 210) and ACH association rules require that preauthorized credits ("direct deposits") be made available on the
day the bank receives the funds. Models C-l through C-5
reflect these rules. Wire transfers, however, are not governed by Treasury or ACH rules, but banks generally make
funds from wire transfers available on the day received or
on the business day following receipt. Banks should ensure
that their disclosures reflect the availability given in most
cases for wire transfers.
2. Model C-l Next-day availability. A bank may use this
model when its policy is to make funds from all deposits
available on the first business day after a deposit is made.
428
Federal Reserve Bulletin • May 1997
This model may also be used by banks that provide immediate availability by substituting the word "immediately"
in place of "on the first business day after the day we
receive your deposit."
3. Model C-2 Next-day availability and section 229.13
exceptions. A bank may use this model when its policy is
to make funds from all deposits available to its customers
on the first business day after the deposit is made, and to
reserve the right to invoke the new account and other
exceptions in section 229.13. In disclosing that a longer
delay may apply, a bank may disclose when funds will
generally be available based on when the funds would be
available if the deposit were of a nonlocal check.
4. Model C-3 Next-day availability, case-by-case holds to
statutory limits, and section 229.13 exceptions. A bank
may use this model when its policy, in most cases, is to
make funds from all types of deposits available the day
after the deposit is made, but to delay availability on some
deposits on a case-by-case basis up to the maximum time
periods allowed under the regulation. A bank using this
model also reserves the right to invoke the exceptions
listed in section 229.13. In disclosing that a longer delay
may apply, a bank may disclose when funds will generally
be available based on when the funds would be available if
the deposit were of a nonlocal check.
5. Model C-4 Holds to statutory limits on all deposits. A
bank may use this model when its policy is to impose
delays to the full extent allowed under section 229..12 and
to reserve the right to invoke the section 229.13 exceptions. In disclosing that a longer delay may apply, a bank
may disclose when funds will generally be available based
on when the funds would be available if the deposit were
of a nonlocal check. Model C-4 uses a chart to show the
bank's availability policy for local and nonlocal checks
and Model C-5 uses a narrative description.
6. Model C-5 Holds to statutory limits on all deposits. A
bank may use this model when its policy is to impose
delays to the full extent allowed under section 229.12 and
to reserve the right to invoke the section 229'.13 exceptions. In disclosing that a longer delay may apply, a bank
may disclose when funds will generally be available based
on when the funds would be available if the deposit were
of a nonlocal check.
the deposit is made, as addressed in section 229.19(e),
must incorporate this type of clause in its availability
policy disclosure.
4. Model C-8 Appendix B availability (nonlocal checks). A
bank in a check processing region where the availability
schedules for certain nonlocal checks have been reduced,
as described in Appendix B of Regulation CC, must incorporate this type of clause in its availability policy disclosure. Banks using Model C-5 may insert this clause at the
conclusion of the discussion titled "Nonlocal checks."
5. Model C-9 Automated teller machine deposits (extended
holds). A bank that reserves the right to delay availability
of deposits at nonproprietary ATMs until the fifth business
day following the date of deposit, as permitted by section 229.12(f), must incorporate this type of clause in its
availability policy disclosure. A bank must choose among
the alternative language based on how it chooses to differentiate between proprietary and nonproprietary ATMs, as
required under section 229.16(b)(5).
6. Model C-10 Cash withdrawal limitation. A bank that
imposes cash withdrawal limitations under section 229.12
must incorporate this type of clause in its availability
policy disclosure. Banks reserving the right to impose the
cash withdrawal limitation and using Model C-3 should
disclose that funds may not be available until the sixth
(rather than fifth) business day in the first paragraph under
the heading "Longer Delays May Apply."
7. Model C-ll Credit union interest payment policy. A
credit union subject to the notice requirement of section 229.14(b)(2) must incorporate this type of clause in its
availability policy disclosure. This model clause is only an
example of a hypothetical policy. Credit unions may follow
any policy for accrual provided the method of accruing
interest is the same for cash and check deposits.
8. Model C-11A Availability of funds deposited at other
locations. A clause similar to Model C-l 1A should be used
if a bank bases the availability of funds on the location
where the funds are deposited (for example, at a contractual or other branch located in a different check processing
region). Similarly, a clause similar to Model C-l 1A should
be used if a bank distinguishes between local and non-local
checks (for example, a bank using model availability policy disclosure C-4 or C-5), and accepts deposits in more
than one check processing region.
C. Model Clauses, Models C-6 through C-11A
D. Model Notices, Models C-12 through C-21
1. Models C-6 through C-11A generally. Certain clauses
like those in the models must be incorporated into a bank's
availability policy disclosure under certain circumstances.
The commentary to each clause indicates when a clause
similar to the model clause is required.
2. Model C-6 Holds on other funds (check cashing). A
bank that reserves the right to place a hold on funds already
on deposit when it cashes a check for a customer, as
addressed in section 229.19(e), must incorporate this type
of clause in its availability policy disclosure.
3. Model C-7 Holds on other funds (other account). A bank
that reserves the right to place a hold on funds in an
account of the customer other than the account into which
1. Model Notices C-12 through C-21 generally. Models
C-12 through C-21 provide models for the various notices
required by the regulation. A bank that cashes a check and
places a hold on funds in an account of the customer (see
section 229.19(e)) should modify the model hold notice
accordingly. For example, the bank could replace the word
"deposit" with the word "transaction" and could add the
phrase "or cashed" after the word "deposited."
2. Model C-12 Exception hold notice. This model satisfies
the written notice required under section 229.13(g) when a
bank places a hold based on a section 229.13 exception. If
a hold is being placed on more than one check in a deposit,
Legal Developments
each check need not be described, but if different reasons
apply, each reason must be indicated. A bank may use the
actual date when funds will be available for withdrawal
rather than the number of the business day following the
day of deposit. A bank must incorporate in the notice the
material set out in brackets if it imposes overdraft or
returned check fees after invoking the reasonable cause
exception under section 229.13(e).
3. Model C-13 Reasonable cause hold notice. This notice
satisfies the written notice required under section 229.13(g)
when a bank invokes the reasonable cause exception under
section 229.13(e). The notice provides the bank with a list
of specific reasons that may be given for invoking the
exception. If a hold is being placed on more than one check
in a deposit, each check must be described separately, and
if different reasons apply, each reason must be indicated. A
bank may disclose its reason for doubting collectibility by
checking the appropriate reason on the model. If the "Other" category is checked, the reason must be given. A bank
may use the actual date when funds will be available for
withdrawal rather than the number of the business day
following the day of deposit. A bank must incorporate in
the notice the material set out in brackets if it imposes
overdraft or returned check fees after invoking the reasonable cause exception under section 229.13(e).
4. Model C-14 One-time notice for large deposit and
redeposited check exception holds. This model satisfies the
notice requirements of section 229.13(g)(2) concerning
nonconsumer accounts.
5. Model C-15 One-time notice for repeated overdraft
exception hold. This model satisfies the notice requirements of section 229.13(g)(3).
6. Model C-16 Case-by-case hold notice. This model satisfies the notice required under section 229.16(c)(2) when a
bank with a case-by-case hold policy imposes a hold on a
deposit. This notice does not require a statement of the
specific reason for the hold, as is the case when a section 229.13 exception hold is placed. A bank may specify
the actual date when funds will be available for withdrawal
rather than the number of the business day following the
day of deposit when funds will be available. A bank must
incorporate in the notice the material set out in brackets if
it imposes overdraft fees after invoking a case-by-case
hold.
7. Model C-17 Notice at locations where employees accept
consumer deposits and Model C-18 Notice at locations
where employees accept consumer deposits (case-by-case
holds). These models satisfy the notice requirement of
section 229.18(b). Model C-17 reflects an availability
policy of holds to statutory limits on all deposits, and
Model C-18 reflects a case-by-case availability policy.
8. Model C-19 Notice at automated teller machines. This
model satisfies the ATM notice requirement of section 229.18(c)(l).
9. Model C-20 Notice at automated teller machines (delayed receipt). This model satisfies the ATM notice requirement of section 229.18(c)(2) when receipt of deposits at
off-premises ATMs is delayed under section 229.19(a)(4).
It is based on collection of deposits once a week. If
429
collections occur more or less frequently, the description of
when deposits are received must be adjusted accordingly.
10. Model C-21 Deposit slip notice. This model satisfies
the notice requirements of section 229.18(a) for deposit
slips.
FINAL RULE-^AMENDMENT TO RULES REGARDING
DELEGATION OF AUTHORITY
The Board of Governors is amending 12 C.F.R. Part 265,
its Rules Regarding Delegation of Authority. The Board is
delegating to an individual member the Board's authority
to approve extensions of the 180-day period for final Board
action on applications to establish certain foreign bank
offices in the United States. This delegation of authority is
intended to aid in the efficient processing of such foreign
bank office applications.
Effective March 22, 1997, 12 C.F.R. Part 265 is amended
as follows:
Part 265—Rules
Regarding
Delegation
of
Authority
1. The authority citation for Part 265 continues to read as
follows:
Authority: 12 U.S.C. 248(i) and (k).
2. Section 265.4 is amended by adding paragraph (a)(4) to
read as follows:
Section 2 6 5 / -Functions delegated to Board
members.
(a) * * *
(4) Extension of time period for final Board action. To
extend for an additional 180 days the 180-day period
within which final Board action is required on an application pursuant to section 7(d) of the International Banking Act.
ORDERS ISSUED UNDER BANK HOLDING COMPANY ACT
Orders Issued Under Section 3 of the Bank Holding
Company Act
AMCORE Financial, Inc.
Rockford, Illinois
Order Approving the Acquisition of Bank Holding
Companies
AMCORE Financial, Inc., Rockford, Illinois ("AMCORE"),
a bank holding company within the meaning of the Bank
Holding Company Act ("BHC Act"), has requested the
Board's approval under section 3 of the BHC Act (12
430
Federal Reserve Bulletin • May 1997
U.S.C. § 1842) to acquire all the voting shares of First
National Bancorp. Inc. ("Bancorp"), and thereby indirectly acquire its subsidiary bank, First National Bank &
Trust ("First National"), both of Monroe. Wisconsin.
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(61 Federal Register 68,756 (1996)). The time for filing
comments has expired, and the Board has considered the
proposal and all comments received in light of the factors
set forth in section 3 of the BHC Act.
AMCORE, with total consolidated assets of approximately $2.8 billion, operates five banks in Illinois and
engages in certain permissible nonbanking activities.1
AMCORE is the 12th largest commercial banking organization in Illinois, controlling approximately $1.8 billion
in deposits, representing approximately 1 percent of total
deposits in commercial banks in the state.2 Bancorp is the
23d largest commercial banking organization in Wisconsin, controlling approximately $187.7 million in deposits.
Bancorp's deposits represent less than 1 percent of total
deposits in commercial banking organizations in the state.
Interstate Analysis
Section 3(d) of the BHC Act, as amended by section 101 of
the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. allows the Board to approve an application by a bank holding company to acquire control of a
bank located in a state other than the home state of such
bank holding company, if certain conditions are met.3 For
purposes of the BHC Act, AMCORE's home state is
Illinois, and AMCORE would acquire a bank in Wisconsin. The conditions for an interstate acquisition under section 3(d) are met in this case.4 In view of all the facts of
record, the Board is permitted to approve the proposal
under section 3(d) of the BHC Act.
Competitive
Considerations
AMCORE and Bancorp do not compete with each other in
any relevant banking market. Based on all the facts of
record, the Board concludes that the proposal would not
have a significantly adverse effect on competition or on the
concentration of banking resources in any relevant banking
1. Asset data are as of December 31, 1996.
2. Deposit data are as of June 30, 1996.
3. Pub. L. No. 103-328. 108 Stat. 2338 (1994). A bank holding
company's home state is the state in which the operations of the bank
holding company's banking subsidiaries were principally conducted
on July 1, 1966. or the date on which the company became a bank
holding company, whichever is later.
4. See 12 U.S.C. §§ 1842(d)(l)(A) and (B) and 1842(d)(2)(A)
and (B). AMCORE is adequately capitalized and adequately managed. In addition, on consummation of the proposal, AMCORE and
its affiliates would control less than 10 percent of the total amount of
deposits of insured depository institutions in the United States and less
than 30 percent of the total amount of deposits of insured depository
institutions in Wisconsin. First National also has been in existence and
continuously operated for at least the minimum period required under
Wisconsin law.
market. Accordingly, the Board concludes that competitive
considerations are consistent with approval.
Other Factors Under the BHC Act
The BHC Act also requires the Board, in acting on an
application, to consider the financial and managerial resources of the companies and banks involved, the convenience and needs of the communities to be served, and
certain other supervisory factors.
A. Financial, Managerial, and other Supervisory
Factors
The Board has carefully considered the financial and managerial resources and future prospects of AMCORE, Bancorp and their respective subsidiary banks and other supervisory factors in light of all the facts of record. The facts
include supervisory reports of examination assessing the
financial and managerial resources of the organizations and
confidential financial information provided by AMCORE.
Based on these and all other facts of record, the Board
concludes that all the supervisory factors under the BHC
Act, including financial and managerial resources, weigh in
favor of approval of the proposal.
B. Convenience and Needs Factor
The Board also has carefully considered the effect of the
proposal on the convenience and needs of the communities
to be served in light of all the facts of record. As part of the
review of this factor, the Board has considered comments
from the Wisconsin Rural Development Center. Inc.
("Protestant"), alleging that AMCORE has not taken adequate steps to assess the banking needs of low- and
moderate-income ("LMI") rural or farm borrowers and
rural community credit needs in Illinois where it currently
operates, and has not demonstrated how it plans to serve
the credit needs of the residents in rural and farm areas in
Wisconsin after consummation of the proposal.5
In reviewing the convenience and needs considerations
in the proposal, the Board notes that AMCORE provides a
full range of financial services through its banking subsidiaries, including a broad range of mortgage, consumer,
agricultural, and small business loan products. AMCORE
has stated that after consummation of the proposal, it
would offer these services, some of which are not available
through First National, in communities currently served by
First National. In addition, AMCORE has stated that it
5. Protestant also contends that AMCORE's subsidiary banks in
rural Illinois invest a significant proportion of their assets in securities,
thereby reducing funding for loans, and criticizes AMCORE for not
providing assurances in the proposal that First National's ratio of
securities investments to total assets would remain consistent with the
average ratio for Wisconsin institutions serving similar communities.
The loan-to-deposit ratios of AMCORE's banks serving rural and
farm areas indicate that the banks engage in significant levels of
lending, and the examinations indicated that the level of lending at
AMCORE's subsidiary banks is adequate.
Legal Developments
would review First National's products and retain those
that are unique to the local market. Products offered by
AMCORE would include development and expansion of
programs that serve rural and farm areas.
The Board has long held that consideration of the convenience and needs factor includes a review of the records of
the relevant depository institutions under the Community
Reinvestment Act ("CRA"). The CRA requires the federal
banking agencies to encourage depository institutions to
help meet the credit needs of local communities, including
LMI communities, but does not establish a statutory preference for any specific type of credit. Accordingly, in reviewing the proposal, the Board has focused on AMCORE's
performance record in helping to meet the credit needs
of all its communities through the products offered by
AMCORE's subsidiary banks.
As provided in the CRA, the Board evaluates this factor
in light of examinations of the CRA performance records
of the relevant institutions by the primary federal supervisor. An institution's most recent CRA performance evaluation is a particularly important consideration in the applications process because it represents a detailed on-site
evaluation of an institution's overall record of performance
under the CRA by its primary federal supervisor.6
All of AMCORE's subsidiary banks received "outstanding" or "satisfactory" ratings for CRA performance in
their most recent evaluations by their primary federal supervisor. AMCORE's lead subsidiary bank, AMCORE
Bank, N.A., Rockford, Rockford, Illinois, which controls a
majority of all the deposits in the AMCORE subsidiary
banks, received an "outstanding" rating in its most recent
CRA performance examination from the Office of the
Comptroller of the Currency ("OCC"), as of August 1995
(the "Rockford Examination"). The Rockford Examination concluded that the bank's lending activities and loan
originations reflected excellent responsiveness to meeting
community credit needs and that the bank was a leader in a
number of federal loan programs. Examiners also concluded that the bank's distribution of credit products was
reasonable and significantly penetrated all segments of the
delineated community, including LMI neighborhoods. The
Rockford Examination also noted that the bank was very
active in community development activities, including providing assistance to several community development organizations located in LMI areas. The four remaining
AMCORE subsidiary banks received "satisfactory" ratings for CRA performance in their most recent evaluations.7 In addition, First National received a "satisfactory"
6. The Statement of the Federal Financial Supervisory Agencies
Regarding the Community Reinvestment Act (54 Federal Register
13,742, 13,745 (1989)) provides that a CRA examination is an important and often controlling factor in consideration of an institution's
CRA record and that reports of these examinations will be given great
weight in the applications process.
7. Protestant contends that AMCORE has been unwilling to seek
advice on services, products, and credit needs of the local community
served by First National. AMCORE denies this assertion, and states
that it has met with members of the community served by First
National, including Protestant. The Board notes that AMCORE's
431
rating for CRA performance from the OCC as of February
1992.»
The Board also has considered AMCORE's record of
helping to meet the credit needs of rural and fanning
communities in light of Protestant's comments. 9 The most
recent CRA performance evaluation of AMCORE Bank,
N.A., Mendota, Mendota, Illinois ("Mendota Bank"), for
example, found that the bank's primary business focus was
the agricultural and small business segments of the banking market and that the bank defined its delineated community as those portions where its agricultural customers
resided.10 Mendota Bank also participates in governmentguaranteed loan programs for farmers, including loans
guaranteed by the Farmers Home Administration
("FmHA") and the Farm Service Agency. As of June 1995,
the bank had 273 small farm loans outstanding, totalling
more than $12 million.11
Examiners also noted that AMCORE Bank, Aledo, Illinois ("Aledo Bank"), participated in government subsidized loan programs such as the FmHA and the Illinois
Farm Development Association.12 Examiners found in
Aledo Bank's most recent CRA evaluation that the bank
had made approximately $7 million in operating loans at
below prime interest rates to 65 farmers through the Illinois State Treasurer's Agriculture Loan Linked Deposit
Program, and that the bank's agricultural-related lending
comprised approximately 42 percent of its loan portfolio.
AMCORE proposes to implement similar programs in
Wisconsin through First National. As noted above,
AMCORE recognizes that First National offers some products that are uniquely suited to its local community, and
also proposes to expand products to include others offered
subsidiary banks' efforts to ascertain the credit needs of their communities were found to be satisfactory in their most recent CRA evaluations.
8. Examiners found no evidence of prohibited discrimination or
other illegal credit practices at any of AMCORE's subsidiary banks or
First National, and concluded that the banks were in satisfactory
compliance with the substantive provisions of the fair lending laws.
Examiners also found no evidence of any practices by the banks that
were intended to discourage applications for the types of credit listed
in the institutions' CRA statements.
9. Protestant asserts that because AMCORE has agreed in principle
to acquire another Wisconsin bank holding company, Country Bank
Shares Corporation, Mt. Horeb, Wisconsin ("Country"), AMCORE
will close some Wisconsin branch offices. The First National proposal
represents the initial entry by AMCORE into Wisconsin and therefore
creates no institutional overlap. In addition, AMCORE has represented that it will serve the convenience and needs of the community
through an expanded branch network in the areas in which First
National currently has branches. If AMCORE proposed to acquire
Country, that proposal, including the effect of the proposal on the
convenience and needs of the community, would be subject to review
under the federal banking laws.
10. The bank formed an Agriculture Advisory Committee composed of members of the agricultural community to better ascertain
the credit needs of farm areas within the community served by the
bank.
11. A small farm loan is defined as a loan of $500,000 or less.
12. In addition, AMCORE Bank N.A., Rock River Valley, Dixon.
and AMCORE Bank N.A., Northwest, Woodstock, both in Illinois,
participate in government-guaranteed loan programs such as those
sponsored by the FmHA.
432
Federal Reserve Bulletin • May 1997
currently
through
AMCORE
subsidiary
banks.
AMCORE's record indicates that it has successfully helped
serve the credit needs of a variety of communities, including rural and agricultural communities.
Conclusion on the Convenience and Needs Factor.
The Board has carefully considered the entire record in its
review of the convenience and needs factor under the BHC
Act, including all the information provided by the commenters.13 Based on all the facts of record, and for the
reasons discussed above, the Board concludes that considerations relating to the convenience and needs factor, including the CRA performance records of the relevant institutions, are consistent with approval of the application.14
The Board's approval is specifically conditioned on compliance by AMCORE with all the commitments made in
connection with this application. The commitments and
conditions relied on 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.
The proposed acquisitions shall not be consummated
before the fifteenth calendar day following the effective
date of this order, and not later than three months after the
effective date of this order, unless such period is extended
by the Board or by the Federal Reserve Bank of Chicago,
acting pursuant to delegated authority.
By order of the Board of Governors, effective March 17,
1997.
Conclusion
Based on all the facts of record, the Board has determined
that this application should be, and hereby is, approved.15
13. Two individual commenters objected to the loss of local control
of Bancorp that would result from its acquisition by AMCORE. The
Board believes that an institution's performance should be assessed on
the basis of the institution's actual record of assisting to meet the
credit needs of its entire community and, accordingly, in reviewing the
proposal the Board has focused on AMCORE's record as discussed
above.
14. Protestant and individual commenters have requested that the
Board hold a public hearing or public meeting on the application.
Section 3(b) of the BHC Act does not require the Board to hold a
public hearing or meeting on an application unless the appropriate
supervisory authority for the bank to be acquired makes a timely
written recommendation of denial. In this case, the Board has not
received such a recommendation from any state or federal supervisory
authority.
Under its rules, the Board may also, 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 these requests in light of all the facts of record. In the
Board's view, the requestors have had ample opportunity to submit
their views, and have, in fact, provided substantive written submissions that have been considered by the Board in acting on the
proposal. The requests fail to demonstrate why the written submissions do not adequately present their views. After a careful review of
all the facts of record, the Board concludes that the requests dispute
the weight that should be accorded to, and the conclusions that may be
drawn from, the existing facts of record, but do not identify any
genuine dispute about facts that are material to the Board's decision.
Based on all the facts of record, the Board has determined that a
public hearing or meeting is not necessary to clarify the factual record,
and is not otherwise warranted in this case. Accordingly, the requests
for a public hearing or meeting on the proposal are denied.
15. Protestant requests that the Board withhold approval of the
proposal until AMCORE addresses the issues Protestant has raised,
the OCC conducts another CRA performance evaluation of First
National, and the public has had an opportunity to provide additional
comments. The Board is required under applicable law and its regulations to act on applications under the BHC Act within specified time
periods. The Board notes, moreover, that Protestant has had a reasonable opportunity to submit information as provided under the Board's
application processing procedures and has, in fact, submitted substantive comments that have been carefully considered by the Board.
Based on all the facts of record, and for the reasons discussed above,
the Board concludes that the record is sufficient to act on the proposal
Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and
Governors Kelley, Phillips, and Meyer.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
First Alamogordo Bancorp of Nevada, Inc.
Alamogordo, New Mexico
Order Approving the Formation of a Bank Holding
Company
First Alamogordo Bancorp of Nevada, Inc., Alamogordo
("First Nevada" or "Applicant"), has requested the
Board's approval under section 3 of the Bank Holding
Company Act ("BHC Act") (12 U.S.C. § 1842) to become
a bank holding company by merging with First Alamogordo Bancorp, Inc., Alamogordo ("First New Mexico"),
and thereby acquiring its subsidiary banks, First National
Bank of Alamogordo, Alamogordo, and First National
Bank of Ruidoso, Ruidoso, all in New Mexico.
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published (61
Federal Register 67,833 (1996)). The time for filing comments has expired, and the Board has considered the proposal and all comments received in light of the factors set
forth in section 3 of the BHC Act.
First Nevada is a nonoperating company formed to acquire First New Mexico in a corporate reorganization,
whereby First New Mexico would be reincorporated in the
state of Nevada. First New Mexico is the 14th largest
commercial banking organization in New Mexico, controlling $147 million in deposits, representing approximately
1 percent of total deposits in commercial banking organizations in the state.1 The proposal would not result in the
acquisition of any additional banking assets. Based on all
the facts of record, the Board concludes that the proposal
at this time, and that delay or denial of the proposal on the grounds of
informational insufficiency is not warranted.
1. Deposit data are as of June 30, 1996, and have been adjusted to
reflect mergers and acquisitions since that date.
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would not have any significantly adverse effects on competition or on the concentration of banking resources in any
relevant banking market.
The BHC Act also requires the Board to consider the
financial and managerial resources and future prospects of
the companies and banks involved in a proposal, and
certain other supervisory factors. The Board has carefully
considered these factors in light of all the facts of record,
including comments from certain minority shareholders of
First New Mexico ("Protestants") objecting to the proposal. Under the proposal, all minority shareholders' interests in First New Mexico, including Protestants' 24.4 percent shareholding interest, would be redeemed for cash.2
Protestants contend that management of First New Mexico has underestimated the cost of "cashing out" the
minority shareholders and that the proposal would have a
negative impact on the financial resources of the institutions involved. The Board has carefully reviewed all the
financial information provided by Applicant and Protestants regarding the proposal, including formal appraisals,
evidence of prior sales, the affidavit of a banking consultant, and the assessment of the financial resources of the
institutions made in confidential reports of examination by
their primary federal supervisors. Under the proposal submitted by Applicant, the projected financial condition of
First Nevada and its subsidiary banks and the projected
debt-service obligation of First Nevada are reasonable and
consistent with the Board's guidelines.3 Based on all the
facts of record, and subject to the condition that First
Nevada not exceed certain limitations that are designed to
ensure that the bank holding company and its subsidiary
banks continue to be strongly capitalized after the shares of
the minority shareholders are redeemed, the Board concludes that financial considerations are consistent with
approval.
Protestants allege that First New Mexico's directors
have refused to pay dividends to shareholders since its
formation in 1982, despite the profitable performance of
the bank holding company's subsidiary banks. In addition,
Protestants assert that First New Mexico's directors, who
also serve as directors of First New Mexico's subsidiary
banks, are paid fees that are significantly higher than fees
paid at institutions with comparable operations.4 Applicant
2. The directors and senior officers of First New Mexico currently
hold their shares in a voting trust that controls approximately
70 percent of First New Mexico's voting shares and would own all the
voting shares of First Nevada on consummation of the proposal. The
remaining shareholders of First New Mexico, including Protestants,
currently control approximately 30 percent of the shares as minority
shareholders.
3. Protestants assert that if Applicant is required to pay the minority
shareholders a higher-than-offered value for their shares, which Protestants contend is substantially higher than the price used in Applicant's projections, the proposal could adversely affect the financial
condition of First Nevada and its subsidiary banks. The Board has
reviewed the application in light of all the share pricing information
provided by Protestants and Applicant.
4. Protestants have filed an action in New Mexico state court to
recover these fees and have them redistributed to all shareholders as
constructive dividends. This action is in its preliminary stages.
433
responds that New Mexico corporate law gives directors
broad discretion to decide whether to declare dividends,
that retained earnings have been used to improve and
expand facilities and pay existing debts, and that the fees
paid do not violate any federal banking law. Applicant also
contends that the directors of First New Mexico's subsidiary banks meet frequently and perform the functions as a
committee that are normally performed by a chief executive officer.
Protestants also maintain that actions by management in
connection with the preparation of the proposal and its
presentation to shareholders and the Board raise adverse
managerial considerations. For example, Protestants allege
that proxy materials relating to the proposal are insufficient
and misleading and do not disclose Protestants' pending
action in state court challenging the actions of management.5 The Board has provided a copy of Protestants'
comments to New Mexico state securities regulators for
their review and consideration.6 The Board also notes that
Protestants intend to pursue their pending legal action
against management, and that the court in their case has the
authority to provide Protestants with an adequate remedy if
their allegations can be substantiated.7
Finally, Protestants contend that the proposed merger
serves no legitimate business purpose and is only designed
to eliminate the minority shareholders. Protestants maintain that the management of First New Mexico has a
special responsibility to deal fairly with minority shareholders, and that the elimination of minority shareholders
under the circumstances in this case violates this responsibility. As noted above, Protestants also consider the offering price for their shares to be inadequate. Applicant responds that the proposal would enable the company to
operate more efficiently and with greater certainty under
Nevada law and thereby increase its profitability. Applicant
also notes that New Mexico law permits dissenting shareholders the opportunity to have a state court establish the
fair value of their shares.8
The BHC Act requires the Board to consider the affect of
a proposed transaction on the institutions involved by
5. The court proceedings and Protestants' dispute with management
were disclosed in the record of the application. Protestants also allege
that the appraisals referred to in the proxy materials did not exist at the
time the materials were distributed and have been improperly withheld from shareholders. Applicant denies the allegations, and has
disclosed the appraisals in the record of the application. Applicant also
contends it was not required to provide shareholders with a copy of
the appraisals.
6. Securities of First New Mexico are not registered with the
Securities and Exchange Commission ("SEC"), and the SEC has
informally indicated to the Board that it will not address Protestants'
allegations.
7. A request by Protestants for a temporary restraining order to
postpone the shareholder meeting of First New Mexico was denied by
a state court. Protestants indicate that they intend to file an amended
complaint contesting the legality of the proxy solicitation and the
merger under state law.
8. See N.M. Stat. Ann. § § 53-15-3 and 53-15-4.
434
Federal Reserve Bulletin • May 1997
taking into account specific considerations.9 The Board has
carefully considered Protestants' comments and all other
facts of record, including the responses by Applicant and
the reports of examination by the institutions' primary
federal supervisors. The facts of record indicate that First
New Mexico and its subsidiary banks have long records of
being operated by current management in a safe and sound
manner and support a finding that managerial resources are
satisfactory. Many of Protestants' specific allegations do
not relate to the operations of the banking organizations
but rather to Protestants' contention that they have been
denied a fair return on their investment in the past and
would not receive the fair value of their investment under
the proposal. 10
Disputes between shareholders and management regarding the value of shares, the adequacy of dividends paid to
shareholders, and the sufficiency of disclosures to shareholders are matters of state and federal securities law and
state corporate law. Many of these issues already have
been raised in a pending legal action by Protestants before
a court with the authority to provide them with adequate
relief. As previously noted, moreover, the supervisory
record of First New Mexico and its subsidiary banks indicates that managerial operations have been and are satisfactory.
In this light, and based on all the facts of record, the
Board concludes that the managerial resources and future
prospects of the institutions involved, and other supervisory factors, are consistent with approval. The Board also
concludes that considerations relating to the convenience
and needs of the community are consistent with approval.
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 expressly
conditioned on compliance with all the commitments made
by First Nevada in connection with this application and the
conditions referenced 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.
9. Western Bancshares, Inc. v. Board of Governors, 480 F.2d 749
(10th Cir. 1973).
10. Protestants argue that the Board has adopted a requirement that
the management of a bank holding company deal fairly with its
shareholders. Benson Bancshares, Inc., 63 Federal Reserve Bulletin
1009 (1977) ("Benson"). In Benson, the Board did not find that the
BHC Act imposed any duties on the management in its relations with
shareholders. In that case, the Board considered the manner is which
the management priced the shares of minority shareholders, and,
although the stock purchases by management were for significantly
less than the book value of the stock, the Board found managerial
resources to be satisfactory and approved the application. Unlike the
minority shareholders in Benson, who appeared to have no means of
protecting their interests, Protestants in this case have obtained their
own professional valuation for their shares and have the right and the
ability under state law to adjudicate the fair value of their shares. In
addition, the offering price in this case is supported by two independent appraisals and a prior transaction.
This transaction shall not be consummated before the
fifteenth calendar day following the effective date of this
order or later than three months after the effective date of
this order, unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of Dallas, acting
pursuant to delegated authority.
By order of the Board of Governors, effective March 24,
1997.
Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and
Governors Kelley, Phillips, and Meyer.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Pontotoc BancShares Corp.
Pontotoc, Mississippi
Order Approving Formation of a Bank Holding Company
Pontotoc BancShares Corp. ("Pontotoc"), has requested
the Board's approval under section 3 of the Bank Holding
Company Act ("BHC Act") to become a bank holding
company by acquiring up to 100 percent of the voting
shares of First National Bank of Pontotoc ("Bank"), both
of Pontotoc, Mississippi.1
Notice of the proposal, affording interested persons the
opportunity to submit comments, has been published
(61 Federal Register 69,096 (1996)). The time for filing
comments has expired, and the Board has considered the
proposal and all comments received in light of the factors
set forth in section 3 of the BHC Act.
Pontotoc is a nonoperating corporation established to
acquire Bank. Bank is the 30th largest commercial banking
organization in Mississippi, controlling deposits of $115.2
million, representing less than 1 percent of total deposits in
commercial banking organizations in the state.2 On consummation of the proposal, Pontotoc would become the
30th largest commercial banking organization in Mississippi. Pontotoc and Bank do not compete with each other
in any relevant market. Based on all the facts of record,
including the fact that the transaction represents a corporate reorganization of Bank into a holding company structure, the Board concludes that consummation of the proposal would not result in any significantly adverse effect on
competition or on the concentration of banking resources
in any relevant banking market.
The Board has carefully considered the financial and
managerial resources of Pontotoc and Bank, and the effect
of the proposed acquisition on the future prospects of these
organizations in light of the facts of record, including
1. Pontotoc would acquire Bank by merging Pontotoc's wholly
owned subsidiary, First Interim National Bank of Pontotoc ("Interim
Bank"), with Bank. Interim Bank would survive the merger and
shareholders of Bank would receive shares of Pontotoc in exchange
for their Bank shares. The merger requires the approval of the Office
of the Comptroller of the Currency ("OCC") under the Bank Merger
Act(12U.S.C. § 1828(c)).
2. All banking data are as of June 30, 1995.
Legal Developments
comments submitted by Union Planters Corporation, Memphis, Tennessee ("Union Planters"). 1 This proposal involves part of a contested attempt by Pontotoc and Union
Planters to acquire control of the same bank.
Union Planters contends that the proposed formation of
Pontotoc, employment agreements negotiated by Pontotoc
with two senior Bank officials, and Bank's efforts to obtain
right of first refusal agreements reflect attempts by Bank's
management to thwart the efforts of Union Planters to
make a tender offer for all of Bank's voting shares. Union
Planters maintains that the proposal would not provide
Bank with a competitive advantage and that the pro forma
financial information in the application is insufficient to
analyze the proposal because it does not account for the
potential financial effects if a large percentage of shareholders dissent from the Pontotoc offer.
The BHC Act requires the Board to consider each proposal presented. The Board, therefore, has a long-standing
policy of considering competing proposals individually,
and of approving each proposal that meets the statutory
criteria.4
Bank currently exceeds the "well capitalized" thresholds under applicable law, and Pontotoc would be "well
capitalized" after the acquisition of Bank. Pontotoc proposes to exchange its shares for outstanding shares of Bank
and expects to acquire a portion of the shares for cash. The
Board has considered Pontotoc's proposal in light of the
financial resources of Bank and Pontotoc's expectations
regarding the number of Bank shareholders who may tender their shares for cash. Based on all the facts of record,
including commitments and representations made by Pontotoc, the Board concludes that considerations relating to
the financial and managerial resources of Pontotoc and
Bank and the anticipated effect of the proposed acquisition
on the future prospects of these organizations are consistent with approval. Considerations relating to the conve-
3. Union Planters has agreements to acquire approximately 19.8
percent of Bank's voting shares, and has received Board approval to
acquire up lo 100 percent of the outstanding voting shares of Bank.
See Union Planters Corporation, 83 Federal Reserve Bulletin 320
(1997).
4. Union Planters also maintains that registration materials filed by
Pontotoc with the Securities and Exchange Commission ('"SEC") do
not give shareholders a complete and accurate description of the
financial impact of the proposal on Bank or adequately disclose the
potential adverse financial effect on shareholders entering into right of
first refusal agreements with Bank if they are precluded from accepting Union Planters's offer. Pontotoc states that it has provided Bank's
shareholders, including shareholders entering into right of first refusal
agreements, with all relevant information required by law. The Board
previously has stated that its limited jurisdiction to review applications under the BHC Act does not authorize the Board to adjudicate
disputes between a commenter and an applicant that arise under a
statute administered and enforced by another federal regulatory
agency like the SEC. See, e.g., Norwest Corporation, 82 Federal
Reserve Bulletin 580 (1996); see also Western Bancshares v. Board of
Governors, 480 F.2d 749 (10th Cir. 1973). The SEC is reviewing the
registration statement of Pontotoc and has the statutory authority to
address the disclosure issues raised by Union Planters. The Board has
provided the SEC with a copy of the comments for review and
consideration.
435
nience and needs of the community are also consistent with
approval,5 as are the other supervisory factors that the
Board must consider under section 3 of the BHC Act.6
In light of 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 of the proposal
is conditioned on compliance by Pontotoc with all commitments made in connection with the application. The commitments and conditions relied on by the Board in reaching
this decision shall be 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 shall not be consummated before the
fifteenth calendar day following the effective date of this
order, or later than three months after the effective date of
this order, unless such period is extended for good cause by
the Board or the Federal Reserve Bank of St. Louis, acting
pursuant to delegated authority.
By order of the Board of Governors, effective March 3,
1997.
This action was taken pursuant to the Board's Rules Regarding
Delegation of Authority (12 C.F.R. 265.4(b)(l)) by a committee of
Board members.
Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and
Governor Phillips. Absent and not voting: Governors Kelley and
Meyer.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Westamerica Bancorporation
San Rafael, California
Order Approving the Acquisition of a Bank Holding
Company
Westamerica Bancorporation, San Rafael, California
("Westamerica"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC Act"),
has requested the Board's approval under section 3 of the
BHC Act (12 U.S.C. § 1842) to acquire Vallicorp Holdings, Inc. ("Vallicorp"), and indirectly acquire Vallicorp's
5. Union Planters asserts that this proposal would not be in the best
interest of the community served by Bank, but provides no facts to
support its assertion. Pontotoc states that the formation of the holding
company would enable Pontotoc to offer new services in the community Bank serves. The Board notes that Bank received a "satisfactory"
rating from its primary federal supervisor, the OCC, at its most recent
examination for CRA performance.
6. Union Planters also questions whether Bank's management is
acting in concert with, or has entered into agreements with, unaffiliated third parties to acquire voting shares of Bank. Bank denies that
there are any arrangements, understandings or agreements for Bank to
assign any rights to acquire shares to a third party, and Union Planters
has provided no facts to support its concerns.
436
Federal Reserve Bulletin • May 1997
wholly owned subsidiary bank, Valliwide Bank ("Valliwide Bank"), both of Fresno, California.1
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(61 Federal Register 67,833 (1996)). The time for riling
comments has expired, and the Board has considered the
proposal and all comments received in light of the factors
set forth in section 3 of the BHC Act.
Westamerica, with total consolidated assets of $2.5 billion, operates two subsidiary banks in California,
Westamerica Bank, in San Rafael ("Westamerica Bank"),
and Bank of Lake County, in Lakeport ("Lake County
Bank").2 Westamerica is the 12th largest commercial banking organization in California, controlling $2 billion in
deposits, representing less than 1 percent of the total deposits in commercial banking organizations in the state.
Vallicorp is the 17th largest commercial banking organization in the state, controlling deposits of $1.2 billion, representing less than 1 percent of the total deposits in commercial banking organizations in the state. On consummation
of the proposal, Westamerica would become the 10th largest commercial banking organization in California, controlling deposits of $3.2 billion, representing 1.4 percent of
total deposits in commercial banking organizations in the
state.
Competitive Considerations
Section 3 of the BHC Act prohibits the Board from approving any proposal that would result in a monopoly, or that
would substantially lessen competition for banking services in any relevant banking market unless the Board
finds that the anticompetitive effects are clearly outweighed
in the public interest by the effect of the proposal on the
convenience and needs of the community to be served.
Westamerica and Vallicorp compete directly in the Grass
Valley, Modesto, and Sacramento banking markets, all in
California.3 After consummation of this proposal, none of
these banking markets would be highly concentrated as
measured by the Herfindahl-Hirschman Index ("HHI")
under the Department of Justice Merger Guidelines ("DOJ
Guidelines"),4 and numerous competitors would remain in
1. Westamerica also has requested the Board's approval for an
option to purchase up to 19.9 percent of the voting shares of Vallicorp
if certain events occur. The option would expire on consummation of
the proposal.
2. Asset data are as of September 30, 1996. Deposit data are as of
June 30, 1996, and incorporate structural changes through January
1997.
3. The Grass Valley banking market includes the cities of Glenbrook, Grass Valley. Nevada City, and Penn Valley: the Modesto
banking market includes the Modesto RMA, and the following cities,
Escalon, Hughson. Oakdale, and Ripon, and the Sacramento banking
market includes the Sacramento RMA and Lincoln City.
4. The HHI would increase by 113 points to 1643 in the Grass
Valley banking market. 10 points to 1183 in the Modesto banking
market, and 1 point to 1419 in the Sacramento banking market. Under
the DOJ 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. The Justice Department has in
each market. The United States Attorney General has advised the Board that consummation of the proposal is not
likely to have a significantly adverse effect on competition
in any relevant banking market. Based on all the facts of
record, the Board concludes that consummation of this
proposal would not have a significantly adverse effect on
competition or on the concentration of banking resources
in the Grass Valley, Modesto, and Sacramento banking
markets or any other relevant banking market.
Other Factors Under the BHC Act
The BHC Act also requires the Board 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 certain other
supervisory factors.
A. Financial, Managerial and other Supervisory
Factors
The Board has carefully considered the financial and managerial resources and future prospects of Westamerica,
Vallicorp, and their respective subsidiaries, and other supervisory factors in light of all the facts of record. The
facts of record include supervisory reports of examination
assessing the financial and managerial resources of the
organizations and confidential financial information provided by Westamerica. Based on these and all other facts of
record, the Board concludes that all the supervisory factors
under the BHC Act, including financial and managerial
resources, weigh in favor of approval of the proposal.
B. Convenience and Needs Factor
The Board also has carefully considered the effect of the
proposal on the convenience and needs of the communities
to be served in light of all the facts of record. As part of
that review, the Board has considered submissions from
several commenters contending that Vallicorp's plans to
close five branches, which were announced before this
proposal, would have an adverse effect on the communities
served by the branches.5 One commenter also maintained
that Westamerica's and Vallicorp's 1995 Home Mortgage
Disclosure Act (12 U.S.C. § 2801 et seq.) ("HMDA") data
indicate that Westamerica and Vallicorp made few loans to
minorities and that the outreach and marketing efforts of
formed the Board that a bank merger or acquisition generally will not
be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the
merger increases the HHI by more than 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 effects of
limited- purpose lenders and other non-depository financial entities.
5. Commenters included a California state senator, the California
Reinvestment Committee, Amador-Tuolumne Community Action
Agency, and six small businesses in areas where Vallicorp would
close branches.
Legal Developments
the institutions were ineffective. In addition, a commenter
noted that some individuals had expressed concern that the
proposal would have an adverse effect on communities in
the San Joaquin and Sacramento Valleys, both in California.
The Board has long held that consideration of the convenience and needs factor includes a review of the records of
the relevant depository institutions under the Community
Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). As
provided in the CRA, the Board evaluates this factor in
light of examinations by the primary federal supervisor of
the CRA performance records of the relevant institutions.
An institution's most recent CRA performance evaluation
is a particularly important consideration in the applications
process because it represents a detailed on-site evaluation
of the institution's overall record of performance under the
CRA by its primary federal supervisor.6
Westamerica Bank, Westamerica's lead subsidiary bank,
received an "outstanding" rating at the most recent examination of its CRA performance by the Federal Reserve
Bank of San Francisco ("Reserve Bank"), as of May 13,
1996 ("Westamerica Examination"). The other bank controlled by Westamerica, Lake County Bank, received a
"satisfactory" rating at the most recent examination of its
CRA performance by the Federal Deposit Insurance Corporation, as of January 12, 1994. Valliwide Bank received an
"outstanding" rating for CRA performance at its most
recent examination by the Reserve Bank, as of January 22,
1996 ("Valliwide Examination").
Branches. Vallicorp provided notice to the California
State Banking Department from September 1996 to January 1997, before this merger proposal, that it might close or
divest a number of branches. The California Superintendent of Banks ("Superintendent") approved those possible
closures after reviewing the potential effect on the public
convenience in the areas served by the branches.7 The
Superintendent specifically approved Vallicorp's proposal
to close five branches identified by commenters.8 After
receipt of the comments, however, Vallicorp entered into
agreements to sell four of the five branches to another
depository institution. Bank branches would, therefore,
continue to be operated at these locations. If Vallicorp
closed the fifth branch, in Twain Harte, alternative banking
services would remain available nearby because two other
depository institutions maintain branches within two miles
6. See Statement of the Federal Financial Supervisory Agencies
Regarding the Community Reinvestment Act. 54 Federal Register
13,742, 13,745 (1989).
7. Vallicorp also provided notice of the branch closures to the public
and to the Reserve Bank pursuant to section 42 of the Federal Deposit
Insurance Corporation Act ("section 42"), as implemented by the
Joint Policy Statement Regarding Branch Closings. See 12 U.S.C.
§ 1831r-l; 58 Federal Register 49.083 (1993). Section 42 requires
that a bank provide the public with at least 30 days notice and the
primary federal supervisor with at least 90 days notice before the date
of the proposed branch closing. The bank is also required to provide
reasons and other supporting data for the closure, consistent with the
institution's written policy for branch closings.
8. Those towns are Altaville, Arnold, Columbia, Groveland, and
Twain Harte in Tuolumne and Calaveras Counties, California.
437
of that Vallicorp branch. In addition, Vallicorp has represented that prior to determining to close that branch, it
would consider whether closing the branch would have an
adverse impact on the community served and the actions
that should be taken to minimize any adverse impact. In the
Valliwide Examination, examiners noted that in the past
Vallicorp had assessed the potential impact of branch closings on its continued ability to offer services throughout the
communities served.
The Board also has reviewed Westamerica's branch closing policy. Under this policy, before making a decision to
close a branch, Westamerica considers whether the closing
would have an adverse impact on the community served
and the alternatives for banking services in the area affected by closing the branch. Examiners reviewed this
policy and found it to be effective. In addition, any proposed closings also would be reviewed by the Superintendent and subject to prior notice under section 42 of the
Federal Deposit Insurance Act. The Westamerica Examination noted that Westamerica branches were accessible to all
segments of the community and that the bank had a strong
record of offering services that helped meet the banking
needs of its delineated community, including low- to
moderate-income ("LMI") neighborhoods.
Lending Performance
Westamerica Bank and Valliwide Bank are primarily small
business lenders with a secondary focus on mortgage lending. According to the Westamerica Examination, as of
March 31, 1996, commercial lending represented 48 percent and residential lending represented 19.3 percent of
Westamerica Bank's loan portfolio. In 1996, Westamerica
Bank originated 1,386 small business loans for a total of
approximately $196 million. According to the Valliwide
Examination, 46 percent of Valliwide Bank's loan portfolio consists of commercial loans and 40 percent consists of
real estate loans. In 1996, Valliwide Bank originated 5,044
small business loans for a total of approximately
$509 million.
Lending Activities. Commenters maintain that the lending levels exhibited in the 1995 HMDA data of Westamerica Bank and Valliwide Bank raise concerns about the
lending, marketing and outreach efforts to minorities by
those banks. The Board notes, however, that the CRA does
not require a bank to extend any particular type of credit,
such as loans secured by residential housing that are reported under HMDA. Westamerica asserts that the proposal would improve the variety of affordable housing,
business development and community development loans
that would be available, because Westamerica plans to
introduce many of its Community Access Loan ("CAL")
products in the communities currently served by Valliwide.
Those programs are designed for low-income borrowers
and include the Community Access Loan Program, ("CAL
Program") which provides home equity loans, automobile
loans, and home improvement loans with lower monthly
payments; the CAL PAL Loan program, which provides
residential mortgage loans with flexible underwriting crite-
438
Federal Reserve Bulletin • May 1997
ria, lower down payments, and no private mortgage insurance; and the CAL Business Loan Program, which offers
"microenterprise" or "incubator" business loans to minorities and women through local agencies, that also provide
technical support to the borrowers. In 1996, Westamerica
Bank originated 33 CAL PAL loans for a total of approximately $4.2 million, and 60 CAL Business Loans for
nearly $1 million. Westamerica also plans to offer community development loans within Valliwide Bank's delineated
community and to continue offering Small Business Administration ("SBA") loans in the community served by
Valliwide Bank. Valliwide Bank is a preferred SBA lender.
Westamerica Bank currently finances several affordable
housing and community development projects within its
community. From October 31, 1994, through May 13,
1996, Westamerica Bank extended a $6 million commitment to finance the construction of 80 units of low-income
housing for senior citizens and low-income families; approximately $1 million to localities to finance the construction of a fire and police station; approximately $1.2 million
to local school districts for the purchase of equipment,
construction of permanent and portable classrooms, and
school buses; and a total of approximately $1.5 million to
one organization that provides food, shelter, clothing, and
literacy classes for the homeless and another that provides
services to the disabled.
The record in the Valliwide Examination demonstrates
that Valliwide Bank provides funding for affordable housing projects, community development projects, and the
credit needs of LMI individuals in its community. According to the Valliwide Examination, in 1995, Valliwide Bank
committed $26 million for the construction of 17 affordable housing projects and, between November 28, 1994,
and January 22, 1996, the bank extended 2,644 community
development loans for a total of approximately $84 million
for the purposes of start-up business and business expansion financing. In addition, Valliwide Bank's Community
Loan Program originated 335 consumer loans to LMI
individuals or in LMI areas for a total of approximately
$1.2 million in 1995.
Other aspects of CRA performance. The Board has reviewed HMDA data for 1994 and 1995, and preliminary
data for 1996, filed by Westamerica and Vallicorp in light
of the comments received on the proposal. In reviewing
HMDA data, the Board considered that Westamerica is
primarily a small business lender and that Valliwide Bank
did not offer home mortgage-related loans before 1994.
In the Westamerica Examination, examiners found that
in 1995, 353 people applied for HMDA loans and 251
HMDA loans were originated for an origination rate of
71 percent. Fifty-four of these applications were from
individuals in LMI census tracts. The 1995 HMDA origination rates of Westamerica for LMI census tracts was
70 percent, which exceeded the average origination rate for
other lenders in the market in LMI tracts in 1995, which
was 54.3 percent.
The Board has reviewed carefully other information,
particularly examination reports that provide an on-site
evaluation of compliance by Westamerica and Vallicorp
with fair lending laws. The examinations of Westamerica
Bank and Valliwide Bank found no evidence of prohibited
discrimination or other illegal credit practices at the institutions. Examiners also found no evidence at either of the
institutions of any practices to discourage applications for
the types of credit listed in the CRA statements of the
banks. In addition, the Westamerica and Valliwide Examinations noted that both banks solicited credit from all
segments of their community, including LMI neighborhoods.
The Westamerica Examination noted the bank's strong
performance in ascertaining community credit needs. Westamerica Bank primarily relied on a call program to contact
an extensive network of governmental, business, and
community-based organizations throughout its community.
Credit needs were documented in Community Needs Assessment Reports that were reviewed by senior managers.
Those efforts resulted in more funding for small businesses, affordable housing, and neighborhood improvement projects. Westamerica also engaged in a print media
advertising campaign in local newspapers, newsletters, and
minority papers and directories.
Westamerica has stated that it would continue to assist in
meeting the credit needs of communities in the San Joaquin and Sacramento Valleys after consummation of the
proposal. Westamerica has indicated, for example, that it
would continue the community development activities of
Vallicorp in these areas, and expand outreach efforts
throughout the San Joaquin Valley. In addition, Westamerica would continue its representation on the Greater
Sacramento Community Lending Consortium, which provides affordable housing loans in Sacramento County.
Westamerica also participates with the Valley Sierra Small
Business Development Center and the Greater Sacramento
Certified Development Corporation, which provide technical support to applicants under Westamerica's Women and
Minority Microenterprise Loan Program.
Conclusion on Convenience and Needs Factor. In considering the convenience and needs factor, the Board has
carefully reviewed all the facts of record including information provided by commenters on the proposal, responses
by Westamerica and Vallicorp, and the results of the relevant CRA performance evaluations. Based on this review,
and for the reasons discussed above, the Board concludes
that considerations relating to the convenience and needs
of the communities served, including the CRA performance records of the institutions involved, are consistent
with approval.
Conclusion
Based on the foregoing and all other facts of record,
including all the commitments made in connection with
this proposal, the Board has determined that the application
should be, and hereby is, approved. The Board's approval
is expressly conditioned on compliance by Westamerica
and Vallicorp with all the commitments made in connection with this proposal and with the conditions referred to
in this order. For purposes of this action, the commitments
Legal Developments
and conditions relied on by the Board in reaching this
decision are deemed to be conditions imposed in writing
and, as such, may be enforced in proceedings under applicable law.
This proposal shall not be consummated before the fifteenth 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 by the Reserve Bank, acting pursuant to
delegated authority.
By order of the Board of Governors, effective March 19,
1997.
Voting for this action: Vice Chair Rivlin and Governors Kelley,
Phillips and Meyer. Absent and not voting: Chairman Greenspan.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Orders Issued Under Section 4 of the Bank Holding
Company Act
Bane One Corporation
Columbus, Ohio
Order Approving a Notice to Engage in Underwriting
and Dealing in All Types of Debt and Equity Securities
on a Limited Basis
Bane One Corporation, Columbus, Ohio ("Applicant"), a
bank holding company within the meaning of the Bank
Holding Company Act ("BHC Act"), has requested the
Board's approval 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 engage de now in
underwriting and dealing in, to a limited extent, all types of
debt and equity securities (other than ownership interests
in open-end investment companies) through its subsidiary,
Bane One Capital Corporation, Columbus, Ohio ("Company").
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(62 Federal Register 5008 (1997)). The time for filing
comments has expired, and the Board has considered the
notice and all comments received in light of the factors set
forth in section 4(c)(8) of the BHC Act.
Applicant, with total consolidated assets of approximately $98.6 billion, is the 10th largest banking organization in the United States.' Applicant operates subsidiary
banks in Ohio, Arizona, Colorado, Illinois, Indiana, Kentucky, Louisiana, Oklahoma, Texas, Utah, West Virginia,
and Wisconsin. Company currently is engaged in limited
underwriting and dealing in bank-ineligible securities2 as
1. Asset and ranking data are as of September 30, 1996.
2. As used in this order, "bank-ineligible securities" refers to all
types of debt and equity securities that a bank may not underwrite or
deal in directly under section 16 of the Glass-Steagall Act (12 U.S.C.
§ 24(7)).
439
permitted 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") under the Securities Exchange Act
of 1934 (15 U.S.C. § 78a et seq.) and a member of the
National Association of Securities Dealers, Inc.
("NASD"). Accordingly, Company is, and will continue to
be, subject to the record-keeping and reporting obligations,
fiduciary standards, and other requirements of the Securities Exchange Act of 1934, the SEC, and the NASD.
The Board previously has determined that, subject to the
prudential framework of limitations established in previous
decisions to address the potential for conflicts of interests,
unsound banking practices, or other adverse effects ("section 20 firewalls"), the proposed activities of underwriting
and dealing in 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 Applicant
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 that were established by the Board in the Section 20
Orders.
The Board also has determined that the conduct of these
securities underwriting and dealing activities is consistent
with section 20 of the Glass-Steagall Act (12 U.S.C.
§ 377), provided that the company engaged in the underwriting and dealing activities derives no more than 25
percent of its total gross revenue from underwriting and
dealing in bank-ineligible securities over any two-year
period.5 Applicant has committed that Company will con-
3. 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. See Bane One Corporation, 76 Federal Reserve Bulletin 756
(1990). Company also is authorized to engage in a variety of other
nonbanking activities. See id.; Bane One Corporation, 77 Federal
Reserve Bulletin 61 (1991).
4. See Canadian Imperial Bank of Commerce, 76 Federal Reserve
Bulletin 158 (1990); J.P. Morgan & Co. Ineorporated, et a/.,
75 Federal Reserve Bulletin 192 (1989), aff'd 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), aff'd sub nom. Securities Industry Ass'n v. Board
of Governors of the Federal Reserve System, 839 F.2d 47 (2d Cir.),
cert, denied, 486 U.S. 1059 (1988): as modified by Review of Restrictions on Director, Officer and Employee Interlocks, Cross-Marketing
Activities, and the Purchase, and Sale of Financial Assets Between a
Section 20 Subsidiary and an Affiliated Bank or Thrift, 82 Federal
Reserve Bulletin 1113 (1996) (collectively, "Section 20 Orders").
5. See Section 20 Orders. Effective March 6, 1997, the Board
increased from 10 percent to 25 percent the amount of total revenue
that a section 20 subsidiary may derive from underwriting and dealing
in bank-ineligible securities. See Revenue Limit on Bank-Ineligible
Activities of Subsidiaries of Bank Holding Companies Engaged in
Underwriting and Dealing in Securities, 61 Federal Register 68,750
(1996). Compliance with the 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); and 10 Percent
Revenue Limit on Bank-Ineligible Activities of Subsidiaries of Bank
Holding Companies Engaged in Underwriting and Dealing in Securi-
440
Federal Reserve Bulletin • May 1997
duct its underwriting and dealing activities in bankineligible securities subject to the Board's revenue test.6
In order to approve this notice, the Board also must
determine that the proposed activities "can reasonably be
expected to produce benefits to the public, such as greater
convenience, increased competition, or gains in efficiency,
that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices." 7 As
part of its review of these factors, the Board considers the
financial and managerial resources of the notificant and its
subsidiaries and the effect the transaction would have on
such resources.8 The Board has reviewed the capitalization
of Applicant 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. With
respect to Company, this determination is based on all the
facts of record, including Applicant's projections of the
volume of Company's underwriting and dealing activities
in bank-ineligible securities. In connection with the proposal, the Federal Reserve Bank of Cleveland ("Reserve
Bank") has reviewed the operational and managerial infrastructure of Company, including its computer, audit, and
accounting systems and internal risk management procedures and controls, with respect to the proposed underwriting and dealing in debt securities. Based on the Reserve
Bank's review and all other facts of record, the Board has
determined that Company has established an adequate operational and managerial infrastructure with respect to debt
securities to ensure compliance with the requirements of
the Section 20 Orders. On the basis of all the facts of
record, and subject to the completion of a satisfactory
infrastructure review with respect to Company's proposed
underwriting and dealing in all types of equity securities,
the Board has concluded that financial and managerial
considerations are consistent with approval of the notice.
In order to approve the proposal, the Board also must
find that the performance of the proposed activities by
Applicant can reasonably be expected to produce benefits
that would outweigh possible adverse effects under the
proper incident to banking standard of section 4(c)(8) of
the BHC Act. Under the framework established in this and
prior decisions, consummation of the proposal is not likely
to result in any significantly adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices.
The Board expects that consummation of the proposal
would provide added convenience to the customers of
Applicant and would increase competition among providties, 61 Federal Register 48,953 (1996) (collectively, "Modification
Orders").
6. Company also may engage in activities that are necessary incidents to the proposed underwriting and dealing activities. Unless
Company receives specific approval under section 4(c)(8) of the BHC
Act to conduct the activities independently, any revenues from the
incidental activities must be counted as ineligible revenues subject to
the Board's revenue limitation.
7. 12 U.S.C. § 1843(c)(8).
8. See 12 C.F.R. 225.24.
ers of these services. Accordingly, the Board has determined that the performance of the proposed activities by
Applicant 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.
On the basis of all the facts of record, the Board has
determined to, and hereby does, approve this notice subject
to all the terms and conditions discussed in this order and
in the Section 20 Orders, as modified by the Modification
Orders. The Board's approval of the 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, avoidance of 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 (as modified by the Modification
Orders) is not authorized for Company.
The Board's approval of the proposed underwriting and
dealing activities with respect to equity securities is conditioned on a future determination by the Board that Applicant and Company have established policies and procedures to ensure compliance with the conditions and
restrictions previously relied on by the Board in approving
these activities and the other requirements of this order and
the Section 20 Orders, including computer, audit and accounting systems, internal risk management controls and
the necessary operational and managerial infrastructure.
On notification by the Board that this condition has been
satisfied. Company may commence the proposed underwriting and dealing activities in equity securities, subject to
the other conditions discussed in this order and the Section
20 Orders.
The Board's determination also is subject to all the terms
and conditions set forth in Regulation Y. including those in
sections 225.7 and 225.23(g) (12 C.F.R. 225.7 and
225.23(g)), 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 ensure compliance with, or to prevent evasion
of, the provisions and purposes of the BHC Act and the
Board's regulations and orders issued thereunder. The
Board's decision is specifically conditioned on compliance
with all the commitments made in connection with this
notice, including the commitments discussed in this order
and the conditions set forth in the Board regulations and
orders noted above. The commitments and conditions shall
be 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 proposal 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 the
Reserve Bank, acting pursuant to delegated authority.
By order of the Board of Governors, effective March 24,
1997.
Legal Developments
Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and
Governors Kelley, Phillips, and Meyer.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
Stichting Prioriteit ABN AMRO Holding
Stichting Administratiekantoor ABN AMRO
Holding
ABN AMRO Holding N.V.
ABN AMRO Bank N.V.
all of Amsterdam, The Netherlands
Order Approving Notice to Engage in Certain
Nonhanking Activities
Stichting Prioriteit ABN AMRO Holding, Stichting Administratiekantoor ABN AMRO Holding, ABN AMRO
Holding N.V., and ABN AMRO Bank N.V., all of Amsterdam, The Netherlands (collectively, "Notificants"), bank
holding companies within the meaning of the Bank Holding Company Act ("BHC Act"), have requested the
Board's approval 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 indirectly
rights, interests, and obligations in clearing contracts held
by Citicorp Futures Corporation. New York. New York
("CitiFutures"), and CitiFutures Limited, London,
England ("CFL London"), and to acquire indirectly all the
outstanding common shares of Citicorp Futures Limited,
Singapore ("CFL Singapore"). Notificants would thereby
indirectly engage in the following activities:
(1) Acting as a futures commission merchant ("FCM")
for nonaffiliated persons in the execution and clearing on
major commodities exchanges of financial futures and
options on futures contracts, and providing investment
advice on these contracts as an FCM or as a commodity
trading advisor ("CTA"), pursuant to sections
225.25(b)(18) and (19) of Regulation Y (12 C.F.R.
225.25(b)(17)and(b)(18));
(2) Acting as an FCM for nonaffiliated persons in the
execution and clearing on major commodity exchanges
of futures and options on futures contracts based on
bonds or other debt instruments, certain commodities,
and stock, bond, or commodity indices, and providing
investment advice, including discretionary management
services, with respect to such contracts; and
(3) Providing execution-only, clearing-only and omnibus account services with respect to futures and options
on futures based on certain financial and nontinancial
commodities.
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(62 Federal Register 9432 (1997)). The time for filing
comments has expired, and the Board has considered the
notice and all comments received in light of the factors set
forth in section 4(c)(8) of the BHC Act.
441
Stichting Prioriteit ABN AMRO Holding, with total
consolidated assets of $339.4 billion, is the largest commercial banking organization in the Netherlands.1 Notificants control seven depository institutions in Illinois and
one commercial bank in New York. ABN AMRO Bank
N.V. also operates branches in Boston, Massachusetts;
Chicago, Illinois; New York, New York; Pittsburgh, Pennsylvania; and Seattle. Washington; and agencies in Atlanta,
Georgia; Miami. Florida; Houston, Texas; and Los Angeles
and San Francisco. California.
CitiFutures. CFL London, and CFL Singapore are
wholly owned indirect subsidiaries of Citicorp, New York,
New York, and engage in a variety of futures-related
activities pursuant to specific Board orders, including providing execution and clearing, execution-only and clearingonly services with respect to futures and options on futures
on financial and nonfinancial commodities.2 Notificants
propose that ABN AMRO Chicago Corporation, Chicago,
Illinois, Notificants' existing section 20 subsidiary, succeed
to certain clearing businesses currently conducted by CitiFutures and acquire CFL Singapore. Notificants also propose that ABN AMRO Chicago Corporation (UK) Limited, London, England, succeed to the clearing businesses
of CFL London.
Activities Previously Approved by the Board
The Board previously has determined by regulation and
order that Notificants' proposed futures-related execution,
clearing and advisory activities are so closely related to
banking as to be proper incidents thereto, provided that the
activities are conducted in conformity with certain limitations and conditions designed to, inter alia, ensure that the
activities are consistent with safe and sound banking practices and mitigate potential conflicts of interests.3 Notificants have committed to conduct the activities in accordance with the limitations set forth in Regulation Y, the
Board's orders, and interpretations relating to each of the
activities, including the limitations noted in the ASA'
AMRO Order. Notificants also have specifically committed
to apply the risk management policies, procedures and
internal control systems that were subject to the Board's
scrutiny in connection with the ABN AMRO Order.
Proper Incident to Banking Standard
In order to approve this notice, the Board must determine
that the activities are a proper incident to banking, that is,
that performance of the proposed activities "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, con-
1. Asset and ranking data are as of December 31, 1995, and use
exchange rates then in effect.
2. See, en.. Citicorp. XI Federal Reserve Bulletin 164(1995).
3. See 12 C.F.R. 225.25(b)(18), (b)(19); Stichting Prioriteit ABN
AMRO Holding, 83 Federal Reserve Bulletin 138 (1997) ("ABN
AMRO Order").
442
Federal Reserve Bulletin • May 1997
flicts of interests, or unsound banking practices." 4 As part
of its review of these factors, the Board considers the
financial and managerial resources of the notificant and its
subsidiaries and the effect the transaction would have on
such resources.5 Based on all the facts of record, the Board
concludes that financial and managerial considerations are
consistent with approval of the proposal.
The Board expects that the proposed transaction can
reasonably be expected to provide added convenience and
services to Notificants' customers by offering them an
expanded range of futures-related products and services.
There are numerous providers of the proposed futuresrelated services and, therefore, consummation of the proposal would not significantly decrease competition in any
relevant market. The Board also believes that the conduct
of the proposed activities within the framework established
in this order, prior orders, and Regulation Y is not likely to
result in significantly adverse effects, such as undue concentration of resources, decreased or unfair competition, or
unsound banking practices. In addition, to address any
potential adverse impact from the performance of the proposed activities, Notificants have committed to conduct the
activities pursuant to conditions the Board previously has
found satisfactory to mitigate potential adverse effects.
Accordingly, the Board has concluded that the performance of the proposed activities by Notificants 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.
Based on the foregoing and all the facts of record, the
Board has determined that the notice should be, and hereby
is, approved. Approval of this notice is specifically conditioned on compliance by Notificants with the commitments
made in connection with this notice. The Board's determination also is subject to all the terms and conditions set
forth in Regulation Y, including those in sections 225.7 and
225.23(b) (12 C.F.R. 225.27 and 225.23(b)), 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
thereunder. For purposes of this transaction, the commitments and conditions agreed to by Notificants shall be
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 the
Federal Reserve Bank of Chicago, acting pursuant to delegated authority.
By order of the Board of Governors, effective March 19,
1997.
4. 12U.S.C. § 1843(c)(8).
5. See 12 C.F.R. 225.24; see also The Fuji Bank, Limited, 75
Federal Reserve Bulletin 94 (1989); Bayerische Vereinsbank AC 73
Federal Reserve Bulletin 155(1987).
Voting for this action: Vice Chair Rivlin and Governors Kelley,
Phillips, and Meyer. Absent and not voting: Chairman Greenspan.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
ORDERS ISSUED UNDER INTERNATIONAL BANKING ACT
Royal Bank of Canada
Montreal, Canada
Order Approving Establishment of a Representative
Office
Royal Bank of Canada ("Bank"), Montreal, Canada, a
foreign bank within the meaning of the International Banking Act ("IBA"), has applied under section 10(a) of the
IB A (12 U.S.C. § 3107(a)) to establish a representative
office in Houston, Texas. The Foreign Bank Supervision
Enhancement Act of 1991 ("FBSEA"), which amended
the IBA, provides that a foreign bank must obtain the
approval of the Board to establish a representative office in
the United States.
Notice of the application, affording interested persons an
opportunity to submit comments, has been published in a
newspaper of general circulation in Houston, Texas (Houston Chronicle, November 27, 1996). The time for filing
comments has expired, and all comments have been considered.
Bank, with total consolidated assets of approximately
$162.0 billion,1 is the largest bank in Canada. Bank's
shares are publicly traded and widely held, and no shareholder owns more than 10 percent of Bank.
Bank provides a wide range of consumer, commercial,
and corporate banking services through its network of
more than 1500 offices in Canada. Foreign operations are
conducted in 35 countries. In the United States, Bank
currently operates a federally licensed branch in New York,
New York, state-licensed agencies in Los Angeles, California, and Miami, Florida, and a representative office in
Chicago, Illinois. Bank also engages in securities activities
in the United States through its subsidiary, RBC Dominion
Securities Corporation, New York, New York.
The purposes for establishing the proposed representative office are to market Bank's products and services and
solicit loan business for Bank.
In acting on an application to establish a representative
office, the IBA and Regulation K provide that the Board
shall take into account whether the foreign bank engages
directly in the business of banking outside of the United
States and has furnished to the Board the information it
needs to assess the application adequately. The Board also
shall take into account whether the foreign bank and any
foreign bank parent is subject to comprehensive supervision or regulation on a consolidated basis by its home
country supervisor (12 U.S.C. § 3105(d)(2); 12 C.F.R.
1. Asset data are as of October 3 1 , 1 9 9 6 .
Legal Developments
211.24).2 The Board may also take into account additional
standards as set forth in the IB A and Regulation K
(12U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)).
In this case, with respect to supervision by home country
authorities, the Board has considered the following information. Bank is supervised and regulated by the Office of
the Superintendent of Financial Institutions ("OSFI"). The
OSFI is responsible for the prudential supervision and
regulation of federally regulated financial institutions. The
Board has previously determined, in connection with applications involving other Canadian banks, that these banks
were subject to home country supervision on a consolidated basis.3 Bank is supervised by the OSFI on substantially the same terms and conditions as these other banks.
Based on all the facts of record, the Board has determined
that Bank is subject to comprehensive supervision and
regulation on a consolidated basis by its home country
supervisor.
The Board also has taken into account the additional
standards set forth in section 7 of the IB A (See 12 U.S.C.
§ 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)). The OSFI has
no objection to establishment of the proposed representative office.
With respect to the financial and managerial resources of
Bank, taking into consideration Bank's record of operations in its home country, its overall financial resources,
and its standing with its home country supervisors, the
Board also has determined that financial and managerial
factors are consistent with approval of the proposed representative office. Bank appears to have the experience and
capacity to support the proposed representative office and
also has established controls and procedures for the proposed representative office to ensure compliance with U.S.
law.
With respect to access to information about Bank's
2. In assessing this standard, the Board considers, among other
factors, the extent to which the home country supervisors:
(i) Ensure that the bank has adequate procedures for monitoring and
controlling its activities worldwide;
(ii) Obtain information on the condition of the bank and its subsidiaries and offices through regular examination reports, audit reports,
or otherwise;
(iii) Obtain information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic;
(iv) Receive from the bank financial reports that are consolidated on
a worldwide basis, or comparable information that permits analysis
ot the bank's financial condition on a worldwide consolidated basis;
and
(v) Evaluate prudential standards, such as capital adequacy and risk
asset exposure, on a worldwide basis.
These are indicia of comprehensive, consolidated supervision. No
single factor is essential and other elements may inform the Board's
determination.
3. See Bank of Montreal. 80 Federal Reserve Bulletin 925 (1994);
National Bank of Canada, 82 Federal Reserve Bulletin 769 (1996).
443
operations, the Board has reviewed the restrictions on
disclosure in relevant jurisdictions in which Bank operates
and has communicated with relevant government authorities about access to information. Bank has committed to
make available to the Board such information on the operations of Bank and any affiliate of Bank that the Board
deems necessary to determine and enforce compliance with
the IBA, the Bank Holding Company Act of 1956, as
amended, and other applicable federal law. To the extent
that the provision of such information may be prohibited
by law, Bank has committed to cooperate with the Board to
obtain any necessary consents or waivers that might be
required from third parties for disclosure. In addition,
subject to certain conditions, the OSFI may share information on Bank's operations with other supervisors, including
the Board. In light of these commitments and other facts of
record, and subject to the condition described below, the
Board concludes that Bank has provided adequate assurances of access to any necessary information the Board
may request.
On the basis of all the facts of record, and subject to the
commitments made by Bank, as well as the terms and
conditions set forth in this order, the Board has determined
that Bank's application to establish the representative office should be, and hereby is, approved. Should any restrictions on access to information on the operations or activities of Bank and its affiliates subsequently interfere with
the Board's ability to obtain information to determine and
enforce compliance by Bank or its affiliates with applicable
federal statutes, the Board may require termination of any
of the Bank's direct or indirect activities in the United
States. Approval of this application is also specifically
conditioned on Bank's compliance with the commitments
made in connection with the application, and with the
conditions in this order.4 The commitments and conditions
referred to above are conditions imposed in writing by the
Board in connection with its decision, and may be enforced
in proceedings under 12 U.S.C. § 1818 or 12 U.S.C.
§ 1847 against Bank, its offices, and its affiliates.
By order of the Board of Governors, effective March 31,
1997.
Voting for this action: Chairman Greenspan. Vice Chair Rivlin. and
Governors Kelley, and Meyer. Absent and not voting: Governor
Phillips.
JENNIFER J. JOHNSON
Deputy Secretary of the Board
4. The Board's authority to approve the establishment of the proposed office parallels the continuing authority of the Texas State
Banking Department ("Department") to license offices of foreign
banks. The Board's approval of this application does not supplant the
authority of Texas and the Department to license the proposed office
of Bank in accordance with any terms or conditions that the Department may impose.
444
Federal Reserve Bulletin • May 1997
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to
the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Section 3
Applicant(s)
Bank(s)
Effective Date
1st United Bancorp,
Boca Raton, Florida
Whitney Holding Corporation,
New Orleans, Louisiana
Island National Bank and Trust Company,
Palm Beach, Florida
Whitney National Bank of Mississippi,
Gulfport, Mississippi
Merchants Bancshares, Inc..
Gulfport, Mississippi
Merchants Bank & Trust Company,
Gulfport, Mississippi
March 19, 1997
Applicant(s)
Bank(s)
Effective Date
First Citizens Bancshares, Inc.,
Dyersburg, Tennessee
SecurAmerica Holding Corporation,
Memphis, Tennessee
SecurAmerica Business Credit,
Memphis, Tennessee
March 25, 1997
March 26. 1997
Section 4
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Section 3
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Affiliated Community Bancorp, Inc..
Waltham. Massachusetts
AliKat Investments, Inc..
Gurnee, Illinois
AmeriBancShares, Inc.,
Wichita Falls, Texas
Middlesex Bank & Trust Company,
Newton, Massachusetts
NorthSide Community Bank,
Gurnee, Illinois
AmeriBancShares of Delaware, Inc.,
Wilmington, Delaware
American National Bank,
Wichita Falls, Texas
American National Bank,
Wichita Falls, Texas
ANB Nevada Group, Inc.,
Carson City, Nevada
American National Bank,
Gonzales, Texas
American National Bank,
Gonzales, Texas
Boston
March 14 , 1997
Chicago
March 5, 1997
Dallas
March 26 , 1997
Dallas
March 26, 1997
Dallas
March 24, 1997
Dallas
March 24, 1997
AmeriBancShares of Delaware, Inc..
Wilmington, Delaware
ANB Bancshares, Inc.,
Gonzales, Texas
ANB Nevada Group, Inc.,
Carson City, Nevada
Legal Developments
445
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Arrowhead Capital Corporation,
West Palm Beach, Florida
BancFirst Corporation,
Oklahoma City, Oklahoma
Bank of Boston Corporation,
Boston, Massachusetts
BayBanks, Inc.,
Boston, Massachusetts
Blackhawk Bancorp, Inc.,
Beloit, Wisconsin
Sunniland Bank,
Fort Lauderdale, Florida
First Ada Bancshares, Inc.,
Ada, Oklahoma
BankBoston, National Association,
Nashua, New Hampshire
Atlanta
March 11, 1997
Kansas City
March 3, 1997
Boston
March 11, 1997
Rochelle Bancorp, Inc.,
Rochelle, Illinois
Rochelle Savings Bank, S.B.,
Rochelle, Illinois
Bank of Bolivar,
Bolivar, Missouri
First Federal Bancshares, Inc.,
Memphis, Tennessee
American Security Bancshares, Inc.,
Welsh, Louisiana
American Bank,
Welsh, Louisiana
Pioneer Bancorp, Inc.,
Auburndale, Wisconsin
Fairfield Holdings, Inc.,
Fairfield, Texas
First National Bank of Fairfield,
Fairfield, Texas
Emerald Coast Bank.
Panama City Beach, Florida
Blue Ridge Bank,
Sparta, North Carolina
Bank of Herrin,
Herrin, Illinois
Carterville State & Savings Bank,
Carterville, Illinois
BankCentral Corporation,
Mattoon, Illinois
Central National Bank of Mattoon,
Mattoon, Illinois
Tara Bankshares Corporation,
Riverdale, Georgia
Tara State Bank,
Riverdale, Georgia
1st Equity Bank,
Skokie. Illinois
West Branch Bancorp, Inc.,
West Branch, Iowa
West Branch State Bank,
West Branch, Iowa
Boca Raton First National Bank,
Boca Raton, Florida
West Coast Bancorp, Inc.,
Cape Coral, Florida
Chicago
March 11, 1997
St. Louis
March 21 , 1997
Atlanta
March 14. 1997
Atlanta
March 5, 1997
Chicago
March 4, 1997
Dallas
March 19, 1997
Atlanta
February 25, 1997
Richmond
March 12, 1997
St. Louis
February 21, 1997
Chicago
March 7, 1997
Atlanta
March 25, 1997
Chicago
March 20 , 1997
Chicago
February 20, 1997
Richmond
March 27 , 1997
Cleveland
March 21 , 1997
Bolivar Bancshares, Inc.,
Bolivar, Missouri
Cumberland Bancorp, Inc.,
Carthage, Tennessee
Community Bancorp of Louisiana,
Inc.,
Raceland, Louisiana
The Connor Trusts,
Auburndale, Wisconsin
Eagle Bancshares, Inc.,
Fairfield, Texas
Emerald Coast Bancshares, Inc..
Panama City Beach, Florida
FCFT, Inc.,
Princeton, West Virginia
FGH Bancorp, Inc.,
Herrin, Illinois
Firstbank of Illinois Co.,
Springfield, Illinois
FBIC Subsidiary, Inc.,
Springfield, Illinois
First Citizens Corporation,
Newnan, Georgia
First Equity Corp.,
Skokie, Illinois
First Financial Bancorporation,
Iowa City, Iowa
First Union Corporation,
Charlotte, North Carolina
F.N.B. Corporation,
Hermitage, Pennsylvania
446
Federal Reserve Bulletin • May 1997
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Fremont Bank Corporation,
Canon City, Colorado
Fremont of Albuquerque, Inc.,
Canon City. Colorado
Marshneld Investment Company,
Springfield, Missouri
Fremont of Albuquerque, Inc.,
Canon City, Colorado
Interamerica Bank,
Albuquerque. New Mexico
Metropolitan Bancshares, Inc.,
Springfield, Missouri
Metropolitan National Bank,
Springfield, Missouri
State Bank of Esbon,
Esbon, Kansas
Behrens Bancshares, Inc.,
New London, Missouri
Rails County State Bank,
New London, Missouri
NewSouth Bank,
Washington, North Carolina
Farmers National Bancorp, Inc.,
Geneseo, Illinois
Farmers National Bank of Geneseo,
Geneseo, Illinois
Peoples Bank of Kent County,
Maryland,
Chestertown, Maryland
Pioneer Bank.
Auburndale, Wisconsin
Gulf South Bancshares, Inc.,
Gretna. Louisiana
Gulf South Bank,
Gretna, Louisiana
West Carroll Bancshares, Inc.,
Oak Grove, Louisiana
West Carroll National Bank of Oak
Grove,
Oak Grove, Louisiana
First Valley Bank,
Lompoc, California
The Bank of Jackson,
Jackson, Tennessee
TCF National Bank Colorado,
Englewood. Colorado
TCF National Bank Minnesota,
Minneapolis, Minnesota
TCF National Bank Illinois,
Chicago, Illinois
TCF National Bank Wisconsin,
Milwaukee. Wisconsin
Great Lakes National Bank Michigan,
Ann Arbor, Michigan
Great Lakes National Bank Ohio,
Hamilton, Ohio
TCF Colorado Corporation,
Englewood, Colorado
TCF National Bank Colorado,
Englewood, Colorado
Kansas City
March 17, 1997
Kansas City
March 17, 1997
St. Louis
March 4, 1997
Kansas City
March 21, 1997
St. Louis
February 25, 1997
Richmond
March 10, 1997
Minneapolis
March 5, 1997
Richmond
March 5, 1997
Chicago
March 4, 1997
Atlanta
March 24, 1997
Atlanta
February 26, 1997
San Francisco
February 26, 1997
St. Louis
March 18, 1997
Minneapolis
March 21, 1997
Minneapolis
March 21, 1997
Mid-America Bankshares, Inc.,
Baldwin City, Kansas
New London Bancshares. Inc.,
New London, Missouri
NewSouth Bancorp, Inc.,
Washington, North Carolina
Norwest Corporation,
Minneapolis, Minnesota
Peoples Bancorp, Inc.,
Chestertown, Maryland
Pioneer Bancorp, Inc.,
Auburndale, Wisconsin
Regions Financial Corporation,
Birmingham, Alabama
Regions Financial Corporation.
Birmingham, Alabama
Santa Barbara Bancorp,
Santa Barbara, California
Security Bancorp of Tennessee, Inc..
Halls, Tennessee
TCF Colorado Corporation,
Englewood, Colorado
TCF Financial Corporation,
Minneapolis, Minnesota
Legal Developments
447
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Tri-County Financial Corporation,
Waldorf, Maryland
Trimont Bancorporation, Inc.,
Trimont, Minnesota
U.S. Trust Corporation,
New York, New York
Vanderbilt Holding Company, Inc.,
Fairfax. Iowa
Community Bank of Tri-County,
Waldorf, Maryland
Financial Services of Winger, Inc.,
Winger, Minnesota
U.S. Trust Bank of Connecticut, Inc.,
Greenwich, Connecticut
Fairfax State Savings Bank,
Fairfax, Iowa
Richmond
March 7, 1997
Minneapolis
March 11, 1997
New York
March 10, 1997
Chicago
March 5, 1997
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Barnett Banks, Inc.,
Jacksonville, Florida
Community First Bankshares, Inc..
Fargo, North Dakota
Oxford Resources Corp.,
Melville, New York
To engage de novo in the nonbank
activities of making and servicing
loans and leasing personal property
and acting as agent, broker, or adviser
in leasing personal property
To engage in making equity investments
in corporations or projects designed
primarily to promote community
welfare
Farmers State Bank, fsb,
Stevensville, Montana
Mortgage Service America, Inc.,
Lombard, Illinois
UDC Mortgage.
Tempe, Arizona
Paul E. Hedlund Insurance Agency,
Boyceville, Wisconsin
Atlanta
March 4, 1997
Minneapolis
March 24, 1997
New York
March 3, 1997
Minneapolis
February 28, 1997
Chicago
March 12, 1997
Minneapolis
March 6, 1997
Minneapolis
February 25, 1997
Atlanta
March 7, 1997
San Francisco
February 25, 1997
Atlanta
March 7, 1997
Minneapolis
March 21, 1997
Section 4
Creditanstalt-Bankverein,
Vienna, Austria
Farmers State Financial Corp.,
Victor, Montana
HPK Financial Corporation,
Chicago, Illinois
Norwest Corporation,
Minneapolis, Minnesota
Otto Bremer Foundation and Bremer
Financial Corporation,
St. Paul, Minnesota
Pioneer Bankcorp, Inc.,
Clewiston, Florida
Regency Bancorp,
Fresno, California
Republic Bancshares, Inc.,
St. Petersburg, Florida
TCF Financial Corporation,
Minneapolis, Minnesota
Development Investments, Inc.,
Clewiston, Florida
Regency Investment Advisors, Inc.,
Fresno, California
Firstate Financial, F.A.,
Orlando, Florida
TCF Securities, Inc.,
St. Paul, Minnesota
TCF Minnesota Financial Services, Inc.,
Minneapolis, Minnesota
448
Federal Reserve Bulletin U May 1997
Sections 3 and 4
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
Keystone Financial, Inc.,
Harrisburg, Pennsylvania
Vermilion Bancorp, Inc.,
Danville, Illinois
Zions Bancorporation,
Salt Lake City, Utah
Financial Trust Corp,
Carlisle, Pennsylvania
American Savings Bank of Danville,
Danville, Illinois
Aspen Bancshares, Inc.,
Aspen, Colorado
Pitkin County Bank & Trust Company,
Aspen, Colorado
Valley National Bank of Cortez,
Cortez, Colorado
Centennial Savings Bank, F.S.B.,
Durango, Colorado
Philadelphia
March 19, 1997
Chicago
February 27, 1997
San Francisco
February 26, 1997
APPLICATIONS APPROVED UNDER BANK MERGER 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.
Applicant(s)
Bank(s)
Effective Date
1st United Bank,
Boca Raton, Florida
Island National Bank and Trust Company,
Palm Beach, Florida
March 19, 1997
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Blue Ridge Bank,
Sparta, North Carolina
Community Bank & Trust
Company,
Neosho, Missouri
First Bank of Arkansas,
Jonesboro, Arkansas
Santa Barbara Bank & Trust,
Santa Barbara, California
Blue Ridge Acquisition Bank, Inc.,
Sparta, North Carolina
Diamond Bank,
Diamond, Missouri
Richmond
March 12, 1997
Kansas City
March 14, 1997
First Bank of Arkansas,
Wynne, Arkansas
First Valley Bank,
Lompoc, California
St. Louis
March 27, 1997
San Francisco
February 26, 1997
PENDING CASES INVOLVING THE BOARD OF GOVERNORS
This list of pending cases does not include suits against the
Federal Reserve Banks in which the Board of Governors is not
named a party.
Research Triangle Institute v. Board of Governors, No. 971282 (4th Cir., filed February 24, 1997). Appeal of district
court's dismissal of contract claim.
Pharaon v. Board of Governors, No. 97-1114 (D.C. Cir., filed
February 28, 1997). Petition for review of a Board order dated
January 31, 1997, imposing civil money penalties and an order
of prohibition for violations of the Bank Holding Company
Act.
The New Mexico Alliance v. Board of Governors, No. 969552 (10th Cir., filed December 24, 1996). Petition for review
of a Board order dated December 16, 1996, approving the
acquisition by NationsBank Corporation and NB Holdings
Legal Developments
Corporation, both of Charlotte, North Carolina, of Boatmen's
Bancshares, Inc., St. Louis, Missouri. Also on December 24,
1996, petitioners moved for an emergency stay of the Board's
order. The motion for a stay was denied by the 10th Circuit on
January 3, 1997; on January 6, 1997, petitioners' application
for emergency stay was denied by the Supreme Court.
Artis v. Greenspan, No. l:96CV02619 (D.D.C.. filed November 19, 1996). Employment discrimination action. On December 20, 1996, the Board moved to dismiss the action.
Snyder v. Board of Governors, No. 96-1403 (D.C. Cir., filed
October 23, 1996). Petition for review of Board order dated
September 11, 1996, prohibiting John K. Snyder and Donald
E. Hedrick from further participation in the banking industry.
On November 21, 1996, the Board moved to dismiss the
petition.
American Bankers Insurance Group, Inc. v. Board of Governors, No. 96-CV-2383-EGS (D.D.C., filed October 16, 1996).
Action seeking declaratory and injunctive relief invalidating a
new regulation issued by the Board under the Truth in Lending Act relating to treatment of fees for debt cancellation
agreements. On October 18, 1996, the district court denied
plaintiffs' motion for a temporary restraining order. On January 17, 1997. the parties filed cross-motions for summary
judgment.
Clifford v. Board of Governors, No. 96-1342 (D.C. Cir., filed
September 17, 1996). Petition for review of Board order dated
August 21, 1996, denying petitioners' motion to dismiss enforcement action against them. On November 4, 1996, the
Board filed a motion to dismiss the petition.
Artis v. Greenspan, No. 96-CV-02105 (D. D.C, filed September 11, 1996). Class complaint alleging race discrimination in
employment. On December 20, 1996, the Board moved to
dismiss the action.
Leuthe v. Board of Governors, No. 96-5725 (E.D. Pa., filed
August 16, 1996). Action against the Board and other Federal
banking agencies challenging the constitutionality of the Office of Financial Institution Adjudication. On January 24,
1997, the agencies filed a motion to dismiss the action.
Long v. Board of Governors, No. 96-9526 (10th Cir., filed
July 31, 1996). Petition for review of Board order dated
July 2, 1996, assessing a civil money penalty and cease and
desist order for violations of the Bank Holding Company Act.
Oral argument is scheduled for May 12, 1997.
Interamericas Investments, Ltd. v. Board of Governors, No.
96-60326 (5th Cir., filed May 8, 1996). Petition for review of
order imposing civil money penalties and cease and desist
order in enforcement case. Petitioners' brief was filed on
July 26, 1996, and the Board's brief was filed on September 27, 1996. On August 20, petitioners' motion for a stay of
the Board's orders pending judicial review was denied by the
449
Court of Appeals. Oral argument was held on February 4,
1997.
Kuntz v. Board of Governors, No. 96-1079 (D.C. Cir., filed
March 7, 1996). Petition for review of a Board order dated
February 7, 1996, approving applications by The Fifth Third
Bank, Cincinnati, Ohio, and The Firth Third Bank of Columbus, Columbus, Ohio, to acquire certain assets and assume
certain liabilities of 25 branches of NBD Bank, Columbus,
Ohio. On February 13, 1997, the court granted the Board's
motion to dismiss the action.
Inner City Press/Community on the Move v. Board of Governors, No. 96-4008 (2nd Cir., filed January 19, 1996). Petition
for review of a Board order dated January 5, 1996, approving
the applications and notices by Chemical Banking Corporation to merge with The Chase Manhattan Corporation, both of
New York, New York, and by Chemical Bank to merge with
The Chase Manhattan Bank, N.A., both of New York, New
York. Petitioners' motion for an emergency stay of the transaction was denied following oral argument on March 26, 1996.
The Board's brief on the merits was filed July 8, 1996. The
case was consolidated for oral argument and decision with Lee
v. Board of Governors, No. 95^4134 (2d Cir.); oral argument
was held on January 13, 1997.
Kuntz v. Board of Governors, No. 95-1485 (D.C. Cir., filed
September 21, 1995). Petition for review of Board order dated
August 23, 1995, approving the applications of The Fifth
Third Bank, Cincinnati, Ohio, to acquire certain assets and
assume certain liabilities of 12 branches of PNC Bank, Ohio,
N.A., Cincinnati, Ohio, and to establish certain branches. On
February 13, 1997, the court granted the Board's motion to
dismiss the action.
Lee v. Board of Governors, No. 95-4134 (2nd Cir., filed
August 22, 1995). Petition for review of Board orders dated
July 24, 1995, approving certain steps of a corporate reorganization of U.S. Trust Corporation, New York, New York, and
the acquisition of U.S. Trust by Chase Manhattan Corporation,
New York, New York. On September 12, 1995, the court
denied petitioners' motion for an emergency stay of the
Board's orders. The Board's brief was filed on April 16, 1996.
Oral argument, consolidated with Inner City Press/Community
on the Move v. Board of Governors, took place on January 13,
1997.
Beckman v. Greenspan, No. 95-35473 (9th Cir., filed May 4,
1995). Appeal of dismissal of action against Board and others
seeking damages for alleged violations of constitutional
and common law rights. The appellants' brief was filed on
June 23, 1995; the Board's brief was filed on July 12, 1995.
In re Subpoena Duces Tecum, Misc. No. 95-06 (D.D.C., filed
January 6, 1995). Action to enforce subpoena seeking predecisional supervisory documents sought in connection with
an action by Bank of New England Corporation's trustee in
bankruptcy against the Federal Deposit Insurance Corpora-
450
Federal Reserve Bulletin • May 1997
tion. The Board filed its opposition on January 20, 1995. Oral
argument on the motion was held July 14, 1995.
Board of Governors v. Pharaon, No. 91-CIV-6250 (S.D. New
York, filed September 17, 1991). Action to freeze assets of
individual pending administrative adjudication of civil money
penalty assessment by the Board. On September 17, 1991, the
court issued an order temporarily restraining the transfer or
disposition of the individual's assets.
TERMINATION OF ENFORCEMENT ACTIONS
The Federal Reserve Board announced on March
14, 1997, the termination of the following
enforcement actions:
Perry County Bancorp, Inc. and
DuQuoin State Bank
DuQuoin, Illinois
Written Agreement dated April 12, 1993—terminated February 7, 1997.
FINAL ENFORCEMENT ORDERS ISSUED BY THE BOARD
OF GOVERNORS
First Independence Bank of Florida
Ft. Myers, Florida
Damian Cope
London, England
Written Agreement dated May 1, 1992—terminated February 25, 1997.
The Federal Reserve Board announced on March 3, 1997,
the issuance of an Order of Prohibition against Damian
Cope, a former trader and institution-affiliated party of the
New York Branch of the Midland Bank, pic, London,
England.
Garfield Bank
Montebello, California
John Gillogly
Corning, Ohio
Bank of New York
New York, New York
The Federal Reserve Board announced on March 7, 1997,
the issuance of a combined Order to Cease and Desist,
Order of Restitution, and Order of Assessment of a Civil
Money Penalty against John Gillogly, a former officer and
institution-affiliated party of The Bank of Corning, Corning, Ohio.
Order dated January 16, 1992—terminated March 5, 1997.
Crestar Bank
Richmond, Virginia
The International Commercial Bank of China
Taipei, Taiwan
Trust Company Bank
Atlanta, Georgia
The Federal Reserve Board announced on March 28, 1997,
the issuance of an Order against The International Commercial Bank of China, Taipei, Taiwan.
Order dated January 16, 1992—terminated March 14,
1997.
Oliver Lu
Tokyo,Japan
Written Agreement dated April 26, 1994—terminated
March 5, 1997.
Order dated January 16, 1992—terminated March 3, 1997.
Central Bank of the South
Birmingham, Alabama
Order dated January 16, 1992—terminated March 5, 1997.
The Federal Reserve Board announced on March 7, 1997,
the issuance of a combined Order to Cease and Desist and
Order of Assessment of a Civil Money Penalty against
Oliver Lu, a former employee of BT Co., Tokyo, Japan, a
subsidiary of Bankers Trust New York Corporation, New
York.
American Bank and Trust of Polk County
Lake Wales, Florida
Written Agreement dated June 10, 1992—terminated
March 7, 1997.
451
Directors of
Federal Reserve Banks and Branches
Regional decentralization and a combination of governmental and private characteristics are important hallmarks
of the uniqueness of the Federal Reserve System. Under
the Federal Reserve Act. decentralization was achieved by
division of the country into twelve regions called Federal
Reserve Districts, and the establishment in each District of
a separately incorporated Federal Reserve Bank with its
own board of directors. The blending of governmental and
private characteristics is provided through ownership of the
stock of the Reserve Bank by member banks in its District,
which 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: The member banks elect
the three Class A and three Class B directors, and the
Board of Governors appoints the three directors in Class C.
Directors are chosen without discrimination as to race,
creed, color, sex, or national origin.
Class A directors of each Reserve Bank represent the
stockholding member banks of the Federal Reserve District. Class B and Class C directors represent the public and
are chosen with due, but not exclusive, consideration to the
interests of agriculture, commerce, industry, services, labor,
and consumers; they may not be officers, directors, or
employees of any bank. In addition, Class C directors may
not be stockholders of any bank. The Board of Governors
designates annually one Class C director as chairman of
the board of directors of each District Bank and designates
another Class C director as deputy chairman.
Each of the twenty-five Branches of 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. The current list appears on page A86 of this Bulletin.
Term expires
December 31
DISTRICT 1—BOSTON
Class A
Jane C. Walsh
Marshall N. Carter
G. Kenneth Perine
President, Northmark Bank, North Andover, Massachusetts
Chairman and Chief Executive Officer, State Street Bank and Trust
Company. Boston. Massachusetts
President and Chief Executive Officer, National Bank of Middlebury,
Middlebury, Vermont
1997
1998
President and Chief Executive Officer. UNC Ventures, Inc., Boston,
Massachusetts
Adjunct Lecturer, John F. Kennedy School of Government, Harvard
University, Cambridge, Massachusetts
Chairman and Chief Executive Officer, John Hancock Mutual Life
Insurance Company, Boston, Massachusetts
1997
1999
Class B
Edward Dugger III
Robert R. Glauber
Stephen L. Brown
1998
1999
Class C
Frederick J. Mancheski
William C. Brainard
William O. Taylor
Chairman Emeritus, Echlin Inc., Branford, Connecticut
Chairman, Department of Economics, Yale University, New Haven,
Connecticut
Chairman and Chief Executive Office, The Boston Globe, Boston,
Massachusetts
1997
1998
1999
452
Federal Reserve Bulletin • May 1997
Term expires
December 31
DISTRICT 2—NEW YORK
Class A
J. Carter Bacot
Robert G. Wilmers
George W. Hamlin IV
Chairman and Chief Executive Officer, The Bank of New York, New York,
New York
Chairman, President, and Chief Executive Officer, Manufacturers and
Traders Trust Company, Buffalo, New York
President and Chief Executive Officer, The Canandaigua National Bank
and Trust Company, Canandaigua, New York
1997
1998
1999
Class B
Eugene R. McGrath
William C. Steere, Jr.
Ann Marie Fudge
Chief Executive Officer, Consolidated Edison Company of New York, Inc.,
New York, New York
Chairman and Chief Executive Officer, Pfizer Inc., New York, New York
President, Maxwell House Coffee Co., White Plains, New York
1997
Vice Chairman, President, and Chief Operating Officer, Teachers Insurance
and Annuity Association-College Retirement Equities Fund, New York,
New York
Chairman, The Blackstone Group, New York, New York
Chairman, AEA Investors Inc., New York, New York
1997
1998
1999
Class C
Thomas W. Jones
Peter G. Peterson
John C. Whitehead
1998
1999
BUFFALO BRANCH
Appointed by the Federal Reserve Bank
William E. Swan
Mark W. Adams
Kathleen R. Whelehan
Louise C. Woerner
President and Chief Executive Officer, Lockport Savings Bank, Lockport,
New York
Owner and Operator, Adams Poultry Farm, Naples, New York
Regional President, Marine Midland Bank, Rochester, New York
Chairman and Chief Executive Officer, HCR, Rochester, New York
1997
1997
1998
1999
Appointed by the Board of Governors
Louis J. Thomas
Bal Dixit
Patrick P. Lee
DISTRICT
Director, District 4, United Steelworkers of America, Buffalo, New York
President and Chief Executive Officer, Newtex Industries. Inc.,
Victor, New York
Chairman and Chief Executive Officer, International Motion Control, Inc.,
Orchard Park, New York
1997
1998
President and Chief Executive Officer, Minotola National Bank, Vineland,
New Jersey
President and Chief Executive Officer, Lebanon Valley National Bank,
Lebanon. Pennsylvania
President and Chief Executive Officer, Omega Bank, N.A., State College,
Pennsylvania
1997
President and Chief Executive Officer, Burris Foods, Inc., Milford,
Delaware
Chairman, President, and Chief Executive Officer, Delmarva Power and
Light Company, Wilmington, Delaware
President and Chief Executive Officer, Jackson-Cross Company,
Philadelphia, Pennsylvania
1997
1999
3—PHILADELPHIA
Class A
Dennis W. DiLazzero
Albert B. Murry
David B. Lee
1998
1999
Class B
Robert D. Burris
Howard E. Cosgrove
J. Richard Jones
1998
1999
Directors of Federal Reserve Banks and Branches
DISTRICT 3—PHILADELPHIA—Continued
453
Term expires
December 31
Class C
Donald J. Kennedy
Charisse R. Lillie
Joan Carter
DISTRICT
Business Manager, International Brotherhood of Electrical Workers,
Local Union No. 269, Trenton, New Jersey
Partner, Ballard Spahr Andrews & Ingersoll, Philadelphia, Pennsylvania
President and Chief Operating Officer, UM Holdings Ltd., Haddonfield,
New Jersey
1997
President and Chief Executive Officer, Southwest National Corporation,
Greensburg, Pennsylvania
Chairman and Chief Executive Officer, National City Corporation,
Cleveland, Ohio
Chairman and President, Heartland BancCorp, Gahanna, Ohio
1997
1998
1999
4—CLEVELAND
Class A
David S. Dahlmann
David A. Daberko
1998
1999
Tiney M. McComb
Class B
Michele Tolela Myers
I.N. Rendall Harper, Jr.
David L. Nichols
President, Denison University, Granville, Ohio
President and Chief Executive Officer, American Micrographics Company,
Inc., Monroeville, Pennsylvania
Chief Executive Officer and Chairman, Mercantile Stores Inc., Fairfield,
Ohio
1997
1998
President, GWH Holdings, Inc., Pittsburgh, Pennsylvania
Chairman and Chief Executive Officer, The LTV Corporation, Cleveland,
Ohio
Executive Secretary-Treasurer, Ohio State Building and Construction
Trades Council, Columbus, Ohio
1997
1998
1999
Class C
G. Watts Humphrey, Jr.
David H. Hoag
Robert Y. Farrington
1999
CINCINNATI BRANCH
Appointed by the Federal Reserve Bank
Jerry A. Grundhofer
Jean R. Hale
Judith G. Clabes
Phillip R. Cox
Chairman, President, and Chief Executive Officer, Star Bane Corporation,
Cincinnati, Ohio
President and Chief Executive Officer, Community Trust Bank, N.A.,
Pikeville, Kentucky
President and Chief Executive Officer, Scripps Howard, Cincinnati, Ohio
President, Cox Financial Corporation, Cincinnati, Ohio
1997
1998
1999
1999
Appointed by the Board of Governors
C. Wayne Shumate
Thomas Revely III
George C. Juilfs
Chairman and Chief Executive Officer, Kentucky Textiles, Inc., Paris,
Kentucky
President and Chief Executive Officer, Cincinnati Bell Supply Co.,
Cincinnati, Ohio
President and Chief Executive Officer, SENCORP, Newport, Kentucky
1997
1998
1999
PITTSBURGH BRANCH
Appointed by the Federal Reserve Bank
Thomas J. O'Shane
Edward V. Randall, Jr.
Christine J. Toretti
Peter N. Stephans
Chairman, President, and Chief Executive Officer, First Western Bancorp,
Inc., New Castle, Pennsylvania
President and CEO/Pittsburgh, PNC Bank, N.A., Pittsburgh, Pennsylvania
President, S.W. Jack Drilling Co., Indiana, Pennsylvania
President, Dynamet Incorporated, Washington, Pennsylvania
1997
1998
1999
1999
454
Federal Reserve Bulletin • May 1997
Term expires
DISTRICT 4—CLEVELAND—Continued
December 31
PITTSBURGH BRANCH—Continued
Appointed by the Board of Governors
John T. Ryan III
Gretchen R. Haggerty
Charles E. Bunch
Chairman, President, and Chief Executive Officer, Mine Safety Appliances
Company, Pittsburgh, Pennsylvania
Vice President and Treasurer, USX Corporation, Pittsburgh, Pennsylvania
Vice President, Fiber Glass, PPG Industries, Inc., Pittsburgh, Pennsylvania
1997
President, Horizon Bancorp, Inc., Greenbrier Valley National Bank,
Lewisburg, West Virginia
Chairman and Chief Executive Officer, The National Capital Bank of
Washington, Washington, D.C.
President, Wachovia Bank of North Carolina, N.A., Winston-Salem, North
Carolina
1997
1998
1999
DISTRICT 5—RICHMOND
Class A
Philip L. McLaughlin
George A. Didden III
J. Walter McDowell
1998
1999
Class B
L. Newton Thomas, Jr.
Craig A. Ruppert
Wesley S. Williams, Jr.
Senior Vice President (Retired), ITT/Carbon Industries, Inc., Charleston,
West Virginia
President and Owner, The Ruppert Companies, Ashton, Maryland
Partner, Covington & Burling, Washington, D.C.
1997
1998
1999
Class C
Claudine B. Malone
Robert L. Strickland
Jeremiah J. Sheehan
President, Financial & Management Consulting, Inc., McLean, Virginia
Chairman, Lowe's Companies, Inc., Winston-Salem, North Carolina
Chairman and Chief Executive Officer, Reynolds Metals Company,
Richmond, Virginia
1997
1998
1999
BALTIMORE BRANCH
Appointed by the Federal Reserve Bank
Thomas J. Hughes
F. Levi Ruark
Jeremiah E. Casey
Morton I. Rapoport
Second Vice Chairman, Navy Federal Credit Union, Merrifield, Virginia
Chairman, President, and Chief Executive Officer, The National Bank of
Cambridge, Cambridge, Maryland
Chairman, First Maryland Bancorp, Baltimore, Maryland
President and Chief Executive Officer, University of Maryland Medical
System, Baltimore, Maryland
1997
1997
1998
1999
Appointed by the Board of Governors
Rebecca Hahn Windsor
Daniel R. Baker
George L. Russell, Jr.
Chairman and Chief Executive Officer, Hahn Transportation, Inc.,
New Market, Maryland
President and Chief Executive Officer, Tate Access Floors, Inc., Jessup,
Maryland
Partner, Piper & Marbury L.L.P., Baltimore, Maryland
1997
1998
1999
CHARLOTTE BRANCH
Appointed by the Federal Reserve Bank
Dorothy H. Aranda
Cecil W. Sewell, Jr.
William G. Stevens
Laura M. Fleming
President, Dohara Associates, Inc., Hilton Head Island, South Carolina
Chairman and Chief Executive Officer, Centura Banks, Inc., Rocky Mount,
North Carolina
President and Chief Executive Officer, Greenwood Bank & Trust,
Greenwood, South Carolina
President and Chief Executive Officer, Founders Federal Credit Union,
Lancaster, South Carolina
1997
1997
1998
1999
Directors of Federal Reserve Banks and Branches
DISTRICT 5—RICHMOND—Continued
455
Term expires
December 31
CHARLOTTE BRANCH—Continued
Appointed by the Board of Governors
Joan H. Zimmerman
James O. Roberson
Dennis D. Lowery
President, Southern Shows, Inc., Charlotte, North Carolina
President, Research Triangle Foundation of North Carolina, Research
Triangle Park, North Carolina
Chief Executive Officer and Chairman, Continental Industrial
Chemicals, Inc., Charlotte, North Carolina
1997
1998
Chairman and Chief Executive Officer, Compass Bancshares, Inc.,
Birmingham, Alabama
Chairman and Chief Executive Officer, First Farmers and Merchants
National Bank, Columbia, Tennessee
President and Chief Operating Officer, Deposit Guaranty National Bank,
Jackson, Mississippi
1997
Executive Vice President, Miami Free Zone Corporation, Miami, Florida
1997
1998
1999
1999
DISTRICT 6—ATLANTA
Class A
D. Paul Jones, Jr.
Waymon L. Hickman
Howard L. McMillan, Jr.
1998
1999
Class B
Maria Camila Leiva
Vacancy
Juanita P. Baranco
Executive Vice President, Baranco Automotive Group, Atlanta, Georgia
Class C
Hugh M. Brown
David R. Jones
John Wieland
President and Chief Executive Officer, BAMSI, Inc., Titusville, Florida
President and Chief Executive Officer, AGL Resources Inc., Atlanta,
Georgia
President, John Wieland Homes, Inc., Atlanta, Georgia
1997
1998
1999
BIRMINGHAM BRANCH
Appointed by the Federal Reserve Bank
Marlin D. Moore, Jr.
Columbus Sanders
J. Stephen Nelson
W. Charles Mayer III
Chairman, Pritchett-Moore, Inc., Tuscaloosa, Alabama
President, Consolidated Industries, Inc., Huntsville, Alabama
Chairman and Chief Executive Officer, First National Bank of Brewton,
Brewton, Alabama
Senior Executive Vice President, Alabama Banking Group Head, AmSouth
Bank of Alabama, Birmingham, Alabama
1997
1997
1998
1999
Appointed by the Board of Governors
D. Bruce Carr
Patricia B. Compton
V. Larkin Martin
International Representative, Laborers' International Union of North
America, Gadsden, Alabama
President, Patco, Inc., Georgiana, Alabama
Managing Partner, Martin Farm, Courtland, Alabama
1997
1998
1999
JACKSONVILLE BRANCH
Appointed by the Federal Reserve Bank
Terry R. West
Arnold A. Heggestad
Royce B. Walden
William G. Smith, Jr.
President and Chief Executive Officer, Jax Navy Federal Credit Union,
Jacksonville, Florida
Professor of Finance and Associate Vice President of Research and
Technology, College of Business Administration, University of Florida,
Gainesville, Florida,
Vice President, SouthTrust Securities, Orlando, Florida
President and Chief Executive Officer, Capital City Bank Group,
Tallahassee, Florida
1997
1997
1998
1999
456
Federal Reserve Bulletin • May 1997
Term expires
DISTRICT
6—ATLANTA—Continued
December 31
JACKSONVILLE BRANCH—Continued
Appointed by the Board of Governors
Patrick C. Kelly
Judy Jones
Marsha G. Rydberg
MIAMI
Chairman and Chief Executive Officer, Physician Sales & Service, Inc.,
Jacksonville, Florida
President, J.R. Jones and Associates, Tallahassee, Florida
President, Rydberg & Goldstein, P.A., Tampa, Florida
1997
1998
1999
BRANCH
Appointed by the Federal Reserve Bank
Carlos A. Migoya
E. Anthony Newton
D. Keith Cobb
James W. Moore
President, Dade/Monroe Counties, First Union National Bank of Florida,
Miami, Florida
President and Chief Executive Officer, Island National Bank and Trust
Company, Palm Beach, Florida
Vice Chairman and Chief Executive Officer. Alamo Rent-A-Car, Inc.,
Ft. Lauderdale, Florida
President, Gulf Utility Company, Fort Myers, Florida
1997
1998
1999
1999
Appointed by the Board of Governors
Kaaren Johnson-Street
R. Kirk Landon
Mark T. Sodders
Vice President of Minority Business Development, Enterprise Florida,
Miami, Florida
Chairman, American Bankers Insurance Group, Miami, Florida
President, Lakeview Farms, Inc., Pahokee, Florida
1997
1998
1999
NASHVILLE BRANCH
Appointed by the Federal Reserve Bank
Jack J. Vaughn
John E. Seward, Jr.
Dale W. Polley
L.A. Walker, Jr.
President, Hospitality & Attractions Group, Gaylord Entertainment
Company, Nashville, Tennessee
President and Chief Executive Officer, Paty Lumber Company, Inc.,
Piney Flats, Tennessee
President, First American National Bank, Nashville, Tennessee
Chairman and Chief Executive Officer, First National Bank and Trust
Company, Athens, Tennessee
1997
1997
1998
1999
Appointed by the Board of Governors
James E. Dalton, Jr.
Frances F. Marcum
Paula Lovell
NEW ORLEANS
President and Chief Executive Officer, Quorum Health Group, Inc.,
Brentwood, Tennessee
Chairman and Chief Executive Officer, Micro Craft, Inc., Tullahoma,
Tennessee
President, Lovell Communications, Inc., Nashville. Tennessee
1997
1998
1999
BRANCH
Appointed by the Federal Reserve Bank
Angus R. Cooper II
Kay L. Nelson
Howell N. Gage
Howard C. Gaines
Chairman and Chief Executive Officer, Cooper/T. Smith Corporation,
Mobile, Alabama
President, Nelson Capital Corporation, New Orleans, Louisiana
Chairman and Chief Executive Officer, Merchants Bank, Vicksburg,
Mississippi
Chairman, First National Bank of Commerce, New Orleans, Louisiana
1997
1997
1998
1999
Appointed by the Board of Governors
Jo Ann Slaydon
Lucimarian Roberts
Glenn Pumpelly
President, Slaydon Consultants and Insight Productions and Advertising,
Baton Rouge, Louisiana
President, Mississippi Coast Coliseum Commission, Biloxi, Mississippi
President and Chief Executive Officer, Pumpelly Oil Inc., Westlake,
Louisiana
1997
1998
1999
Directors of Federal Reserve Banks and Branches
457
Term expires
December 31
DISTRICT 7—CHICAGO
Class A
Stefan S. Anderson
Arnold C. Schultz
Verne G. Istock
Chairman, President, and Chief Executive Officer, First Merchants
Corporation, Muncie, Indiana
Chairman, President, and Chief Executive Officer, Grundy National Bank,
Grundy Center, Iowa
Chairman, President, and Chief Executive Officer, First Chicago NBD
Corporation, Chicago, Illinois
1997
1998
1999
Class B
Thomas C. DonDonald J. Schneider
Migdalia Rivera
President and Chief Executive Officer, Dorr's Pine Grove Farm Co.,
Marcus, Iowa
President, Schneider National, Inc., Green Bay, Wisconsin
Executive Director, Latino Institute, Chicago, Illinois
1997
1998
1999
Class C
Lester H. McKeever, Jr.
Arthur C. Martinez
Robert J. Darnall
Managing Partner, Washington, Pittman & McKeever, Chicago, Illinois
Chairman and Chief Executive Officer, Sears, Roebuck & Co.,
Hoffman Estates, Illinois
Chairman, President, and Chief Executive Officer, Inland Steel Industries,
Inc., Chicago, Illinois
1997
1998
1999
DETROIT BRANCH
Appointed by the Federal Reserve Bank
Charles R. Weeks
Richard M. Bell
Denise Hitch Lites
Irma B. Elder
Chairman and Chief Executive Officer, Citizens Banking Corporation,
Flint, Michigan
President and Chief Executive Officer, The First National Bank of Three
Rivers, Three Rivers, Michigan
President, Olympia Development, Inc., Detroit, Michigan
President, Troy Ford, Troy, Michigan
1997
1998
1999
1999
Appointed by the Board of Governors
Timothy D. Leuliette
Stephen R. Polk
Florine Mark
President and Chief Operating Officer, Penske Corporation, Detroit,
Michigan
Chairman and Chief Executive Officer, R.L. Polk & Co., Detroit, Michigan
President and Chief Executive Officer, The WW Group, Inc., Farmington
Hills, Michigan
1997
Chairman and President, The First National Bank of Mount Vernon,
Mount Vernon, Illinois
Chairman and Chief Executive Officer, Sea Change Corp., N.A., Bowling
Green, Kentucky
Chairman, Chief Executive Officer, and Director, First National Bank of
Eastern Arkansas, Forrest City, Arkansas
1997
President and Chief Executive Officer, Sanderson Plumbing Products, Inc.,
Columbus, Mississippi
President and Chief Executive Officer, Riceland Foods, Inc., Stuttgart,
Arkansas
Executive Director, New Directions Housing Corp., Louisville, Kentucky
1997
1998
1999
DISTRICT 8—ST. LOUIS
Class A
Michael A. Alexander
Douglas M. Lester
W.D. Glover
1998
1999
Class B
Sandra B. Sanderson
Richard E. Bell
Joe Gliessner
1998
1999
458
Federal Reserve Bulletin • May 1997
DISTRICT 8—ST. LOUIS—Continued
Term expires
December 31
Class C
Susan S. Elliott
John F. McDonnell
Veo Peoples, Jr.
President and Chief Executive Officer, Systems Service Enterprises, Inc.,
St. Louis, Missouri
Chairman, McDonnell Douglas Corporation, St. Louis, Missouri
Partner, Peoples & Hale, St. Louis, Missouri
1997
1998
1999
LITTLE ROCK BRANCH
Appointed by the Federal Reserve Bank
Lunsford W. Bridges
Mark A. Shelton III
Lee Frazier
Ross M. Whipple
President and Chief Executive Officer, Metropolitan National Bank,
Little Rock, Arkansas
President, M.A. Shelton Farming Company, Wabbaseka, Arkansas
President, Trinity Healthcare, Little Rock, Arkansas
Chairman and Chief Executive Officer, Horizon Bancorp, Inc.,
Arkadelphia, Arkansas
1997
1998
1999
1999
Appointed by the Board of Governors
Robert D. Nabholz, Jr..
Betta M. Carney
Janet M. Jones
Chief Executive Officer, Nabholz Construction Corporation, Conway,
Arkansas
Chief Executive Officer and Chairman, World Wide Travel Service, Inc.,
Little Rock, Arkansas
President, The Janet Jones Company, Little Rock, Arkansas
1997
1998
1999
LOUISVILLE BRANCH
Appointed by the Federal Reserve Bank
Thomas E. Spragens, Jr.
Orson Oliver
Larry E. Dunigan
Ronald R. Cyrus
President, Farmers National Bank, Lebanon, Kentucky
President, Mid-America Bank of Louisville, Louisville, Kentucky
Chief Executive Officer, Holiday Management Corp., Evansville, Indiana
Executive Secretary and Treasurer, Kentucky State AFL-CIO, Frankfort,
Kentucky
1997
1998
1999
1999
Appointed by the Board of Governors
Debbie Scoppechio
Roger Reynolds
John A. Williams
Chairman and Chief Executive Officer, Creative Alliance, Inc., Louisville,
Kentucky
President and Chief Executive Officer, Material Resource Planners, Inc.
and Interlink Inc., Louisville, Kentucky
Chairman and Chief Executive Officer, Computer Services, Inc., Paducah,
Kentucky
1997
1998
1999
MEMPHIS BRANCH
Appointed by the Federal Reserve Bank
Lewis F. Mallory, Jr.
Anthony M. Rampley
Katie S. Winchester
John C. Kelley, Jr.
Chairman and Chief Executive Officer, National Bank of Commerce of
Mississippi, Starkville, Mississippi
President and Chief Executive Officer, Arkansas Glass Container
Corporation, Jonesboro, Arkansas
President and Chief Executive Office, First Citizens National Bank,
Dyersburg, Tennessee
President, Memphis Banking Group, First Tennessee Bank, Memphis,
Tennessee
1997
1998
1999
1999
Appointed by the Board of Governors
Carol G. Crawley
John V. Myers
Mike P. Sturdivant, Jr.
President, Mid-South Minority Business Council, Memphis, Tennessee
President, Better Business Bureau, Memphis, Tennessee
Partner, Due West, Glendora, Mississippi
1997
1998
1999
Directors of Federal Reserve Banks and Branches
459
Term expires
December 31
DISTRICT 9—MINNEAPOLIS
Class A
William S. Pickerign
President, The Northwestern Bank of Chippewa Falls, Chippewa Falls,
Wisconsin
President, First National Bank of Sauk Centre, Sauk Centre, Minnesota
President, Ramsey National Bank and Trust Co., Devils Lake,
North Dakota
Dale J. Emmel
Lynn M. Hoghaug
1997
1998
1999
Class B
Kathryn L. Ogren
Dennis W. Johnson
Rob L. Wheeler
Owner, Bitterroot Motors, Missoula, Montana
President, TMI Systems Design Corporation, Dickinson, North Dakota
Vice President, Wheeler Mfg. Co., Inc., Lemmon, South Dakota
1997
1998
1999
Professor, Consumption Economics, and Director, Retail Food Industry
Center, University of Minnesota, St. Paul, Minnesota
Chairman, President, and Chief Executive Officer, Northern States Power
Company, Minneapolis, Minnesota
Chairman, Graco, Inc., Golden Valley, Minnesota
1997
Class C
Jean D. Kinsey
James J. Howard
David A. Koch
HELENA
1999
BRANCH
Appointed by the Federal Reserve Bank
Ronald D. Scott
President and Chief Executive Officer, The First State Bank of Malta,
Malta, Montana
Emil W. Erhardt
Chairman and President, Citizens State Bank, Hamilton, Montana
Sandra M. Stash
Manager, Montana Facilities, Atlantic Richfield Company (ARCO),
Anaconda, Montana
Appointed by the Board of Governors
Matthew J. Quinn
President, Carroll College, Helena, Montana
William P. Underriner
General Manager, Selover Buick Inc., Billings, Montana
DISTRICT
1998
10—KANSAS
1997
1998
1998
1997
1998
CITY
Class A
Samuel P. Baird
William L. McQuillan
Dennis E. Barrett
President, Farmers State Bank & Trust Co., Superior, Nebraska
President, Chief Executive Officer, and Director, City National Bank,
Greeley, Nebraska
President, FirstBank Holding Company of Colorado, Lakewood, Colorado
1997
1998
President and Chief Executive Officer, Helmerich & Payne, Inc., Tulsa,
Oklahoma
M & T Trust, Albuquerque, New Mexico
Managing Partner, Davison & Sons Cattle Company, Arnett, Oklahoma
1997
1999
Class B
Hans Helmerich
Frank A. Potenziani
Charles W. Nichols
1998
1999
Class C
A. Drue Jennings
Jo Marie Dancik
Colleen D. Hernandez
Chairman, President, and Chief Executive Officer, Kansas City Power &
Light Company, Kansas City, Missouri
Office Managing Partner, Ernst & Young LLP, Denver, Colorado
Executive Director, Kansas City Neighborhood Alliance, Kansas City,
Missouri
1997
1998
1999
460
Federal Reserve Bulletin • May 1997
Term expires
10—KANSAS
DISTRICT
CITY—Continued
December 31
DENVER BRANCH
Appointed by the Federal Reserve Bank
Richard I. Ledbetter
President and Chief Executive Officer, First National Bank of Farmington,
Farmington, New Mexico
Clifford E. Kirk
President and Chief Executive Officer, First National Bank of Gillette,
Gillette, Wyoming
Albert C. Yates
President, Colorado State University, Ft. Collins, Colorado
C.G. Mammel
President and Chief Executive Officer, The Bank of Cherry Creek, N.A.,
Denver, Colorado
Appointed by the Board of Governors
Kathryn A. Paul
President, Kaiser Permanente, Denver, Colorado
Peter I. Wold
Partner, Wold Oil & Gas Company, Casper, Wyoming
Teresa N. McBride
President and Chief Executive Officer, McBride and Associates, Inc.,
Albuquerque, New Mexico
OKLAHOMA
CITY
1997
1998
1999
1997
1998
1999
BRANCH
Appointed by the Federal Reserve Bank
Michael S. Samis
President and Chief Executive Officer, Macklanburg-Duncan Co.,
Oklahoma City, Oklahoma
Betty Bryant Shaull
President-Elect and Director, Bank of Cushing and Trust Company,
Cushing, Oklahoma
Dennis M. Mitchell
President, Citizens Bank of Ardmore, Ardmore, Oklahoma
William H. Braum
President, Braum Ice Cream Co., Oklahoma City, Oklahoma
Appointed by the Board of Governors
Victor R. Schock
President and Chief Executive Officer, Credit Counseling Centers, Tulsa,
Oklahoma
Barry L. Eller
Senior Vice President and General Manager, MerCruiser, Stillwater,
Oklahoma
Larry W. Brummett
Chairman, President, and Chief Executive Officer, ONEOK, Inc., Tulsa,
Oklahoma
OMAHA
1997
1997
1998
1998
1999
1997
1998
1999
BRANCH
Appointed by the Federal Reserve Bank
Donald A. Leu
President and Chief Executive Officer, Consumer Credit Counseling
Service, Omaha, Nebraska
Thomas H. Olson
Chairman, First National Bank, Sidney, Nebraska
Robert L. Peterson
Chairman, President, and Chief Executive Officer, IBP, Inc., Dakota City,
Nebraska
Bruce R. Lauritzen
President, First National Bank of Omaha, Omaha, Nebraska
Appointed by the Board of Governors
Arthur L. Shoener
Executive Vice President-Operations, Union Pacific Railroad, Omaha,
Nebraska
Gladys Styles Johnston
Chancellor, University of Nebraska at Kearney, Kearney, Nebraska
Bob L. Gottsch
Vice President, Gottsch Feeding Corporation, Hastings, Nebraska
1997
1997
1998
1999
1997
1998
1999
Directors of Federal Reserve Banks and Branches
Term expires
December 31
DISTRICT 11—DALLAS
Class A
Kirk A. McLaughlin
Dudley K. Montgomery
Gayle M. Earls
461
President and Chief Executive Officer, Security Bank, Rails, Texas
President and Chief Executive Officer, The Security State Bank of Pecos,
Pecos, Texas
President and Chief Executive Officer, Texas Independent Bank, Dallas,
Texas
1997
1998
1999
Class B
Robert C. McNair
Milton Carroll
Dan Angel
Chairman and Chief Executive Officer, Cogen Technologies Energy Group,
Houston, Texas
Chairman and Chief Executive Officer, Instrument Products, Inc., Houston,
Texas
President, Stephen F. Austin State University, Nacogdoches, Texas
1997
General Partner, Phillips-Smith Specialty Retail Group, Dallas, Texas
Chairman and Chief Executive Officer, Ultramar Diamond Shamrock
Corp., San Antonio, Texas
Second General Vice President, International Association of Bridge,
Structural & Ornamental Iron Workers, Horseshoe Bay, Texas
1997
1998
1998
1999
Class C
Cece Smith
Roger R. Hemminghaus
James A. Martin
EL PASO
1999
BRANCH
Appointed by the Federal Reserve Bank
Hugo Bustamante, Jr.
Owner and Chief Executive Officer, CarLube, Inc., ProntoLube, Inc.,
El Paso, Texas
Lester L. Parker
President and Chief Operating Officer, Bank of the West, El Paso, Texas
James D. Renfrew
President and Chief Executive Officer, The Carlsbad National Bank,
Carlsbad, New Mexico
Melissa W. O'Rourke
President, Charlotte's Inc. & Ethan Allen, El Paso, El Paso, Texas
Appointed by the Board of Governors
Alvin T. Johnson
President, Management Assistance Corporation of America, El Paso, Texas
Beauregard Brite White
Rancher, J.E. White, Jr. & Sons, Marfa, Texas
Patricia Z. Holland-Branch
President and Chief Executive Officer, PZH Contract Design, Inc., El Paso,
Texas
1997
1998
1999
1999
1997
1998
1999
HOUSTON BRANCH
Appointed by the Federal Reserve Bank
Tieman H. Dippel, Jr.
Chairman and President, Brenham Bancshares, Inc., Brenham, Texas
J. Michael Solar
Principal Attorney, Solar & Fernandes L.L.P. Houston, Texas
Judith B. Craven
President, United Way of the Texas Gulf Coast, Houston, Texas
Ray Nesbitt
President, Exxon Chemical Company, Houston, Texas
Appointed by the Board of Governors
Isaac H. Kempner III
Chairman, Imperial Holly Corporation, Sugar Land, Texas
Edward O. Gaylord
Chairman, EOTT Energy Corp. and General Partner, EOTT Energy
Partners L.P., Houston, Texas
Peggy Pearce Caskey
Chief Executive Officer, Laboratories for Genetic Services, Inc., Houston,
Texas
1997
1998
1999
1999
1997
1998
1999
462
Federal Reserve Bulletin • May 1997
DISTRICT 11—DALLAS—Continued
SAN ANTONIO
Term expires
December 31
BRANCH
Appointed by the Federal Reserve Bank
Calvin R. Weinheimer
President and Chief Operating Officer, Kerrville Communications
Corporation, Kerrville, Texas
Richard W. Evans, Jr.
Chairman and Chief Executive Officer, Frost National Bank, San Antonio,
Texas
Juliet V. Garcia
President, The University of Texas at Brownsville, Brownsville, Texas
Douglas G. Macdonald
President, South Texas National Bank, Laredo, Texas
Appointed by the Board of Governors
H.B. Zachry, Jr.
Chairman and Chief Executive Officer, H.B. Zachry Company,
San Antonio, Texas
Carol L. Thompson
President, The Thompson Group, Austin, Texas
Patty Puig Mueller
Vice President/Finance, Mueller Engineering Corp., Corpus Christi, Texas
1997
1998
1999
1999
1997
1998
1999
DISTRICT 12—SAN FRANCISCO
Class A
Gerry B. Cameron
Warren K.K. Luke
E. Lynn Caswell
Chairman and Chief Executive Officer, U.S. Bancorp, Portland, Oregon
Vice Chairman, President, and Chief Executive Officer, Hawaii National
Bank, Honolulu, Hawaii
Vice Chairman, Monarch Bancorp, Laguna Hills, California
1997
1998
President and Chief Executive Officer, Sierra Machinery, Inc., Sparks,
Nevada
Chairman and Chief Executive Officer, Pacific Gas and Electric Co.,
San Francisco, California
Senior Vice President and Chief Financial Officer, Amgen, Inc.,
Thousand Oaks, California
1997
1999
Class B
Krestine Corbin
Stanley T. Skinner
Robert S. Attiyeh
1998
1999
Class C
Judith M. Runstad
Cynthia A. Parker
Gary G. Michael
Los
ANGELES
Partner, Foster Pepper & Shefelman, Seattle, Washington
Executive Director, Anchorage Neighborhood Housing Services, Inc.,
Anchorage, Alaska
Chairman and Chief Executive Officer, Albertson's, Inc., Boise, Idaho
1997
1998
1999
BRANCH
Appointed by the Federal Reserve Bank
Liam E. McGee
Group Executive Vice President, Bank of America, Los Angeles,
California
Antonia Hernandez
President and General Counsel, Mexican American Legal Defense and
Educational Fund (MALDEF), Los Angeles, California
Stephen G. Carpenter
Chairman and Chief Executive Officer, California United Bank, Encino,
California
John H. Gleason
Senior Vice President, Project Planning & Development, Del Webb
Corporation, Phoenix, Arizona
Appointed by the Board of Governors
David L. Moore
President, Western Growers Association, Irvine, California
Anne L. Evans
Chairman, Evans Hotels, San Diego, California
Lori R. Gay
President, Los Angeles Neighborhood Housing, Los Angeles, California
1997
1997
1998
1999
1997
1998
1999
Directors of Federal Reserve Banks and Branches
463
Term expires
DISTRICT
12—SAN FRANCISCO—Continued
December 31
PORTLAND BRANCH
Appointed by the Federal Reserve Bank
Thomas C. Young
President, Chairman, and Chief Executive Officer, Northwest National
Bank, Vancouver, Washington
John D. Eskildsen
President and Chief Executive Officer, U.S. Bank of Oregon, Portland,
Oregon
Phyllis A. Bell
President, Oregon Coast Aquarium, Newport, Oregon
Martin Brantley
President and General Manager, KPTV-12, Oregon Television, Inc.,
Portland, Oregon
1997
1998
1999
1999
Appointed by the Board of Governors
Patrick Borunda
Executive Director, Oregon Native American Business Network, Portland,
Oregon
Proprietor, Rocking C Ranch, Elkton, Oregon
President, Marylhurst College, Marylhurst, Oregon
Carol A. Whipple
Nancy Wilgenbusch
SALT LAKE CITY
1997
1998
1999
BRANCH
Appointed by the Federal Reserve Bank
R.D. Cash
Roy C. Nelson
Maria Garciaz
J. Pat McMurray
Chairman, President, and Chief Executive Officer, Questar Corporation,
Salt Lake City, Utah
President, Bank of Utah, Ogden, Utah
Executive Director, SL Neighborhood Housing Services, Salt Lake City,
Utah
President, First Security Bank of Idaho, Boise, Idaho
1997
1998
1999
1999
Appointed by the Board of Governors
Gerald R. Sherratt
Richard E. Davis
Nancy S. Mortensen
SEATTLE
President, Southern Utah University, Cedar City, Utah
President and Chief Executive Officer, Salt Lake Convention & Visitors
Bureau, Salt Lake City, Utah
Vice President-Marketing Services, ZCMI, Salt Lake City, Utah
1997
1998
1999
BRANCH
Appointed by the Federal Reserve Bank
Betsy Lawer
Constance L. Proctor
Tomio Moriguchi
John V. Rindlaub
Vice Chair and Chief Operating Officer, First National Bank of Anchorage,
Anchorage, Alaska
Partner, Alston, Courtnage, MacAulay & Proctor, Seattle, Washington
Chairman and Chief Executive Officer, Uwajimaya, Inc., Seattle,
Washington
Chairman, Seafirst Bank, Seattle, Washington
1997
1998
1999
1999
Appointed by the Board of Governors
Richard R. Sonstelie
Helen M. Rockey
Boyd E. Givan
Chairman, Puget Sound Energy, Inc., Bellevue, Washington
President and Chief Executive Officer, Brooks Sports, Inc., Bothell,
Washington
Senior Vice President and Chief Financial Officer, The Boeing Company,
Seattle, Washington
1997
1998
1999
Al
Financial and Business Statistics
A3
Federal Finance
GUIDE TO TABULAR PRESENTATION
DOMESTIC FINANCIAL STATISTICS
Money Stock and Bank Credit
A4 Reserves, money stock, liquid assets, and debt
measures
A5 Reserves of depository institutions, Reserve Bank
credit
A6 Reserves and borrowings—Depository
institutions
A6 Selected borrowings in immediately available
funds—Large member banks
Policy Instruments
A7 Federal Reserve Bank interest rates
A8 Reserve requirements of depository institutions
A9 Federal Reserve open market transactions
Federal Reserve Banks
A10 Condition and Federal Reserve note statements
All Maturity distribution of loan and security
holdings
Monetary and Credit Aggregates
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Deposit interest rates and amounts outstanding—
commercial and BIF-insured banks
A25
A26
A27
A27
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. TreasuryTypes and ownership
A28 U.S. government securities
dealers—Transactions
A29 U.S. government securities dealers—
Positions and financing
A30 Federal and federally sponsored credit
agencies—Debt outstanding
Securities Markets and Corporate Finance
A31 New security issues—Tax-exempt state and local
governments and corporations
A32 Open-end investment companies—Net sales
and assets
A32 Corporate profits and their distribution
A33 Domestic finance companies—Assets and
liabilities, and consumer, real estate, and business
credit
Real Estate
A34 Mortgage markets
A35 Mortgage debt outstanding
Consumer Credit
A36 Total outstanding
A36 Terms
Flow of Funds
Commercial Banking Institutions—
Assets and Liabilities
A16
A17
A18
A19
A20
All commercial banks
Domestically chartered commercial banks
Large domestically chartered commercial banks
Small domestically chartered commercial banks
Foreign-related institutions
A37
A39
A40
A41
Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary offinancialassets and liabilities
DOMESTIC NONFINANCIAL STATISTICS
Selected Measures
Financial Markets
A22 Commercial paper and bankers dollar
acceptances outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Interest rates—money and capital markets
A24 Stock market—Selected statistics
A42 Nonfinancial business activity—
Selected measures
A42 Labor force, employment, and unemployment
A43 Output, capacity, and capacity utilization
A44 Industrial production—Indexes and gross value
A46 Housing and construction
A47 Consumer and producer prices
A2
Federal Reserve Bulletin • May 1997
DOMESTIC NONFINANCIAL
CONTINUED
Selected
STATISTICS-
Measures—Continued
A48 Gross domestic product and income
A49 Personal income and saving
INTERNATIONAL STATISTICS
Summary
Reported by Nonbanking Business
Enterprises in the United States
A58 Liabilities to unaffiliated foreigners
A59 Claims on unaffiliated foreigners
Securities Holdings and Transactions
A60 Foreign transactions in securities
A61 Marketable U.S. Treasury bonds and
notes—Foreign transactions
Statistics
A50
A51
A51
A51
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A52 Selected U.S. liabilities to foreign official
institutions
Reported by Banks in the United States
A52
A53
A55
A56
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A56 Banks' own claims on unaffiliated foreigners
A57 Claims on foreign countries—
Combined domestic offices and foreign branches
Interest and Exchange Rates
A61 Discount rates of foreign central banks
A61 Foreign short-term interest rates
A62 Foreign exchange rates
A63 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
SPECIAL TABLES
A64 Assets and liabilities of commercial banks,
December 31, 1996
A68 Terms of lending at commercial banks,
February 1997
A72 Assets and liabilities of U.S. branches and
agencies of foreign banks, December 31, 1996
A76 INDEX TO STATISTICAL TABLES
A3
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
Fanners 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 1997
1.10
RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted1
Monetary or credit aggregate
Ql
Q2
Q3
Q4'
Oct.'
Nov.
Dec.
Jan.
Feb.
-18.3
-13.9
-15.7
3.0
-8.1
-3.6
-8.1
5.9
-1.4
5.2
6.7'
4.5
3.3
.8
5.1
10.4
1
2
3
4
Reserves of depository institutions*
Total
.'
Required
Nonborrowed.
Monetary base
-7.9
-8.5
-6.5
1.5
-6.4
-5.7
-7.6
3,0
-16.4
-16.6
-17.6
5.4
-16.9
-18.3
-28.4
-16.0
5.1
-26.7
3.1
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
'
M2
M3
L
Debt
-3.5
5.3
6.6
4.9'
5.0
-1.4
4.5
6.4
6.3
5.8
-6.5
5.3
-7.3
5.0
7.8
6.5
5.0
-14.3
4.0
8.7
4.5
5.3
-.2
6.8
6.5'
7.4'
5.6'
1.1
7.5
10.1'
7.0'
4.0'
9.3
11.6'
7.0
13.9
7.7
12.7'
10.2
18.0
11.4
25.7
9.6
5.6'
10.0
19.7'
7.9'
18.9
4.1
37.1
18.2
5.3
5.7'
15.2'
3.9'
24.5'
13 4'
1.4'
17.5'
34.6
Nontransaclion components
10 In M25
11 In M3 only6
3.4
5.4
5.5'
-27.9
-6.2
-7.4
-4.5
6.3
7.0
-2.4
8.5
9.2
6.8
29.3
Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time7
Large time*"4
Thrift institutions
15 Savings, including MMDAs
16 Small time7
17
Large time8
21.6
3.3
10.3
12 1
-1.0
18.6
12.0
3.8
18.0
17.0
4.8
22.3
-2.5
-2.4
7.8
6.5
-3.0
-3.0
.2
- 3
.8
2.1
9.1
4.3
4.4
6.1
-2.6
-.7
9.1
2.6
-2.7
-3.0'
4 9'
.3'
28.8'
2.9
1.7
11.8
Money market mutual funds
18 Retail
19 Institution-only
14.6
21.4
16.3
12.0
20.7
17.2
19.8
17.1
12.2
15.2
16.2
21.6
30.0
13.0
-12.0
13.9
36.9
Repurchase agreements and Eurodollars
20 Repurchase agreements''
21 Eurodollars10
2.8'
11.9
16.2
10.9
-4.7'
8.5'
2.0
10.5
64.0
-5.5'
-3.4'
-13.6'
48.5'
16.8'
34.7r
21.5
14.8
3.0
5.7
4.7
6.2
3.8
5.8
3.8
5.9
4.2
6 1'
12
13
14
Debt components*
22 Federal
23 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 "breaks," associated with
regulatory changes in reserve requirements. (See also table 1.20.)
3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose
vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference
between current vault cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debl is as follows.
Ml: (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 inslitutions. less cash items in the process of collection and Federal
Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of
withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions,
credit union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand deposits, and
OCDs, each seasonally adjusted separately.
M2: Ml plus (1) savings (including MMDAs). (2) small-denomination time deposits (time
deposits—including retail RPs—in amounts of less than $100,000). and (31 balances in retail
money market mutual funds (money funds with minimum initial investments of less than
$50,000). Excludes individual retirement accounts (IRAs) and Keogh balances at depository
institutions and money market funds. Seasonally adjusted M2 is calculated by summing
savings deposits, small-denomination time deposits, and retail money fund balances, each
seasonally adjusted separately, and adding this result to seasonally adjusted Ml.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2)
balances in institutional money funds (money funds with minimum initial investments of
$50,000 or more). (3) RP liabilities (overnight and term) issued by all depository institutions,
and (4) Eurodollars (overnight and term) held by U.S. residents at foreign branches of U.S.
banks worldwide and at all banking offices in the United Kingdom and Canada. Excludes
9.6
16.3
35.0
3.2
5.6
2.9
4.5'
8.9
2.0
-.6
4.6
amounts held by depository institutions, the U.S. government, money market funds, and
foreign banks and official institutions. Seasonally adjusted M3 is calculated by summing large
time deposits, institutional money fund balances. RP liabilities, and Eurodollars, each
seasonally adjusted separately, and adding this result to seasonally adjusted M2.
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: The debt aggregate is the outstanding credit market debt of the domestic nonfinancia!
sectors—the federal sector (U.S government, not including government-sponsored enterprises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonflnancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
5. Sum of (1) savings deposits (including MMDAs), (2) small time deposils, and (3) retail
money fund balances, each seasonally adjusted separately.
6 Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and
term) of U.S. addressees, each seasonally adjusted separately.
7. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRA and Keogh account balances at commercial banks and thrift institutions
are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
9 Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official inslitutions.
10. Includes both overnight and term.
Money Stock and Bank Credit A5
1.11
RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT'
Millions of dollars
Average of
daily figures
Factor
1996
Average of daily figures for week ending on date indicated
1997
1997
Dec.
Jan.
Feb.
Jan. 15
Jan. 22
Jan. 29
Feb. 5
Feb. 12
Feb. 19
Feb. 26
440,343
437,954'
433,962
439,565
434,119'
436,183'
432,346
432,529
434,441
436.003
392,674
11.332
391.762
9.214
392,105
6,772
391,642
10,447
391.658
5.660
391,955
7,421
391,869
5,482
391,666
4.677
391,882
7.011
392,966
9.431
2,228
1,031
0
2,098
1,785
0
2 034
1/726
0
2,079
2342
0
2,050
L808
0
2,038
0
2,038
1,248
0
2.038
2.570
0
2,038
IJ87
0
2 030
1,153
0
114
67
0
1,238
31,659
25
18
0
1 149r
3L903
23
21
0
527
30,753
26
17
0
845
32,166
15
17
0
1.367'
3U545
15
18
0
803'
32,252
13
17
0
506
31,173
19
18
0
285
31,255
17
22
0
455
31,229
36
24
0
490
29,872
11,048
9/718
24,957
11,048
9^636
25.017
11,050
9/100
25,076
11 048
9/718
25,009
11 048
9/718
25.023
11,048
9^445
25,037
11,048
9,400
25,051
11,049
9/tOO
25,065
11 051
9!400
25,079
11,051
9^400
25,093
444,554
257
443,340
248
441,045
262
443,904
247
441,700
247
439,732
249
439,056
250
440,142
261
442,177
262
441,907
266
5,749
178
6.975
335
14,412
13,607
6.186
185
7,173
331
14,318
11,875'
4,998
182
7,138
360
14,069
11,434
5,512
182
7,205
316
14,495
13,480
7,896
177
7.080
331
14,524
11,725'
6.207
166
7,172
367
13,521
11,106
4,829
167
7,272
391
13,973
11,009
5,002
165
7.040
357
14,273
10,695
4,425
210
7,078
329
14,393
12,941
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities2
2
Bought outright—System account
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
6
Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10 Float
11 Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account
14 Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and adjustments . . . .
20 Other
21 Other Federal Reserve liabilities and capital . . . .
22 Reserve balances with Federal Reserve Banks . . .
6.524
214
7,571
349
14,449
8,855'
Wednesday hgures
End-of-month figures
Dec.
Jan.
Feb.
Jan. 15
Jan. 22
Jan. 29
Feb. 5
Feb. 12
Feb. 19
Feb. 26
451 339
433 767'
435,303
441,705
434.666'
444,553'
430,030
437.112
435,324
443,389
390,907
19.971
391 728
7,720
390,797
10,778
389,379
14,648
391,872
4,246
391.933
13.926
391,928
2,364
392,223
8.365
393.208
8,390
393,415
14,816
2,225
1,612
0
2,038
1.285
0
2,011
1,626
0
2,055
2,910
0
2,038
1,550
0
2,038
2,530
0
2,038
1.749
0
2,038
3,099
0
2.038
564
0
2,011
2.328
0
57
29
0
4,296
32,243
16
14
0
29'
30,937
8
I'l
0
716
29,339
131
14
0
401
32,168
7
17
0
3,378'
31,558
65
15
0
784'
33,262
3
17
0
951
30,979
13
18
0
-278
31,635
8
23
0
1,525
29.569
6
23
0
125
30,665
11,048
9,718
24,981
11.048
9.40(1
25,051
11.051
9,400
25.107
11,048
9,718
25 009
11.048
9,718
25,023
1 1,048
9,400
25,037
11.048
9.400
25,051
11,050
9,400
25,065
11.051
9,400
25.079
11,051
9,400
25,093
450,663
249
438.399
249
441,651
280
443,070
247
441,497
249
439,735
249
440,090
260
441,627
262
442,721
264
442,666
275
5,258
229
7,134
345
14,135
11,830
7,521
171
7 205
352
14,432
14,481
8,578
169
7,571
339
14,310
7.742'
5,350
162
7,172
378
13,347
8,768
5.135
181
7,272
383
14,128
13,639
5,571
164
7,040
329
14,171
10.595
5,229
188
7,078
336
14,263
18,898
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities2
2
Bought outright—System account
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
6
Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
0
Extended credit
10 Float
11 Other Federal Reserve assets
12 Gold slock
13 Special drawing rights certificate account
14 Treasury curtency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and adjustments
20
Other
21 Other Federal Reserve liabilities and capital
22 Reserve balances with Federal Reserve Banks
7,742
167
6,887
892
13,829
16,656
6,770
167
7,172
359
13,384
12.767'
1. Amounts of cash held as reserves are shown in table 1.12, line 2.
2. Includes securities loaned—fully guaranteed by U.S. government securities pledged
wifh Federal Reserve Banks—and excludes securities sold and scheduled to be bought back
under matched sale-purchase transactions.
9.874
199
7.080
341
14,373
18,189'
3. Excludes required clearing balances and adjustments to compensate for float.
A6
Domestic Financial Statistics • May 1997
1.12
RESERVES AND BORROWINGS
Millions of dollars
Depository Institutions1
Prorated monthly averages of biweekly averages
Reserve classification
I
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks2
Total vault cash"
Applied vault cash4
Surplus vault cash5
Total reserves
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks8
Seasonal borrowings
Extended credit9
1996
1997
1994
1995
1996
Dec.
Dec.
Dec.
Aug.
Sept
Oct.
Nov.
Dec.
Jan.'
Feb.
24,658
40,378
36,682
3,696
61,340
60,172
1,168
209
100
0
20,440
42,094
37,460
4,634
57,900
56,622
1,278
257
40
0
13,395
44.426
37,848
6,578
51,243
49,819
1 424
155
68
0
14,761
42,511
36,880
5,631
51,642
50,681
961
334
309
0
13,688
43.652
37,309
6,343
50,997
49.959
1,038
368
306
0
12,800
42,925
36,749
6,175
49.550
48,556
994
287
212
0
12,895
42.745
36,862
5,883
49,756
48,721
1,035
214
109
0
13,395
44,426
37.848
6,578
51,243
49,819
1,424
155
68
0
11,710
47,172
38,932
8,240
50,642
49,419
1,223
45
19
0
11,459
43,375
36,590
6,785
48,049
47,016
1,033
42
21
0
B weekly averages of daily figures for two week periods ending on dates indicated
1996
I
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks
Total vault cash3
Applied vault cash4
Surplus vault cash
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowings at Reserve Banks
Seasonal borrowings
Extended credit4
1997
Nov. 6
Nov. 20
Dec. 4
Dec. 18
Jan. 1
Jan. 15
Jan. 29r
Feb. 12'
Feb. 26
Mar. 12
12,371
43,032
37,021
6,011
49,392
48,388
1,004
161
154
0
12,914
42,506
36,768
5,738
49,682
48,678
1,004
143
108
0
13,182
42,908
36,898
6,010
50,080
48,983
1,097
346
86
0
12,837
44,684
37,913
6,771
50,750
49,338
1,411
112
67
0
14,063
44,615
38,070
6,545
52,132
50,595
1,537
143
64
0
13,060
46,140
39,029
7,112
52,089
50,859
1,230
53
18
0
10,285
48,679
39,078
9,601
49,363
48,142
1,221
32
18
0
11,052
45,130
37,673
7,458
48,724
47,688
1,036
34
18
0
11,820
41,948
35,676
6,272
47,496
46,497
999
50
23
0
11,378
42,836
36,492
6.344
47,870
46,618
1,252
35
27
0
1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For
ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted.
2. Excludes required clearing balances and adjustments to compensate for float and
includes other off-balance-sheet "as-of" adjustments.
3. Total "lagged" vault cash held by depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash may 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 Nov. 25,
1992, the maintenance period ended thirty days after the lagged computation period.
4. All vault cash held during the lagged computation period by "bound" institutions (that
is, those whose required reserves exceed their vault cash) plus the amount of vault cash
applied during the maintenance period by "nonbound" institutions (that is, those whose vault
cash exceeds their required reserves) to satisfy current reserve requirements.
1.13
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Also includes adjustment credit.
9 Consists of borrowing at the discount window under the terms and conditions established for the extended credit program to help depository institutions deal with sustained
liquidity pressures. Because there is not the same need to repay such borrowing promptly as
with traditional short-term adjustment credit, the money market effect of extended credit is
similar to that of nonborrowed reserves.
SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
Large Banks1
Millions of dollars, averages of daily figures
1996
Source and maturity
1
2
3
4
5
6
7
8
1997
Dec. 30
Jan. 6'
Jan. 13
Jan. 20
Jan. 27
Feb. 3
Feb. 10
Feb. 17
Feb. 24
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
79,414
14,794
81,371
13,228
77,086
14,492
74,812
15,048
76,167
13.680
78,507
13,731
79,164
13.701
77,348
14,982
77.260
14.220
17.621
17,396
20,231
15,807
22,186
16,252
19,394
16,446
18.971
17.374
19.884
20,299
20.217
19.010
18,013
18.861
20.629
18,902
Repurchase agreements on U.S. government and federal
agency securities
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
11,918
33,095
14,304
31,265
11,905
36,294
9,531
38,712
11,512
39.099
12,326
41,008
11,504
43,389
11,148
43,426
11,569
36,813
40,870
14.510
42,718
13,404
44,455
13,421
44,339
13,687
43,943
14,260
44,386
13,601
42.938
13,673
42,126
13,914
42,181
14,237
69.786
22.237
79,359
23,412
71,093
24,138
67,421
21,634
74.581
20,929
71,516
21,777
70,211
21,884
69,859
20,069
69,893
23,489
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 customers2
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.
Policy Instruments A 7
1.14
FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Adjuslmenl credil 1
Extended crcdir
Seasonal credir
Federal Reserve
On
On
4/4/97
4/4/97
Boston
New York
Philadelphia .
Cleveland....
Richmond....
Atlanta
2/1/96
1/31/96
1/31/%
1/31/96
2/1/96
1/31/96
Chicago
St. Louis. . . .
Minneapolis . .
Kansas City . .
D a l l a s . . . '. .
San Francisco.
2/1/96
2/5/96
1/31/96
2/1/96
1/31/96
1/31/96
(in
4/4/97
3/27/97
5.95
3/27/97
3/27/97
3/27/97
Range of rates for atljustnicnl credit in recent ycars J
Effective date
Range (or
level l—All
F.R Banks
In effect Dec. 31, 1977
1978—Jan
6
F.R. Bank
of
N.Y.
6
6-6.5
6.5
6.5
6.5
7
9
20
11
12
3
10
21
22
16
20
1
3
8.5-9.5
9.5
8.5
9.5
9.5
1979—Julv 20
Aug 17
20
Sept. 19
21
Ocl
8
10
10
10-1(1.5
10.5
10.5-11
1 ]
11-12
12
10
1(1.5
10.5
11
II
12
12
May
Julv
Aug.
Sept.
Oct.
Nov.
1980—Feb.
May
June
Julv
Sept.
Nov.
Dec.
1981—Mav
6.5-7
7
7-7.25
7.25
7.75
8
X-8.5
8.5
15
19
29
30
13
16
28
29
26
17
5
•S
5
12-13
13
12-13
12
11-12
1 ]
10-11
10
11
12
8
14
12-13
13
13-14
7
7.25
7.25
7.75
8
8.5
Effective dale
1981—Nov
Dec.
13
13
12
19X5—May 20
24
10
10
1 |
12
13
13
12
1982—July 20
23
AUB. 2
3
16
27
30
Ocl. 12
13
Nov. 22
26
Dec. 14
15
17
13
11
11
13-14
2
6
4
9
13
Nov 21
26
Dec. 24
13
14
22
14
1987—Sept. 4
"
11
10.5
10
9.5
9-9.5
9
8.5-9
8.5-9
8.5
Range (or
level)—All
F R . Banks
9
11
6-6.5
1989—Feb. 24
27
6.5-7
7
1988—Aug.
1990—Dec. 19
1991—Feb.
Apr
Mav
Sept.
Nov.
Dec.
1
4
30
2
13
17
6
7
20
24
6.5
6.5
6-6.5
6
5.5-6
5.5
5-5.5
5
F.R. Bank
of
N.Y.
6.5
6.5
7
7
6.5
6
6
5.5
5.5
5
5
4.5-5
4.5
3.5—(.5
4.5
4.5
3.5
3.5
3.5
1992—July
2
7
3-3.5
3
3
3
8.5
8
8.5
3-3.5
3.5
3.5-4
3.5
7 5-K
7.5
7.5
1994—May 17
18
Aug 16
18
Nov 15
17
9
8.5-9
7.5
7-7.5
7
6.5-7
...
10
9.5
9.5
9
9
9
8.5
8.5
Effective date
9
9
8.5
8.5-9
6.5
6
5.5-6
5.5
8
5.5-6
6
4
3.5
4
4.75
4
4.75
4.75
4-4 75
7
7
1995—Fcb
6.5
6.5
6
5.5
1
9
4.75-5.25
5.25
5.25
5.25
1996—Jan
Feb
^1
5
5 0 0 - 5 25
5.00
5.00
5.00
5.00
5.00
5.5
In effect Apr 4. 1997
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 intniyearly movements in iheir deposits and loans and
that cannot be met through special industry lenders. The discount rate on seasonal credil takes
into account rates charged by market sources of funds and ordinarily is reestablished on ihe
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 dcposiiory 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 drams, 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 in changing market conditions over a longer period (particularly at times
of deposit disintenncdia(ion). The discount rale applicable to adjustment credit ordinarily is
charged on extended-credit loans outstanding less than thirty days: however, at the discretion
11
9.5-10
1986—Mar
13
13
12
11.5
11.5
11
10
...
F.R. Bank
of
N Y
11.5-12
11.5
11-11.5
10.5
10-10.5
1984—Apr
7
10
Apr. 21
23
Julv 11
Aup 21
Range (or
level)—All
F.R. Banks
6
6
of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a
flexible rale somcwhai above rales charged on market sources of funds is charged. The rate
ordinarily is reestablished on the lirst business day ol each two-week reserve maintenance
period, bul it is never (ess than the discount rate applicable to ad|usunent credit plus 50 basis
points.
4. For earlier data, see ihe following publications of the Board of Governors: Banking and
Monetar\ Statistics. 1914-1941, and 1941-1970; and the Annual Statistical Du-i'si, 19701979
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustment-credit
borrowings by institutions with deposits of $500 million or more that had borrowed in
successive weeks or in more than four weeks in a calendar quarter. A 3 percent surcharge was
in effect from Mar. 17. 1980, through May 7. 1980. A surcharge of 2 percent was reimposed
on Nov 17, 1980, the surcharge was subsequently raised to 3 percent on Dec. 5. 1980. and to
4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981.
and to 2 percent effective Oct. 12, 1981. As of Oct. 1. 1981, the formula for applying the
surcharge was changed from a calcndai quarter to a moving thirteen-week period The
surcharge was eliminated on Nov 17, iWl.
A8
Domestic Financial Statistics • May 1997
1.15
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS'
Requirement
Type of deposit
Percentage of
deposits
Net transaction accounts'
1 $0 million $49 3 million3
2 More than $49.3 million4
3
10
1/2/97
1/2/97
0
12/27/90
0
12/27/90
Nonpersonal time deposits^
1. Required reserves must be held in the form of deposits with Federal Reserve Banks
or vault cash. Nonmember institutions may maintain reserve balances with a Federal
Reserve Bank indirectly, on a pass-through basis, with certain approved institutions. For
previous reserve requirements, see earlier editions of the Annual Report or the Federal
Reserve Bulletin Under the Monetary Control Act of 1980, depository institutions
include commercial banks, mutual savings banks, savings and loan associations, credit
unions, agencies and branches of foreign banks, and Edge Act corporations.
2. Transaction accounts include all deposits against which the account holder i.s permitted
to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, or telephone or preauthonzed transiers for the purpose of making payments to third
persons or others. However, accounts subject to the rules that permit no more than si>.
preauthorized, automatic, or other transfers per month (of which no more than three may be
by check, draft, debit card, or similar order payable directly to third parties! are savings
deposits, not transaction accounts.
3. The Monetary Control Act of 1980 requires that the amount of transaction accounts
against which the 3 percent reserve requirement applies be modified annually by 80 percent of
the percentage change in transaction accounts held by all depository institutions, determined
as of June 30 of each year. Effective with the reserve maintenance period beginning January 2,
1997, for depository institutions that report weekly, and with the period beginning January 16,
1997, for institutions that report quarterly, the amount was decreased from $52.0 million to
$49.3 million.
Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the
amount of reservable liabilities subject to a zero percent reserve requirement each year for the
Effective date
succeeding calendar year by 80 percent of the percentage incre
liabilities of all depository institutions, measured on an annual
I
.
.
I
-
.
.
.
.
.
'
_
_
_
•
_
.
!
.
_
_
_
.
.
.
C
.
.1.
_
_
_
1
T" !
e*ciiipiiun was laiseu 110111 j i t . j million IU .BH.H imiiiuii.
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.
percent to zero on Jan 17. 1991
The reserve requirement on nonpersonal lime deposits witli an original maturity of 1 [/2
years or more has been zero since Oct. 6, 1983.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3 percent to zero
in the same manner and on the same dates as the reserve requirement on nonpersonal time
deposits with an original maturity of less than 1 '/5 years (see note 5).
Policy Instruments A9
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1996
Type of transaction
and maturity
1994
1995
1997
1996
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
U.S. TREASURY SECURITIES
1
2
3
4
Outright transactions (excluding matched
transactions)
Treasury bills
Gross purchases
Gross sales
Exchanges
Redemptions
Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
All maturities
Gross purchases
Gross sales
Redemptions
17.484
0
376.277
0
10.932
0
398.487
900
9.901
0
400,152
0
0
0
32.368
0
0
0
34,271
0
0
0
32,791
0
0
0
38,661
0
6,502
0
29.037
0
0
0
27,247
0
0
0
40,346
0
1,238
0
0
-21,444
0
390
0
0
0
0
1.275
0
29.070
-41,394
2,015
0
0
2,807
-4,415
0
1,240
0
2,780
-3.580
0
0
0
2,371
-2,890
0
0
0
1.623
-1,770
0
0
0
3,818
-5,655
0
0
0
2,259
-1,950
0
0
0
2,481
-550
607
9.168
0
-6,004
17,801
4.966
0
0
0
3.177
0
-24,087
31,458
0
0
-2,807
3.694
1,279
0
-1.409
1,780
0
0
-2.371
2.890
0
0
-1,623
1,395
0
0
-2,102
2,715
0
0
-2.259
1,950
0
0
-2,481
550
3.818
0
-3,145
2.903
1.239
0
0
0
776
0
- 1,531
6.666
0
0
0
721
297
0
-1.371
900
o0
0
0
375
0
0
1,716
1,470
o0
0
0
0
0
0
0
0
0
3,606
0
-918
775
3.122
0
0
0
1,965
0
-20
3.270
0
0
0
0
900
0
0
900
0
0
0
0
0
0
0
0
0
0
0
1,470
0
0
0
0
0
0
0
0
35.314
0
2,337
20.649
0
2.376
17,094
0
787
0
0
0
3.716
0
0
0
0
0
0
0
0
6.502
0
0
0
o0
0
0
607
1,700,836
1.701,309
2,197,736
2,202,030
3,083,315
3,085,685
267,438
268,975
265,397
264.536
234,992
238,036
268,304
267,128
227,577
226,505
272,117
273,872
285.667
283,240
309 276
311,898
331,694
328.497
457,568
450,359
46,151
37,779
45,202
56,286
36.014
33,374
33,836
33.020
36,383
36,665
85.924
73,501
74,422
86,673
29,882
17,175
21.147
6,836
-6.508
-404
1,993
7,293
10,669
-10,430
0
0
1,002
0
0
1,303
0
0
1,637
0
0
0
0
0
0
0
27
0
0
63
0
0
10
0
0
12
0
0
187
Repurchase agreements
33 Gross purchases
34 Gross sales
52,696
52^696
36,851
36J76
75,354
74^842
8,500
7'544
4,536
4*436
12,683
9,264
9,471
7,796
li',941
17,668
17,995
35 Net change in federal agency obligations
-1.002
-1.228
-1.125
231
956
73
1,569
-217
-1.163
-514
36 Total net change in System Open Market Account .. .
28,880
15,948
20,021
7,066
-5,552
-331
3.562
7,076
9,506
-10,944
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Matched transactions
25 Gross purchases
26 Gross sales
Repurchase agreements
27 Gross purchases
28 Gross sales
29 Net change in U.S. Treasury securities
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
3 i Gross sales
32 Redemptions
1. Sales, redemptions, and negative figures reduce holdings of the System Open Market
Account; ail other figures increase such holdings.
^1
3,145
2^863
niosi
A10
1.18
Domestic Financial Statistics • May 1997
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements1
Millions of dollars
End ol month
Wednesday
1996
1997
Account
Jan 29
Feb. 5
Feb. 12
Feb. 19
Feb. 26
1997
Dec. 31
Jan. 3 1
Feb. 28
1 1.051
9,400
720
1 1,048
9718
591
11,048
9.400
703
11.051
9,400
740
Consolidated condition statement
ASSETS
1 Gold certificate account
2 Special drawme rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Federal agency obligations
1 Bought outright
8 Held under repurchase agreements
9 Total U.S. Treasury securities
10 Bought outright2
11
Bills
1"" Notes
13
Bonds.
..
...
14 Held under repurchase agreements
16 Items in process of collection
Other assets
18 Denominated in foreign currencies3
19 All other"
1 1.051
9.400
730
11.048
9.400
676
11,048
9.400
704
11.050
9.400
723
80
0
0
20
0
0
30
0
0
31
0
0
30
0
0
85
0
0
30
0
0
36
0
0
2.018
2.530
2,038
1.749
2,038
3.099
2,038
564
2,011
2,328
2,225
1,612
2,038
1,285
2,011
1,626
405,859
394,292
400,588
401,598
408,231
410.878
399,448
401,575
391,913
192.279
150 115
49,339
13.926
391,928
192,274
150,315
49,339
2,364
392.223
192,218
150,665
49 339
8.365
.393,208
192.079
151,340
49,789
8,390
393.415
191,468
151,665
50,282
14,816
390.907
190.647
150,922
49,339
19,971
391 728
192.074
150,315
49,339
7.720
.390,797
188,850
151,665
50,282
10.778
410,507
398,099
405,755
404,230
412,600
414,800
402,801
405,249
10,970
1 '43
6,272
1.245
12.761
1,233
4 341
1.235
4.404
1.244
6,276
1 ">36
7,737
1 235
6.112
1 243
19,294
12,801
18,246
11,587
18,253
12,195
18.260
10,109
18,266
11,187
19,264
11.725
18.241
11.494
17,917
10,203
471,2.18
458,057
464,729
465,993
470,742
481.140
459,267
460,209
415.621
416.004
417.546
418,636
418.569
426.522
414.299
417,564
22 Total deposits
35,702
22,130
27,489
24,199
32,428
33,325
27,603
24,707
23
24
25
26
25,288
9.874
199
341
16.239
5,350
162
378
21.790
5,135
181
383
18,135
5.571
164
329
26.675
5,229
188
336
24.524
7.742
167
892
20,307
6.770
167
359
18,876
5,258
229
345
5,542
4,654
6,576
4,393
5.566
4.722
8,987
4,601
5,483
4,576
7,464
4,732
3.981
4,618
3,803
4,691
461.519
449.103
455,323
456.423
461,055
472,043
450,501
450,765
4.692
4,496
531
4,696
4,223
35
4,702
4.373
331
4.704
4,445
421
4.721
4,474
492
4.602
4.496
0
4.676
4.083
8
4.725
4.414
305
471.238
458,057
464,729
465,993
470,742
481,140
459,267
460,209
619,362
626,392
625.850
630.961
632,992
618,074
625,260
644.307
20 Total assets
LIABILITIES
Depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other
27 Deferred credit Hems
29 Total liabilities
CAPITAL A C C O L N T S
30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total liabilities and capital accounts
MEMO
34 Marketable U.S. Treasury securities held in custody for
foreign and international accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to Banks) . . . .
36
LESS: Held by Federal Reserve Banks
37
Federal Reserve notes, net
38
39
40
41
Collateral held against news, net
Gold certificate account
Special drawing rights certificate account
Other eligible assets
U.S. Treasury and agency securities
42 Total collateral
523,096
107,475
415,621
523,178
107,174
416,004
523,699
106,153
417,546
523,596
104,961
418,636
5M.600
106.032
418.569
526,826
100,304
426.522
523.455
109,156
414,299
525,220
107,657
417.564
11,048
9,400
0
395.174
11.048
9,400
0
395.556
11,050
9.400
0
397.096
11,051
9,400
0
398.185
11,051
9,400
0
398, II8
11,048
9,718
0
405.756
11,048
9,400
0
393.851
11,051
9.400
0
397.112
415.621
416,004
417,546
418,636
418,569
426.522
414,299
417,564
1 Some of the data in this table also appear in the Board's H A I (503) weekly stali-mcal
release. For ordering address, see inside front cover.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged with
Federal Reserve Bank1*—ami excludes securities sold and scheduled to be bought back under
matched sale-purchase transactions.
3. Valued monthly at market exchange rales.
4. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury
bills maturing within ninety days.
5. Includes exchange-translation account rcrlecling the monthly revaluation al market
exchange rates of foreign exchange commitments.
Federal Reserve Banks
1.19
FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holding
Millions of dollars
Wednesday
Type of holding and maturity
1 Total loans
2 Within fifteen days'
Dec. 31
Jan. 31
30
85
30
Feb. 12
Jan. 29
80
0
10
10
18
13
31
0
29
1
75
II
25
5
25
11
405,859
394,292
400.588
401,598
408,231
410,878
399,448
390,797
28,394
84,017
123,110
94,730
33,782
41,826
17,943
89,962
117,103
93,677
33,782
41,826
18,165
90,630
122,158
93,677
34,132
41,826
22,495
88,839
122,057
91,419
35,909
40,880
28.428
88,836
121,942
91,419
36,607
41,000
27,846
89,036
122,780
95,607
3,782
41.826
16,270
96,790
117,103
93,677
33,782
41,826
5,442
98,725
117,893
91,130
36,607
41,000
4,568
3,787
5,137
2,602
4,339
3,837
3,323
2,011
2,691
650
226
520
457
25
1.749
802
235
520
457
25
3,126
775
245
510
457
25
911
455
245
510
457
25
2,648
455
245
510
457
25
2,062
541
232
520
457
25
1,446
679
197
520
457
25
320
455
245
510
457
25
3. Sixteen days to ninety days
4 Total U.S. Treasury securities.. . .
5
6
7
8
9
10
1]
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
Total federal agency obligations .
12
13
14
15
16
17
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 i
accordance with maximum maturity of the agreements.
NOTE. Total acceptances data have been deleted from this table because data are no longer
vailable.
A12
1.20
Domestic Financial Statistics • May 1997
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1
Billions of dollars, averages of daily figures
1996
1993
Dec.
1994
Dec.
1995
Dec.
1996
Dec.
Sept.
July
Total reserves1
Nonborrowed reserves4
Nonborrowed reserves plus extended credit'
Required reserves
Monetary base6
Nov.
50.14
49.85
49.85
49 14
447 12
49.88
49.66
49.66
48.84
449 47
50.17
50.01
50.01
48 74
452.92
49.40
49.36
49.36
48.18
454.05
49.07
49.03
49 03
48.04
456.28
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
1
2
3
4
5
Oct.
60.52
60.44
60.44
59.46
386.93
59.36
59.16
59.16
58.20
418.53
56.36
56.11
56.11
55.09
434.61
50.17
50.01
50.01
48.74
452.92
53.20
52.83
52.83
52.13
442.24
52.27
51.94
51.94
51.31
444.16
51.35
50.98
50.98
50.31
445.99
Not seasonally adjusted
6
7
8
9
10
Total reserves
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base9
....
62.37
62.29
62.29
61.31
390.59
61.13
60.92
60.92
59.96
422.51
58.02
57.76
57.76
56.74
439.03
51.61
51.45
51.45
50.18
456.80
53.05
52.69
52.69
51.99
443.22
51.88
51.55
51.55
50.92
444.58
51.27
50.90
50.90
50.23
445.55
49.85
49.56
49.56
48.85
445.44
50.08
49.87
49.87
49.05
449.27
51.61
51 45
51.45
50.18
456.80
50.67
50.63
50.6.1
49.45
455.56'
48.14
48.10
48.(0
47.11
452.58
62.86
62.78
62.78
61.80
397.62
1.06
61.34
61 13
61.13
60.17
427.25
1 17
.21
57.90
57.64
57.64
56.62
444.45
1.28
.26
51.24
51.09
51.09
49.82
463 49
1 42
.16
52.84
52.48
52.48
51.78
449.29
1.07
.37
51.64
51.31
51.31
50.68
450.77
.96
.33
51.00
50.63
50.63
49.96
451.72
1.04
.37
49.55
49.26
49.26
48.56
451.91
.99
.29
49.76
49.54
49 54
48.72
455 90
1.04
.21
51.24
51.09
51 09
49.82
463 49
1.42
.16
50.64
50.60
50.60
49 42
462.7 l r
1.22'
,05
48.05
48.01
48.01
47.02
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 10
11
12
13
14
15
16
17
Total reserves"
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base "
Excess reserves1^
Borrowings from the Federal Reserve
.08
1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly
statistical release. Historical data starting in 1959 and estimates of ihe effect on required
reserves of changes in reserve requirements are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington. DC 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory
changes in reserve requirements. (See also table 1.10.)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, breakadjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted,
break-adjusted total reserves (line 1) less total borrowings of depository institutions from the
Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under the terms and
conditions established for the extended credit program to help depository institutions deal
with sustained liquidity pressures. Because there is not the same need to repay such
borrowing promptly as with traditional short-term adjustment credit, the money market effect
of extended credit is similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters
whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess
reserves (line 16).
459.65
1.03
.04
8. To adjust required reserves for discontinuities that are due to regulatory changes in
reserve requirements, a multiplicative procedure is used to estimate what required reserves
would have been in past periods had current reserve requirements been in effect. Breakadjusted required reserves include required reserves against transactions deposits and nonpersonal time and savings deposits (but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), plus
(2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly
reporters on (he "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no
adjustments to eliminate the effects of discontinuities associated with regulatory changes in
reserve requirements.
11 Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve
requirements
12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total
reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float
at Federal Reserve Banks, plus (3) [he currency component of the money stock, plus (4) (for
all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current reserve
requirements. Since Ihe introduction of contemporaneous reserve requirements in February
1984, currency and vault cash figures have been measured over the computation periods
ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
Monetary and Credit Aggregates A13
1.21
MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES'
Billions of dollars, averages of daily figures
1995
Dec.
Dec.
1996
Dec.1
Dec.
Seasonally adjusted
1
2
3
4
5
Measures'
Ml
M2
M3
L
Debt
6
7
8
9
Ml components
Currency
Travelers checks4
Demand deposits5
Other checkable deposits6
1,129.8
3,486.6
4,254.4
5,167.8'
12,514.6'
1,150.7
3,502.1
4,328.7
5,309.8'
13,156.4'
322.2
7.9
385.2
414.5
354.4
8.5
384.1
403.8
372.6
395.2
8.9
391.1
356.5
8.6
402.5
402.1
274.8
2.356.8
767.8
2.351.4
826.6
2.526.0
939.8
Commercial banks
12 Savings deposits, including MMDAs .. .
13 Small time deposits9
14 Large time deposits'"' "
785.2
468.3
271.9
752.4
503.2
298.4
Thrift institutions
15 Savings deposits, including MMDAs. ..
16 Small time deposits9
17 Large time deposits10
434.0
314.3
61.5
397.2
314.3
64.7
Money market mutual funds
18 Retail
19 Institution-only
354.9
209.5
Repurchase agreements and Eurodollars
20 Repurchase agreements'
21 Eurodollars'2
Nontransaclion
10 In M 2 7
1,080.0
3,809.4
4,883.9
6,020.0
14,577.3
1,081.0
3.833.1
4,925.2
6,055.1
14.626.3
1,079 7
3,849.8
4,952.7
6,078 0
14,666.4
1,080.4
3,866.1
4,995.8
392.5
8.6
276.8
395.2
8.6
402.5
274.8
397.0
8.6
401.7
272.4
400.5
8.6
404.3
267.0
2,752.1
1.092.1
2.729.4
1,074.5
2,752.1
1,092.1
2,770.2
1,102.8
2.785.8
1,129.7
776.0
576.0
344.7
903.9
592.0
410.5
892.6
590.1
402.3
903.9
592.0
410.5
914.0
592.7
416.5
920.8
593.7
428.5
361 I
357.7
75.1
367.1
352.4
79.2
366.3
353.2
79.4
367.1
352.4
79.2
368.6
352.5
81.1
369.5
353.0
384.3
198.5
455.2
246.9
536.6
299.3
527.1
292.0
536.6
299.3
542 4
296.3
548.7
305.4
158.6
66.4
182.9
82.1
182.1
91.0
192.5
110.6
194.7
106.3
192.5
110.6
195.2
113.8
198.7
115.2
3,323.3
9,191.2'
3,492.2
9,664.2'
3,638.8
10,236.6'
3,780.4
10.846.0
3,771.4
10,805.9
3,780.4
10,846.0
3,778.6
10,887.8
1.103.0
3,851.5
4,942.2
6.083.4
14,625.7
1,085 9
3,851.5
4,958.3
6,090.7
14,646.4
1,066.2
3,850.4
4,986.9
n.a.
397.7
8.3
394.7
1,129.0
3,655.0
4,594.8
5,700.3'
13,875.3'
1,081.0
3,833.1
4,925.2
6,055.1
14,626.3
n.a.
n.a.
components
11 In M3 only8
Debt components
22 Federal debt
23 Nonfederal debt
81.9
Not seasonally adjusted
24
25
26
27
28
Measures
Ml
M2
M3
L
Debt
29
30
31
32
Ml components
Currency3
Travelers checks4
Demand deposits'1
Other checkable deposits6
1,153.7
3,506.6
4.274.8
5.197.7
12,516.6'
1,174.4
3,522.5
4,348.8
5,340.2
13,158.0'
1,152.8
3,675.3
4,614.3
5,732.2
13,875.8'
1.103.0
3,851.5
4,942.2
6,083.4
14,625.7
1.085.2
3,812.3
4,892.0
6,030.2
14.558.9
324.8
401.8
419.4
357.5
8.1
400.3
408.6
376.2
8.5
407.3
360.8
397 9
8.3
418.8
278.0
392.9
8.4
407.6
2,352.9
768.2
2.348.1
826.3
2,522.6
939.0
Commercial banks
35 Savings deposits, including MMDAs.. .
36 Small time deposits9
37 Large time deposits
784.3
466.8
272.0
751.7
501.5
298.9
Thrift institutions
38 Savings deposits, including MMDAs . ..
39 Small lime deposits9
40 Large time deposits'"
433.4
313.3
61.5
Money market mutual funds
41 Retail
42 Institution-only
Repurchase agreements and Eurodollars
43 Repurchase agreements'
44 Eurodollars -
Nontransaction components
33 In M27
34 In M3 only8
Debt components
45 Federal debt
46 Nonfederal debt
Footnotes appear on following page.
397.9
395.6
276.3
8.3
418.8
278.0
405.6
276.4
2,748.5
1,090.7
2,727.1
1.079.7
2,748.5
1.090.7
2,765 6
1,106.7
2.784.2
1,136.5
775.3
573.8
345.7
902.9
589.8
412.0
894.5
588.6
406.9
902.9
589.8
412.0
908.9
592.0
412.9
915.1
396.8
313.2
64.8
360.8
356.3
75.4
366.7
351.1
79.5
367.1
352.3
80.3
366.7
351.1
79.5
366.5
352.1
80.4
367.2
353.2
81.6
355.0
210.6
385.0
199.8
456.3
248.2
538.1
300.5
524.6
292.6
538.1
300.5
546.2
304.8
554.6
315.5
156.6
67.6
179.6
83 2
178.0
91.8
187.4
111.4
193.5
106.5
187.4
111.4
193 2
115.5
196.1
116.5
3.499.0
9,659.0'
3,645.9
10,229.8'
3,787.9
10,837.8
3,771.4
10,787.6
3,787.9
10.837.8
3,773.4
10,873.1
7.6
3,329.5
9,187.1'
82
265.5
594.2
426.8
AL4 Domestic Financial Statistics • May 1997
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly
statistical release. Historical data starting in 1959 are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
2. Composition of the money stock measures and debt is as follows;
Ml: (I) currency outside the U.S. Treasury. Federal Reserve Banks, and the vaults of
depository institutions. (2) travelers checks of nonbaiik 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) olher checkable deposits (OCDs), consisting of negotiable order of
withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions,
credit union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand deposits, and
OCDs. each seasonally adjusted separately.
M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time
deposits (time deposits—-including retail RPs—in amounts of less than $100,000), and (3)
balances in retail money market mutual funds (money funds with minimum initial investments of less than $50,000). Excludes individual retirement accounts (IRAs) and Keogh
balances at depository institutions and money market funds. Seasonally adjusted M2 is
calculated by summing savings deposits, small-denomination time deposits, and retail money
fund balance, each seasonally adjusted separately, and adding this result to seasonally
adjusted Ml.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more)
issued by all depository institutions, (2) balances in institutional money funds (money funds
with minimum initial investments of $50,000 or more). (3) RP liabilities (overnight and term)
issued by all depository institutions, and (4) Eurodollars (overnight and term) held by U.S.
residents at foreign branches of U.S. banks worldwide and at all banking offices in the United
Kingdom and Canada Excludes amounts held by depository institutions, the U.S. government, money market funds, and foreign banks and official institutions. Seasonally adjusted
M3 is calculated by summing large time deposits, institutional money fund balances, RP
liabilities, and Eurodollars, each seasonally adjusted separately, and adding this result to
seasonally adjusted M2.
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: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors—the federal sector (U.S. government, not including government-sponsored enterprises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository
institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers.
Travelers checks issued by depository institutions are included in demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other than those
owed to depository institutions, the U.S. government, and foreign banks and official institutions, less cash items in the process of collection and Federal Reserve float.
6. Consists of NOW and ATS account balances at all depository institutions, credit union
share draft account balances, and demand deposits ai thrift institutions.
7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances.
8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and
term) of U.S. addressees.
9. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are
subtracted from small lime deposits.
10. Large time deposits are those issued in amounts of $ 100,000 or more, excluding those
booked at international banking facilities.
11 Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
12. Includes both overnight and term.
Monetary and Credit Aggregates A15
1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING
Commercial and BIF-insured saving banks'
1997
1996
1995
Dec
1996
Dec
June
Aug.
July
Sept
Ocl
Nov.
Dec.
Jan.r
Feb.
Interest rales annual effective yields
INSURED COMMERCIAL BANKS
1 Negotiable order of withdrawal account*'
2 Savings deposits2-1
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 1^/2 years
More than 2[/l years
1.91
3.10
n.a.
n.a.
1.89
2.87
1.90
2.88
1.91
2.86
1.90
2.84
1.91
2.85
1.98
2.85
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4.10
4.68
5.02
5.17
5.40
4 03
4.63
5.00
5.22
5.46
4.08
4.55
4.95
5.18
5.46
4.13
4.59
5.00
5.25
5.50
4.17
4.60
5.00
5.25
5.50
4.11
4.61
5.04
5.29
5.54
4.11
4.60
5.02
5.27
5.52
4.08
4.60
4.99
5.23
5.48
4.03
4.63
5.00
5.22
5.46
4.03
4.63
5.01
5.25
5.49
4.04
4.62
5.02
5.27
5.51
1.91
2.98
n.a.
n.a.
1.80
2.86
1.81
2.88
1.81
2.86
1.84
2.84
1.90
2.80
1.92
2.82
n.a.
n.a.
n.a.
n.a
n.a.
n.a.
4 43
4.95
5.18
5.33
5.46
4.66
5.02
5.28
5.53
5.72
4.54
4.91
5.02
5.35
5.51
4.64
5.01
5.09
5.41
5.60
4.64
5.06
5.26
5.59
5.80
4.59
5.11
5.33
5.61
5.82
4.64
5.08
5.32
5.60
5.79
4.67
5.03
5.29
5.56
5.76
4.66
5.02
5.28
5.53
5 72
4.75
5.05
5.31
5.58
5.77
4.73
5.04
5.31
5.59
5.78
BIF-INSURED SAVINGS BANKS"
8 Negotiable order^of withdrawal accounts2
9 Savings deposits 2 '
Interest-bearing time deposits with balances of
less than $100,000.frymaturity
10 7 to 91 days
'
'.
12 183 days to 1 year
13 More than 1 year to 2]/2 years
14 More than 2'/^ years
Amounts outstanding (mill ons ot dollars)
INSURED C O M M E R C I A L B A N K S
15 Negotiable order of withdrawal accounts 2
17
18
19
20
21
22
23
...
Personal
Nonpersonal
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 2x/l years
More than 2'/3 years
24 IRA and Keogh plan deposits
248,417
776 466
615.113
161,353
n.a.
201,037
838 385
667,802
170,583
204.981)
835 033
662.465
172,568
190,696
860,719
683,081
177,638
190,033
852 336
675.576
176.759
188,803
859.524
680,596
178.928
167.503
896.820
713,672
183.148
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
32.170
93.941
183.834
208,601
199,002
32,929
92,296
201.441
213,198
199,911
31,483
94,654
194.900
209,390
198,935
31.690
93,941
197.108
208.906
198,224
32,907
91.235
200,038
209.618
199.755
32,695
91,167
200,008
211,234
198,324
32.428
91.195
199.397
213,012
199,126
32,044
92,503
201,281
214,405
198,539
32,929
92,296
201,441
213,198
199,911
32.776
94,915
201,398
213,771
197.998
32,904
95.201
202,185
213,128
197,736
150 067
151 364
151 690
150 873
151,048
151 309
151.276
151,389
151,364
150,717
150,819
11,918
68,643
65,366
3 277
n.a.
n.a.
n.a.
11,255
66,938
63,642
3 296
10,889
66,854
63.557
3 296
10,682
67,431
63,927
3,504
9,838
67,980
64,425
3 555
9,938
67,975
64.326
3.649
9,710
68,102
64,369
3.733
n.a.
n.a.
n.a.
n.a
n.a.
n.a.
n.a.
n.a.
n.a.
2,001
12.140
25,686
27,482
22,866
2.426
13,008
28.800
29,098
22,253
2.229
13 725
27,950
25,513
22,593
2,368
13,587
28,506
26.132
22,563
2,316
13,440
29,339
26,199
22,477
2,540
13 474
29,383
27,192
22.348
2.503
13,300
29,659
28,063
22.156
2,405
13,074
29,329
28,573
21,823
2,426
13,008
28,800
29,098
22,253
2,539
13,100
29,479
29,151
21.814
2,532
13,073
29,446
29,688
21,855
">1 I 16
21 051
21 052
21 002
20 983
20 627
20,469
20.223
20.242
BIF-INSURED SAVINGS BANKS 4
25 Negotiable order of withdrawal accounts2
26 Savings deposits ^
27
Personal
29
30
31
32
33
Interest-bearing lime deposits with balances of
less than $100,000, b\ maturin
7 to 91 days
'
*
92 to 182 davs
183 days to 1 year
More than 1 year to 2[/l years
More than 2 V? vears
34 IRA and Keogh plan accounts
"M 408
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 425 commercial banks and 15 savings banks on the last day
of each month. Data are not seasonally adjusted ant) include IRA and Keogh deposits and
foreign currency-denominated deposits. Data exclude retail repurchase agreements and deposits held in U.S. branches and agencies of foreign banks.
2. Owing to statistical difficulties associated in part with the implemenlation of sweep
accounts, estimates for NOW and savings accounts are not available beginning December
1996.
3. Includes personal and nonpersonal money market deposits.
4. Includes both mutual and federal savings banks.
A16
1.26
Domestic Financial Statistics • May 1997
COMMERCIAL BANKS IN THE UNITED STATES
A. All commercial banks
Assets and Liabilities'
Billions of dollars
Monthly averages
Account
1996
Feb.
Wednesday figures
1997
1996'
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.r
1997
Feb.
Feb. 5
Feb. 12
Feb. 19
Feb. 26
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . ..
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security-1
Other loans and leases
Interbank loans
Cash assets4
Other assets5
16 Total assets 6
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
27 Total liabilities
28 Residual (assets less liabilities)7
3,645.6
1,000.1
710.9
289.2
2,645.5
724.2
1,090.9
79.7
1,011.2
497.4
87.6
245.4
191.9
219.2
233.7
3,674.4
972.1
702.2
269.9
2,702.3
746.8
1,109.4
80.5
1,028.9
5128
72.3
261.0
197.6
223.3
257.8
3.693.0
968.9
703.3
265.5
2.724.1
761.0
1,112.2
81.2
1,031.0
5157
73.8
261.4
205.3
224.2
260.0
3,718.9
970.3
703.8
266.5
2,748.5
770.8
1,116.1
83.2
1,032.8
518.2
766
266.9
203.9
226.2
254.2
3,743.3
982.2
707.8
274.3
2,761.2
776.4
1,120.7
84.1
1,036.6
518.8
77.4
267.8
212.4
232.9
261.9
3,770.6
992.4
707.3
285.1
2.778.2
787.2
1,125.8
85.3
1.040.6
519.0
79.0
267.1
204.6
232.3
271.4
3,806.1
1,005.8
706.1
299.7
2,800.3
791.1
1,131.7
85.8
1,045.9
521.2
82.5
273.8
1981
232.0
266.3
3,845.7
1,022.5
703.2
319.3
2,823.2
800.8
1,137.5
86.4
1,051.1
520.7
83.8
280.4
204.1
231.6
278.6
1,834.1
1,019.8
705.6
314.2
2.814.4
795.1
1,135.6
86.2
1,049.4
520.1
86.4
277.2
204.9
226.8
268.6
3,841.8
1,024.3
705.2
319.1
2,817.5
797.3
1,137.6
86.2
1,051.4
520.1
84.3
278.2
2018
228.9
275.1
3,852.1
1,027.7
700.7
327.0
2,824.4
803.2
1,136.8
86.4
1,050.5
521.6
81.3
281.5
201.8
239.0
280.9
3,849.5
1,019.9
702.2
317.8
2,829.6
804.9
1,137.5
86.6
1,050.9
521.7
82.9
282.6
206.0
229.3
283.7
4,233.8
4J95.7
4323.7
4338.2
4385.7
4,414.4
4,438.6
4,498.6
4,470.7
4,484.0
43093
43123
2,678.6
764.7
1,913.9
427.3
1,486.7
694.3
295.2
399.1
270.6
233.4
2,751.0
733.3
2,017.6
458.8
1,558.8
701.5
290.1
411.4
247.7
222.2
2.772.3
725.4
2,046.9
471.8
1,575.1
706.4
295.4
411.0
251.0
221.8
2,782.4
715.3
2.067.0
480.1
1,586.9
688.3
290.3
398.0
244.3
243.8
2,822.9
719.8
2.103.1
490.6
1,612.6
708.6
303.1
405.5
238.1
253.2
2,859.2
719.1
2,140.1
509.4
1.630.6
707 3
308.3
399.1
231.2
260.7
2,876.4
715.2
2,161.2
520.1
1,641.1
728.0
305.1
422.8
222.1
269.3
2,901.5
706.3
2,195.2
535.6
1,659.5
744.3
311.4
432.9
218.0
287.7
2.901.5
711.8
2,189.7
531.4
1,658.3
742 5
315.1
427.3
221.3
280.1
2,885.5
696.3
2,189.2
532.9
1,656.3
7561
325.2
430.8
226.0
290.0
2,920.9
725.4
2,195.5
537.6
1,657.9
740.1
306.5
433.6
211.2
294.3
2.886.5
693.9
2,192.6
537.4
1,655.2
736.7
295.6
441.1
217.6
283.7
3,876.9
3,922.4
3.9S13
3,958.7
4,022.8
4,0583
4,095.7
4,151.6
4,1453
4,1573
4,1663
4,1243
356.8
373.3
372.3
379.5
362.9
355.9
342.9
347.0
325.4
326.5
343.0
387.8
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Assets
Bank credit
Securities in bank credit
US. government securities
Other securities
Loans and leases in bank credit2 .. .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security'
Other loans and leases
Interbank loans
Cash assets4
Other assets*
44 Total assets 6
45
46
47
48
49
50
51
52
53
54
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the US
From others
Net due to related foreign offices
Other liabilities
55 Total liabilities
3,638.5
996.3
708.7
287.6
2,642.2
723.8
1,087.8
79.3
1,008.6
498.1
88.9
243.6
196.1
220.1
234.1
3,675.6
976.5
704.5
271.9
2,699.1
743.0
1,110.9
80.8
1,030.1
513.1
70.8
261.3
192.9
212.3
260.8
3 695.4
969.5
704.4
265.1
2,725.8
755.9
1 1152
81.8
1,033.4
517.9
73.0
263.8
199.6
221.5
262.5
3,720.6
970.2
704.4
265.8
2,750.4
767.1
1,1192
83.7
1,035.4
518.4
76.5
269.2
198.6
227.1
251.7
3,747.6
980.8
708.3
272.6
2,766.8
774.5
1,125.0
84.6
1,040.4
519.2
78.8
269.2
216.7
239.9
260.6
3,769.4
978.4
703.1
275.2
2,791.0
784.2
1 130.7
85.4
1,045.3
523.8
80.3
272.1
213.9
248.6
271.3
3,804.4
997.0
700.1
296.9
2,807.5
788.8
1,133.7
85.8
1,047.9
526.8
81.7
276.4
207.9
242.4
266.9
3,838.5
1,019.1
701.9
317.2
2,819.4
800.4
1,134.4
86.0
1,048.4
521.4
84.9
278.3
208.5
232.8
278.4
3,833.1
1,016.1
702.7
313.4
2,817.0
794.9
1.135.1
85.9
1.049.2
523.0
86.5
277.6
215.4
223.5
272.6
3,839.9
1,023.2
704.5
318.8
2,816.7
796.9
1,136.7
86.0
1,050.8
521.9
85.1
276.0
208.9
220.7
274.8
3,840.6
1,022.0
699.5
322.5
2,818.5
801.9
1,132.6
86.0
1,046.7
522.3
82.7
279.0
205.4
252.1
279.0
3,834.9
1,013.9
700.4
313.6
2,820.9
804.8
1,132.1
86.1
1,046.1
520.8
84.4
278.8
203.7
232.9
282.2
4,232.2
4,284.1
4319.9
4333.1
4399.8
4,438.4
4,457.7
4,496.7
4,480.9
4,480.6
4312.6
4,497.6
2,664.3
757.0
1,907.3
426.4
1,480.9
684.4
289.6
394.7
278.1
235.0
2,740.4
720.4
2,020.0
459.1
1,560.9
707.2
295.4
411.8
243.4
221.6
2,772.8
723.9
2,048.9
469.8
1,579.2
710.7
297.9
412.8
245.2
222.3
2,787.1
713.0
2.074.1
485.6
1,588.5
680.6
283.7
397.0
245.9
242.9
2,840.0
730.0
2,110.0
495.1
1,615.0
698.4
296.8
401.5
235.3
257.0
2,891.4
752.2
2,139.2
509.6
1,629.6
699.7
303.0
396.7
230.1
256.7
2,880.2
726.6
2,153.6
516.8
1,636.9
722.2
299.3
422.8
232.5
266.5
2,886.4
699.3
2,187.1
533.5
1,653.6
728.0
299.0
429.0
228.8
289.6
2,890.6
708.2
2,182.4
528.0
1,654.4
729.1
301.2
427.9
223.8
281.3
2,866.0
684.1
2,181.9
531.2
1,650.7
726.1
298.9
427.2
232.2
293.2
2,909.1
723.8
2,185.3
533.9
1,651.4
727.8
297.6
430.3
225.2
294.7
2,865.9
682.9
2,183.0
537.0
1,646.0
729.5
296.4
433.0
238.7
286.0
3,861.8
3,912.6
3,951.0
3,956.5
4,030.6
4,077.8
4,101.4
4,132.8
4,124.8
4,117.4
4,156.9
4,120.0
56 Residual (assets less liabilities)7
370.5
371.5
368.9
376.6
369.2
360.6
356.3
363.9
356.0
363.1
355.8
377.6
MEMO
57 Revaluation gains on off-balance-sheet
items*
58 Revaluation losses on off-balancesheet items8
n.a.
n.a
n.a.
62.3
65.5
69.5
88.5
103.0
99.0
104.7
107.6
100.2
n.a
n.a.
n.a.
58.3
60.5
64.3
84.2
98.3
93.8
100.7
102.9
94.8
Footnotes appear on page A21.
Commercial Banking Institutions—Assets and Liabilities
1.26 COMMERCIAL BANKS IN THE UNITED STATES
A17
Assets and Liabilities'—Continued
B. Domestically chartered commercial banks
Billions of dollars
Wednesday figures
Monthly averages
1996'
Aug.
Sept.
Dec.
Jan.1
Feb. 12
Feb. 19
Seasonally adjustei
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
U.S. government securities . .
Other securities
Loans and leases in bank credit2. .
Commercial and industrial . .
Real estate
Revolving home equity. ..
Other
Consumer
Security'
Other loans and leases
Interbank loans
Cash assets4
Other assets5
16 Tolal assets*
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large lime
Other
Borrowings
From banks in the US
From others
Net due to related foreign offices .
Other liabilities
27 Total liabilities
28 Residual (assets less liabilities)7. .
3,194.2
853.4
640.0
213.5
2,340.7
540.1
1,056.5
79.7
976.8
497.4
52.1
194.6
173.0
190.1
184.7
3.210.0
824.6
621.3
203.3
2,385.5'
552.6
1,076.4
80.5
995.8
512.8
42.5
201.3
181.2
194.8
214.1
3,225.4
822.4
620.4
201.9
2,403.1
560.3
1,079.4
81.2
998.2
515.7
44.7
203.0
185.0
194.7
219.0
3,237.0
820.9
620.7
200.2
2,416.0
563.6
1.083.2
83.2
1.000.0
518.2
44.0
207.1
182.9
196.3
220.4
3,246.2
822.5
619.8
202.7
2,423.7
565.4
1,088.0
84.1
1,003.8
518.8
42.9
208.6
191.5
201.8
225.3
3.260.3
825.1
618.1
207.0
2,435.2
569.7
1.093.3
85.3
1,008.1
519.0
43.6
209.5
181.8
200.9
234.0
3,283.9
834.1
623.1
211.0
2,449.9
571.1
1,099.1
85.8
1.013.4
521.2
45.4
213.0
174.3
200.1
227.0
3,306.5
843.1
616.7
226.4
2,463.4
577.4
1.104.5
86.4
1.018.1
520.7
45.2
215.5
181.5
197.7
235.8
3,300.8
843.0
621.3
221.8
2.457.8
574.3
1,102.7
86.2
1,016.5
520.1
46.6
214.0
182.8
194.2
226.6
3 301.9
842.9
618.5
224.4
2,459.0
575.2
1,104.6
86.2
1.018.5
520.1
45.1
214.1
179.4
195.3
232.6
3,310.8
846.4
614.0
232.4
2,464.4
578.3
1,103.9
86.4
1,017.5
521.6
44.2
216.5
180.0
204.8
238.1
3,308.6
841.1
614.4
226.7
2,467.5
580.2
1,104.5
86.6
1.017.9
521.7
44.8
216.3
181.0
195.1
241.2
3,685.4
3,742.8
3,765.4
3,771.8
3,800.2
3.812.6
3,821.6
3,860.3
3,840.9
3,845.8
3,869.6
3,869.8
2,510.2
754.3
1,756.0
273.1
1,482.8
575.7
265.0
310.7
90.5
155.7
2,570.7
722.9
2.584.5
704.8
1,879.7
295.4
1,584.3
569.6
256.9
312.7
76.6
169.1
2,617.9
709.2
1.908.7
299.7
1,609.0
580.4
267.6
312.8
70.9
173.0
2,638.1
708.4
1,929.7
303.0
1,626.7
581.7
272.0
309.6
68.9
177 7
2.645.9
704.3
1,941.6
303.0
1,638.6
594.5
273.3
321.1
72.0
179.8
2,656.9
695.9
1.961.0
307.1
1,653.9
596.9
272.9
324.0
78.4
187.8
2,663.0
701.7
1.961.3
306.1
1,555.7
572.9
255.6
317.3
74.5
152.8
2,586.3
715.7
1,870.6
298.9
1,571.7
583.6
261.4
322.1
74.7
153.1
1,655.1
597 I
275.8
321.3
76.4
183.9
2,643.3
686.3
1,957.0
306.4
1.650.6
612.2
289.6
322.6
85.0
185.0
2,673.8
714.0
1,959.7
308.1
1,651.7
589 8
267.0
322.8
76.4
192.6
2,640.7
684.0
1,956.7
307 1
1,649.6
587.8
257.6
330.3
77.8
187.8
3,332.1
3,370.9
3,397.7
3,399.7
3,442.2
3,466.3
3,492.2
3,520.1
3,520.4
3,525.6
3,532.6
3,494.1
353.3
371.9
367.8
372.2
358.1
346.3
329.4
340.2
320.5
320.2
337.1
375.7
1,847.9
292.2
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Assets
Bank credit
Securities in bank credit
U.S. government securities .
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security1
Other loans and leases
Interbank loans
Cash assets4
Other assets5
44 Total assets6
45
46
47
48
49
50
51
52
53
54
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the US
From others
Net due to related foreign offices . . . .
Other liabilities
55 Total liabilities
56 Residual (assets less liabilities)
7
3,187.2
849.5
637.0
212.5
2,337.7
539.8
1,053.4
79.3
974.1
498.1
53.3
193.0
177.2
191.6
184.2
3,207.8
825.8
622.1
203.6
2,382.0
548.6
1,077.8
80.8
997.0
513.1
41.0
201.5
176.6
183.8
216.3
3.229.2
824.1
622.5
201.6
2,405.0
556.5
1,082.3
81.8
1,000.5
517.9
43.9
204.4
179.3
192.6
221.0
3,240.0
820.9
621.8
199.1
2,419.0
561.2
1,086.1
83.7
1,002.4
518.4
43.8
209.5
177.7
196.9
218.1
3,250.9
821.5
620.3
201.2
2,429.5
563.7
1.091.8
84.6
1,007.2
519.2
44.3
210.4
195.8
208.6
223.8
3,263.3
817.6
616.4
201.2
2,445.7
566.3
1,098.0
85.4
1.012.6
523.8
44.9
212.7
191.0
216.1
233.1
3,285.2
829.4
616.2
213.2
2,455.9
568.9
1,101.1
85.8
1.015.4
526.8
44.7
214.3
184.1
210.1
228.3
3,298.7
838.8
613.7
225.1
2,460.0
577.1
1.101.4
86.0
1,015.4
521.4
46.3
213.7
185.9
199.7
234.7
3,298.9
839.4
616.4
223.0
2,459.5
574.0
1,102.1
85.9
1,016.2
523.0
46.8
213.7
193.3
191 1
229.9
3,297.0
839.6
615.6
224.0
2,457.4
574.1
1,103.7
86.0
1,017.7
521.9
45.8
211.9
186.4
187.8
230.9
3.300.2
840.1
611.0
229.1
2,460.1
577.7
1,099.8
86.0
1.013.8
522.3
45.5
214.8
183.5
219.1
235.9
3,295.5
835.6
611.8
223.8
2,460.0
580.3
1,099.2
86.1
1,013.1
520.8
46.3
213.4
178.7
199.6
238.8
3,683.8
3,726.9
3,763.2
3,768.0
3,814.3
3,838.9
3,844.1
3,857.8
3,849.6
3,838.6
3,874.6
3,856.7
2,497.7
746.3
1,751.4
275.3
1,476.1
571.1
261.2
309.9
92.4
155.4
2,561.6
710.2
1,851.5
292.9
1,558.6
573.6
260.3
313.3
72.2
151.8
2.587.3
713.7
1,873.5
296.6
1,576.9
586.7
264.6
322.2
70.9
153.7
2.583.9
702.4
1,881.5
295.2
1,586.3
565.3
252.8
312.5
78.2
169.8
2,632.4
719.4
1.913.0
300.3
1,612.7
573.5
261.3
312.2
68.4
176.2
2,667.5
740.8
1,926.7
299.7
1,627.0
575.0
266.0
309.1
66.2
175.0
2.649.7
715.7
1,934.0
301.7
1,632.3
591.7
266.3
325.4
73.6
177.9
2,645.1
688.7
1.956.3
309.9
1,646.5
587.3
262.9
324.4
80.1
187.2
2,654.2
697.8
1,956.4
308.0
1.648 4
586.4
262.0
324.4
74.7
183.1
2,626.8
673.9
1,952.9
309.8
1,643.1
586.4
264.3
322.1
83.4
184.9
2,667.4
712.1
1,955.3
311.2
1,644.1
587.5
262.1
325.4
78.3
191.7
2,622.3
672.9
1,949.5
309.8
1,639.7
590.7
262.4
328.3
84.9
187.0
3,316.6
3,359.3'
3,398.6
3,397.1
3,450.5
3.483.7
3.492.9
3,499.7
3,498.4
3.481.5
3,524.9
3,484.9
351.2
358.1
351.2
357.1
349.7
371.8
367.1
367.7
364.6
363.7
355.3
32.4
33.1
36.2
47.5
55.8
54.0
55.5
58.8
54 7
28.9
236.8
28.9
238.8
31.8
242.3
44.0
245.7
50.9
244.4
48.6
245.8
51.0
245.9
53.9
242.1
49.3
244.4
370.9
MEMO
57 Revaluation gains on off-balance-sheet
items8
58 Revaluation losses on off-balancesheet items8
59 Mortgage-backed securities9
Footnotes appear on page A21.
n.a.
n.a.
A18
1.26
Domestic Financial Statistics • May 1997
COMMERCIAL BANKS IN THE UNITED STATES
C. Large domestically chartered commercial banks
Assets and Liabilities1—Continued
Billions of dollars
Wednesday figures
Monthly averages
Account
1996
Feb.
1996
Aug.
Sept.
Oct.
1997
Nov.
Dec
Jan.1
1997
Feb.
Feb 5
Feb. 12
Feb. 19
Feb. 26
130.5
168.6
1,850.4
427.1
281.9
16.1
265.8
145.2
79.9
65.3
21.0
44.3
1,423.4
389.4
562.0
55.3
506.7
284.0
39.9
11.0
137.0
123.9
127.6
175.2
1,847.0
426.1
285.8
16.6
269.1
140.4
75.6
64.S
21.1
43.7
1,420.8
387.2
562.4
55.1
507.3
283.8
41.3
11.0
135.1
125.8
124.8
168.3
1,847.7
426.8
283.6
17.2
266.4
143.2
78.1
65.1
21.1
44.0
1,420.9
387.5
563.2
55.2
508.0
284.1
39.9
11.0
135.2
123.1
126.1
172.5
1.854.0
430.2
279.0
15.7
263.3
151.2
85.5
65.7
21.0
44.7
1,423.8
390.1
561.1
55.4
505.7
284.8
38.8
11.1
137.9
121.8
131.0
178.1
1.850.0
425.9
280.4
15.1
265.3
145.5
80.3
65.2
20.9
44.3
1,424.1
391.5
560.2
55.4
504.9
283.6
39.5
11.0
1.38.3
123.5
127.1
179.8
Seasonal 1 I adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Assets
Bank credit
Securities in bank credit
U.S government securities
Trading account
Investment account
Other securities
Trading account
Investment account
State and local government .
Other
Loans and leases in bank credit' . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security'
State and local government
All other
Interbank loans
Cash assets 4
Other assets'
1,825.5'
445.7'
1,788.5'
407.1'
1,797.4'
405.5'
311.3'
22.1
289.1'
134.4
6.3.4
284.O1
20.2
263.8'
123.2
56.9
66.2
20.5
45.8
283.7'
20.9
262.8'
121.8'
56.4
65.5
20.3
1,806.5'
405.9'
286.0
21.2
264.8'
119.9
55.1
64.8
1,809.8'
408.8'
286.6'
1.817.8'
411.3'
284.9
19.4
1.831.6
416.6
287.5
17.2
270.3
129.2
64.6
64.5
20.5
44.1
1.415.0
385.2
561.2
55.(1
506.3
282.1
40.3
11.1
135.0
119.9
71.0
21.5
49.6
1.379.8
367.9
563.0
53.1
509.9
271.4
46.4
11.3
119.8
112.4
125.9
134.4
1.381.4
372.7
556.6
53 2
503.4'
277.9
37.3
11.1
125.7
131.9
129.4
158.0
45.1
1,391.9'
378.9
556.1
53 5
502.6
279.4
39.5
10.8
127.1'
133.8
128.1'
161.6
20.2
44.5
1,400.7'
381.6'
558.4
53 7
504.7
279.2
39.0
10.9
131.6'
132.0
128.2
16,3.5
21.5
265.1'
122.2
57.8
64.4
20.2
44.2
1.401.0'
381.9'
559.2
54 2
505.0
278.8'
37.8
11.1
132.1'
137.9
132.5'
167.6'
2.161.7'
2,171.2'
2,183.1'
2,186.2'
234.1'
2,207 J r
237.9
2,236.9
2.223.6
2327.2
2.241.9
1245.4
1,339.1
400.3
938.8
139.8
799.0
411.9
172.9
239.0
70.1
125.7
1,345.6
1.355.1
392.7
952.9
146.5
806.4
420.5
177.7
242.8'
387.0
968.1
151.8
8163
404.3
170.6'
233.7'
73.2
141.2
1.366.5'
387.3
979.1
153.4
825.7
414.4
181.4'
233.0'
68.7
146.2
1 373.6
385.6'
987.9
155.1
832.8
415.8'
188.2'
1.355.7
367.1
988.5
156.0
832.6
439.2
199.6
1,373.2
386.1
151.9
155.5
1,364.2
373.3
991.0
156.2
834.7
427.1
186.3
240.7
74.4
163.6
1,371.8
379.6
992.2
66.1
1.166.0
382.4
983.6
153.4
830.2
426.1
187.1
239.0
68.0
33 Other liabilities
1.311.3
420.0
891.3
125.7
765.6
436.4
188.7
247.7
84.3
123.7
80.9
160.5
987.1
157.1
830.0
419.4
180.1
239.3
72.8
169.0
1.355.0
363.5
991.5
156.0
835.5
422.7
175.8
246.9
73.7
162.5
34 Total liabilities
1,955.8
1,946.8
1.961.2'
1,973.8
1,995.8'
2,007.5
2,015.7
2,029.3
2,031.0
2,036.3
2,034.4
2,013.9
205.9'
224.3'
221.9'
212.4'
208.3'
199.7'
192.2
207.6
192.5
190.8
207.5
231.5
1,849.8
426.0
1,842.8
421.6
278.9
15 0
263.9
142.8
77.5
65.2
20.9
44.3
1.421.2
391.7
557.6
55.1
502.5
282.4
41.1
11.0
137.4
121.6
23 Total assets 6
24
25
26
27
28
29
3(1
31
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
32 Net due to related foreign offices
35 Residual (assets less liabilities)7
68.9
126.3
265.5'
126.4
00.9
65.5
20.3
45.2
1.406.6'
384.5
561.1
54.9
506.2
279.1
38.5
11.3
132.1'
126.8
110.5
175.5'
227.6'
155.6
836.6
427.0
188.5
238 4
72.2
160.1
239.5
Not seasonally adjusted
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
Assets
Bank credit
Securities in bank credit
U.S. government securities
Trading account
Investment account
Other securities
Trading account
Investment account
State and local government. .
Other
Loans and leases in bank credit 2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security ^
State and local government
All other
Interbank loans
Cash assets4
Other assets s
58 Total assets 6
59
60
61
62
63
64
65
66
67
68
Liabilities
Deposits
Transaction
Nonlransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign offices
Other liabilities
1,824.2'
443.4'
309.7'
22.5
287.2'
133.7
62.6
71.1
21.4
49.7
1,380.8
367.9
562.6'
53.0
509.6
271.4
47.5
11.2
120.2
114.3
128.1
132.6
35.9
11.2
124.3
128.2
120.8
160.0
1.797.1'
406.9'
285.3'
21.0
264.3'
121.6'
56.1'
65.5
20.3
45.2
1,390.2'
376.0
556.9
53.7
503.1
280.6
38.9
10.9
126.9'
129.8
127.5
163.1
l,807.0r
406.9
288.2'
22.0
1,818.1'
404.2'
283.6
18.1
265.5
120.5
54.4
66.1
20.4
45.7
1.413.9'
381.6
563.9
54.9
508.9
283.0
39.5
11.2
134.8'
133.0
141.8
174.1
1,834.8
413.3
281.8
16.3
265.5
131.6
66.5
65.0
20.5
44.6
1.421.5
383.0
563.6
55.1
508.6
286.8
39.4
11.0
137.7
128.3
138.3
169.0
1,848.2
424.4
280.2
16.3
263.9
1442
78.8
65.4
21.0
44.4
1,423.8
389.4
561.5
55.1
506.4
283.9
409
11.0
137.2
126.2
130.3
172.7
1,849.7
424.8
10.9
132.6'
126.4
127 7'
161.4'
1.812.9'
409.4'
288.8'
22.7
266.0
120.6
55.4
65.3
20.3
44.9
1,403.5'
380.9'
560.8
54.5
506.3
278.6
39.0
11.2
133.1'
137.4
136.5'
165.5'
16.1
266.7
141.9
76.8
65.2
21.0
44.1
1,425.0
387.1
563.8
55.1
508 7
285.3
41.3
10.9
136.7
132.0
122.9
168.7
1.847.4
424.6
281.5
17.3
264.2
143.2
77.9
65.3
21.1
44.2
1.422.8
386.9
564.6
55.1
509 5
284.4
40.4
10.9
135.6
127.0
121.9
170.3
266.2'
118.8
53.5
65.3
20.2
45.0
1.400.1'
379.8'
159 1
54.0
505.0'
278.7
38.9
282.8
mi
16.4
261.3
148.3
82.6
65.7
21.0
44.7
1.423.8
389.9
559.9
55.2
504 7
284.6
40.1
11.1
138.3
124.5
143.9
174.2
131.5
176.5
2,162.7'
2,158.9'
2,179.5'
2,178.7'
2.208.5'
1223.4 r
2,227.9
2,237.2
1230.7
2224.2
2,2493
2,237.4
1.308.7
416.4
892.3
127.3
765.0
432.2
185.6
246.6
86.2
122.8
1.332.9
391.1
941.8
140.7
801.1
414.5
177.8
236.7
67.8
124.6
1,344.5
391.5
953.0
144.5
808.5
424.0
1.373.3
393.9'
979.5
153.7
825.7'
409.0
176.8'
232.2
66.2
149.5
1.389.6'
406.9
982.8
152.7
830.0
409.6'
182.6'
'27.0'
63.4
149.7'
1.372.3
390.1
982.2
153.4
828.8
421.7
180.3
241.4
69.7
153.3
1.362.2
369.9
1.368.9
375.3
993.6
157.4
836.2
419.4
178.0
241.4
158.8
1,352.2
360.3
991.9
158.8
833.2
418.7
180.0
238.7
79.3
159.8
1,376.8
388.2
988.6
159.6
829.0
416.2
175.7
240.5
74.7
167.9
1,348.1
180.1
244.0'
65.0
127.2
1,352.2
384.1
968.1
151.2
816.9
399 9
167.0'
232.8
74.8
141.9
69 Total liabilities
7 0 Residual (assets less liabilities)7....
1.786.7'
410.2'
286.5'
20.9
265.6'
123.7
57.8
65.9
20.3
45.6
1.376.5'
369.9
556.9
53.4
503.5
278.3
992.3
158.4
833.9
418.7
178.2
240.5
76.1
162.6
70.5
358.5
989.5
157.6
832.0
421.9
177.8
244.1
80.8
161.5
1.939.8
1,960.7
1,968.8
1,998.1'
2,012.4
2,016.9
2,019.7
2,017.6
2,010.0
2,035.6
2,0123
212.8'
219.1'
218.8'
209.9'
210.3'
211.1'
211.0
217.5
213.1
214.2
213.7
225.1
n.a.
n.a
ti.a.
32.4
33.1
36.2
47.5
55.8
54.0
55.5
58.8
54.7
n.a.
n.a.
n.a.
n.a.
n.a.
28.9
187.1'
28.9
188.5'
31.8
44.0
192.7
50.9
191.9
48.6
193.3
51.0
193.2
53.9
189.4
49.3
192.3
MEMO
71 Revaluation gains on off-balance-sheet
items*
Revaluation losses on off-balanceDigitized72for
FRASER
sheet Hems*
73 Mortgage-backed securities'1
http://fraser.stlouisfed.org/
Federal Reserve Bank of St. Louis
n.a.
1W.9
Commercial Banking Institutions—Assets and Liabilities
1.26
COMMERCIAL BANKS IN THE UNITED STATES
D. Small domestically chartered commercial banks
Assets and Liabilities'—Continued
Billions of dollars
Monthly averages
Wednesday figures
Sept.
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Assets
Bank credit
Securities in bank credit
U.S. government securities .
Other securities
Loans and leases in bank credit2.
Commercial and industrial .
Real estate
Revolving home equity . .
Other
Consumer
Security-1
Other loans and leases
Interbank loans
Cash assets4
Other assets5
16 Total assets"
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices .
Other liabilities
27 Total liabilities
28 Residual (assets less liabilities) 7 . .
1.368.7'
407.8'
328.7'
79.1
960.9
172.2
493.4
26.5
466.9
226.1
5.7
63.5
1,421.5
417.4
337.3
80.1
1,004.1
179.9
519.8
27.3
492 5
234.8
5.1
1,428.1
416.9
336.8
80.1
1,011.2
181.4
523.3
27.8
495.5
236.3
5.2
65.0
51.2
1,430.4
415.1
3347
80.3
1,015.4
182.0
524.8
495.3
239.0
5.0
1,436.4
413.7
333.2
80.5
1,022.7
183.5
528.8
29.9
498.8
239.9
5.1
64.6
65.4
53.5
69.4
57.7
1,442.5
413.9
333.2
80.6
1,028.6
185.2
532.2
30.4
501.9
239.9
5,2
66.1
55.0
70.4
58.5
29.5
1,452.3
417,5
335.7
81.8
1.034.9
185.9
537.9
30.8
507.1
239.1
5.1
66.9
54.5
69.6
58.4
1,456.0
416.0
334.8
81.2
1,040.0
188.0
542.5
31.1
511.4
236.7
5.3
67.5
57.7
70.1
60.6
1,453.9
416.9
335.5
81.4
1.036.9
187.2
540.3
31.1
509.2
1,454.2
416.1
334.9
81.2
1.038.1
187.7
541.4
236.4
236.0
5.2
1,456.8
416.2
335.1
81.2
1,040.6
188.2
542.9
31.0
31.0
510.5
56.2
57.4
51.0
68.1
56.9
60.1
511.8
236.8
5.3
67.4
58.2
73.8
60.1
1,523.8'
1,571.6
1,582.3
1,585.6
1,596.1
1,605.3
1,613.7
1,623.4
1,6173
1,618.6
1,627.8
1,198.9
334.2
864.7
147.4
717.3
139.3
76.3
63.0
6.1
32.0
1,231.6
322.5
909.1
1524
756.7
161.0
82.7
78.3
4.4
27.1
1,240.6
1,229.4
317.7
911.6
143.6
1,251,4
768.1
165.2
86.2
83.3
4.0
24.2
322.1
969.1
150.5
818.6
170.1
87.2
82.9
4.3
23.7
1.287.7
319.2
968.5
150.4
818.1
173.0
1.300.6
163.1
83.7
79.4
5.9
26.8
1.279.9
321.9
958.0
149.6
808.4
168.3
86.2
82.1
4.0
24.3
1,292,7
322.7
970.0
765.4
1,264.5
322.7
941.8
147.9
793.9
165.8
83.8
82.0
2.7
25.8
1.291.2
917.7
152.3
13763
1,424.1
1,436.4
1,425.9
1,458.8
1.476.5
1,490.8
1,4893
1,489.2
1,498.2
147.5'
147.5
145.9
159.8
146.5
137.2
132.6
128.0
129.4
129.5
1,450.5
414.4
333.4
80.9
1,036.1
187.7
540.0
30.9
509.1
237.5
5.4
1,449.1
414.6
81.0
1,034.5
186.9
538.3
30.8
507.5
237.7
5.5
1,450.4
414.1
333.3
80.9
1,036.3
187.8
539.9
30.8
509.1
237.7
5.4
61.2
1.449.5
414.9
334.1
80.8
1,034,6
187.2
539.1
30.8
508.3
237.5
5.4
65.4
59.4
65.9
60.7
60.6
64.2
50.3
64.5
49.4
65.4
66.6
322.9
79.0
3.4
27.9
321.9
929.6
146.2
783.4
165.9
86.2
79,8
"> i
26.8
1.446.4
149.7
150.9
819.2
169.9
86.6
5.3
67.8
56.9
69.3
58.3
67.8
56.3
69.2
90.0
83.1
4.1
24.4
327.9
972.6
151.0
821.7
170.5
86.9
83.6
3.6
23.6
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Assets
Bank credit
Securities in bank credit . . . .
U.S. government securities .
Other securities
Loans and leases in bank credit2.
Commercial and industrial .
Real estate
Revolving home equity . .
Other
Consumer
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets 5
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
55 Total liabilities
56 Residual (assets less liabilities) 7 .
1.432.1
66.0
66.6
48.4
63 1
56.3
49.5
1,418.0
57.9
1,568.1
1,583.7
1.189.0
329.9
859.1
148.0
711.1
138.9
75.6
63.3
6.1
32.6
1,228.8
319.1
909.6
152.2
757.5
159.1
82.5
1,242.8
322.2
1366.7
44 Total assets6
45
46
47
48
49
50
51
52
53
54
1,421.1
415.6
335.6
79.9
1,005.6
178.6
520.9
27.4
493.5
234.9
5.1
1,433.0
414.0
333.6
8(1.3
1,019.0
181.4
527.1
29.7
497.3
239.6
4.9
66.0
51.3
69.2
56.7
406.1'
327.3'
78.8
956.9
171.9
490.8
26.3
464.5
226.8
5.8
61.6
62.9
63.5
51.6
154.4'
1,450.4
65.7
55.8
71.8
59.3
65.6
66.1
59.8
61.4
68.2
58.3
1,445.2
413.4
332.8
80.7
1,031.8
184.7
534.1
30.4
503.7
240.8
5.4
66.7
58.0
74.3
59.0
1,589.3
1,605.8
1,615.5
1,616.2
1,620.7
1,618.9
1,6143
1,6253
152.1
768.5
162.7
84.5
78.2
5.9
1,231.7
318.3
913.4
144.0
769.4
165.4
85.7
79.7
3.4
1,259.1
325.5
933.6
146.6
787 0
164.5
84,5
80.0
2.2
1,277.9
333.9
944.0
147.0
797.0
1,277.4
325.6
951.8
148.3
803.4
1.282.9
318.8
964.1
151.5
812.6
1,285.3
322.5
962.8
150.6
812.2
1,274.6
313.7
960.9
151.0
809.9
165.4
170.0
168.6
167.0
167.7
27.9
26.7
86.0
84.0
4.0
24.5
84.7
83.9
4.0
26.5
83.3
82.1
2.7
25.3
24.6
84.0
83.1
4.3
24.2
84.3
83.4
4.1
25.0
1,290.6
323.9
966.7
151.6
815.0
171.3
86.4
84.9
1,419.5
1,437.9
1,4283
1,452.4
1,4713
1,476.0
1,480.0
1,480.8
1,471.5
1,4893
148.6
145.8
161.0
144.2
140.3
138.1
143.0
136.0
52.5
52.7
76.6
4.4
27.2
417,2
337.3
80.0
1,014,9
180.4
525.5
28.1
497.4
237.3
5.1
65.1
920.6
412.1
331.5
80.6
1,025.9
182.8
531.0
30.1
500.9
240.7
5.3
66,2
58.3
72.1
416.0
334.4
81.6
1,034.4
185.9
537.5
30.7
506.8
240.1
52
69.4
62.0
333.6
MEMO
57 Mortgage-backed securities y ....
Footnotes appear on page A21.
65.5
59.0
75.2
61.7
3.6
23.8
A19
A20
1.26
Domestic Financial Statistics • May 1997
COMMERCIAL BANKS IN THE UNITED STATES
E. Foreign-related institutions
Assets and Liabilities'—Continued
Billions of dollars
Monthly averages
Account
1996
Feb.
Wednesday figures
1996
Aug.
Sept.
Oct.
1997
1997
Nov.
Dec'
Jan.'
Feb.
Feb. 5
Feb. 12
Feb. 19
Feb. 26
Seasonally adjusted
1
2
3
4
5
6
7
8
9
10
11
12
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit- . . .
Commercial and industrial
Real estate
Security'
....
Other loans and leases
Interbank loans
4
Cash assets
Other assets 5
13 Total assets 6
14
15
16
17
18
19
20
21
22
23
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U S
From others
Net due to related foreign offices
Other liabilities
24 Total liabilities
25 Residual (assets less liabilities}
7
451.4
146.7
70.9
75.8
304.8
184.0
34.4
35 6
50.8
18.9
29.1
49.0
464.4
147.5
80.9
66.6
316.8'
194.2'
33.1
29.8
59.7
16.4
28.5
43.7
467.5'
146.5
82.9
63.6
321.0
20O.7
32.8
29 1
58.4
20.3
29.5
41.1
481.9
149.4
83.1
66.3
332.5'
207.1
32.9
32.7
59.8
20.9
29.8
33.9
497.1
159.7
88.0
71.7
337.4
211.0
32.8
34.5
59.2
20.9
31.1
36.5
510.3
167.3
89.2
78.1
343.0
217.5
32.5
35.4
57.6
22.9
31.4
37.4
522.2
171.7
82.9
88.8
350.5
220.0
32.6
37.1
60.9
23.8
31.9
39.3
539.2
179.4
86.5
92.9
359.8
223.4
32.9
38.6
64.8
22.6
33.9
42.8
533.3
176.7
84.3
92.4
356.6
220.8
32.9
39.7
63.3
22.1
32.6
42.0
539.9
181.4
86.8
94.6
358.5
222.2
32.9
39.3
64.2
22.4
33.6
42.5
541.3
181.3
86.7
94.6
360.0
224.9
32.9
37.1
65.1
21.8
34.2
42.7
541.0
178.9
87.8
91.1
362.1
224.7
33.0
38.0
66.3
25.0
34.1
42.5
548J
552.9""
558J
5663
585.4
601.8
617.0
6382
629.8
638.2
639.8
642.4
168.4
10.4
158.0
154.1
3.8
118.7
30.2
88.4
180.2
77.7
180.3
10.5
169.8
166.7
3.1
128.6
34.6
94.1
173.2
69.4
186.0
9.7
176.2
172.9
3.4
122.8
34.0
88.8
176.3
68.7
197.9'
10.5
187.3
184.7
2.6
118.7
33.4
85.3
167.7'
74.7'
205.0
10.6
194.4
190.9
3.5'
128.2'
35.5
92.8
167.2'
80.1
221.1
10.8
210.4
206.4
4.0
125.7
36.2
89.4
162.3
83.0
230.4
10.9
219.6
217.1
2.5
133.5
31.8
101.7
150.1
89.5
244.5
10.4
234.2
228.6
5.6
147.4
38.5
108.9
139.6
99.9
238.5
10.1
228 4
225.2
3.2
145.3
39.4
106.0
144.9
96.2
242.1
9.9
232.2
226.6
5.6
143.8
35.6
108.2
141.0
105.0
247.1
11.3
235.8
229.5
6.2
150.3
39.5
110.8
134.8
101.7
245.8
9.9
235.9
230.3
5.7
148.8
38.0
110.8
139.8
95.9
544.8
551.5
553*
559.0"
580.6r
592.2
603.5
631.5
624.9
631.9
633.9
630.4
3.5
1.4'
4.5'
7.3'
4.8'
9.7
13.5
6.8
4.9
6.3
5.9
12.1
Not seasonally adjusted
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Assets
Bank credit
Securities in bank credit
U.S. government securities
Trading account
Investment account
Other securities
Trading account
Investment account
Loans and leases in bank credit 3
Commercial and industrial
Real estate
Security'
Other loans and leases
Interbank loans
Cash assets 4
Other assets 5
42 Total assets 6
43
44
45
46
47
48
49
50
51
52
Liabilities
Deposits
Transaction
Nontraisaction
Large lime
Other
Borrowings
From banks in the U S
From others
Net due to related foreign offices
Other liabilities
53 Total liabilities
54 Residual (assets less liabilities)
7
MEMO
55 Revaluation gains on off-balance-sheet
items*
56 Revaluation losses on off-balancesheet items 8
Footnotes appear on page A21.
451.3
146.8
71.7
5.9
65.8
75.1
39.8
35.3
304.5
184.0
34.5
35.6
50.5
18.9
28.4
49.9
467.8'
150.7
82.4
6.3
76.1
68.3
38.8
29.5
317.1'
194.4
33.1
29.8
59.8
16.4
28.5
44.5
466.2
145.4
81.9
8.4
73.5
63.5
37.6
25.9
320.8
199.4'
32.9
29.1
59.3
20.3
28.8
41.5
480.6'
149.3
82.6
18.8
63.7
66.7
48.2
18.5
331.3
205.9
33.1
32.7
59.7
20.9
30.1
33.6
496.7
159.4
88.0
22.0
66.0
71.4
52.3
19.1
337.3
210.8
33.2
34.5
58.8
20.9
31.3
36.8
506.1
160.8
86.7
20.2
66.5
74.1
54.9
19.2
345.3
217.9
32.7
35.4
59.3
22.9
32.5
38.2
519.2
167.6
83.9
16.9
67.0
83.7
61.4
22.3
351.6
219.9
32.5
37.1
62.1
23.8
32.3
38.5
539.8
180.3
88.2
21.3
67.0
92.1
69.1
23.0
359.5
223.3
33.0
38.6
64.5
22.6
33.1
43.6
534.3
176.7
86.3
19.7
66.6
90.5
67.7
22.8
357.5
220.9
33.0
39.7
63.9
22.1
32.5
42.7
542.9
183.7
88.9
21.8
67.1
94.8
71.4
23.3
359.3
222.8
33.0
39.3
64.1
22.4
32.9
43.9
540.3
181.9
88.5
21.3
67.2
93.4
70.5
22.9
358.4
224.2
32.9
37.1
64.2
21.8
32.9
43.1
539.3
178.4
88.6
21.8
66.7
89.8
66.9
23.0
360.9
224.6
32.9
38.0
65.4
25.0
33.3
43.4
54&5
557.2 r
556£
565.1r
585.5
599.5
613.6
638.9
631.2
641.9
638.0
640.9
166.5
10.6
155.9
151.1
4.8
113.3
28.4
84.8
185.8
79.6
178.8
10.3
168.5
166.2
2.3
133.6
35.1
98.5
171.2
69.8
185.6
10.1
175.4
173.2
2.3
123.9
33.3
90.6
174.3
68.6
203.2
10.6
192.6
190.4
2.2
115.4'
30.9
84.5'
167.7'
73.1'
207.6
10.6
197.0
194.8
2.3
124 9
35^6
89.3
166.9'
80.8
223.9
11.4
212.4
209.9
2.5
124.7
37.0
87.6
163.9
81.7
230.5
10.9
219.7
215.1
4.6
130.4
33.1
97.4
158.9
88.6
241.3
10.6
230.7
223.6
7.1
1406
36.1
104.5
148.7
102.4
236.5
10.5
226.0
220.0
6.0
142.6
39.1
103.5
149.0
98.3
239.2
10.2
229.1
221.4
7.7
139.6
34.6
105.0
148.8
108.3
241.7
11.7
230.0
222.7
7.3
140.3
35.5
104.9
146.9
103.0
243.6
10.0
233.6
2273
6.3
138.8
34.1
104.8
153.7
98.9
545.1
553.3
552.4
559.4 r
580.1r
594.1
608.5
633.1
626.4
635.9
631.9
635.1
3.3
3.8'
4.3'
5.7'
5.4'
5.3
5.1
5.8
4.8
6.0
6.0
5.8
n.a.
n.a.
n.a.
29.9
32.4
33.3
41.0
47.2
45.0
49.2
48.8
45.5
n.a.
n.a.
n.a.
29.4
31.6
32.5
40.2
47.4
45.2
49.7
49.0
45.5
Commercial Banking Institutions—Assets and Liabilities A21
NOTES TO TABLE 1.26
NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8
statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table
1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28,
"Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks." are no longer
being published in the Bulletin. Instead, abbreviated balance sheets for both large and small
domestically chartered banks have been included in table 1.26, parts C and D. Data are both
merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S.
branches and agencies of foreign banks have been replaced by balance sheet estimates of all
foreign-related institutions and are included in table 1.26, part E. These data are breakadjusted.
The not-seasonally-adjusted data for all tables now contain additional balance sheet items,
which were available as of October 2, 1996.
I. Covers the following types of institutions in the fifty slates and the District of
Columbia: domestically chartered commercial banks that submit a weekly report of condition
(large domestic); other domestically chartered commercial banks (small domestic); branches
and agencies of foreign banks, and Edge Act and agreement corporations (foreign-related
institutions). Excludes International Banking Facilities. Data are Wednesday values or pro
rata averages of Wednesday values. Large domestic banks constitute a universe; data for
small domestic banks and foreign-related institutions are estimates based on weekly samples
and on quarter-end condition reports. Data are adjusted for breaks caused by rectifications
of assets and liabilities
The data for large and small domestic banks presented on pp. AI8 and A19 are adjusted IO
remove the estimated effects of mergers between these two groups. The adjustment for
mergers changes past levels to make them comparable with current levels. Estimated
quantities of balance sheet items acquired in mergers are removed from past data for the bank
group that contained the acquired bank and put into past data for the group containing the
acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a
ratio procedure is used to adjust past levels.
2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks
in the United States, all of which are included in "Interbank loans."
3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry
securities.
4. Includes vault cash, cash items in process of collection, balances due from depository
instilutions, and balances due from Federal Reserve Banks.
5. Excludes the due-from position with related foreign offices, which is included in "Net
due to related foreign offices."
6. Excludes unearned income, reserves for losses on loans and leases, and reserves for
transfer risk. Loans are reported gross of these items.
7. This balancing item is not intended as a measure of equity capital for use in capital
adequacy analysis. On a seasonally adjusted basis this item reflects any differences in the
seasonal patterns estimated for total assets and total liabilities.
8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity
and equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39.
9. Includes mortgage-backed securities issued by U.S. government agencies. U.S
government-sponsored enterprises, and private entities
A22
1.32
Domestic Financial Statistics • May 1997
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
Year ending December
1997
1996
Item
1993
Dec.
1992
Dec.
1994
Dec.
1995
Dec.
1996
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
545,619
555,075
595,382
674,904
775,371
753,276
757,155
757,718
766,556
775,371
804,644
Financial companies'
2
Dealer-placed paper2, total
3
Directly placed paper , total
226,456
171,605
218,947
180,389
223,038
207,701
275.815
210,829
361,147
229,662
329.026
230,318
336,833
226,599
349.288
225,977
354,400
228,553
361,147
229,662
376,908
238,133
4 Nonnnancial companies4
147,558
155,739
164,643
188,260
184,563
193,932
193,724
182,454
183,603
184,563
189,602
n a.
n a.
n a.
Bankers dollar acceptances (not seasonally adjusted)5
5 Total
6
7
8
9
10
38,194
32,348
29,835
10,555
9,097
1,458
12,421
10,707
1,714
11,783
10,462
1,321
1,276
26,364
725
19.202
410
17,642
12,209
8,096
17,890
10,217
7,293
14,838
10,062
6,355
13,417
By holder
Accepting banks
Own bills
Bills bought from other banks
Federal Reserve Banks6
Foreign correspondents
Others
By basis
11 Imports into United States
12 Exports from United States
13 All other
1 1
\
n
1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales,
personal, and mortgage financing; factoring, finance leasing, and other business lending;
insurance underwriting; and other investment activities.
2. Includes all financial-company paper sold by dealers in the open market.
3. As reported by financial companies that place their paper directly with investors.
4. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and
services.
1.33
PRIME RATE CHARGED BY BANKS
25, 754
29,
A.
n
a.
n a.
n a.
n d.
5. Data on bankers dollar acceptances are gathered from approximately 100 institutions.
The reporting group is revised every January. Beginning January 1995, data for Bankers
dollar acceptances are reported annually in September.
6. In 1977 the Federal Reserve discontinued operations in bankers dollar acceptances for
its own account.
Short-Term Business Loans'
Percent per year
Date of change
Rate
24
19
17
16
15
6.25
6.75
7.25
7.75
8.50
1995—Feb. 1
July 7
Dec. 20
9.00
8.75
8.50
1996—Feb. 1
1997—Mar. 26
8.25
8.50
1994—Mar.
Apr.
May
Aug.
Nov.
Period
Average
rate
1994
1995
1996
7.15
8.83
8.27
1994—Jan
Feb
Mar.
Apr.
May
June
Julv
Aug
Sept
Oct
Nov
Dec
6.00
6.00
6.06
6.45
6.99
7.25
7.25
7.51
7.75
7.75
8.15
8.50
1. The prime rate is one of several base rates that banks use to price short-term business
loans. The table shows the date on which a new rate came to be the predominant one quoted
by a majority of the twenty-five largest banks by asset size, based on the most recent Call
Period
1995—Jan
Feb
Mar.
Apr.
May
June
July
Aug
Sept
Oct
Nov
Dec
Average
rate
8.50
9.00
9.00
9.00
9.00
9.00
8.80
8.75
8.75
8.75
8.75
8.65
Period
Average
rate
1996—Jan
Fcb
Mar.
Apr
May
June
July
Aug
Sept
Oct
Nav
Dec
8.50
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
8.25
1997—Jan
Feb
Mar.
8.25
8.25
8.30
Report. Data in this table also appear in the Board's H.15 (519) weekly and G.I3 (415)
monthly statistical releases. For ordering address, see inside front cover.
Financial Markets A23
1.35
INTEREST RATES
Money and Capital Markets
Percent per year; figures are averages of business day data unless otherwise noted
1996
Item
1994
1995
1997
1997. week ending
1996
Nov.
Dec.
Jan.
Feb.
Jan. 31
Feb. 7
Feb. 14
Feb. 21
Feb. 28
MONEY MARKET INSTRUMENTS
1 Federal funds 1 - 3
_.
2 Discount window borrowing2'4
4.21
3.60
5.83
5.21
5.30
5.02
5.31
5.00
5.29
5.00
5.25
5.00
5.19
5.00
5.18
5.00
5.30
5.00
5.05
5.00
5.22
5.00
5.16
5.00
3
4
5
Commercial paper 'xf>
1 -month
Vmonth
6-month
4.43
4.66
4.93
5.93
5.93
5.93
5.43
5.41
5.42
5.39
5.41
5.40
5.70
5.51
5.44
5.43
5.45
5.48
5.39
5.40
5.42
5.44
5.45
5.48
5 42
5.43
5.44
5.38
5.39
5.41
5.37
5.38
5.39
5.38
5.40
5.43
6
7
8
Finance paper, directly placed^^1
1 -month
3-month
6-month
4.33
4.53
4.56
5.81
5.78
5.68
5.31
5.29
5.21
5.25
5.29
5.23
5.41
5.33
5.25
5.31
5.32
5.30
5.27
5.28
5.27
5.30
5.32
5.31
5.30
5.31
5.29
5.26
5.28
5.26
5.25
5.26
5.24
5.25
5.28
5.26
9
10
Bankers acceptances' "'
Vmonth
6-month
4.56
4.83
5.81
5.80
5.31
5.31
5.29
5.29
5.35
5.33
5.34
5.35
5.29
5.30
5.33
5.36
5.32
5.32
5.29
5.29
5.27
5.28
5.28
5.30
11
12
13
Certificates of deposit, secondary marker'
1 -month
3-month
6-month
4.38
4.63
4.96
5.87
5.92
5.98
5.35
5.39
5.47
5.30
5.38
5.43
5.50
5.44
5.47
5 35
5.43
5.54
5.31
5.37
5.47
5.34
5.42
5.53
5.32
5.40
5.50
5.31
5.36
5.46
5.29
5.34
5.42
5.31
5.37
5.49
4.63
5.93
5.38
5.38
5.43
5.44
5.36
5.44
5.41
5.38
5.32
5.34
4.25
4.64
5.02
5.49
5.-56
5.60
5.01
5.08
5.22
5.03
5.07
5.14
4.91
5.04
5.18
5.03
5.10
5.30
5.01
5.06
5.23
5.04
5.10
5.30
4.99
5.07
5.24
5.00
5.04
5.20
4.97
5.02
5.18
5.05
5.10
5.29
4.29
4.66
5.02
5.51
5.59
5.69
5.02
5.09
5.23
5.03
5.07
5.20
4.87
5.02
5.16
5.05
5.11
5.31
5.00
5.05
5.34
5.06
5.12
n.a.
5.00
5.08
5.34
5.02
5.07
n.a.
4.98
5.03
n.a.
5.01
5.03
n.a.
5.32
5.94
6.27
6.69
6.91
7.09
7.49
7.37
5.94
6.15
6.25
6.38
6.50
6.57
6.95
6.88
5.52
5.84
5.99
6.18
6.34
6.44
6.83
6.71
5.42
5.70
5.82
5.97
6.10
6.20
6.58
6.48
5.47
5.78
5.91
6 07
6.20
6.30
6.65
6.55
5.61
6.01
6.16
6.33
6.47
6.58
6.91
6.83
5.53
5.90
6.03
6.20
6.32
6.42
6.77
6.69
5.62
6.03
6.17
6.36
6.50
6.62
6.95
6.89
5.53
5.89
6.03
6.20
6.34
6.46
6.80
6.74
5.49
5.85
5.99
6.14
6.26
6.37
6.7.3
6.65
5.47
5.83
5.96
6.13
6.24
6.33
6.70
6.60
5.60
6.01
6.15
6.31
6.42
6.50
6.85
6.75
7.41
6.93
6.80
6.55
6.63
6.89
6.76
6.93
6.79
6.72
6.69
6.84
5.77
6.17
6.18
5.80
6.10
5.95
5.52
5.79
5.76
5.43
5.69
5.59
5.38
5.63
5.64
5.40
5.71
5.72
5.36
5.60
5.63
5.37
5.66
5.73
5.34
5.63
5.70
5.40
5.60
5.62
5.29
5.52
5.56
5.40
5.63
5.65
8.26
7.83
7.66
7.41
7.50
7.71
7.59
7.76
7.62
7.55
7.52
7.66
7.97
8.15
8.28
8.63
8.29
7.59
7.72
7.83
8.20
7.86
7.37
7.55
7 69
8.05
7.77
7.10
7.31
7.41
7.79
7.54
7.20
7.41
7.51
7.89
7.63
7.42
7.63
7.71
8.09
7.93
7.31
7.54
7.59
7.94
7.81
7.48
7.69
7.75
8.12
7.92
7.34
7.56
7.61
7.98
7.86
7.26
7.50
7.55
7.89
7.69
7.23
7.46
7.51
7.87
7.77
7.38
7.61
7.65
8.01
7.94
2.82
2.56
2.19
2.01
2.01
1.95
1.91
1.95
1.93
1.88
1.86
1.88
14 Eurodollar deposits. 3-month3JO
15
16
17
18
19
20
U.S Treasury bills
Secondary marker "
3-month
6-month
1-year
Auction average 1 ? 1 '
3 month
6-month
1 -year
U.S. TREASURY NOTES AND BONDS
21
22
23
24
25
26
27
28
Constant maturities "
1-year
2-year
3-year
5-year
7-year
10-year
20-vear
V)-year
Composite
29 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS
Moodvs series"
30 Aaa '
31 Baa
32 Bond Buyer series14
CORPORATE BONDS
33 Seasoned issues, all industries '
34
35
36
37
38
Rating sroitp
Aaa
Aa
A
Baa
A-rated, recently offered utility bonds
MEMO
Dividend-price ratio11
39 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 ihe month.
3. Annualized using a 360-day year for 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 approximately 11:00 a.m. London time. Daia 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. Department of the Treasury.
13. General obligation bonds based on Thursday figures; Moody's Investors Service.
14. State and local government general obligation bonds maturing in twenty years are used
in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys'
Al rating. Based on Thursday figures.
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-ratcd 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. 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.I5 (519) weekly and
G. 13 (415) monthly statistical releases. For ordering address, see inside front cover.
A24
1.36
Domestic Financial Statistics • May 1997
STOCK MARKET
Selected Statistics
1996
Indicator
1994
1995
1997
1996
June
Aug.
July
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
254.16
315.32
247.17
104.96
209.75
291.18
367.40
270.14
110.64
238.48
357.98
453.57
327.30
126.36
303.94
358.32
458.30
331.57
123.60
294.42
345.06
438.58
316.57
122.66
287.89
354.59
444.91
321.61
122.37
302.95
360.96
459.69
323.12
121.12
308.16
373.54
473.98
332.80
130.04
324.42
388.75
490.60
348.32
135.88
345.30
391.61
494.38
352.28
128.55
350.01
403.58
509.18
359.40
131.95
361.45
418.57
524.30
364.15
142.88
388.75
6 Standard & Poor's Corporation
(1941-43 = |0) 2
460.42
541.72
670.49
668.50
644.06
662.68
674.88
701.46
735.67
743.25
766.22
798.39
7 American Stock Exchange
(Aug 31, 1973 = 50)'
449.49
498.13
570.86
591.99
550.16
554.88
564.87
574.46
583.21
582.96
585.09
593.29
290,652
17,951
345,729
20,387
409.740
22,567
392,413
23,903
398.245
21,281
133,343
17,916
400.951
19,449
420,835
18,780
443,521
22,151
431,538
23.648
526,631
24,019
508,199
21,250
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
Customer financing (millions of dollars, end-of-period balances)
10 Margin credit at broker-dealers4
61,160
76,680
97,400
87,160
79,860
82,980
89,300
88,740
91,680
97,400
99,460
100,000
Free credit balances at brokers^
1 1 Margin accounts6
12 Cash accounts
14.095
28,870
16,250
34,340
22,540
40,430
16,800
33,775
17,700
32.935
17,520
32.680
17,940
35,360
19,890
36,610
20,020
36,650
22,540
40,430
22,870
41,280
22,200
40.090
Margin requirements (percent of market value and effec ve date}7
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. Daily data on prices are available upon request to the Board of Governors. For ordering
address, see inside front cover.
2. In July 1976 a financial group, composed of banks and insurance companies, was added
to the group of stocks on which the index is based. The index is now based on 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail). 40 public utility (formerly 60), and
40 financial.
3. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting
previous readings in half.
4. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has
included credit extended against stocks, convertible bonds, stocks acquired through the
exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds, and subscription issues was discontinued in
April 1984.
5. Free credit balances are amounts in accounts with no unfulfilled commitments to
brokers and are subject to withdrawal by customers on demand.
Jan. 3. 1974
50
50
50
6. Series initiated in June 1984.
7. Margin requirements, slated 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
col lateral i zed by securities. Margin requirements on securities are the difference between the
market value (100 percent) and the maximum loan value of collateral as prescribed by the
Board. Regulation T was adopted effective Oct. 15, 1934; Regulation U. effective May 1,
1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977. the Board of Governors for the first time established in Regulation T the
initial margin required for writing options on securities, setting it at 30 percent of the current
market value of the stock underlying the option. On Sept. 30, 1985, the Board changed the
required initial margin, allowing it to be the same as the option maintenance margin required
by the appropriate exchange or self-regulatory organization, such maintenance margin rules
must be approved by the Securities and Exchange Commission.
Federal Finance A25
1.38
FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Fiscal year
Type of account or operation
Oct.
US budget
1 Receipts, tola]
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 ofpnaming (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase (-)J. . .
12 Other 1
1.258,627
923,601
55,654
-163,899
-226,314
62.415
1,453,062
1,085.570
367 492
1,560,330
1,259,872
300,458
-107,268
-174,302
67,034
185,344
16,564
1,1%
171.288
-2.007
-5.382
35,942
6,848
29,094
37,949
8,620
335,026
1,461.731
1,181,469
279,372
-203,104
-258,758
1.351.830
1,000,751
351,079
1,515,729
1.227,065
288,664
99,656
73,644
26,012
139,915
113,290
97,849
70,018
27.831
135,727
106,327
148.489
119,528
28,961
129,666
120,429
150,718
113,841
36.877
137.354
110,552
26,802
13,364
3.289
10,075
90.293
59,673
30,620
134,304
104,964
29,339
108,099
73.869
34,230
129.422
100,427
28,996
-21,323
-26,558
5,234
26,625
29,400
9,237
-40,259
-39,646
-613
-37,878
-1,569
18,823
-901
19,724
15.588
18.592
6,079
45,459
-673
-6,908
-12.321
-6.488
-14
-16,776
35.968
-3,785
7,197
21,357
28,833
-18.274
-16,168
-13.315
10.764
44,225
7.700
36,525
25,633
5,897
19,736
26,306
4,857
21.449
32,794
7.742
25,052
36,579
6,770
29,809
15,222
5,258
9,965
33,496
5,945
27,551
129,712
-6,276
-36,309
-44.010
- 4 5 291
1.281
MEMO
13 Treasury operating balance (level, end ot
period)
14 Federal Reserve Banks
15 Tax and loan accounts
29,329
1. Since 1990. off-budget items have been the social security trust tunds (federal old-age
survivors insurance and federal disability insurance) and the US Postal Service.
2. Includes special drawing rights (SDRs), reserve position on the U.S. quota in the
International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets,
accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous
liability (including checks outstanding) and asset accounts; seigniorage; increment on gold;
net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF loanvaluation adjustment; and profit on sale of gold.
SOURCE. Monthly totals: U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the US Government', fiscal year totals: U.S. Office of Management
and Budget, Budget of the U.S. Government.
A26
1.39
Domestic Financial Statistics • May 1997
U.S. BUDGET RECEIPTS AND OUTLAYS'
Millions of dollars
Fiscal year
Source or lype
1,351,830
1,453,062
711,003
656,865
767,099
707,551
148,489
150,718
90,293
590.244
499.927
175.855
85.538
656,417
533,080
212,168
88.897
307,498
251.398
132.001
75.959
292.393
256.916
45.521
10.058
347,285
264,177
162,782
79,735
323,884
279,988
53.491
9,604
59,423
52.690
7,582
850
87,239
55,426
33,576
37,400
48.351
2.948
13.906
174,422
17.418
484,471
451.045
28,878
4,550
189,055
17,231
509,414
476,361
28,584
4,469
92.132
10.399
261,837
241.557
18.001
2,279
88.302
7.518
224.269
211.323
10.702
2.247
96,480
9,704
277,767
257,446
18,068
2.254
95,364
10.053
240.326
227.777
10.302
2,245
40.436
1.479
40.687
40,057
259
371
6,285
48.794
47,302
355
4.014
1.777
41,784
38,969
2,423
391
57.484
19,301
14,763
28.561
54,014
18,670
17.189
25.534
27,452
8,848
7.425
16.211
30,014
9.849
7,718
11,839
25.682
8.731
8,775
12,087
27,016
9.294
8,835
12,888'
4,559
1,520
1,371
1,973
4,219
1.468
1,615
2,574
5,106
1,379
1.180
1,208
1,515,729
1,560,330
761,289
752,856
785,368
799.85r
129,666
137,354
134,304
272.066
16,434
16,724
4,936
22,078
9.778
265,748
13,496
16,709.
2,836
21,614
9.159
135,648
4,797
8,611
2,358
10,273
4.039
132.887
6.908
7.9701
1.992
I 1,392'
3.065'
132.598'
8,074
8,897'
1.356'
10.254'
72'
138,350
8,895'
9.498
806'
11.642
10,699'
23,085
1.371
1,590
201
2.152'
2.240
22,137
1,405
1,429
-52
1,884'
2,169
20.897
898
1,417
211
1.508
-96
- 17 808
39,350
10,641
-10,646
39.565
10,685
-13.471
18,193
5,073
-3.947'
20.725
5.569
-6,885'
1 8.290
5.245
-6,198'
21,205'
6.192'
- 840'
1.209
-1.532'
2,895
1,014'
- 1.460
26.212'
25,979'
26,032'
3.773'
28 Social security and Medicare
29 Income security
115,418
495,701
220,493
119,378
523.901
225.989
59,057
251,975
117,190
57.128'
251.385'
104,847'
59,989'
264.649
121.187'
61,466
269,409
107,181'
10,567'
44.779
17,299'
10.753'
46,641
19,610'
9,169
44,973
26,346
30
31
32
33
34
37,890
16.216
13,835
232.169
-44.455
36.985
17,548
11.892
241,090
-37,620
19,269
8,051
5,796
116,169
-17,631
18,678'
8,091'
7,601'
119.34S
-26,995
18.140'
9.015'
4,641
120.576'
-16.716
21,107'
9.595'
6,544'
122,568'
-25,140'
3,083'
1.563
1.677'
19.997
-6,839
3,283'
1.745
1,108'
21,092
-2.888
3.384
2,074
119
19,362
All sources .
2 Individual income taxes, nel
3
Withheld
4
Nonwithhetd
5
Refunds
Corporation income taxes
6
Gross receipts
7
Refunds
K Social insurance taxes and contributions, net .
9
Employment taxes and contributions'' . .
10 Unemployment insurance
1 1 Other net receipts
12
13
14
I.4)
Excise taxes
Customs deposits
Estate and gift taxes . „
Miscellaneous receipts
16 All types
17 National defense
IS International affairs
19 General science, space, and technology
20 Energy
21 Natural resources and environment
22 Agriculture
23
24
25
26
Commerce and housing credit
Transportation
Community and regional development .
Education, training, employment, and
social services
27 Health
Veterans benelits and services .. .
Administration of justice
General government
Net interest^
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 receipts and
outlays do 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, ami railroad retirement accounts.
3 Federal employee retirement contributions and civil service retirement and
disability fund.
758'
1,763
1,477
1,137
2,842
608
5,100
-3.049
4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts
5. Includes interest received by trust funds.
6. Rents and royalties for the outer continental shelf. U.S. government contributions for
employee retirement, and certain asset sales.
SOUKCL Fiscal year totals: U.S. Office of Management and Budget. Budget of the US.
Gtnernnieiu. Ftsia'l Yeai 199H\ monthly and half-year totals. U.S. Department of the Treasury. Motuhh Treasury Statement of Receipts and Outlays of the US Government.
Federal Finance A27
1.40
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1994
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sepl. 30
Dec. 31
1 Federal debt outstanding
4,827
4.891
4,978
5,001
5,017
5,153
5,197
5,260
5,357
2 Public debt securities
3
Held by public
4
Held by agencies
4,800
3,543
1.257
4,864
3,610
1,255
4,951
3,635
1,317
4,974
3,653
1,321
4,989
3,684
1,305
5,118
3,764
1,354
5,161
3,739
1,422
5,225
3,778
1,447
5,323
3,826
1,497
27
27
0
27
26
0
27
27
0
27
27
0
28
28
0
36
28
36
35
27
34
27
5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit. . .
9 Public debt securities
10 Other debt1
28
8
4,711
4,775
4,861
4,885
4,900
5,030
5,073
5,137
5,237
4,711
0
4,774
0
4,861
0
4,885
0
4,900
0
5,030
0
5,073
0
5,137
0
5,237
0
4,900
4,900
4,900
5,500
5,500
5,500
5,500
MEMO
11 Statutory debt limit
1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District of Columbia stadium bonds.
1.41
GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCE. U.S. Department of the Treasury, Monthly Statement of the Public Debt of the
United States and Treasury Bulletin.
Types and Ownership
Billions of dollars, end of period
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing
Marketable...
...
Bills
Notes
Bonds
Nonmarketable'
State and local^ government series .
Foreign issues2
Government
Public
Savings bonds and notes
Government account series'
Non-intcrest-bearing . . .
By holder*
15 U.S. Treasury and other federal agencies and trust funds.
16 Federal Reserve Banks
17 Private investors
18 Commercial banks
19 Money market funds
20
Insurance companies
21
Other companies
22
State and local treasuries^'6
Individuals
23
Savings bonds
24
Other securities . .
25
Foreign and international7
26
Other miscellaneous investors5-
1993
Ql
Q2
Q3
Q4
5,117.8
5,161.1
5,224.8
5,323.2
5,317.2
3,459.7
777.4
2,112.3
555.0
1,857.5
101.3
37.4
47.4
.0
182.4
1,505.9
6.0
5,083.0
5,126.8
3.348.4
773.6
2,025.8
534.1
1,778.3
97.8
37.8
.0
183.8
1.428.5
34.3
5,220.8
3,418.4
761.2
2,098.7
543.5
1,802.4
95.7
37.5
37.5
.0
184.2
1,454 7
4.0
5,317.2
3,459.7
777.4
2,112.3
555.0
1,857.5
101.3
37.4
47.4
.0
182.4
1.505.9
6.0
1,353.8
381.0
3,382.8
284.0'
85.7'
239.41
229.0
325.4'
1,422.4
391.0
3,347.3
280.2'
82.1'
234 4'
230.9
316.8'
1,447 0
390.9
3,386.2'
274.8'
85.2'
234 5'
249.1
298.5'
1,497.2
410.9
3,411.2
272.0
92.1
234.0
258.5
290.0
185.8
161.4
931.5'
940.6'
186.5
161.1
959.8'
895.5'
186.8
1,030.9'
859.4'
187.0
169.6
1,131.5
776.5
4,535.7
4,800.2
4,988.7
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
4,769.2
3.126.0
733.8
1,867.0
510.3
1,643.1
132.6
42.5
42.5
.0
177.8
1,259.8
31.0
4,964.4
3,307.2
760.7
2,010.3
521.2
1,657.2
104.5
1,153.5
334.2
3,047.4
322.2
80.8
234.5
213.0
590.8'
1,257.1
374.1
3,168.0
290.4'
67.6
240.1
226.5
468.3'
1,304.5
391.0
3,294.9
278.7'
71.3
241.5'
344.1'
1,497.2
410.9
3,411.2
272.0
92.1
234.0
258.5
290.0
171.9
137.9
623.0
673.3'
180.5
150.7
688.6
855.3'
185.0
162.7
862.2'
920.6'
187.0
169.6
1,131.5
776.5
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.
5. Includes state and local pension funds.
6. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable
federal securities was removed from "Other miscellaneous investors" and added to "State and
local treasuries." The data shown here have been revised accordingly.
1996
40.8
40.8
.0
181.9
1,299.6
24.3
3,375.1
811.9
2,014.1
534.1
1,707.9
96.5
40.4
40.4
.0
183.0
1,357.7
34.8
37.8
167.0'
7. Consists of investments of foreign balances and international accounts in the United
States.
8. 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.
SOURCE. U.S. Treasury Department, data by type of security, Monthly Statement of the
Public Debt of the United States; data by holder. Treasury Bulletin.
A28
1.42
Domestic Financial Statistics • May 1997
U.S. GOVERNMENT SECURITIES DEALERS
Transactions'
Millions of dollars, daily averages
1996
1997
Nov.
Dec.
Jan.
1997. week ending
Jan. 1
Jan. 8
Jan. 15
Jan. 22
Jan. 29
Feb. 5
Feb. 12
Feb. 19
Feb. 26
OUTRIGHT TRANSACTIONS 3
By type of security
1 U.S.'Treasury bills
Coupon securities, by maturity
2
Five years or less
3
More than five years
5 Mortgage-backed
48,828
48,957
45.941
37,030
51,775
47.443
41.017
41.075
49,615
35,699
39,097
43.780
101,712
62,469
33,010
44,279
89,775
50,436
34,571
33,754
110,875
55,797
35,624
45.018
43,851
21,031
33,046
7,422
92.580
51.136
37,737
62,491
120,490
57,872
35.055
50.999
121,511
47,757
34.683
30,001
113,315
58,845
34,473
33,766
105,201
70,722
36,519
44,544
91,500
66.001
33,237
59,466
98.004
70.685
41.200
39,497
128.324
62,384
34,222
36,767
6
By type of counterparty
With interdealer broker
U.S. Treasury
8
Mortgage-backed
120.115
823
16.511
104,432
584
11,606
122,621
1,141
14,419
54,1 H
447
2,784
112.516
1.029
19.219
127,881
1,192
15,616
122,617
1,146
11,648
124.947
1,147
10,394
128.922
1.266
15,036
108.018
1.037
21,133
114,938
2,049
14,718
133,367
1,136
11,695
10
11
Federal agency
Mortgage-backed
92 894
32.187
27.767
84,737
33,987
22,148
89,993
34,483
30.598
47,799
32,599
4,638
82,975
36,709
43,272
97,924
33,863
35,383
87,668
33,536
18,353
88.289
33,325
23,371
96,616
35,252
29.508
85.182
32.200
38,3.32
92,848
39,151
24,779
101,121
33,086
25,072
FUTURES TRANSACTIONS 3
12
13
14
15
16
By type of deliverable security
US Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Federal agency
Mortgage-backed
180
300
1,423
14,514
0
0
1,814'
13,178'
0
0
206
1,489'
14,518'
0
0
0
289
221
106
176
626
5,237
0
0
1,394
13,066
0
0
1.500
14.732
0
0
1,267
12.630
0
0
1,408'
14,992'
0
0
237
1,359'
13,645'
0
0
165
513
297
1.035'
11,887'
0
0
1,338'
13,216'
0
0
2,583
14,086
0
0
OPTIONS TRANSACTIONS 4
17
18
19
20
flv t\pe of underlying security
U.S.'Treasury bills
Coupon securities, by malurit\
Five years or less
More than five years
Federal agency
0
0
0
0
0
0
0
0
2.345
4.881
0
874
1,626
3,559
0
494
3,288
5,045
0
455
1,153
1,803
0
484
4.475
4.135
0
624
2,435
5,036
0
463
3,224
4,849
0
316
2,767
6,008
0
316
1. Transactions are market purchases and sales of securities as reported to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Monthly averages are based on the number of trading days in the month.
Transactions are assumed evenly distributed among the trading days of the report week.
Immediate, forward, and futures transactions are reported at principal value, which does not
include accrued interest; options transactions are reported at the face value of the underlying
securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Outright transactions include immediate and forward transactions. Immediate delivery
refers to purchases or sales of securities (other than mortgage-backed federal agency securities) for which delivery is scheduled in hve business days or less and "when-issued"
securities that settle on the issue date of offering. Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales lor which delivery is scheduled in thirty business
days or less. Stripped securities are reported at market value by maturity of coupon or corpus.
n.a.
3.879
5,332
0
640
0
0
0
2.913
4.334
0
1.074
2,756
5,920
0
527
5,084
5.444
0
799
Forward transactions are agreements made in the over-the-counter market that specify
delayed delivery. Forward contracts for US. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
3. Futures transactions are standardized agreements arranged on an exchange. All futures
transactions are included regardless of time to delivery.
4. Options transactions are purchases or sales of put and call options, whether arranged on
an organized exchange or in the over-the-counter market, and include options on futures
contracts on U.S. Treasury and federal agency securities.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
Major changes in the report form filed by primary dealers induced a break in the dealer data
.scries as of the week ending July 6, 1994.
Federal Finance
1.43
U.S. GOVERNMENT SECURITIES DEALERS
A29
Positions and Financing1
Millions of dollars
1997
19%
1997, week ending
Jan. 8
Ian. 15
Jan. 22
Jan. 29
Feb. 5
Feb. 12
Feb. 19
Positions2
NET OUTRIGHT POSITIONS 1
Bv tvpe of security
1 U.S.' Treasury bill's
Coupon securities, by maturity
2
Five years or less
3
More than live years
4 Federal agency
5 Mortgage-backed
8,847
14,525
5,582
3,871
10,493
5,963
5,555
826
4.658
6,689
7,306
5.631
-17,797
25,228
42,015
-7,743
-22,372
23,348
43.300
-8,518
-24,851
25,134
37,786
-12,607
-24,641
17,424
42,201
-6,697
-23,761
27,151
37,959
-7,078
-25,389
25,797
39,337
-6,300
-23,626
24,014
35,474
-12,981
-26,379
25,057
37,389
-10,030
-25,827
23,794
39,019
-2,756
-21,064
23,320
38,710
-9,091
-17.434
21,075
40,043
-1.872
-2,418
-2.074
-2,825
-1,702
-2.116
-2,207
-2.772
-3,318
-3,767
-1,285
-15,889
0
0
-75
-13,806
0
0
388
-7.784
0
0
-305
-12.705
0
0
-356
-8.197
0
0
569
-6,231
597
-9,072
0
0
866
-7,179
0
0
301
-6,917
0
0
18
-11,766
848
-15,501
0
0
0
0
0
0
0
0
0
0
-3.309
1,204
0
1.433
NET FUTURES POSITIONS4
By type of deliverable security
6 TJ.S Treasury bills
Coupon securities, by maturity
7
Five years or less
8
More than five years
9 Federal agency
10 Mortgage-backed
NET OPTIONS POSITIONS
11
12
13
14
15
By type of deliverable security
U.S.'Treasury bills
.'
Coupon securities, by maturity
Five years or less
More than five years
Federal agency
Mortgage-backed
0
0
0
-1,779
423
0
1,585
-3,036
1,526
0
1,054
-3,148
-5
0
1,123
-3.535
1,368
0
1,244
-3,807
523
0
1,264
-3,735
529
0
967
-2,743
-172
0
984
-2.483
-1.098
0
1,110
-2,338
2
0
1.652
-3,262
1.245
0
1.447
Financing'
Reverse repurchase agreements
Overnight and continuing
Term
264,568
487,521
255,137
437,241
276,107
486,628
258,011
383,490
269.405
450,694
292,423
484,735
273.371
499.494
267,689
519,291
290.542
511.244
297,347
540,915
315,435
436,436
Securities borrowed
Overnight and continuing
Term
190,478
69,309
194.674
73,195
199,784
80,149
196,807
70,637
199,817
74,331
200,979
78,666
196,784
82,326
200,137
85.576
206,242
83,844
203,285
86,297
209.732
82,724
3.617
40
5,484
5
6,453
8
6,897
24
5,137
23
3,145
112
3,206
95
3,139
5
3,224
Repurchase agreements
Overnight and continuing
Term
577,005
447,089
564,075
393,364
578.791
443.233
520,796
349,274
576,187
409.830
600,211
445,471
585.752
446,183
558,786
479,169
587.584
46.3.182
602,531
496,351
632,316
408.317
Securities loaned
Overnight and continuing
Term
3,646
3,613
3,419
4,117
4,481
4.864
3,937
4,117
3,712
0
3,843
3,832
3,443
3,844
6,482
6,570
6,301
6.444
7,083
6,826
7.058
6.792
Securities pledged
Overnight and continuing
Term
49,960
4.294
58,532
1,682
58,140
2.391
69,883
2,148
58,433
1,894
57,317
2,387
57,355
2.548
58,592
2,675
55.285
2.729
55,325
2,771
60.841
1,832
Collaieralized loans
Overnight and continuing
Term
Total
n.a.
n.a.
14,254
n.a.
n.a.
10.025
n.a.
n.a.
9,386
n.a.
n.a.
8,353
n.a.
n.a.
8.6')6
n.a.
10.806
n.a.
n.a.
9.038
n.a.
n.a.
16,808
n.a.
n.a.
12.611
MEMO: Matched book*
Securities in
Overnight and continuing
Term
264,391
479,031
254,678
434,522
279,556
485,466
247,872
379,829
277,020
454,385
291,332
486,331
279,622
496,235
270,867
513.311
293,236
508,892
301,239
542.375
304,851
444,381
Securities out
Overnight and continuing
Term
357.386
394,147
334,841
341,796
351,842
392.408
321,596
295,911
343.682
355.706
368,703
395,492
356.229
397.689
337,780
428.627
370,367
413.073
383,443
447,702
376,680
359,655
Securities received as pledge
Overnight and continuing
Term
1. Data tor positions and financing are obtained from reports submitted to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar
days of the report week are assumed to be constant. Monthly averages are based on the
number of calendar days in the month.
2. Securities positions are reported at market value.
3. Net outright positions include immediate and forward positions. Net immediate 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 for
mortgage-backed agency securities include securities purchased or sold that have been
delivered or are scheduled to be delivered in thirty business days or less.
Forward positions reflect agreements made in the over-the-counter market that specify
delayed delivery Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days. Forward
contracts for mortgage-backed agency securities are included when the time to delivery is
more than thirty business days.
4. Futures positions reflect standardized agreements arranged on an exchange. All futures
positions are included regardless of time to delivery.
5. Overnight financing refers to agreements made on one business day that mature on the
next business day; continuing contracts are agreements that remain in effect for more than one
business day but have no specific maturity and can be terminated without advance notice by
either party; term agreements have a fixed maturity of more than one business day. Financing
data are reported in terms of actual funds paid or received, including accrued interest.
6 Matched-book data reflect financial intermediation activity in which the borrowing and
lending transactions are matched. Matched-book dala are included in the financing breakdowns given above. The reverse repurchase and repurchase numbers are not always equal
because of the "matching" of securities of different values or different types of collaleralization.
NOTE, "n.a." indicates that data are not published because of insufficient activity.
Major changes in the report form filed by primary dealers induced a break in the dealer data
series as of the week ending July 6, 1994.
A30
1.44
Domestic Financial Statistics • May 1997
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
Debt Outstanding
Millions of dollars, end of period
1996
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department^
4
Exporl-Import Bank:-y
5
Federal Housing Administration
6
Government National Mortgage Association certificates of
participation^
7
Postal Service6
8
Tennessee Valley Authority
9
United States Railway Association6
10 Federally sponsored agencies7
11 Federal Home Loan Banks
12 Federal Home Loan Mortgage Corporation
13 Federal National Mortgage Association
14 Farm Credit Bankss
15 Student Loan Marketing Association
16 Financing Corporation
17 Farm Credit Financial Assistance Corporation1'
1H Resolution Funding Corporation "
1993
1994
1995
1996
Aug.
Sept.
Oct.
Nov.
Dec.
570,711
738,928
844,611
925,823
892,294
896,670
901,09
912,100
925,823
45,193
6
5,315
255
39.186
6
3.455
116
37.347
6
2.050
97
29,380
6
1.447
84
30,730
6
1.853
78
30.599
6
1,828
82
30.800
6
1,828
82
29.909
6
1.828
84
29,380
6
1,447
84
n.a.
9,732
29.885
n.a.
n.a.
8,073
27.536
n.a.
n.a.
5,765
29,429
n.a.
n.a.
n.a.
27,853
n.a.
n.a.
n.a.
28,793
n.a.
n.a.
n.a.
28,683
n.a.
n.a.
n.a.
28,884
n.a.
n.a.
n.a.
27,991
n.a.
n.a.
n.a.
27.853
n.a.
523.452
139.512
49.993
201,112
53 123
39*784
8 170
1761
29.996
699,742
205.817
93.279
257.230
53,175
50335
8 170
1761
29.996
807,264
243.194
119,961
299.174
57,379
47^529
8,170
1761
29.996
896.443
263,404
156.980
331,270
60,053
44J63
8 170
1761
29.996
861,564
253.847
148.729
312,374
60,219
46A59
8 170
1761
29,996
866,071
254,920
146.954
319,153
60,126
44^962
8,170
1761
29.996
870,289
253,836
148,415
321,110
59,712
47,225
8,170
1761
29,996
882,191
252,868
158,158
324,378
59,797
46^991
8,170
1761
29.996
896,443
263,404
156,980
331,270
60,053
44J63
8,170
1761
29,996
128,187
103,817
78,681
58,172
61,971
62,846
61,051
58,921
58,172
5.309
9/732
4,760
6,325
n.a.
3.449
8fl73
n.a.
3,200
n.a.
2,044
5/765
n.a.
3,200
n.a.
1,431
n.a.
n.a.
n.a.
n.a.
1,847
n.a.
n.a.
n.a.
n.a.
1,822
n.a.
n.a.
n.a.
n.a.
1,822
n.a.
n.a.
n.a.
n.a.
1,822
n.a.
n.a.
n.a.
n.a.
1,431
n.a.
n.a.
n.a.
n.a.
38,619
17,578
45.864
33.719
17,392
37.984
21,015
17,144
29,513
18.325
16,702
21,714
19,757
16,847
23,520
18,700
16,751
25,573
18,700
16,753
23,776
18,325
16,772
22.002
18,325
16,702
21,714
MEMO
19 Federal Financing Bank debt'
20
21
22
23
24
Lending to federal and federally sponsored agencies
Expon-lmport Bank1
Postal Service*
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association
Other lending
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
1. Consists of mortgages assumed by the Defense Department between 1957 and 1963
under family housing and homeowners assistance programs.
2. Includes participation certificates reclassiried 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 noncontingenl liabilities: notes, bonds, and debentures. Includes
Federal Agricultural Mortgage Corporation: therefore details do not sum to total. Some data
arc estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is
shown on line 17.
9. Before late 1982, the association obtained financing through the Federal Financing Bank
(FFB). Borrowing excludes that obtained from the FFB. which is shown on line 22.
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 A.ct of 1989, undertook its first borrowing in October 1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations
issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the
purpose of lending to other agencies, its debt is not included in the main portion of the table to
avoid double counting.
14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans
guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally
being small. The Fanners Home Administration entry consists exclusively of agency assets,
whereas the Rural Electrification Administration entry consists of both agency assets and
guaranteed loans.
Securities Markets and Corporate Finance A31
1.45
NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1996
Type of issue or issuer,
or use
1994
1 All issues, new and refunding1
By type of issue
2 General obligation
3 Revenue
1995
1997
1996
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.'
Feb.
153,950
145,657
171,222
11,643
12,493
11,693
16,750
14,520
17,431
10,361
10,925
54,404
99,546
56.980
88.677
60,409
110,813
4.345
7.298
4,074
8,419
3,024
8,669
5,467
11.283
5,134
9,386
4.755
12.676
4,157
6,204
3,774
7,151
19,186
95,896
38,868
14.665
93,500
37,492
13,651
113,228
44,343
671
7,241
3,731
376
8,433
3,684
874
8,137
2,682
1,769
10,923
4,058
1,351
9,091
4,078
663
12.315
4,453
728
6,347
3,286
562
7,698
2,665
105,972
102,390
112,298
8,602
7.093
7,837
12,113
8,656
12,311
6,261
7.470
21,267
10,836
10.192
20,289
8,161
35,227
23,964
11.890
9,618
19,566
6,581
30,771
26,851
12,324
9,791
24,583
6,287
32,462
2.206
580
716
2,222
396
2,482
2.337
622
417
2,348
274
1,095
1,522
850
720
2,100
439
2,206
2,693
2.907
1,441
1.573
556
2,943
1,530
1,164
1,102
1.974
460
2,426
2.306
736
1,006
3,294
1,081
3,888
1,992
808
756
578
229
1,898
1,813
628
883
1,129
465
2,552
By type of issuer
5 Special district or statutory authority'
6 Municipality, county, or township
7 Issues for new capital
Bv use of proceeds
8 Education
9 Transportation
11 Social welfare
12 Industrial aid
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.
1.46
NEW SECURITY ISSUES
SOURCE. Securities Data Company beginning January 1990; Investment Dealer's
Digest before then.
U.S. Corporations
Millions of dollars
1996
Type of issue, offering,
or issuer
1994
1995
June
1 All issues'
2 Bonds
2
By type of offering
3 Public, domestic
5 Sold abroad
By industry' group
6 Manufacturing
7 Commercial and miscellaneous
9 Public utility
583,240
Oct.
Nov.'
Dec'
Jan.
n.a.
66,418'
41,007r
44,447r
60,542'
60,302'
57,623
51,297
55,353
r
33,255'
38,685'
53,875'
47,437'
44,282
39,550
43,199
53,378
365,222
76,065
56,755
408,804
87,492
76,910
386,280
n.a.
74,793
44,746'
n.a.
8,632'
27,368'
n.a.
5,887'
32,605'
n.a.
6.081
44,658'
n.a.
9,218
39,843'
n.a.
7,594'
38,750
n.a.
5.531
37,073
n.a.
2,477
35,192
n.a.
8,007
43,423
40,735
6.867
13,322
13,340
380 352
61.070
50,689
8.430
13,751
22.999
416 °69
41,959
34,076
5,111
8,161
13,320
358 446
6.009
4,317'
906
944'
2,231
38 973'
4,166'
2,712'
535
1,046
647
24 149'
3.092'
2.661'
293
174'
1,450
31 016'
4,045'
3,195'
620
279'
829
44 908'
5,969'
5.010'
436
1,067'
802'
34 154'
2,720
4,282
270
698
475
35 836
5,096
1.727
341
755
628
31,003
4.337
4,275
316
849
1.210
32,211
13,040
7,752
5,762
6,668'
12,865
13.342
11,747
12,153
3,310'
9.730'
n.a
1,794
5.958
n.a.
1,168
4.594
n.a.
1.890
4,778'
n.a.
3,855
9,010
n.a.
5.656
7.686
n.a.
8,128
3,619
n.a.
7,812
4.341
n.a.
2,670
6,708
197
569
837
2,102'
1,759
2,628
104
300
1,097
1,863
1,023
2,143
143
306
51
2,098
787
3,080
0
212
0
2,589
1,570
5.700
42
100
480
4,974
1,530
3,974
367
210
42
7,219
883
2.848
54
203
20
7,738
592
1,864
250
1,847
0
7,601
12,570
47,828
24,800
17,798
15,713
2,203
2,214
494
46,733
10,964
57,809
35,884'
82,860'
f
f
n.a.
n.a.
1. Figures represent gross proceeds of issues maturing in more than one year; they are the
principal amount or number of units calculated by multiplying by the offering price. Figures
exclude secondary offerings, employee stock plans, investment companies other than closedend, intracorporate transactions, equities sold abroad, and Yankee bonds. Stock data include
ownership securities issued by limited partnerships.
Sept.
n.a.
85 155
19 Public utility
Aug.
573,206
By type of offering
13 Public preferred
14 Common
15 Private placement3
21 Real estate and financial
July
498,039
12 Stocks2
By industry group
16 Manufacturing
17 Commercial and miscellaneous
n.a.
1997
1996
2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCE. Beginning July 1993, Securities Data Company and the Board of Governors of
the Federal Reserve System.
A32
1.47
Domestic Financial Statistics • May 1997
OPEN-END INVESTMENT COMPANIES
Net Sales and Assets1
Millions of dollars
1996
Item
1997
1995
1994
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
88,115
93,053
86,225
84,171
92,730
87,958
122,792
134,460
72,537
20,193
65.949
22.009
87.949
34,843
96,243
38,218
1 Sales of own shares2
841,286
871,415
2 Redemptions of own shares
3 Net sales'
699,823
141.463
699,497
171.918
69.072
19,044
76,485
16.568
64.993
21.232
65,601
18,570
4 Assets4
1,550,490
2,067,337
2,363.024
2,297,216
2,366,030
2,474,339
2,517,049
2,652,884
2,637.398
2,752,273
5 Cash5
6 Other
121.296
1,429,195
142,572
1,924,765
144,275
2.218.749
148,647
2,147.337
155,129
2,210,901
156,689
2,317,651
149,937
2,367,112
146,044
2,506,840
137,973
2,499,425
152,297
2,599,976
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
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 underwriting^ of newly formed companies after their
initial offering of securities
CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1995
Account
1994
1995
1996
1996
Qi
Q2
Q3
Q4
Ql
Q2
Q3
Q4
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
529.5
531.2
195.3
335.9
211.0
124.8
586.6
598.9
218.7
380.2
227.4
152.8
n.a.
n.a.
n.a
n.a.
244.2
n.a.
560.0
594.5
217.3
377.2
221.7
155.5
562.3
589.6
214.2
375.3
224.6
150.8
612.5
607.2
224.5
382.8
228.5
154.3
611.8
604.2
218.7
385.5
234.7
150.8
645.1
642.2
233.4
408.8
239.9
168.9
655.8
644.6
236.4
408.1
243.1
165.1
661.2
635.6
233 4
402.2
245.2
156.9
n.a.
n.a.
n.a.
n.a.
248.7
n.a.
7 Inventory valuation
8 Capital consumption adjustment
-13.3
11.6
-28.1
15.9
-8.6 r
23.1'
-51.9
17.4
-42.3
15.0
-9.3
14.6
-8.8
16.5
-17.4
20.4
-11.0
22.3
2.0
23.6
-8.1r
26.4'
SOURCE. U.S. Department of Commerce, Survey of Current Business.
Securities Markets and Corporate Finance A3 3
1.51
DOMESTIC FINANCE COMPANIES Assets and Liabilities'
Billions of dollars, end of period: not seasonally adjusted
1995
Account
1993
1996
1995
1994
01
02
03
Q4
Ql
Q2
03
ASSETS
1 Accounts receivable, gross2
2
Consumer
3
Business
4
Real estate
482.8
116.5
294.6
71.7
551.0
134.8
337.6
78.5
614.6
152.0
375.9
86.6
568.5
135.8
351.9
80.8
586.9
141.7
361.8
83.4
594.7
146.2
362.4
86.1
614.6
152.0
375.9
86.6
621.8
151.9
380.9
89.1
631.4
154.6
383.7
93.1
642.0
154.8
387.0
100.2
50.7
11.2
55.0
12.4
63.2
14.1
58.9
12.9
62.1
13.7
61.2
13.8
63.2
14.1
61.5
14.2
59.6
14.1
58.9
14.7
7 Accounts receivable, net
8 All other
420.9
170.9
483.5
183.4
537.3
210.7
496.7
194.6
511.1
198.1
519.7
198.1
537.3
210.7
546.1
212.8
557.7
216.1
568.4
226.8
9 Total assets
591.8
666.9
748.0
691.4
709.2
717.8
748.0
758.9
773.8
795.2
25.3
159 '
21.2
184 6
23.1
184 5
21.0
181 3
21.5
1813
21.8
178 0
23.1
184 5
23.5
184 8
26.2
186 9
27.5
189 4
14 All other liabilities
15 Capital, surplus, and undivided profits
42.7
206.0
87.1
71.4
51.0
235.0
99.5
75.7
62.3
284.7
106.2
87.2
52.5
254.4
102.5
79.7
57.5
264.4
102 1
82.5
59.0
272.1
102.4
84.4
62 3
284.7
106.2
87.2
62.3
291.4
105.7
91.1
68.4
301.3
100.1
90.9
71.9
311.5
102.8
92.1
16 Total liabilities and capital
591.8
666.9
748.0
691.4
709.2
717.8
748.0
758.9
773.8
795.2
5 LESS: Reserves for unearned income
6
Reserves for losses
LIABILITIES AND CAPITAL
10 Bank loans
Debt
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
2. Before deduction for unearned income and losses.
DOMESTIC FINANCE COMPANIES Consumer, Real Estate, and Business Credit'
Millions of dollars, amounts outstanding, end of period
1997
1996
Type of credit
1994
1995
I996r
Aug.
Sept.
Oct.
Nov.
Dec.1
Jan.
Seasonally adjusted
1 Total
615,618
691,616
753,682
738,487
7.19,183
749,165
758,266
753,682
758,612
2 Consumer
176,085
78,910
360.624
198,861
87,077
405,678
211,488
106,300
435.894
212,105
99,806
426,576
212,979
100,317
425,887
212,511
102,933
433,720
212.775
104 776
440,715
211,488
106 300
435.894
211.688
108.406
438,518
4 Business
Not seasonally adjusted
5 Total
6 Consumer
7
Motor vehicles
8
Other consumer3
9
Secuntized motor vehicles4
10
Securitized other consumer4
12 Business
14
15
16
17
18
19
20
21
24
Retail loans5
Wholesale loans6
Leases
Equipment
Loans7
Leases
Other business*
Securitized business assets4
Leases
620,975
697,340
759,578
732,117
735.269
747,970
758,276
759,578
760,010
178,999
61.609
73,221
31,897
12.272
78,479
363,497
118,197
21.514
35.037
61.646
157,953
49,358
108,595
61,495
25.852
4,494
14,826
6,532
202,101
70,061
81,988
33,633
16.419
86,606
408,633
133,277
25,304
36,427
71.546
177,297
59,109
118,188
65,363
32,696
4,723
21,327
6,646
214.829
73.192
80,984
35.644
25,009
105,728
439,021
141,888
27.747
32.337
81.804
184 942
60,991
123,951
71.110
41,081
5,250
24,732
11,099
211,342
74,433
78,928
35,830
22,151
100,295
420,480
135,063
28,404
28,188
78.471
182,816
55,528
127,288
68,367
34,234
4,700
23,151
6,383
213.827
76.333
78,451
34.846
24,197
100,182
421.260
138.615
28.875
30.294
79.446
181.111
56.132
124,979
67,290
34,244
4,600
23,170
6.474
213,026
75,917
77,527
34,60.3
24.979
103.184
431,760
139,966
29,088
30,515
80.363
179,997
58,735
121,262
74,055
37,742
4,650
23,183
9.909
214,227
75.304
77,868
34,177
26,878
104.943
439,106
142.210
28 825
32,262
81.123
182.080
60.181
121,899
75,345
39.471
5,402
23,391
10.678
214,829
73,192
80,984
35,644
25.009
105,728
439,021
141,888
27,747
32,337
81,804
184,942
60,991
123,951
71 110
41,081
5,250
24,732
11,099
213.292
73.599
80.927
33.976
24,790
108,910
437,808
143,934
27,656
33,764
82.514
182,915
58.276
124,639
70,944
40.015
5,086
24,143
10,786
I 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 lable al.so
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.
?. Passenger car fleeis and commercial land vehicles for which licenses are required.
6. Credit arising from transactIOIJ.S between manufacturers and dealers, ihat is, floor plan
financing.
7. Beginning with the June 1996 data, retail and wholesale business equipment loans have
been combined and are no longer separately available.
8. Includes loans on commercial accounts receivable, factored commercial accounts, and
receivable dealer capital; small loans used primarily for business or farm purposes; and
wholesale and lease paper for mobile homes, campers, and travel trailers.
A34
1.53
Domestic Financial Statistics • May 1997
MORTGAGE MARKETS
Mortgages on New Homes
Millions of dollars except as noted
1996
Item
1994
1995
1997
1996
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Perms and y elds in primary' and secondary markets
PRIMARY MARKETS
Terms'
1 Purchase price (thousands of dollars)
3 Loan-to-price ratio (percent)
5 Fees and charges (percent of loan amount)
Yield (percent per year)
7 Effective rate1-3
8 Contract rate (HUD series)4
170.4
130.8
78.8
27 5
1.29
175.8
134.5
78.6
27.7
1.21
182.4
139.2
78.2
27.2
1.21
184.8
141.1
77.7
27.2
1.38
187.1
141.7
77.2
27.7
1.28
183.9
139.0
77.7
27.4
1.11
188.1
143.3
78.0
27.4
1.19
170.8
129.9
79.3
27.5
1.01
172.4
133.6
79.7
27.9
1.02
166.6
130.9
80.9
28.1
1.03
7.26
7.47
8.58
7.65
7.85
8.05
7.56
7.77
8.03
7.85
8.08
8.45
7.77
7.98
8.23
7.76
7.95
8.01
7.60
7.80
7.73
7.63
7.79
7.91
7.65
7.81
7.94
7.61
7.78
7.94
8.68
7.96
8.18
7.57
8.19
7.48
8 58
7.68
8.56
7.85
8.00
7.53
8.14
7.19
8.06
7.33
8.06
7.51
8.08
7.37
SECONDARY MARKETS
Yield (percent per year I
9 FHA mortgages (Section 2O3)5
10 GNMA securities"
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/VA insured
13 Conventional
222,057
27.558
194.499
253,511
28,762
224,749
287,052
30,592
256,460
275,133
30,803
244,330
278,003
30,840
247,163
279,544
30,815
248,729
283 835
30,744
253,091
287 052
30,592
256,460
288,504
30,352
258,152
288,951
30.119
258,832
14 Mortgage transactions purchased (during period)
62.389
56,598
68,618
5.360
5,353
4,235
6.805
6.178
4,128
3.029
Mortgage commitments (during period)
15 Issued7
16 To sell8
54,038
1,820
56,092
360
65,859
130
5,673
0
4,264
53
5,199
0
6,533
4
3,991
28
4.384
71
4,407
0
72.693
276
72,416
107,424
267
107,157
137,755
220
137,535
127.345
201
127,144
129,426
197
129.229
132,259
227
132,032
135,270
223
135,047
137,755
220
137,535
138,935
216'
138,719'
139.925
215
139 710
Mortgage transactions (during period)
20 Purchases
21 Sales
124,697
117,110
98,470
85,877
128,566
119,702
9,643
8.994
8.687
8,167
9.538
8,797
9,198
8.456
9.943
9,220
9,507
9,204
8,204
10271
22 Mortgage commitments contracted (during period)9
136,067
118,659
128,995
8,992
9,315
8,214
9.032
9,905
9,021'
7.537
FEDERAL HOME LOAN MORTGAGE CORPORATION
Mortgage holdings (end of period)
17 Total
18 FHA/VA insured
1. Weighted averages based on sample surveys of mortgages originated by major institutional lender groups for purchase of newly built homes; compiled by the Federal Housing
Finance Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the
seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built homes,
assuming prepayment at the end often 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 ihirty-year, minimum-downpaymenl 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 thirty-year mortgages insured by the
Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments
converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal Home Loan
Mortgage Corporation's mortgage commitments and mortgage transactions include activity
under mortgage securities .swap programs, whereas the corresponding data for FNMA
exclude swap activity.
Real Estate A35
1.54
MORTGAGE DEBT OUTSTANDING'
Millions of dollars, end of period
Type of holder and property
01
Q2
Q3
Q4P
4.275,217r
4,481.075r
4,714.346
4,714,346'
4.792,478r
4,889,980'
4.975,730
5,054,447
By type of property
One- to tour-family residences
Multifamily residences
Nonfarm, nonresidential
Farm
3,233,830'
270,824
689.365
81.198
3.437,781'
275,705
684,618
82,971
3,634,060
287.993
707.673
84.620
3,634,060'
287,993'
707,673
84,620
3,699,671'
291,893
715,696
85,217
3.778,471'
297,223'
727,743'
86.544'
3.853.772
301,635
732,905
87.418
3.912.079
309,266
744,994
88,108
By type of holder
Major financial institutions
Commercial banks"
One- to four-family
Multifamily
Nonfarm, nonresidential
Farm
Savings institutions^
One- to four-family
Mulnfamily
Nonfarm, nonresidennal
Farm
Life insurance companies
One- to four-family
Multifamily
Nonfarm, nonresidential
Farm
1.768,093
940,595
556,660
38,657
324,413
20,866
598,437
470,000
67.367
60.765
305
229.061
9,458
25,814
184,305
9.484
1,815,845
1,004 322
611,391
39 360
331,004
22,567
596.191
477.626
64,343
53,933
289
215,332
7,910
24.306
173,539
9.577
1,888,970
1,080,366
663,614
43,842
349,081
23,829
596,789
482,351
61.988
52.162
288
211,815
7,476
23,920
170.783
9,636
1,888,970
1.080.366
663,614
43,842
349,081
23,829
596,789
482,351
61,988
52,162
288
211,815
23,920
170,783
9,636
1 901,524
1.087,207
665,935
44,700
352,641
23,931
602,631
489,634
60.540
52,155
302
211,686
7,472
23,906
170,681
9.627
1.925.056'
1.099.643'
670,756'
45,368'
358,956'
24,563'
612,849'
499.021
60.820'
52,688'
320
212,565
7,503
24,007
171.402
9.653
1,953,214
1,112,961
679,254
46.530
362,362
24,815
628,037
513,291
61,434
52,991
320
212,216
7,488
23,959
171,059
9,710
1,977,208
1,136,139
696.340
47,026
367,893
24.880
628,719
513,644
61,670
53,073
331
212,351
7,493
23.972
171,152
9,735
327.014
22
15
7
41,386
15,303
10.940
5,406
9,739
12,215
5,364
6,851
17,284
7.203
5.327
4,754
0
14,112
2,367
1,426
10 319
0
166,642
151,310
15,332
28.460
1,675
26,785
46,892
44.345
2,547
319,327
6
6
0
41.781
13.826
11.319
5,670
10,966
10,964
4,753
6,211
10,428
5.200
2,859
2,369
0
7,821
1,049
1,595
5,177
0
178.059
162,160
15,899
28,555
1,671
26.885
41.712
38.882
2.830
313,760
2
313.760
2
2
0
41,791
12.643
11,617
6,248
11.282
9,809
5,180
4,629
1,864
691
647
525
0
4.303
492
428
3.383
0
183.782
168,122
15,660
28,428
1,673
26,755
43,781
39 929
3,852
312,950
2
2
0
41,594
12,327
11.636
6,365
11,266
8,439
4,228
4,211
0
0
0
0
0
5,553
839
1,099
3,616
0
183,531
167,895
15,636
28,891
1,700
27,191
44,939
40.877
4,062
314,694
2
2
0
41,547
11.982
11.645
6,552
11.369
8,052
3.861
4,191
0
0
0
0
0
5.016
840
955
3.221
0
186.041
170,572
15,469
29,362
1,728
27,634
44.674
40 477
4,197
311,697
2
2
0
41,575
11,630
11,652
6,681
11,613
6.627
3,190
3,438
0
0
0
0
0
4.025
675
766
2,584
0
185,221
170,083
15.138
29.579
1,740
27,839
44.668
40.304
4,364
308,708
2
2
0
41,596
11,319
11,685
6,841
11,752
5,977
3,258
2.719
0
0
0
0
0
1,277
231
194
853
0
184.445
169,765
14,680
29,973
1,764
28,210
45.437
40.691
4.746
1.570.666'
414,066
404,864
9,202
447.147
442,612
4,535
495,525
486,804
8.721
28
5
0
13
10
213,901'
179,730'
8,701
25,469
0
1,726 833'
450.934
441,198
9.736
490.851
487,725
3,126
530.343
520,763
9.580
19
3
0
9
7
254,686'
202,987'
14,925
36.774
0
1.861,864
472,292
461,447
10,845
515,051
512 218
2.813
582.959
569,724
13,235
1,861,864'
472,292
461,447
10,845
515,051
512,238
2,813
582.959
569.724
13,235
0
5
4
291,551
222,892
21,279
47,380
0
0
5
4
291,551'
222,892'
21,279
47,380
0
1,905,515'
475,829
464.650
11,179
524,327
521,72
2,605
599,546
585,527
14,019
10
1
0
5
4
305,803'
230,221'
24.477
51,104
0
1,963,909'
485,441
473,950
11,491
536.671
534.238
2,43,3
621,285
606,271
15.014
9
1
0
4
4
320,502'
239,153'
26,809
54,541
0
2,008,229
497,248
485,303
11,945
545,608
543,341
2.267
636.362
619.869
16,493
7
0
0
4
3
329.003
244,527
28,141
56.336
0
2,055,077
505.977
493,795
12,182
554 260
551,513
2.747
650.780
633.210
17,570
3
0
0
0
3
344.057
246,904
33,689
63.464
0
609,444'
456,115'
65,398
73,922
14,009
619,069'
460,632'
69,615
76,142
12,681
649,752
485,584
73,239
78,105
12,824
649,752'
485,584'
73,239
78,105
12.824
672,488'
506,641'
73,823
79,129
12.896
686,321'
518,116'
74,824'
80.379'
13,002
702.590
533,074
75,510
80,888
13.118
713.454
542,151
76,387
81,718
13,198
1 All holders
2
3
4
5
Q4
Federal and related agencies
Government National Mortgage Association
One- to four-family
."
Multifamily
Farmers Home Administration4
One- to four-family
Multifamily
Nonfarm, nonresidenlial
Farm
Federal Housing and Veterans' Administrations
One- to four-family
Multifamily
Resolution Trust Corporation
One- to four-family
Multifamily
Nonfann. nonresidential
Farm
Federal Deposit Insurance Corporation
One- to four-family
Multifamily
Nonfarm, nonresidentia!
Farm
Federal National Mortgage Association
One- to four-family
Multifamily
Federal Land Banks
One- to four-family
Farm
Federal Home Loan Mortgage Corporation
One-to four-family
Multifamily
53 Mortgage pools or trusts"
54
Government National Mortgage Association . . .
55
One- to four-family
56
Multifamily
57
Federal Home Loan Mortgage Corporation . .
58
One- to four-family
59
Multifamily
60
Federal National Mortgage Association
61
One- to four-family
62
Mullifamily
63
Fanners Home Administration4
64
One- to four-family
65
Multifamily
66
Nonfarm, nonresidential
67
Farm
68
Private mortgage conduits
69
One- to four-family6
70
Multifamily
71
Nonfarm, nonresidential
72
Farm
73 Individuals and others
74
One- to four-family
75
Multifamily
76
Nonfarm. nonresidential. .
77
Farm
1. Mullifamily debt refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by bank trust
departments.
3. Includes savings banks and savings and loan associations.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from
FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of accounting
changes by the Farmers Home Administration.
5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by
the agency indicated.
0
41,791
12,643
11,617
6.248
11.282
9,809
5,180
4,629
1,864
691
647
525
0
4.303
492
428
3.383
0
183,782
168,122
15,660
28,428
1,673
26,755
43.781
39.929
3.852
1Mb
6. Includes secuntized home equity loans.
7. Other holders include mortgage companies, real estate investment trusts, state and local
credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and
finance companies.
SOURCE. Based on data from various institutional and government sources. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and interpolations and
extrapolations, when required for some quarters, are estimated in part by the Federal Reserve
Line 69 from Inside Mortgage Securities and other sources
A36
1.55
Domestic Financial Statistics • May 1997
CONS UMER CREDIT'
Millions of dollars, amounts outstanding, end of period
1996
Holder and type of credit
1994
1995
1997
1996'
Aug.
Sept.
Ocl.
Nov.1
Dec.'
Jan.
Seasonally adjusted
1 Total
966,457
1,103,296
1.194,577
1,177,482
1,178,600
1,185,910'
1,190,754
1,194,577
1,202,972
3 Revolving
4 Other2
317,182
339,337
309,939
350,848
413,894
338.554
377,350
462,380
354,847
373,525
454,252
349,705
374,476
453,722
350,402
376 769r
456,366
352.775'
376,652
460,395
353,707
377,350
462,380
354,847
378,555
470,333
354,084
Not seasonally adjusted
5 Total
990,247
1,131,881
1,226,257
1,174,309
1,182,632
1,187,665'
1,198,634
1,226,257
1,214,104
462 923
134,830
119,594
38,468
86,621
147,811
507 753
152,624
131,939
40,106
85,061
214,398
528 206
154,176
146.314
47.780
79.598
270,183
516719
153,361
140,635
43,986
70,996
248,612
517,145
154,784
141,968
44,934
68,513
255,288
519,468'
153,444'
144,423
45.883
67 900
256,547
519,796
153,172
145,055
46.831
69.708
264,072
528,206
154,176
146,314
47,780
79,598
270.183
524,609
154,526
146,393
47,000
75.513
266,063
354 055
149,094
70,626
44,411
380 980
153,158
73,192
51.171
374,974
154.451
74,433
47,465
377,898
153,143
76,333
48,135
381.070'
154,566
75,917'
48,020
380,827
154,287
75,304
48,242
380,980
153,158
73,192
51.171
378,144
152.741
73,599
48,152
By major holder
7 Finance companies
8 Credit unions
9 Savings institutions
11 Pools of securitized assets4
Bv major type of credit
13
Commercial banks
15
Pools of securitized assets4
319715
141,895
61,609
36,376
16 Revolving
17 Commercial banks
18 Nonfinancial business"*
19
Pools of securitized assets4
357,307
182,021
56,790
96.130
435,674
210,298
53.525
147.934
486,606
223,079
46.901
188,712
451,294
209,757
41,258
174.640
453,656
211.185
38,816
177.958
455,854
213,150
38.105
178.590
464,055
214,233
39,275
183.987
486.606
223,079
46,901
188,712
477.942
219,061
43,935
187,865
20 Other
21
Commercial banks
22
Finance companies
23
Nonfinancial business'
24
Pools of securitized assets4
313.225
139,007
73,221
29,831
15,305
342.152
148,361
81,998
31.536
22,053
358,671
151,969
80,984
32,697
30,300
348.041
152,511
78,928
29,738
26.507
351.078
152,817
78,451
29,697
29,195
350.741'
151.752'
77.S27
29,795
29,937
353,752
151,276
77,868
30,433
31.843
358,671
151,969
80,984
32,697
30,300
358,018
152,807
80,927
31,578
30,046
1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. Data in this table also appear in the Board's G.I9 (421) monthly
statistical release. For ordering address, see inside front cover.
2. Comprises mobile home loans and all other loans that are not included in automobile or
revolving credit, such as loans for education, boats, trailers, or vacations. These loans may be
secured or unsecured.
3. Includes retailers and gasoline companies.
4. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
5. Totals include estimates for certain holders for which only consumer credit totals are
available.
1.56 TERMS OF CONSUMER CREDIT'
Percent per year except as noted
1997
1996
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
INTEREST RATES
Commercial banks"
1 48-momh new car
2 24-month personal
8.12
13.19
9.57
13.94
9.05
13.54
n.a.
n.a.
9.11
13.37
n.a
n.a
n.a.
9.03
13.62
n.a.
n.a.
n.a.
n.a.
Credit card plan
3 All accounts
4 Accounts assessed interest
15.69
15.77
16.02
15.79
15.63
15.50
n.a.
n.a.
15.65
15.64
n.a.
n.a.
n.a.
n.a.
15.62
15.52
n.a.
n.a.
n.a
n.a.
Auto finance companies
5 New car
6 Used car
9.79
13.49
11.19
14.48
9.89
13.53
9.81
13.77
10.49
13.92
10.52
13.87
10.40
13.75
10.31
13.56
9.25
13.42
7.17
12.93
54.0
50.2
54.1
52.2
51.6
51.4
50.5
51.7
51.4
51.3
51.9
51.0
52.5
51.1
52.3
50.3
52.3
49.9
55.1
51.5
92
99
92
99
91
100
91
100
92
100
91
100
89
101
90
102
90
100
92
99
15,375
10.709
16,210
11,590
16,987
11,711
16,926
12,242
16,927
12,132
17.182
12,108
17,435
12,326
17,719
12,393
17.670
6,847
17,090
12.362
OTHER TERMS 3
Maturity (months)
8 Used car
Loan-to-value ratio
9 New car
10 Used car
Amount financed (dollars)
11 New car
12 Used car
1. The Board':, .series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. Data in this table also appear in the Board's G.I9 (421) monthly
statistical release. For ordering address, see inside front cover.
2. Data are available for only the second month of each quarter.
3. At auto finance companies
Flow of Funds A37
1.57
FUNDS RAISED IN U.S. CREDIT MARKETS1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1996'
1995
Transaction category or sector
1992
1993
1994
1995
1996
Q2
Q3
Q4
Ql
Q2
Q3
Q4
Nonfinancial sectors
1 Total n e t borrowing b y domestic nonfinancial s e c t o r s . . . .
544.51"
629.5r
621.3r
719.8'
747.4
868.6r
570.0r
591.3r
883.3
734.3
725.0
647.0
By sector and instrument
2 Federal government
3 Treasury securities
4
Budget agency securities and mortgages
304.0
303.8
2
256.1
248.3
7.8
155.9
155.7
.2
144.4
142.9
1.5
145.0
146.6
-1.6
184.7
183.1
1.6
86.0
85.6
.4
59.3
54.1
5.1
239.9
242.2
-2.3
62.4
60.2
2.2
161.3
164.4
-3.1
116.5
119.8
-3.3
5 Nonfcderal
240.5'
373.4'
465.4
575.4'6
602.4
683.9'
484.0'
532.0'
643.4
671.9
563.7
530.6
6
7
8
9
10
11
12
13
14
15
16
By instrument
Commercial paper
Municipal securities
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit
8.6
30.5
67 6
-13.7
10.1
132.4'
189.4'
-10.4
-48.1'
1.4
5.0
10.0
74.8
75 2
3.6
-9.4
157.7'
187.2'
-6.0
-24.0 1
.5
61.5
21.4
-29.3
23 3
73.2
54.4
196.1'
204.0'
1.7
-11.3
1.8
126.3
18.1
-44.2
73.3
99.6
59.0
228.0'
196.3'
10.5
19.5
1.6
141.6
-.9
1.9
72.5
65.5
34.7
334.3
278 0
19.4
33.5
3.5
94.4
34.3
— 2.2
98.4
99.1
57.3
242.1'
193.5'
10.9
36.1
1.7
155.0
18.1
-107.2
59.8
75.3
35.2
246.4'
219.2'
11.3
13.7
2.2
156.4
14.1
-12.6
82.0
78.5
61.0
191.5'
159.0'
13.3
18.2
1.1
117.5
30.3
-18.9
60.9
41.2
32.9
374.6
330.1
13.8
28.4
2.4
122.4
11.0
37.7
71.5
74.9
26.8
359.1
290.0
19.4
44.3
5.3
90.9
-16.1
-76.2
67.8
118.6
79.4
292 3
256.3
15.7
16.8
3.5
98.0
-29.0
65.2
89.9
27.3
-A
311 3
235.7
28.6
44.3
2.7
66.2
17
18
19
20
21
22
fiv borrowing sector
Household
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government
200.2'
19.2'
33.9'
-16.0
1.3
21 1
257.3'
53.7'
47.6'
4.2
2.0
62 3
372.4
132.8'
118 !'
11.9
2.8
-39.8'
381.1'
233.8'
197.5'
34.8
1.6
-39.6'
395.3
193.9
147.3
43.4
3.1
13.3
391.5'
292.4'
260.3'
29.1
3.0
.0'
414.0'
171.4'
133 5'
34.4
3.5
-101.3'
332.5'
211.4'
175 3'
37.1
-1.0
-11.9'
470.2
176.8
130.5
46.3
.1
-3.6
434.0
193.5
149 2
37.2
7.2
44.4
375.7
249.5
214.5
36.2
-1.2
-61.6
301.1
155.5
95.2
54.0
6.3
73.9
23.7
5.2
16.8
2.3
-.6
70.4
-9.0
82.9
.7
-4.2
-15.3
-27.3
12.2
1.4
-1.6
69.5
13.6
48.3
8.5
-.8
67.4
10.9
46.8
9.1
.7
45.5
-8.7
51.2
5.6
-2.6
88.3
23.7
55.2
8.2
1.3
76.9
-3.9
72.7
11.9
-3.9
49.1
-8.5
47.9
8.7
1.1
36.6
9.5
11.1
15.1
.7
106.0
38.6
59.7
4.7
3.1
77.8
3.8
68.4
7.8
-2.2
568.21"
699.9r
606.0
789.3r
814.8
9i4.r
658.4r
668.2r
932.4
770.9
831.0
724.9
23 Foreign net borrowing in United States
24 Open market paper
25 Bonds
26
Bank loans n.e.c
27 Other loans and advances
28 Total domestic plus foreign
Fmancia sectors
29 Total net borrowing by financial sectors
30
31
32
33
fiv instrument
U S government-related
Government-sponsored enterprise securities
Mortgage pool securities
Loans from U.S. government
34 Private
35 Open market paper
36 Corporate bonds
37 Bank loans n.e.c
38 Other loans and advances
39 Mortgages
40
4!
42
43
44
45
46
47
48
49
50
51
By borrowing sector
Commercial hanking
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations
240.0
291.3r
467.71"
446.6r
531.0
440.0r
507.0
572.0
328.6
687.2
503.1
605.0
155.8
40.3
115.6
.0
165.3
80.6
84.7
.0
287.5
176.9
115.4
-4.8
204.1'
105.9'
98.2
.0
231.1
90.4
140.7
.0
196.5
127.2
69.3
.0
227.7
101.5
126.2
.0
305.5'
132. r
173.4
.0
137.8
31.4
106.5
0
296 0
126.9
169.1
.0
240.4
80.0
160.4
.0
250 0
123.3
126.8
.0
84.2
-.7
82.7
2.2
-.6
.6
126.0'
-6.2
119.2'
-13.0
22.4
3.6
180.2'
41.6
1 18.4'
-12.3
22.6
9.8
242.5'
42.6
185.7'
5.5
3.4
5.3
299.9
92.7
153.2
21.1
27.2
5.8
243.5'
33.9
182.3
20.7
1.3
5.2
279.3
43.7
217.6
7.9
4.9
5.2
266.5'
55.1
175.6'
-1.8
32.0
5.6
190 8
17.8
148.1
24.9
-5.5
5.5
391 2
105.7
207.5
23.6
48.6
5.8
262 6
85.2
118.1
19.6
33.9
5.8
354.9
162.0
138.9
16.4
11 8
6.0
10.0
-7.0
13.4
11.3
20.1
12.8
22.5
2.6
11.6
26.0
39.0
-7.2
.0
.2
.2
- l
1
- l
0
40.2
115.6
58.5
-1.6
8.0
.3
2.7
13.2
80.6
84.7
82.4'
.2
.0
3.4
12.0
2.9
3
172.1
115.4
69.51
50.2
-11.5
13.7
5
24.2
38.9
5.1
1
-.1
101.5
126.2
164.8
19.8
40
5.2
2.1
39.4
-9.7
31.5
0
-.4
132.1'
173.4
187.5'
54.3
-10.0
6.0
77
-.4
- 32.5
11.0
-.1
25
31.4
106.5
137.1
47.1
20.0
5.9
-31.8
31.6
40.1
42.1
-.2
.3
126.9
169.1
133.9
68.4
16.0
6.5
13.2
70.9
15.7
26.4
.3
-.4
80.0
160.4
99 7
56.9
16.6
6.7
5.7
35.0
23.3
24.6
3
2.0
12.3.3
126.8
146.6
19.5
15.8
7 1
4.8
110.9
-.1
105.91
98.2
133.2'
51.6
.4
5.4
-5.0
32.0
1.1
90.4
140.7
129.3
48.0
17.1
6.6
-2.0
62.1
.1
127.2
69.3
113.3'
52.0
14.8
5.2
-.1
26.4
A38
1.57
Domestic Financial Statistics • May 1997
FUNDS RAISED IN U.S. CREDIT MARKETS' —Continued
1994
Transaction category or sector
1995
1996
Q2
Q3
Q4
01
Q2
Q3
Q4
All sectors
52 Total net borrowing, all sectors
808.21"
991.2'
l,073.7 r
1,235.9'
1,345.8
l,354.1 r
l,165.4 r
1,240.2'
1,261.0
1,458.1
1,33.1
1,329.9
53
54
55
56
57
58
59
60
13.1
450.8
30.5
167.1
-9.3
8.9
133.O1
5.0
-5.1
421.4
74.8
277.3'
-8.6
8.7
161.3'
61.5
35.7
448.1
-29.3
153.9'
62.3
70.7
205.9'
126.3
74.3
348.5'
-44.2
307.3'
113.5
61.6
233.3'
141.6
102.6
376.1
1.9
272.5
95.6
62.6
340.1
94.4
59.5
381.1
-2.2
332.0'
125.4
56.0
247.3'
155.0
85.5
313.7
- 107.2
332.5
91.4
41.3
251.6'
156.4
65.3
364.8'
-12.6
330.3'
88.6
89.1'
197.1'
117.5
39.6
377.7
-18.9
256.9
74.7
28.6
380.2
122.4
126,3
358.4
37.7
290.2
1136
76.1
364.S
90.9
107.6
401.7
-76.2
245.6
142.8
116.5
298.1
98.0
136.8
366.5
65.2
297.2
51.4
29.2
317.3
Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank ioans n.c.c
Other loans and advances
Mortgages
Consumer credit
66.2
Funds raised through mutual funds and corporate equities
61 Total net issues
312.5
453.6
152.2
154.9r
253.6
147.2r
196.3'
226.1'
289.1
402.8
85.0
237.6
62 Corporate equities
63
Nonfinancial corporations
64
Financial corporations
65
Foreign shares purchased by U.S. residents
66 Mutual funds
103.4
27.0
44.0
32.4
209.1
129.9
21.3
45.2
63.4
323.7
23.3
-44.9
20.1
48.1
128.9
-19.0'
-74.2'
4.5
50.7
173.9
-21.6
-82.6
3.3
57.8
275.2
-5.7'
-71.3
12.6'
40.8
165.0
-18.4'
-92.8
-1.1'
88.2
202.0
1.4
-72.8'
-3.1'
57.4
244.5
51.6
-92 4
4.0
89.8
287.6
-108.1
-27 2
9.1
69.7
351.2
-31.2
-138.8
-1.4
32.1
193.1
-31.2
-72.0
1.3
39.5
268.7
1. Data in this table also appear in the Board's Z.I (780) quarterly statistical release, tables
F.2 through F.5. For ordering address, see inside front cover.
Flow of Funds
1.58
A39
SUMMARY OF FINANCIAL TRANSACTIONS'
Billions of dollars except as noted: quarterly data at seasonally adjusted annual rates
1996
1995
Transaction category ur scctoi
199^
1 W4
1996
Q2
Q3
Q4
01
02
03'
Q4
NET LENDING IN CREDIT M A R K E T S 2
I Total net lending in credit markets
2
3
4
5
6
7
8
9
10
11
i2
13
14
15
(6
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
12
33
Domestic nonfederal nonfinaneial sectors
Households
Nonfinaneial corporate business
Nonfann noncorporate business
State and local governments
Federal government
Rest of the world
Financial sectors
Monetary authority
Commercial banking
U S chartered banks
Foreign banking offices in United Slates
Bank holding companies
Banks in U.S affiliated areas
Savings institution.*)
Credit unions
Bank personal trusts and estates
Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement funds
Money market mutual funds
Mutual funds
Closed-end funds
Government sponsored enterprises
Federally related mortgage pools
Asset-backed securities issuers (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (RElT.s)
Brokers and dealers
Funding corporations
808.2 r
991.2'
1,073.7'
1.235.9'
1,345.8
1.354.1'
l,165.4 r
1,240.2'
1.261.0'
1,458.1'
1,33.1
1,329.9
112.0'
82.6'
27.8
-.1
1.7
-11.9
98.4
609.7'
27.9
95.3
69.5
16.5
83.3'
42.7'
9.1
-1.1
32.6
-18.4
129.3
797.0'
36.2
142.2
149.6
-9.8
254.1'
259.4'
49.6
2
-55D'
-24 2
132.3
711.5'
31.5
163.4
148.1
11.2
4
28.2
25.5
.4
-53.7
-23 3
404.8
963.8
12.3
187.9
119.7
63.3
-149.2'
-128.3'
37.7
.3
-58.8
-24.2
322.2
1.205.2'
16.7
319.4
222 4
86.6
5.3
5.2
-11.7
22.8
-20.6
135.5
20.9
57.2
-70.6'
110.7'
-53.1
- 1 8 7 1'
-136.9'
33.0
-64.5'
-65.2'
-2.1'
.4
2.4
-20.7
341 1
1,005.1'
16.9
121.7
80 5
44.2
-5.1
308.1'
270.7'
57.8'
.4
-20.8
-15.2
268.2
896.9'
-65.7
-36.8
34.7
126.2
18.2
68.8
115.6
53.7
7.5
.1
1.1
-1.3
13.0'
2.4
-23.1
21.7
9.5
100.9
27.7
45.9
21.1
20.4
159.5
14.4
88.6
84.7
79.9'
-9.0
.0
.6
14.8
-38.7'
3.3
6.7
28.1
7.1
66.4
24.9
46.8'
30.7
30.0
-7.1
-3.3
120.6
115.4
62.8'
68.2
-24.0'
4.7
-44.2
-17.2'
-97.0'
-13.9'
-6.0
.3
-77.4
-21.5
272.7
1.081.7'
12.7
265.9
186.5
75.4
-.3
4.2
-7.5
16.2
-18.8
99.1
21.5
61.3
22.7
86.5
52.5
13.3
87.9'
98.2
113.0'
64.2
-3.4
1.8
90.1
4.6'
808.2'
991.2 r
1,073.7'
-1.6
-2.0
.2
-3.5
49.4
113.5
-57.2
-73.2
4.5
43.1
103.4
209.1
46.6
-7.1
16.7
260.1'
.8
.0
.4
-18.5
50.5
117.3
-70.3
-23.5
20.2
71.2
129.9
323.7
52.4
61.4
36.0
250 5
\2
.9
19.7
348.6'
.7
54.0
89.8'
-9.7
-40.0
19.6
43.3
78.3
23.3
128.9
114.0
- 1
34.5
251.8'
3.2
17.8
25.9
266.3'
1.794.2'
2,367.6'
2,169.6'
5.6
1.7
-79.0
17.7
8.0
78.5
6.7
41.1
5.9
4.7
.9
.0
39
1.0
23.3
22.1
-13.6
55.2
24.4
62.9
34.2
88.8
57.9
.3
-128.5
-24 1
361.0
899.3'
-4.1
244.8
227.0
25.6
-9.6
1.8
32.2
11.0
-2.3.7
72.9
21.9
50.5
3
-83.7
-24.4
157.6
1,294.2'
19.7
166.2
118.1
36.1
4.6
7.4
34.1
22.1
-18.1
48.7
23.6
82.6
58.7
175.0
67.5
10.9
33.4'
106.5
117.3'
40.9
47.9
1,9
-109.0
122.4'
45.0'
34.8
-12.1
2.4
23.7
94.0'
50.0
18.4
63.7
9.8
121.8'
169.1
123.8'
41.3'
-17.3
1.7
-72.0
-.7'
-175.7
-55.4
11.6
.4
-132.4
-26.4
484.4
1.051.9
19.3
202.0
123.6
72.9
4.8
.7
49.1
14.2
-12.5
135.1
24.9
46.8
22.0
88.5
35.6
9.0
81.9
160.4
73.0
55.9
16.6
2,4
35.5
-7.8
2.1
9.4
190.2'
125 5
57.5
5.4'
1.7
.4
-64.1
-30.8
525.6
900.8
3.6
237.8
149.3
78.5
10.5
-.6
-34.8
17.5
-11.6
34.5
25.3
28.1
6.0
73.4
64.9
89.3
140.7
104.4
38.7
14.7
2.0
-17.3
26.5
134.4
23.4
15.1
93.0
69.3
101.0'
67.2
29.9
1.8
145.2'
-20.2'
30.0
58.0
16.7
50.0
126.2
154.4
50.8
7.3
1.8
-5.2'
I.I 1
-68.4
19.5
-20.2
53.2
22.3
78.5
20.2
125.1
141.9
13.2
186.5'
173 4
141.4'
53.7
-36.4
1,9
189.3'
13.2'
1,235.9'
1,345.8
l,354.1 r
1,165.4'
l,240.2 r
l,261.0 r
1,458.1'
1.334.1
1,329.9
-5.8
8.8
.0
2.2
.6
-6.3
-.5
10.3
.0
.7
110.8
-4.9'
100.2
95.6
74.4
221.1
115.4'
-17.9'
165.0
80.6'
25.9'
57.6
290.4
9.0
8.6
.8
-29.5
-1.9
.0
0
18.2
80.3'
-69.3
114.9
-.9
.0
.0
85.0
-88.5'
43.3
212.5
55.1
244.0
-19.1
1.4'
287.6
62.7
120.6
19.0'
256.1'
1.6
.0
.0
.9
.7
.0
-2.3
-8.5
43.5
-82.1
81.8
134 4
187.7
81.5
-31.2
268.7
60.3
107.2
31.9
246.1
- 7
-13.3
28.9
580.4
3.044.9
9.3
4.9
2.6
7.5
119.6
126.8
103.3
16.6
11.6
2.1
76.3
-7.8
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
34 Net flows through credit markets
15
36
37
^8
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
Other financial sources
Official foreign exchange
Special drawing rights certificates
Treasury currency
Foreign deposits
Net interbank transactions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Corporate equities
Mutual fund shares
Trade payable*.
Security credit
Life insurance reserves
Pension fund reserves
Taxes payable
Investment in bank personal trusts
Noncorporate proprietors' equity
Miscellaneous
55 Total financial sources
56
57
58
59
60
61
Liabilities not identified as assets ( — )
Treasury currency
Foreign deposits
Net interbank liabilities
Security repurchase agreements
Taxes payable
Miscellaneous
Floats
not included
in assets
4.6
28.0
241.9
9.7
_ 2
-2l
11.3
-1.5
-1 3
-4.0
1,812.9'
2,476.0'
2,753.7
47.7
-53.8
19.2
91.6
113.5
145.8
37.6
-21.6
275.2
76.3
46.4
35.0
252.1
2.6
-25.0
35.8
480.0
2,897.4
- -13.r
-49.2
37.9'
584.3'
-22.1
24.1'
268.7'
-26.6
-1.8
2.3
113.2
-118.6
110,9
76.7
181.0
147.4
-29.8
-108.1
193.1
55.6
-4.3
56.8
269.8
-1.2
-15.3
52.5
487.3
3,118.6'
2,651.7'
2.774.9
-1.1
61.4
10.9
21.7'
31. r
22
-23.2
244 '.\' - 1 8 5 . 5 '
-1.0
23.6
-26.9
112.5'
24.9
-243.6'
1 3
122.5
-9.2
-100.8
-59.0
-3 1
-55.1
11.2
23.3
3
141 6
-47.6
39.9
421.3'
-113.1
145.6
80.2
122 9
92.8'
-5.7'
202.0
129.3
32.1'
33.1
211.2
3.4'
-65.8
45.3
430.4'
151.1
62.3'
- 1 8 4'
244.5
90.1
50. V
38.3
187.8
-10.2
-39.2
38.4'
842.6'
3,093.8 r
2,484.8 r
3,018.9 r
.8'
-.9
5.6
-51.5'
4.5
-4.6
83.5
4.1
117.7
51.6'
351.2
126.8
-37.7
32.2'
236. V
6.6
-107.7'
- 5
27.2
-3.1
55.4'
87
-4.7'
-86.6
-2.4'
30.8'
18.4'
-55.7
12.3
73.2'
10.3'
-30.8'
-4.8
-2.8
-3.1
-6.0
-3 8
-23.3
.5
-4.0
-7.9
-18.6
-3.8
29.9'
3.8
-3.2
-46.7
-13.8
-4 7
-125.5
-3.8
45.4'
-10.5
-4.2
29.5'
28.0
-4.0
-64.1
-24.2
-4.0
-42.4
2,703.8'
2.94-1.6
2,939.2'
2.521.9'
2,888.6'
3,184.1'
2,747.5'
2,850.3
2,997.3
-.2
-7.0
4.2
40.2'
II 1
-149.9'
-4.9
4.4'
11.9
-40.6'
33.5
9.8'
-12.8
96.5
65.6
142.3
110.7
-19.0'
173.9
96.3
26.7
44.9
240 3
l!i
-49.7
41.3
504.6'
-.0
44.9
-2.7
59.4'
8.6
- 1.0
38.1
-3.5
14.2
3.0
-.4
101.5
-.9
-.3
- 1.0
21.5
-23.6
9.9
(-)
62 Federal government checkable deposits
63 Other checkable deposits
64 Trade credit
65 Total identified to sectors as assets
.7
1.6
2,178.1'
1. Data in this table also appear in the Board's Z. 1 1780) quarterly statistical release, tables
F.6 and F.7. For ordering address, see inside front cover.
8.6
2. Excludes corporate equities and mutual fund shares.
A40
1.59
Domestic Financial Statistics • May 1997
SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1
Billions of dollars, end of period
1996
1995
Transaction category or sector
1993
1994
1995
1996
Q3
Q2
Q4
Ql
02
Q3'
Q4
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
By set tor and instrument
2 Federal government
3
Treasury securities
4
Budget agency securities and mortgages
....
12,544.7'
13,172.2'
13,892.0'
14,639.4
13,557.6'
13,708.3'
13,892.0'
14.089.7'
14,247.2'
14,437.5
14,639,4
3,336.5
3,309.9
26.6
3,492.3
3 465.6
26.7
3.636.7
3.608.5
28.2
3,781.8
3,755.1
26.6
3,583.5
3,556.7
26.8
3.603.4
3.576.5
26.9
3,636.7
3,608.5
28.2
3,717.2
3,689.6
27.6
3,693.8
3.665.5
28.2
3,733.1
3,705.7
27.4
3,781.8
3,755.1
26.6
9,208.2'
9,679.9'
10.255.2'
10,857.6
9,974.1'
10.104.8'
10,255.2'
10,372.5'
10.553.4'
10,704 4
10.857.6
6
7
8
9
10
11
12
13
14
15
16
B\ instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit
1 17.8
1,377.5
1,229.7
675.9
677.1
4,266.3'
3 213 8'
267.9
683.4
81.2
863.9
139.2
1,348.2
1.253.0
749.0
737.8
4.462.3'
3 437 8'
269.5
672.1
83.0
990.2
157.4
1,304.0
1.326.3
848.6
796.8
4.690.3'
3 634 1'
280.1
691.6
84.6
1.131.9
156.4
1,306.0
1,398.8
914.0
831.5
5,024.6
3912 1
299.4
725.0
88.1
1,226.3
162.9
1,331.7
1.290.9
810.7
776.9
4,570.2'
3 5->8 9'
273.9
683.6
83.8
1,030.8
163.3
1,308.2
1.305.8
824.3
782.1
4.643.0'
3 594 9'
276.7
687.0
84.4
1,078.2
157.4
1,304.0
1,326.3
848.6
796.8
4,690.3'
3 634.1'
280.1
691.6
84.6
1,131.9
174.2
1,300.8'
1.341.5
856.7'
809.3
4.767.11
3.699.7'
283.5
698.7
85.2
1,123.0'
181.7
1.306.8'
1,359.4
878.7'
815.7
4.863.1'
3,778.5'
288.4'
709.8'
86.5
1,147.9'
173.0
1,290.6
1,376.4
902 6
831.8
4,947 4
3,853.7
292.3
713.9
87.4
1.182.6
156.4
1,306.0
1.398.8
914.0
831.5
5,024.6
3912.1
299.4
725.0
88.1
1.226.3
17
18
19
20
21
22
By harrowing sector
Households
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government
4.288.0'
3,761.9
2,496.5
1.127.1
138.3
1,158.2
4,660.1'
3,901.3'
2,621.2'
1,139.0
141.2
1.118.4'
5.041.2'
4 135.2'
2.818.7'
1.173.8
142.7
1.078.8"
5,436.5
4,329.0
2,966.0
1.217.2
145.8
1,092.1
4,811.2'
4,058.0'
2,759.3'
1,155.9
142.8
1,104.9'
4.933.0'
4,089.1'
2,780.2'
1,164.0
144.8
1,082.7'
5.041.2'
4,135.2'
2,818.7'
1,173.8
142.7
1.078.8'
5,102.9'
4,190.2'
2,854.7'
1.185.2
140.3
1.079.4'
5.219.3'
4,247.0'
2.907.0'
1.194.7
145.3
1,087.1'
5.333.2
4,296.8
2,947.4
1,203.1
146.2
1,074.5
5.436.5
4,329.0
2,966.0
1.217.2
145.8
1.092.1
23 Foreign credit market debt held in
United States
385.6
370.4
439.9
507.2
.396.8
419.8
439.9
450.8
459.6
487.1
507.2
24
25
26
27
68.7
230. [
24.6
62.1
41.4
242.3
26.1
60.6
55.0
290.6
34.6
59.7
65.8
337.3
43.7
60.4
48.1
258.6
29.6
60.5
55.8
272.4
31.6
60.0
55.0
290 6
34.6
59.7
51.5
302.5
36.8
60.0
53.4
305.3
40.5
60.4
64.8
320 2
41.7
60.4
65.8
337.3
43.7
60.4
14,331.8'
15,146.6
5 Nonfederal
Commercial paper
Bonds
Bank loans n.e.c
Other loans and advances
28 Total credit market debt owed by nonfinancial
sectors, domestic and foreign
12,930.2'
13,542.6'
13,954.4'
14,128.1'
14,331.8'
14,540.5'
14,706.8'
14,924.6
15,146.6
Financial sectors
29 Total credit market debt owed by
financial sectors
30
31
32
33
34
35
36
37
38
39
By instrument
Federal government-related
Government-sponsored entetprises securities
Mortgage pool securities
Loans from U.S. government
Private
Open market paper
Cotporate bonds
Bank loans n e e
...
Other loans and advances
Mortgages
By boirowing
40
41
42
43
44
45
46
47
48
49
50
51
52
3,321. T
3.794.6
4,243.9
4,774.8
3,971.9
4,096.3
4,243.9
4.324.3'
4.496.1'
4,619.5
4,774.8
1,885.2
523.7
1 356 8
4.8
1,436.4'
393.5
857.6'
67.6
108.9
8.9
2.172.7
700.6
1 47 7 1
.0
1,621 9
442.8
973.5
55.3
131.6
18.7
2,376.8'
806.5'
1 570 3
.0
1,867.0'
488.0
1,159.2'
60.8
135.0
24.0
2,607.9
896.9
1.711.9
.0
2,166.9
580.7
1,312.4
81.8
162.2
29.8
2.247.1
748.1
1,499.0
.0
1,724.8
462.8
1,056.4
58.4
125.7
21.3
2,300.1
773.5
1.526.6
.0
1,796.2
473.6
1.112.6
60 3
127^0
22.6
2.376.8'
806.5'
1.570.3
.0
1.867.0'
488.0
1,159.2'
60.8
135.0
24.0
2.414.1'
814.4'
1.599.7
1.910.2'
491.9
1,192.9'
66.4
133.6
25.4
2,489.5'
846.1'
1.643.4
.0
2,006.6'
518.5
1.243.4'
72.2
145.8
26.9
2.545.3
866.1
1,679.2
.0
2,074.2
539.6
1.275.1
76.9
154.2
28.3
2,607.9
896.9
1711.0
.0
2,166.9
580.7
1,312.4
81.8
162.7
29.8
84.6
123.4
99.6
.2
2
528.5
1.356.8
486.7'
33.7
390.5
30.2
17.4
169.9
94.5
133.6
112.4
.5
.6
700.6
1,472 1
556.2'
34.3
440.7
18.7
31.1
199.3
102.6
148.0
115.0
.4
.5
806.5'
1,570.3
689.4'
29.3
492.3
19.1
36.5
233.9
112.2
150.0
141.1
.4
1.6
896.9
1,711.0
818.8
27.3
540.3
36.2
43.1
296.0
99.9
142.9
105.9
3
6
748.1
1,499.0
596.8
26.8
467.2
20.6
33.7
230.0
102.0
150.3
107.2
.4
.6
773.5
1,526.6
639.8
27.4
471.9
21.6
35.0
239 9
102.6
148.0
115.0
.4
.5
806.5'
1,570.3
689.4'
29.3
492.3
19.1
36.5
233.9
100.5
141.4'
117.8
4
I.I
814.4'
1,599.7
720.3'
21.4
499.8
24.1
38.0
245.6
103.6
148.4
128.3
.3
1.2
846.1'
1,643.4
752.4'
24.6
514.4
28.1
39.6
265.6
106.7
149.1
134.9
.4
1.1
866.1
1,679.2
779.5
26.1
528.4
32.3
41.3
274 5
[ p i
150.0
141.1
.4
1.6
896.9
1,711.0
818.8
27.3
540.3
36.2
43.1
296.0
0
sector
Commercial banks
Bank holding companies
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enteiprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Brokers and dealers
Finance companies
Mortgage companies
Real estate investment trusts (RElTs)
Funding cotporations
All sectots
53 Total credit market debt, domestic and foreign. . . . I6,251.9r
54
55
56
57
58
59
60
61
Open market paper
US. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n e e
Other loans and advances
Mortgages
Consumer credit
...
580.0
5,216.9
1 377 5
2,317.4'
768 0
852^9
4,275.2'
863.9
17,3.37.2 r
18,575.7'
19,921.5
17,926.3'
18,224.4'
18.575.7'
18,864.8'
19,202.9'
19,544.1
19,921.5
623.5
5,665.0
1.348.2
2,468.8
830.4
929.9
4.481.1'
990.2
700.4
6,013.6'
1.304.0
2.776.1'
943 9
991.5
4.714.3'
1.131.9
803.0
6,389.7
1.306.0
3,048.6
1,039.5
11054.1
5,054.4
1.226.3
673.8
5,830.6
1.331 7
2,605.9
898.7
963.2
4.591.6'
1,030.8
692.7
5 903 5
1.308.2
2.690.8
916 2
969! 1
4.665.7'
1.078.2
700.4
6,013.6'
1.304.0
2,776.1'
943.9
991.5
4,714.3'
1,131.9
717.6
6,131.3'
1 300.8'
2,837.0'
959.9'
1.002.9
4.792.5'
1.123.0'
753.6
6.183.2'
1,306.8'
2.908.1'
991 4 r
1.021.8
4.890.0'
1.147.9'
777.4
6,278.4
1,29(1 6
2,971.7
1,021.3
1X146.5
4,975.7
1.182.6
803.0
6,389.7
1,306.0
3,048.6
1.039.5
1054.1
5.054.4
1.226.3
I. Data in this table also appear in the Board's Z.I (780) quarterly statistical release, tables
L.2 through L.4. For ordering address, see inside front cover.
Flow of Funds
1.60
A41
SUMMARY OF FINANCIAL ASSETS AND LIABILITIES'
Billions of dollars except as noted, end of period
1996
1995
Transaction category or sector
1994
1996
02
Q3
Q4
Ql
Q2
Q3'
Q4
CREDIT MARKET DEBT OUTSTANDING 2
16,251.9r
17.337.2'
18,575.7'
19.921.5
17.926.3'
18,224.4'
18.575.7'
18,864.8'
19,202.9'
19.544.1
19,921.5
2.784.9'
1.691.4'
271.5
37.0
784.9
231.7
1,147.8
12.087 5'
336.7
3.090 8
2.721.5
326.0
17.5
25 8
914 1
218.7
240 9
1,420.6
422.7
617.6
423 4
429.0
725.9
82.0
546.4
1,356 8
457.9'
482.8
60 4
8.6
137.5
114.6'
3,069.3'
1,981.1'
321.1
37.2
729.9
207.5
1.254.7
12.805.6'
368.2
3.254.3
2^869.6
337.1
18.4
29.2
920.8
246.8
248.0
1,487.1
446.4
664.3'
454.1
459.0
718.8
78.7
667.0
1,472.1
520.7
551.0
36.5'
13.3
93.3
105.2'
2.937 lr
1.932.0'
315.1
37.5
652.5
186.1
1.561.8
13.890.7'
380.8
3,520.1
3,056.1
412.6
18.0
33.4
9133
263.0
229 2
1,586.2
468.7
725.6'
476 8
545. <
771.3
92 0
755.(1'
1,570.3
633.7'
615.2
33.01
15.1
18.3.4
112 4'
2.938.0
1,960.7
340.6
37.9
598.8
162.8
1,966.6
14.854.0
393.1
3 708.0
"U75.9
475.8
22.0
34.4
936.6
285.1
215.6
1,641.4
492.8
788.5
511.0
634.3
829 2
101.3
844.1
1,711.0
738.1
653.9
47.8
17.2
166.1
138.9
2.988.3'
1,940.8'
303.5
37.3
706.7
198.2
1.402.1
13.337.7'
375.7
3,410.1
2,963.7
396.0
19.3
M 1
922.4
255.0
240.2
1.557.1
457.3
693.4'
470.9
508.0
724.8
84.6
695.9
1,499.0
555.2
586.9
40.3'
14,2
137.4'
109.3'
2,990.2'
1,989.3'
290.6
37.4
672.9
192.2
1 493.4
13,548.6'
370.6
1,473.2
3.023.7
401.1
16.9
31.5
930.4
258.5
234.2
1,575.5
463.0
706.0'
470.6
505.7
739.2
88.7
708.4
1,526.6
595.7
594.7
42.2'
14.7
136 1'
114.6'
2.937.1'
1,932.0'
315.1
37.5
652.5
186.1
1.561.8
13,890.7'
380.8
3,520.1
3,056.1
412.6
18.0
33.4
913.3
263.0
229.2
1,586.2
468.7
725.6'
476.8
545.5
771.3
92.0
755.0'
1,570.3
633.7'
615.2
33.0'
15.i
183.4
112.4'
2,895,7'
i.915,1'
291.3
37.6
651.8
180.8
1,653.6
14,134.7'
379.6
3,541.6
3,068.8
422.2
16.8
33.9
921.8
267.0
224.7
1.600.5
474.5
746.3'
491.1
595 6
792.4
94.8
762.7'
1,599.7
659.7'
621.7
45.0'
15.6
156.2
144.4'
2.945.4'
1,950.6'
307.9
37.7
649.1
177.0
1,718.2
14,362.2'
386.3
3,590.8
3,101.3
437.1
18.1
34.3
933.1
276.9
221.6
1.601.0
480.2
769.8'
504.0
594.7
807 9
97.2
793.8'
1,643.4
689.2'
633.2'
40.7'
16.1
138.2
144.1'
2.923.2
1,957.9
313.1
37.8
614.4
170.5
1,840.6
14 609.8
386.2
3,643.3
3.135.3
454.2
19.3
34.5
945.3
281.0
218.5
1,635.1
486.4
781.5
508.8
606.6
816.5
99.5
814.3
1,679.2
709.7
642.0
44.9
16.6
147.1
147.4
2,938,0
1,960,7
340 6
37.9
598.8
162.8
1.966.6
14,854,0
393.1
3,708 0
3,175.9
475.8
22.0
34.4
936.6
285.1
215.6
1,641.4
492.8
788.5
511.0
634.3
829.2
101.3
844.1
1,711 0
738.1
653 9
47.8
17.2
166.1
138.9
16,251.9'
17.337.2'
18,575.7r
19,921.5
17.926.3'
18,224.4r
18,575.7'
18,864.8'
19,202.9'
19.544.1
19,921.5
53.4
8.0
17.0
271.8
189 3
1.251.7
2 2"M ">
391.7
559.6
471.1
1.375.4
279.0
470 8
4.638.8'
1,048.2
84.9
691.3
5,155.1'
53.2
8.0
17.6
324.6
280.1'
1.242.0
2 183 3
411.2
602.9
549.4
1,477.3
279.0
505.3
4.846.8'
1.162.2
88.0
699.4
5,417.3'
63 7
10.2
18.2
361 4
290.6'
1,229.3
i 179 7
476 9
745.3
660.1
1.852.8
305 7
550 2
5,567.7'
1 258 5
89.1
767 4
5.823.2'
67.1
8.0
18.0
361.0
265.8'
1.246.2
2.222.6
456.3
678.5
629.3
1.661.0
277.8'
532.4
5.224.1'
1,177.5
88.9'
739.7
5.555.1'
65.1
10.2
18.2
353.6
267.2
1.200.3
2.255.8
477.5
702.7
654.8'
1,782.0
286.1'
540.6
5.440.1'
1,211 1
91.9
758.6
5,666.4'
63.7
10.2
18.2
361.4
290.6'
1.229.3
2.279.7
476.9
745.3
660.1
1,852.8
305.7'
550.2
5,567.7'
1,258.5
89.3
767.4
5,823.2'
62.1
10.2
18.2
382.7
266.3
1,183 3
2.342.3
493.6
816.9
666.2
1,994.3
326.9
555.0'
5.751.6'
1,246.0
94.3
781.6
5.959.8'
61.4
10.2
18.2
382.9
250.1'
1,212.3
2,340.1
511.1
809.5
692.1
2.130.6
318.6
563.0'
5,899.9'
1,278.6
90.3
790.9
5.966.7'
54.3
9.7
18.8
411.2
223.3
1.221.8
2 355 5
557.2
838.1
687.6
2.212.7
317.8
577.2
6,046.1
1.293.9
92.1
799.5
6,089.6
53.7
97
18.2
409.1
238.4
1.248.4
2.371.3
590.3
891.1
697.7
2.348.8
352 1
585.2
6,318.5
1.314 8
91.9
833.7
6.146.7
35,432.1'
37.485.1r
40,925.7r
44.461.1
39.135.6'
40,006.7' 40,925.7'
41.816.0'
42,529.6'
43.350.3
44.461.1
20.1
6,280.0
2.495.5
21.1
6,263.3
2,587.5
22.1
8,389.9
2.699.6
21.4
10,090.0
2,733.6
7,348.4
2,641.1
7,972.4
2,655.0
8,389.9
2.699.6
8,875.8
2.736.6'
9.170.9
2,759.1'
21.2
9.387.4
2,782.8
2 1 ,4
10,090.0
2,733.6
Liabilities no! identified as assets ( —)
Treasury currency
Foreign deposits'
Net interbank transactions
Security repurchase agreements
Taxes payable
Miscellaneous
-5.]
232.6
-4.7
-7.7'
26.8
-855 0'
-5.4
278.7
-6.5
51.8'
35.4
-916.1'
-5.8
309.(1
-9 0
107.2'
44.1
-949.4'
-6.8
347 1
-10.9
121.4
45.1
-1,202.4
-5.5
314.5
-2.9
78.8'
35.6'
-869.7'
-5.6
300.6
1
11 1.4'
39.1
-832.3'
-5.8
-6.1
-6.3
309.0
324.4
330.3
-9.0
-2.6
-8.0
107.2'
116.7'
135.7'
44.1
23.9
38.0
-949.4' -1.016.8' -1,094.0'
-6.0
360.9
-11.6
126.7
41.9
-1,100.7
-6.8
347.1
-10.9
121.4
45.1
-1,202.4
Floats not included in assets (- )
63 Federal government checkable deposits
64 Other checkable deposits
65 Trade credit
.5.6
40.7
-248.0
.5.4
38.0
-252.0
34.2
-275.4
-1.6
30.1
-283.3
2.0
35.7
-306.2
.6
27.3
-330.0
3.1
34.2
-275.4
29.6
-326.5
-3.4
31.8
-336.2
-1.7
23.1
-36.3.3
-1.6
30,1
-283.3
45,042.5r
47,129.6r
52,779.3r
58,267.3
49,865.7'
51,345.1'
52,779.3'
54,308.0'
55,393.8'
56,472.4
58,267.3
1 Total credit market assets
2 Domestic nonfederal nonfinancial sectors
3
Households
4
Nonrinancial corporate business
5
Nonfarm noncorporate business
6
State and local governments
7 Federal government
K Rest of the world
9 Financial sectors
10 Monetary authority
11 Commercial banking
12
US. chartered banks
13
Foreign banking offices in United States
14
Bank holding companies
1S
Banks in U S affiliated areas
16 Savings institutions
17 Credit unions
18 Bank personal trusts and estates
19 Life insurance companies
20
Other insurance companies
21
Private pension funds
22
State and local government retirement funds
23
Money market mutual funds
24
Mutual funds
25
Closed-end funds
26
Government-sponsored enterprises
27
Federally related mortgage pools
28
Asset-backed securities issuers (ABSs)
29
Finance companies
30
Mortgage companies
31
Real estate investment trusts (RElTs)
32
Brokers and dealers
33
Funding corporations
RELATION OF LIABILITIES
ro FINANCIAL ASSETS
34 Total credit market debt
35
36
37
38
39
40
4t
42
43
44
45
46
47
48
49
50
51
52
Other liabilities
Official foreign exchange
Special drawing rights ceitificaies
Treasury currency
Foreign deposits
Net interbank liabilities
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Mutual fund shares
Security credit
Life insurance reserves
Pension fund reserves
Trade pavables
Taxes payable
Investment in bank personal trusts
Miscellaneous
53 Total liabilities
Fmaiwuil assets not included in liabilities { + )
54 Gold and special drawing rights
55 Corporate equities
56 Household equity in noncorporate business
57
.SB
59
60
61
62
66 Total identified to sectors as assets
3.1
1. Data in this table also appear in the Board's Z.I (7S0) quarterly statistical release, tables
L.6 and L.7. For ordering address, sec inside front cover.
53.7
9.7
18.2
409.1
238.4
1,248.4
2 371 1
590.3
891.1
697.7
2.348.8
352.1
585.2
6,318.5
1.334.8
91.9
833.7
6,146.7
.0
2. Excludes corporate equine^ and mutual fund shares.
A42
2.10
Domestic Nonfinancial Statistics • May 1997
NONFINANCIAL BUSINESS ACTIVITY
Selected Measures
Monthly data seasonally adjusted, and indexes 1992=100, except as noted
1996
Measure
1 Industrial production1
1994
1995
1997
1996
June
Jul>
Aug
Sept.
Oct
Nov.
Dec'
Ian.'
Feh
1(18.6
112.1
115.2
115.5
115.5
115.8
116.0
116.2
U7.2 r
117.7
117.6
118.1
109.3
109.9
108.9
111.6
107.5
116.6
112.0'
112.8
110.5'
116.8
109.4'
120.3
112.3
113.1
110.8
117.1
109.7
120.5
112.3
113.4
1 10.7
118.1
108.9
120.5
112.2
113.0
110.1
117.9
110.0
121.5
112.7
113.3
110.5
118.1
110.6
121.2
112.8
113.6
1 10.8
118.4
110.2
121 7
114.I1
114.8'
112.3'
1 19.0'
1119'
122.2
114.3
115.3
112.7
119.5
7 Materials
106.8
107.1
107.4
106.6
106.1
1 11.3
I23J
114.3
115.3
112.1
120.7
111.3
122.7
114.8
115.8
112.1
122.2
II 1.8
123.3
Industry groupings
8 Manufacturing
109.4
113.2
116.3'
116.4
117.0
117.2
117.4
117.6
118.5
119.2
118.9
119.8
83.1
83.1
82.1
82.3
82.4
82.3
82.1
82.0
82.4
82.5
82.1
10 Construction contracts3
106.6'
1I6.81
119.8'
120.0'
118.0'
111.0'
122.0'
125.0'
124.0'
125.0
123.0
n.a
11 Nonagncultural employment, total"1
12 Goods-producing, total
13
Manufacturing, total
14
Manufacturing, production workers
15 Service-producing
16 Personal income, total
17 Wages and salary disbursements
19 Disposable personal income
20 Retail sales5
112.0
%.9
96.4
97.5
116.8
148.4
142.6
124.9
149.3
144.8
115.0
98.1
97.2
98.7
120.3
157.7
150.9
130.4
158.2
152.3
117.3
98.3
96.2
97.5
123.3
166.4
159.7
135.3
166.2
159.8
117.2
98.4
96.3
97.5
123.3
166.6
160.3
135.8
166.4
159.4
117.5
98.3
96.2
97.4
123.6
166.7
159.8
135.8
166.5
159.6
117.8
98.5
96.3
97.5
123.9
167.7
161.1
136.9
167.4
159.6
117.8
98.3
96.0
97.2
124.0
168.6
162.2
136.7
168.2
160.7
118.0
98.4
96 1
97 \
124.3
168.8
162.0
136.7
168.4
161.8
118.2
98.6
96.1
97.4
124.4
169.8
163.4'
137.4'
169.4
161.7
118.4
98.7
96.2
97.4
124.7
171.1
165.2
139.4
170.6
162.5
118.7
98.8
96.3
97.5
125.0
171.6
165.1
138.8
171.7
164.9
119.0
99.3
96.2
97.5
125.3
n.a.
n.a.
n.a.
n.a.
166.2
Prices"
21 Consumer (1982-84=100)
22 Producer finished goods (1982= 1(10)
148.2
125.5
152.4
127.9
156.9
131.3
156.7
131.7
157.0
131.5
157 3
131.9
157.8
131.8
158.3
132.7'
158.6
132.5
158.6
132.7
159.1
132.6
159.6
132.2
Market groupings
3
4
5
Final, total
Consumer goods
Equipment
9 Capacity utilization, manufacturing (percent) 2 ..
1. Data in this table also appear in the Board's G.17 {419) monthly statistical release. For
the ordering address, see the inside front cover. The latest historical revision of the industrial
production index and the capacity utilization rates was released in January 1997. Sec
"Industrial Production and Capacity Utilization: Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February 1997), pp. 67-92. The article contains a
description of the new aggregation system for industrial production and capacity utilization
For a detailed description of the industrial production index, sec "'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.
2.11
82.5
4. Based on data from U.S. Department of Laboi, 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.
6. Based on data nol seasonally adjusted. Seasonally adjusied data for changes in the price
indexes can be obtained from the U.S. Department of Labor. Bureau of Labor Statistics.
Monthly Labor Review.
NO1 h. Basic data (nol indexes) for scries mentioned in notes 4 and 5. and indexes for series
mentioned in notes 3 and 6, 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,1' 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. AND UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted
1996
1997
July
Aug.
Sept.
Oct.
Nov.
Dec.1
Jan.r
Feb.
HOUSEHOLD SURVEY DATA 1
1 Civilian labor force2
Employment
2
Nonagricultural industries-'
3
Agriculture
Unemployment
5
Rate (percent of civilian labor force)
131,056
132.304
133.943
134,165
133.898
134.291
134,636
134,831
135.022
135,848
135.634
119,651
3,409
121,460
3,440
123,264
3,443
123,419
3,47(1
123,570
3.418
123,768
3,480
124,167
3.450
124,290
3,354
124,429
3.426
125,112
3,468
125.138
3,292
7,996
6.1
7.404
S.6
7,236
5.4
7,276
5.4
6.910
5.2
7,043
5.2
7.019
5.2
7.187
5.3
7.167
5.3
7,268
5.4
7 205
5.3
114,172
117,203
119,549
119,772
120,052
120.050
120,311
120,492
120,723
120,970
121,309
18.282
570
5,405
6,318
28.178
6.977
34,360
19.459
18.267
570
5,427
6,333
28,256
6,987
34,448
19,484
18.291
570
5.437
6,342
28.275
6,999
34,532
19,606
18,241
567
5,449
6,337
28,321
7,009
34,607
19,519
18,254
566
5,464
6,338
28,446
7,026
34,709
19,508
18.262
566
5,491
6,350
28.508
7,038
34,780
19,497
18,270
566
5,520
6.340
28.586
7,052
34,865
19.524
18,286
568
5.535
6,374
28 591
7.065
35,001
19,550
18,284
570
5.644
6,395
28 661
7,078
35,(181
19.596
ESTABLISHMENT SURVEY DATA
6 Nonagricultural payroll employment4
7
8
9
10
11
Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
13 Service
14 Government
18.321
601
4,986
5,993
26,670
6,896
31,579
19,128
18.468
5 SO
5.158
6,165
27.5X5
6,830
33,107
19.31(1
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, seasonally does not exist in
population figures.
3. Includes self-employed, unpaid family, and domestic service workers.
lme.
SOURCE. Based on data from U.S. Department uf Labor, tmplovment and Earnings
Selected Measures A43
2.12
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION'
Seasonally adjusted
1996
1996
1996
Series
01
02
Q3
Q41
01
Q2
Q3
04
01
Q4r
Q3
Capac ty utili/ati "m rate (percc n) 2
Capacity (percen ot 1992 o itpul)
Output (1992=100)
Q2
1 Total industry
113.1
114.8
U5.8
117.1
136.7
137.9
139.2
140.5
82.8
83.3
83.2
83.3
2 Manufacturing
114.0
115.8
117.2
1 18.4
139.6
41.0
142.5
143.9
81.7
82.1
82.3
82.3
3
4
Primary processing'
Advanced processing4
110.1
1 15.9
111.7
117.8
113.2
119.1
113.9
120.6
129.1
144.7
29.9
46.5
130.7
148.2
131.5
150.0
85.3
80.1
86.0
80.4
86.6
80.4
86.6
80.4
5
6
7
8
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and equipment.
Electrical machinery
Motor vehicles and pans
Aerospace and miscellaneous
transportation equipment
122.3
107.1
114.0
113.3
114.6
1507
159.0
120.6
125.4
111.0
116.5
115.8
117.2
154.6
162.3
130 4
127.2
110.5
118.6
117.9
119.4
158.9
164.5
131.3
128.1
1 10.5
119.9
118.6
121.3
1614
167.2
126.0
150.0
127.3
127.6
128.8
125.9
166.9
186.0
173.6
52.2
28.2
28.7
130.3
126.5
171.6
193.2
74 9
154.5
129.1
129.8
131.9
127.1
176.3
200.6
176.1
156.9
130.0
131.0
133.5
127.8
181.3
208.5
177.3
S1.6
84.1
89.3
88.0
91.0
90.3
85.5
6U.5
82.4
86.6
90.5
88.8
92.7
90.1
84.0
74.6
82.3
85.6
91.4
89.4
93.9
90.1
82.0
74.5
81.7
85.0
91.6
88.9
95.0
89.0
80.2
71.0
81.5
83.8
86.7
90.4
121.0
20.6
120.2
119.8
67 4
69.5
72.2
75.5
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
105.1
104.5
105.2
106.8
117. j
105.6
105.5
106.5
107.9
107.3
122.1
106.0
106.5
107.9
109.0
109.2
125.3
106.7
108.1
107.4
109.8
112.2
125.3
107 7
128.5
128.7
121.9
136.7
127.3
113.4
29.0
129.4
22.4
37 9
129.5
113.5
129.6
130.1
122.9
139.2
131.8
113.7
130.1
130.8
123.3
140.3
134.0
113.8
81 8
81.2
86.3
78.1
92.1
93.1
81.8
82.3
88.2
77.8
94.3
93.4
82.2
82.9
88.7
78.4
95.1
9.3.9
83.0
82.1
89.1
80.0
9.3.5
94.7
100.8
113.4
113.4
103.5
114.0
114.0
103.7
110.5
110.8
104.0
113.0
1124
113.9
123.9
122.1
113.7
124.5
122.8
113.7
125.2
123.6
11.3.7
125.9
124.4
88.5
91.6
92.9
91.0
91.6
92.8
91.2
88.2
89.6
91.5
89 8
90.4
1973
1975
Previou s cycle5
High
Low
High
g
10
11
12
13
14
15
16
17
18
19
20 Mining
21 Utilities
Electric
22
Low
Late st cycle 6
High
Low
1996
1996
Feb.
Capacity uliliz ation
Sept.
1997
Oct.
Nov.'
Dec.1
Jan.
Feb.11
rat e {percenl)"
1 Total industry
89.2
72.6
87.3
71.1
85.3
78.1
83.2
83.1
83.0
83.4
83.5
83.2
83.3
2 Manufacturing
88.5
70.5
86.9
69.0
85.7
76.6
82.2
82.1
82.0
82.4
82.5
82.1
82.5
3
91.2
87.2
68.2
71.8
88.1
86.7
66.2
70.4
88.9
84.2
77.8
76.1
85.3
80 9
86.6
80.2
86.7
79.9
86.5
80.5
86.6
80.7
86.0
80.3
86.6
80.6
89.2
88.7
100.2
105.8
90.8
68.9
61.2
65.9
66.6
59.8
87.7
87.9
94.2
95.8
91 1
63.9
60.8
45.1
37.0
60.1
84.5
93.6
92.7
95.2
89.3
73.2
75.5
73.7
71.8
74.2
82.4
83.5
89.8
88.4
91.5
81.4
85.5
91.8
88.7
95.7
81.5
84.2
93.5
92.6
94.7
81.9
87.0
90.5
86.8
95 1
81.7
83.7
90.7
87.1
95.2
81.4
83.7
89.4
85.3
94.6
82.0
84.8
91.2
88.3
95.0
960
89.2
93.4
74.3
64.7
51.3
93.2
89.4
95.0
64.0
71.6
45.5
85.4
84.0
89.1
72.4
75.1
55.9
90.7
86.5
73.4
89.6
81.3
71.9
89.1
80.5
68.5
89.2
80.2
72.7
88.9
80.0
72.0
88.8
78.4
73.3
88.9
78.9
73 7
78.4
67.6
81.9
66.6
87.3
79.2
67.7
73.3
74.6
75.4
76.4
77.0
77.9
82.0
80.8
858
78.3
91 9
93.5
82.4
82.2
88 4
78.6
95.4
94.0
82.7
82.4
87.4
79.5
94.0
95.3
82.9
82.7
.89.3
79.6
92 4
94.4
83.5
81.2
90.5
80.7
94.1
94.3
82.9
81.0
89.4
80.3
83.1
80.8
89.5
80.1
93.7
94.3
88.5
91.5
93 1
91.0
88.6
89.6
91.0
89.0
90.2
91.1
91.0
90.6
92.4
89.3
90.3
91.7
90.4
91.2
92.9
87.1
88.4
4
^
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Primary processing'
Advanced processing4
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
industrial machinery and
equipment
....
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment . . . .
Nondurable goods
Textile mill products
Paper and products
Chemicals and products. .
Plastics materials
Petroleum products
. . .
20 Mining
21 Utilities
22 Electric
87.8
91.4
97.1
87.6
102.0
96.7
71.7
60.0
69,2
69.7
50.6
81.1
94.3
96.2
99.0
88.2
82.9
82.7
96.1
84.6
90 9
90.0
76.4
72.3
80.6
69.9
63.4
66.8
87.3
90.4
93.5
86.2
97.0
•88.5
80.7
77 7
85.0
79.3
74.8
85.1
96.0
89.1
88.2
80.3
75.9
78.9
86.8
92.6
95.0
86.1
83.4
87 1
87.5
t,l
j
1. Data in this (able also appear in the Board's G.17 (419) monthly statistical release. For
the ordering address, see the inside front cover. The latest historical revision of the industrial
production index and the capacity utilization rates was released in January 1997. See
'industrial Production and Capacity Utilization: Historical Revision and Recent Developments," Federal Reserve Bulk'lin, vol. 83 (February 1997). pp. 67-92. The article contains a
description of the new aggregation system for industrial production and capacity utilization.
For a detailed description of the industrial production index, see "Industrial Production: 1989
Developments and Historical Revision." Federal Reserve Bulletin, vol. 76 (April 1990), pp.
187-204.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted
index of industrial production to the corresponding index ol capacity.
3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic
materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and glass:
primary metals; and fabricated metals.
4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; priming
and publishing: chemical products Mich as drugs and toiletries; agricultural chemicals; leaihcr
and producis: machinery; transportation equipment; instruments; and miscellaneous manufactures.
5. Monthly highs. 1978-80; monthly lows. 1982.
6. Monthly highs, 1988-89; monthly lows. 1990-91.
A44
2.13
Domestic Nonfinancial Statistics • May 1997
INDUSTRIAL PRODUCTION
Indexes and Gross Value1
Monthly data seasonally adjusted
Group
1992
proportion
1997
1996
1996
•iv g.
Feb.
Mar.
Apr
Mav
June
July
Aug.
Sept.
Oct.
Nov.1
Dec.1
Jan.
Fen.p
Index (1992 = 100)
MAJOR MARKETS
1 Total index
100.0
115.2
113.8
113.2
114.3
114.8
115.5
115.S
115.8
116.0
116.2
117.2
117.7
117.6
118.1
2 Products
3
Final products
4
Consumer goods, total
5
Durable consumer goods
6
Automotive products
7
Autos and trucks
8
Autos, consumer
9
Truck*, consumer
10
Aulo parts and allied goods
11
Other
12
Appliances, televisions, and air
conditioners
13
Carpeting and furniture
14
Miscellaneous home goods
15
Nondurable consumer goods
16
Foods and tobacco
17
Clothing
18
Chemical products
19
Paper products
20
Energy
21
Fuels
22
Residential utilities
60.5
46.3
29.1
112.0
112.8
110.5
P6 2
125.8
132.6
120.3
147.2
114.5
126.3
110.8
111.7
109.9
124 7
125.6
133.0
121.6
150.3
113.7
123.9
110.4
111.1
109.4
P0 8
115.1
111.2
93^5
135.4
117.7
124.7
1110
112.1
109.8
P5 7
126.0
135.0
126.1
150.3
111.9
125.3
1114
112.2
110.0
126 9
126.9
135.0
129.0
147.3
114.0
126.7
112.3
113.1
110.8
129 9
130.0
137.7
133.3
148.7
117.4
129.7
112.3
113.4
110.7
129 7
132.1
145.7
137.8
161.3
112.4
128.0
112.2
113.0
110.1
128 0
128.7
138.7
132.5
152.3
113.5
127.5
112.7
113.3
110.5
P7 1
127.7
134.6
129.9
146.6
116.2
126.6
112.8
113.6
110.8
P4 5
122.0
125.7
112.3
147.4
114.4
126.2
114.1
114.8
112.3
127 1
127.4
133.8
123.5
152.4
116.4
126.8
114.3
115.3
112.7
128 5
127.3
135.7
116.2
164.9
113.9
129.2
114.3
115.3
112.1
127 2
130.0
138.8
120.4
167 0
116.2
125.2
114.8
115.8
112.1
128 8
130.7
139.4
123.2
165 0
117.1
127.4
173.0
109.9
107.9
106.5
106.1
95.5
112.7
101.1
112.1
106.6
114.3
164.4
108.0
108.6
106.2
105.8
96.5
11 M
99^8
112.8
106.7
115.4
165.8
II0.S
108.0
106.6
106.8
95.8
110.5
99.7
114.1
106 9
117.1
170.2
109.1
108.0
105.9
105.7
96.1
110.0
100.0
112.8
106 4
115.5
172.0
112.4
108.1
105.8
105.3
95.9
110.5
100.7
112.8
106.8
115.4
180.1
114.6
108.7
106.0
105.8
95.6
110.6
100.2
113.2
106.7
116.0
181.1
107.0
108.5
106.0
105.9
95.4
112.6
101.4
109.1
106.7
109.9
175.9
lll.l
108.0
105.6
105.4
95.4
111.3
101.8
109.4
107.7
110.0
174.2
110.5
107.6
106.3
106.1
95.1
113.5
101.9
109.4
105.4
110.9
176.5
108.6
106.5
107.3
106.6
95.5
115.5
102.9
110.7
108.1
111 7
176.9
110.7
106.4
108.5
107.2
95.0
117.3
102.9
115.3
107.8
11S.5
181.5
109.5
109.6
108.8
108.5
94.9
118.4
103.0
111.9
106.0
114.4
171.1
105.4
108.9
108.3
107.9
94.0
117.3
101.8
113.3
105.5
116.6
177.9
106.9
109.1
108.0
108.5
93.1
117.4
102.3
109.3
106.5
110.3
23
24
25
26
27
28
29
30
31
32
33
Equipment
Business equipment
Information processing and related
Computer and office equipment
Indusinal
Transit
Autos and trucks
Othei
Defense and space equipment
Oil and gas well drilling
Manufactured homes
17.2
13.2
5.4
1.1
4.0
2.5
1.2
L3
3.3
1168
126.6
143.2
292.0
126.9
99.9
115.3
1 16.4
77.0
120.5
162.0
114.8
124.6
139.4
258.0
127.7
96.7
115.6
114.9
76.4
113.2
156.4
113.9
122.6
139.8
265.4
127.1
87.4
95.2
114.7
77.6
119.8
162.5
115.9
125.1
140.5
272.2
127.5
97.5
118.5
114.7
77.4
123.7
164.8
116.0
125.0
140.8
279.7
126.5
97.5
118.0
115.3
77.9
127.0
165.7
117.1
126.6
143.9
289.4
126.3
100.6
120.8
114.3
77 0
127.8
167.9
118.1
128.1
144.1
301.7
127.2
104.1
126.5
118.0
77.7
122.1
163.0
117.9
127.7
144.6
306.2
126.7
103.0
120.9
116.1
77.9
122.6
167.4
118.1
128.3
(46.3
314.3
126.3
103.8
1177
115.5
77.7
117.5
165.6
118.4
128.8
147.4
il8.8
127.0
101 9
109 4
118.7
77.0
120.2
165.3
119.0
129.8
147.1
321.5
127.1
106.6
115.9
119.9
76.1
120.7
159.8
119.5
130.5
148.1
327.1
127.4
106.9
113.9
121.0
76.3
123.6
120.7
131.8
149.1
332.0
127.9
109.4
117.2
123.1
75.4
130.8
156.3
122.2
133.3
151.1
337.6
128.7
111.5
118.9
123.7
75.8
140.7
34
35
36
Intermediate products, total
Construction supplier
Business supplies
14.2
109.4
116.8
105.1
108.1
113.3
105.0
108.4
115.5
104.3
107.7
114.2
103.9
108.9
116.1
104.6
109.7
118.3
104.6
108.9
117.5
10.3.9
110.0
119.2
104.6
110.6
119.8
105.3
110 2
117.7
105.8
1119
120.7
106.8
1114
118.1
107.4
111.3
118.1
107.3
111.8
1197
107.1
37 Materials
38
Durable goods materials
39
Durable consumer parts
40
Equipment parts
4]
Other
42
Basic metal materials
43
Nondurable goods materials
44
Textile materials
45
Paper materials
46
Chemical materials
47
Other
48
Energy materials
49
Primary energy
50
Convened fuel materials
39.5
20.S
8.9
1.1
1.8
1.9
2.1
97
6.3
3.3
120.3
134 0
128.8
159.2
118 2
113.2
106.4
106 4
107.3
105.4
106.1
103.9
102.7
106.2
1IX.5
131.5
128.3
154.0
116 8
] 11.3
104.5
103.6
104.9
103.5
105.9
103.5
102.6
105.3
1 17.7
129.5
117.0
154.6
116 8
112.0
104.4
104.6
104.4
103.5
105.4
104.5
103.9
105.7
119.5
132.6
130 1
155.7
117 2
112.1
105.5
105.6
106.9
104.1
106.5
104.2
104.0
104.6
P0 1
133.5
130.6
157.2
117 8
112.2
105.9
106.1
106.4
104.7
107.1
104.6
103 5
106.7
120 5
134.0
130.4
158.9
117.9
112.6
106.2
106.3
105.2
105 (
108.0
104.8
103.5
107.2
120 5
134.5
131.1
159.6
1 ]$ 2
112.9
107.4
109 9
109.1
106.1
107.1
102.4
101.7
103.9
PI 5
136.2
133.9
161.7
119.2
113.6
106.5
107.4
108.2
106.2
104.7
104.0
103.2
105.4
121 2
135.5
128.3
162.6
119.2
114.7
106.9
107.1
107.0
106.8
106.2
103.9
102.2
107.0
PI 7
135.8
126.6
163.4
120 0
117^2
108.0
108.4
108.0
109.3
103.9
103.9
102.0
107.5
12"
136.5
129.7
165.3
119 1
114.4
108.4
108.5
110.9
107 7
106.8
104.0
101.6
108.5
P3 1
137.8
129.9
167.8
120 1
116.1
109.3
106.1
111.7
109.8
107.0
104.2
103.1
106.5
P2 7
137.2
129.1
168.2
118 9
115.0
109.1
106.7
110.7
110.0
106.2
104.1
102.1
107.9
P3 3
139.0
129.9
170.7
P0 7
117.5
108.8
106.1
111.1
109.6
105.4
102.9
101.2
106.2
97.1
95.1
114.9
1 14.6
113.4
113.1
113.4
113.5
113 9
113.5
114.4
114.0
115.0
114.7
114.9
114.6
115.4
115.0
115.7
115 4
116.1
115.9
116.9
116.6
117.5
117.2
117.2
116.9
117.8
117.5
98.2
27.4
26.2
112.9
109.2
110.2
1119
108.6
109.5
111.2
109.2
108.8
112.2
108.4
109.4
112.6
108.7
109.6
113.2
109.3
110.4
113.1
108.9
110.9
113.4
108.6
110.2
11.3.5
109.2
110.6
113.7
109.9
110.8
114.6
111.0
111.8
115.1
1115
112.8
114.9
110.7
111.9
115.4
110.7
112.5
12.0
127.7
125.5
125.3
125 8
125.7
127.2
128.2
128.3
129.3
130.7
131.2
132.2
133.2
134.7
12.1
29.8
115.8
125.4
115.6
123.1
113.1
121.7
115.3
124.2
114.7
124.9
115.8
125.4
116.8
126.1
116.1
127.0
116.3
126.6
116.6
127 1
117.5
127.8
118.0
129.0
119.0
128.5
120.3
129.6
6.1
2.6
1.7
.9
7
.9
3.5
1.0
.S
1.6
23.0
10.3
2.4
4.5
2.9
2.9
.8
2.1
.6
5.3
8.9
4.0
7.6
92
3.1
SPECIAL AGGREGATES
5 1 Total excluding autos and trucks
52 Total excluding motor vehicles and parts
53 Toial excluding computer and office
equipment
54 Consumer goods excluding autos and trucks
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding computer and
office equipment
58 Materials excluding energy
Selected Measures A45
2.13
INDUSTRIAL PRODUCTION
1992
proportion
SIC 2
code
Group
Indexes and Gross Value1—Continued
1997
1996
1996
avg.
Feb.
Mar.
Apr.
May
June
July
Aug
Sept.
Oct.
Nov.r
Dec '
Jan.
Feb.1'
Index (1992 = 100)
MAJOR INDUSTRIES
59 Total index
100.0
115.2
1U.8
113.2
114.3
114.8
115.5
115.5
115.8
116.0
116.2
117.2
117.7
117.6
118.1
60 Manufacturing
61 Primary processing
62 Advanced processing
85.4
26.5
58.9
116.3
112.2
118.4
114.8
110.1
117 1
113.9
110.8
115 4
115.2
111.0
117.3
115.7
111.7
117.6
116.4
112.6
118.3
117.0
113.0
118 9
117.2
113.1
119.2
117.4
113.5
119.3
117.6
113.8
119.5
118.5
113.8
120.8
119.2
114.1
12l.(i
118.9
113.5
121.5
119.8
114.5
122.5
63
64
65
66
45.0
2.0
1.4
125.7
109.8
108.8
123.fi
106.3
107.9
121.8
109.7
105.8
124.6
110.3
108.1
125.2
110.4
110.3
126.3
112.4
109.5
126.9
109.3
108.1
127.5
I 1 1.4
108.8
127.2
110.7
108.8
127.1
109.2
110.4
128.4
113.1
110.5
128.9
109.2
110.4
128.9
109.4
109.0
130.5
111.0
109.4
2.1
3.1
1.7
.1
1.4
5.0
111.0
117.2
116.4
112.2
118.1
118.6
109.1
114.6
113.9
111 ?
115.3
117.9
108.7
115.6
113.8
112.7
117.6
117.6
108.5
116.1
114.6
112.1
117 9
117.8
109.8
116.3
115.7
112.9
116.9
118.4
111.3
117.0
117.1
114.9
116.8
118.9
114.1
118.0
118.0
113.3
117.9
119.1
111.8
118.3
118.2
11.3.6
118.5
1194
113.1
119.5
117.4
112.6
121.8
119.3
111 7
122.1
123.2
111.5
120.7
119.3
111.8
118.5
115.9
108.7
121.4
119.1
111.4
119.2
116.8
112.5
121.8
119.6
111.8
117.8
114.7
111.7
121.4
118.8
112.5
120.5
119.1
116.0
122.1
120.3
67
68
69
70
71
/ z.
Durable goods
Lumber and products
24
Furniture and fixtures
25
Stone, day, and glass
products
32
Primary metals
33
Iron and stee!
331,2
Raw sleel
331PT
NonfeiTous
333-6,9
Fabricated metal products. . .
34
11 IVlUL>U lax IL LuL'l J l l l d V u l l U
79
80
equipment
Computer and office
equipment
Electrical machinery
Transportation equipment. .
Motor vehicles and parts .
Autos and light trucks .
Aerospace and
miscellaneous
transportation
equipment
Instruments
Miscellaneous
81
82
83
84
85
86
87
88
89
90
91
Nondurable goods
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing
Gicmieals and products . . .
Petroleum products
Rubber and plastic products
Leather and products
73
74
75
76
77
78
8.0
156.4
151.4
152.5
153.3
154.3
156.1
157.7
159.6
159.4
159.9
161.7
162.6
164.1
165.8
1.8
296.9
163.3
106.1
126.9
124.6
263.6
161.0
104.4
127.4
124.8
270.8
160.3
94.9
I06.S
103.0
277.3
161 1
106.4
130.3
127 1
284.7
161.8
106.8
130.5
127.6
294.3
164.0
107.1
130.4
130.4
306.5
163.8
109.5
134.1
137.3
310.8
164.6
109.3
132.8
131.0
319.0
165.2
107.3
127.0
127.4
323.6
165.6
105.3
121.2
117.3
328.3
167.2
109.5
128.9
125.7
331.9
168.9
109.6
127.9
125.7
336.8
167.7
111.1
130.4
128.9
342.6
170.7
112.2
131.4
129.9
1.3
85.6
102.8
112.9
81.9
102.9
112.4
82.8
102.9
112.5
83.2
102.3
112.0
83.8
102.4
112.2
84.3
103.3
113.1
85.7
102.3
113.0
86.5
103.0
112.9
87.9
103.0
113.0
89.4
103.4
113.0
90.3
103.0
114.1
91 4
103.8
116.6
92.0
103.1
116.6
93.2
103.7
117.4
40.4
9.4
1.6
1.8
27
3.6
6.7
9.9
1.4
3.5
.3
106.3
106.3
105.6
106.6
98.2
108.0
98.4
108.9
106.5
120.5
80.0
105.3
105.7
107.4
104.0
99 2
104.6
99.2
107.0
106.0
118.6
81.7
105.4
106.2
111.3
107.0
98.1
105.8
97.6
106.6
105.7
119.3
81.2
105.2
105.9
106.3
105.3
99.0
107.5
96.9
106 9
1055
118.0
81.1
105.5
105.6
103.7
106.1
99.0
107.8
97.9
107.2
106.2
119.8
80.7
105.9
106.1
105.1
108.0
99.0
108.5
97.1
107.9
106.3
120 9
81.0
106.4
106.5
102.5
108.7
98 3
110.2
97.6
109.0
105.3
120.7
80.0
106.2
105.5
104.1
107 7
98.5
108.1
97.9
108.7
107.8
122.0
79.5
106.9
106.2
104.9
107.2
98.2
108.8
99.1
109.7
106.9
122.8
79.4
107.4
107.1
104.0
107.6
97.8
107.6
99.7
II 1.3
108.4
121.4
78.4
107.9
107.6
105.4
108.2
97.3
110.1
100.0
111.8
107.4
121.7
77.3
108 8
108.6
107.9
106.5
97.2
1117
99 8
113.6
107 3
122.5
80.1
108.1
108.5
104.7
106.2
95.9
110.5
99.1
113.3
106.7
120.9
78.2
108.5
109 0
104.1
106.0
95.4
110.6
99.6
113.3
107 4
122.6
77.8
6.9
<;
1.0
4.8
6
103.0
102.0
105.9
100 3
118.8
100 8
97.1
101.2
98.9
117.4
102.8
101.7
105.9
100.2
117.9
102.9
9-9.4
105.3
100.9
116.3
103.2
100.9
108.0
100.5
117.4
104 4
101 7
108.9
101.5
120.6
103 1
103.1
102.7
100.9
120.6
104.5
104.0
109.6
101.1
121.7
103.4
105.3
106.2
100.5
118.5
103.4
105.6
107.5
100 0
120.0
103.5
102.5
108.8
100.2
120.2
105.0
106 2
109.6
101.3
123.4
104.3
105 9
104.0
102.0
120.7
105.6
108.0
107.1
102.7
123.0
77
6.2
1.6
112.8
112.7
113.2
113.3
113.6
112.2
114.4
114.0
115.8
1135
113.1
115.0
114.6
114.8
113.6
114.0
114.2
113.6
109.4
110.1
107.1
110.8
111.5
108.5
111.1
110.9
111.8
1119
112.0
111.3
114.5
112.7
120.9
112.7
112.6
112.8
114.1
113.9
114.8
110.1
110.6
108.4
80.5
115.7
114.1
114.3
114.3
114.8
115.6
116.0
116.3
116.8
117.3
117.9
118.6
118.2
119.1
83.6
113.7
112.6
111.6
112.S
113.2
113.8
114.3
114.4
114.5
114.7
115.5
116.1
115.8
116.7
372-6,9
38
39
92 Mining
93 Metal
94 Coal
95 Oil and gas extraction
96 Stone and earth minerals
97 Utilities
98 Electric
99 Gas
35
357
36
37
371
371PT
20
21
22
23
26
27
28
29
30
31
10
12
13
14
491.493PT
492.493PT
7.3
9.5
4.9
2.6
4.6
5.4
SPECIAL AGGREGATES
100 Manufacturing excluding motor
vehicles and parts
101 Manufactunng excluding office
and computing machines . . .
Gross v jlue (billions of 1992 dollars , annual ates)
MAJOR MARKETS
102 Products, total
2,001.9 2,258.8 2.240.3 2,220.1
103 Final
104 Consumer goods
105 Equipment
106 Intermediate
1.552.1
1,049.6
502.5
449.9
1,760.9
1,162.2
598.0
498.3
1,752.5
1.1632
588.7
488.5
1,727.8
1.150.9
576.3
492.3
2,249.1 2,255.7
2,274.2
2.276.1
2.272.9 2,273.4 2.270.7
2.303.5
2,302.2 2.305.4 2.318.7
1.760 0 1.761.9
1.164.3 1,165.5
595.0
595.7
489.9
494.4
1,775 7
1,172.5
602.4
499.0
1.782.8
1,171.6
610.5
494.3
1.773.6
1,165.5
607 4
499.7
1.771.6
1.163.0
607.8
502.1
1.795.1
1,182.2
612.1
508.6
1.797 2
1,183.1
613.3
505.5
1. Data in this table also appear in The Board's G.!7 (4)9) monthly statistical release. For
the ordering address, see the inside front cover. The latest historical revision of the industrial
production index and the capacity utilization rates was released in January 1997. See
"Industrial Production and Capacity Utilization: Historical Revision and Recent Develop-
1.771.8
1.164.7
606.3
499.3
1.801.7
1.180.3
620.7
504.4
1.812.5
1.183.1
628.6
506.9
ments." Federal Reserve Bullvfin. veil. S3 (February 1997), pp. 67-92. For a detailed
description of the industrial production index, see "Industrial Production. 19K9 Developments and Historical Revision." Federal Reserve Bulletin, vol. 76, (April 1990). pp. 187-204
2. Standard industrial classification.
A46
2.14
Domestic Nonfinancial Statistics • May 1997
HOUSING AND CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1996
Item
1994
1995
1997
1996'
Apr.
June
May
July
Aug.
Sept.
Oct.'
Nov.'
Dec'
Jan.
1,400
1,051
Private residential real estate at tivitv (thousands of urits except s noted)
NF-.W UNITS
1 Permits authorized
2
One-family
3
Two-family or more
4 Starlet)
5
One-family
6
Two-family or more
7 Under construction at end of period1
8
One-family
9
Two-family or more
10 Completed
1 1 One-family
12
Tv, o-famii) or more
13 Mobile homes shipped
1.372
1.069
303
1,457
1,198
1,333
997
335
1.354
1,076
278
1,434
1,073
360
344
1,452
1.098
354
1.476
1,142
334
826
590
236
1,409'
1.124'
285'
1.415
1.085
3.30
1,488
1,214
274
826'
594'
232'
1,426'
1,137'
289'
366
372
302
366
1,457
1,07.3
384
1,492
1.164
328
825'
593'
232'
1.463'
1,161'
1,423
1.078
345
1.515
1.222
293
820
593
227
1.449'
1,153'
296'
1.399
1,040
359
1.470
1,148
322
825'
592
233'
1.356'
1,097'
259
372
1,362
1,011
351
1.407
1,104
303
825'
588'
2.37
1,375'
1,129'
246'
364
1,418
1,025
1,422
1,015
393
407
349
1,486
1,1.33
35.3
828
584
244
1,431
1.151
280
354
1,^53
1,024
1.362
1,117
329
245
815
818
1,347
1,160
187
304
1.313
1.066
247
340
1.413
1.129
284
363
1.522
1.215
307
825'
590'
2.35
1.351'
1.074'
'77
373
670
340
667
374
757
326
741'
368'
732'
362
732'
355'
782'
352'
814'
34.3
768'
331'
706'
330'
788
327
789
322
817
316
130.4
153.7
133.4
157.6
139.6
165.7
140.0
170.0
136.4
163.3
140.0
166.5
144.2
168 4
137.0
159.7
139.0
167.4
143.8'
168.4'
143.5
172.0
142.9
171.5
143.8
170.2
18 Number sold
3.946
3.801
4.087
4,230'
4,280
4,160
4,150
4,100'
4.020'
4,000
4,060
3,950
3.910
Price of units sold (thousands
of dollars)1
19 Median
20 Average
109.9
136.8
113.1
139.1
118.2
145.5
116.6'
142.6'
117.6
144.4
122.9
150.2
121.5
149.6
122.3
149.9
117.8
144.7
116.6
14.3.6
117.4
144.1
118.8
147.1
120.6
149.6
Merchant butldei acti\i!\ in
imc-fannh' writs
14 Number sold
15 Number for sale at end of period1
Price of units sold (thousands
of dollars?
16 Median
17 Average
259
762
558
204
776
547
229
1.477
1,161
316
792
1.459
1,115
550
242
369
571
244
573
245
1.484
1,177
307
33S
1,358
1,106
252
339
EXISTING UNITS (one-lamily)
Value if new construction (millions of dollars)
CONSTRUCTION
21 Total put in place
527.063
547,079
568,910
564,623
558,481
563,122
559,312
564,715
572,262
582,537
594,043
588,146
590,126
22 Private
•>3 Residential
24
Nonresidential
25
Industrial buildings
26
Commercial buildings
27
Other buildings
28
Public utilities and other
400,007
238,873
T61J34
28.947
59,728
26,961
45.498
410,197
236,598
173^599
32.301
67,528
26,923
46,847
427,775
246,899
180]876
30 070
70,157
29,322
51.327
424,233
248,013
176720
30.285
67,565
27,457
50.913
418,120
247.486
170^634
27,310
65,834
27,723
49,767
423,106
246,909
426,703
246,019
18o!684
27,082
72.146
29,764
51,692
428,361
246,407
181,954
29.656
70,672
29,812
51,814
437,034
246,935
190^099
33.043
74,5.30
30,469
52,057
446,059
249,167
196^892
31,583
77,669
32,636
55,004
445.439
250,297
28.755
69,280
28,533
49,629
419,293
244,931
174362
28,770
68,262
28,514
48,816
29,413
75,735
32,452
57,542
447.976
250 636
197^340
30,700
78,051
33.329
55.260
29 Public
30
Military
3 1 Highway
32
Conservation and development .
33
Other
127,056
2,319
37,673
6,370
80,694
136.884
3,005
38,161
6,389
89,329
141,131
2,878
39.406
5.752
93,095
140,390
3,168
39.454
5,956
91.812
140,361
3,020
37,715
5,756
93.870
140,016
3.140
38,308
6,004
92.564
140,020
2 439
39,194
5.793
92,594
138.012
2 307
36,507
5.660
93.538
143,901
2,583
40.485
5.473
95.360
145,503
2,774
39,326
6,095
97,308
147,983
2,350
40,160
5,974
99.499
142,707
2,423
41,711
5.708
92.865
142.149
2.588
41.241
5.839
92,481
I Not al annual rates.
2. Not seasonally adjusted.
3. Recent data on value ol 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.
I76J97
195J42
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 19,000 jurisdictions beginning in 1994.
Selected Measures
2.15
A47
CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 3 months earlier
(annual rate)
Change from 12
months earlier
Item
Change from 1 mini h earlier
1996
1996
Feb.
Index
level.
Feb.
1997'
1997
1996
1997
Feb.
Mar.
June
Sept.
Dec.
Ocl.
Nov.
Dec.
Jan.
Feb.
CONSUMER PRICES 2
(1982-84-100)
7
Food
3 Energy ilemt,
4 All items less food and energy
5
Commodities
2.7
3.0
40
2.9
3.1
3.3
.3
.1
.3
.1
.3
159.6
23
1.2
2.9
1.7
34
38
7.8
2.5
1.0
3 1
3 8
13.7
3.0
2.3
34
43
4.9
2.5
.0
34
53
1.1
2.7
1.1
34
34
16.2
2.4
.9
3 1
5
1.1
.2
.1
2
4
1.2
2
.1
3
.0
1.5
2
A
.3
- 3
.8
I
.1
.1
.3
.3
.1
.3
156.5
113.1
168.3
142.2
183.1
2.2
2.4
9.8
.6
.3
2.5
1.5
13.8
.0
.3
2.5
5.3
2.5
2.2
.6
2.5
4.6
7.0
.6
1.2
4.3
2.4
27.3
.3
-.3
.4'
.8'
1.7'
.0'
-.1'
.1'
-.1'
1.1'
-.!'
-.1'
.6
-.1
3.4
.1
.1
-.3
-1.0
-.2
.0
.0
-.4
-.3
-1.2
-.1
-.1
132.2
133.8
85.4
144.9
138.8
.0
.2
.1
.4
I
2
.1
-.1
.0
126.3
134.2
-2.4'
7.7
-.3'
-2.7
16.5
.0
-1.0
12.9
2.0
-1.9
-12.4
1.0
110.7
102.7
158.3
PRODUCER PRICES
(1982-100)
7 Finished goods
9
Consumer energy
11
Capital equipment
2.0
1.8
1.6
2.3
1.7
12 Excluding foods and feeds
13 Excluding energy
6
.4
1.2
-.1
-1.0
-3.5
.6
.0
1.0
.0
.0
10.5
18.8
-8.3
-3.7
24.2
-2.5
1.7
52.8
-8.6
47.4
-14.1
-9.3
-9 4
18.7
-2.6
-28 2
169.7
-1.6
Crude materials
14 Foods
15 Energy
16 Other
1. Not seasonally adjusted.
2. Figures tor consumer prices are for all urban consumers and reflect a rental-equivalence
measure of homeownership.
_
i
-3.1'
2.1
-.1'
SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.
A48
Domestic Nonfinancial Statistics • May 1997
2.16
GROSS DOMESTIC PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1996
1995
1994
Account
1996'
1995
Q4
Ql
Q2
Q3
Q4r
GROSS DOMESTIC PRODUCT
1 Total
. . . .
6 935 7
7 253 8
7 575 9
7 350 6
7 426 8
7 545 1
7 616 3
7 715 4
4.700.9
580.9
1,429.7
2,690.3
4,924.9
606.4
1,485.9
2,832.6
5,152.0
631.8
1,544.7
2.975.5
4,990.5
612.8
1,494.2
2,883.5
5,060.5
625.2
1,522.1
2,913.2
5,139.4
637.6
1,544.7
2,957.1
5,165.4
630.5
1.546.5
2.988.5
5,242.7
633.8
1,565.5
3.043.4
1,014.4
954.9
667.2
180.2
487.0
287.7
1,065.3
1,028.2
738.5
199.7
538.8
289.8
1,116.4
1,101.3
790.9
214.1
576.8
310.4
1,064.0
1.046.2
749 7
204.0
545.7
296.5
1,068.9
1,070.7
769.0
208.4
560.6
301.7
1,096.0
1,088.0
773.8
207.4
566.3
314.2
1,156.2
1.119.6
807.0
213.5
593.5
312.6
1,144.3
1,127.1
813.9
227.0
586.9
313.2
59.5
48 0
37.0
39 6
15.0
169
17.8
-1.7
27
8.0
11 3
36.6
35 4
17.2
18 2
-94.4
719.1
813.5
-94.7
807.4
902.0
-99.1
855.1
954.3
-67.2
837.0
904.2
-86.3
839.5
925.8
-99.2
850.0
949.2
-120.2
844.3
964.5
-90.8
886.7
977.5
17 Government consumption expendilures and gross investment
18 Federal
19 State and local
1.314.7
516.4
798.4
1,358.3
516.6
841.7
1.406.6
523.0
883.7
1,363.4
507.7
855.7
1.383.7
518.6
865.1
1,408.8
529.6
879.2
1,414.8
525.5
889.3
1,419.3
518.2
901.0
By major type oj prodmi
20 Final sales, total
21
Goods
22
Durable
23
Nondurable
24
Services
25
Structures
6.876.2
2,514.4
1.0X6.2
1,448.3
3 746 5
595.3
7,216.7
2.662.2
1,147.3
1,515.0
3 926 9
627.6
7,560.9
2,784.0
1.219.7
1,564.2
4 105 8
671.1
7,332.8
2,698.0
1,166.4
1,531.7
3 992 4
642.3
7,428.6
2,749.3
1.192.1
1.557.1
4 027 9
651.4
7,537.1
2,782.0
1,219.1
1,562.9
4 087 0
668.0
7,579.6
2.785.0
1.225.5
1,559.5
4 122 0
672.6
7,698.2
2,819.5
1,242.2
1,577.2
4 186 3
692.4
59.5
31.9
27 7
37.0
34.9
2.2
15.0
13.2
1.9
17.8
27.3
-9.4
-1.7
12.3
-14.0
8.0
9.9
-1.9
36.6
34.7
2.0
17.2
-4.2
21.4
6,608.7
6.742.9
6,907.4
6,780.7
6,814.3
6,892.6
6,928.4
6,994.4
5 501 6
5 813 5
5 927 4
6 015 3
6 118 7
6 203 0
4,009.8
3 257 3
602.5
2.654.8
752.4
350.2
40** 2
4,222.7
3 433 2
621.7
2,811.5
789.5
365.5
4,448.8
3 630 4
641.2
2.989.1
818.4
382.2
436 2
4,301.1
1 501 1
626.9
2,874.2
800.1
369.8
4.344.3
3,540.2
634.0
2,906.1
804.1
375.0
4°9 1
4,420.9
3,606.5
638.9
2,967.5
814.4
380.4
434 0
4.482.9
3,659.6
644.6
3.015.1
823.3
384.6
4.547.0
3,715.1
647.3
3,067.8
831.8
388.9
450.9
415.9
35.0
478.3
449.3
29.0
518.3
471.9
46.4
499.5
461.1
38.4
515.2
469.4
45.8
526.3
474.6
51.8
532.0
482.4
49.6
By source
2 Personal consumption expenditures
4
5
Nondurable goods
Services
6 Gross private domestic investment
8
Nonresidemial
10
11
12
Producers' durable equipment
Residential structures
Change in business inventories
14 Net exports of £oods and services
16
Imports
26 Change in business inventories
28
Nondurable goods
MEMO
29 Total GDP in chained 1992 dollars
NATIONAL INCOME
30 Total
.
.
31 Compensation of employees
33
34
Government and government enterprises
Other
36
Employer contributions for social insurance
39
40
Business and professional1
Farm1
41 Rental income of persons"
42 Corporate profits'
43
Profits before lax^
44
Inventory valuation adjustment
45
Capital consumption adjustment
46 Net interest
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
486.7
454 9
31.8
116.6
122.2
126.8
125.8
126.9
124.5
127.0
128.6
529.5
531.2
-13.3
11.6
586.6
598.9
-28.1
15.9
n.a.
n.a.
-8.6
23.1
611.8
604.2
-8.8
16.5
645.1
642.2
-17.4
20.4
655.8
644.6
-11.0
22.3
661.2
635.6
2.0
23.6
n.a.
n.a.
-8.1
26.4
394.9
403.6
n.a.
401.9
399.5
402.3
405.6
n.a.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. U.S. Department of Commerce, Survey of Current Business
Selected Measures A49
2.17
PERSONAL INCOME AND SAVING
Billions of current dollars except as noted: quarterly data a! seasonally adjusted annual rates
Q4
Ql
02
Q3
Q4'
PERSONAL INCOME AND SAVINQ
1 Total personal income
,, ..
2 Wage and salary disbursements
. .
3
Commodity-producing industries
4
Manufacturing
5
Distribjtive industries
6
Service industries
.
7
Government and government enterprises
8
9
10
11
12
!3
14
15
16
17
.
Other labor income
Proprietors' income'
Business and professional
Farm1
. ..
..
Rental income of persons 3
Dividends
Personal interest income
,,.,.,.,,,...
Transfer payments.
Old-age survivors, disability, and health insurance benefits
LESS: Personal contributions for social insurance
6,115.1
6,452.4
6^34.5
6,308.5
6,412.4
6,501.4
6,5*7.3
3.241.8
824.9
621.1
739.2
1,075.2
602.5
3,430.6
863-5
648.4
783.7
1.1*1.6
621.7
3.630.4
903.8
672.6
828.0
1.258.4
641.2
3.500.2
S73.9
654.7
800.7
1.198.6
626.9
3,538.2
87S.7
654.8
810.5
3,606.5
900.3
671.S
822.3
3.659.(1
911.0
678.5
832.4
1.215,1
634.0
1.244.9
638.9
1,271.6
644.6
3,717,1
921.2
685.2
846.6
1.301.9
647.3
402.2
450.9
415.9
35.0
116.6
199.6
663.7
956.3
472.9
424,0
4783
449.3
29.0
436.2
429,1
499.5
442.9
532.0
474.6
51.8
4S2.4
49.6
2148
717.1
1.022.6
126.8
230.6
738.0
1.079.8
126.9
226,6
726,1
1,063,0
434.0
515.2
469.4
45.8
124.5
438.6
526.3
122 3
43112
486.7
454.9
31.8
125.8
221.7
727.2
1.041.4
128.6
234.8
1.075.6
127.0
231,5
742.9
1,085.1
749.9
1.095.3
507 4
539,1
516.1
529 9
536.3
541.7
548.2
294.5
307.5
298.8
301.0
305.8
309.7
313.4
6.115.1
6,452.4
6.234.5
6.30S.5
6,412.4
6,501.4
6,587.3
278.1
IS EQUALS: Personal income
19
5,753.1
5,753.1
LESS: Personal tax and nontax payments
731.4
518.3
471.9
46.4
863 S>
461.1
38.4
229.3
733.1
807.2
824.9
870.6
872.5
887.6
5.330.8
5.5SS.5
5.427.3
5,483.5
S.541.8
5.62S.9
5.699.7
5,071 5
5,314,5
5,300.7
5.329.8
5.409.5
273.9
5.144.7
282.6
5,218 1
249.3
265.4
241.1
299.1
290.2
25,349.8
17,558.2
18.330.0
25,628.8
17,399.6
18,7990
26,016.6
17,668.0
19,166.0
25.684.5
17,459.9
18.986.0
25,753.3
17,570.2
19,041.0
25,990.0
17,675.7
19.063.1)
26,066.2
17,657,9
19,242,0
26,255.3
17,767.5
19,316.0
3.8
47
4,9
5.2
27 Gross saving
1,056.3
1,151.8
n.a.
1,220.6"
1,217.9
1,244.5
1,314.0
n.a.
28 Gross private saving
1,006.7
1,1171,8
n,a.
1,138.9
1,133.8
1,121.6
1,196,1
n.a.
189.4
123.2
-13.3
249,3
1406
-28.1
273.9
n.a.
-8.6
282.6
158.4
-8.B
265.4
171.8
-17.4
241.1
176.3
- llll
299.1
182,5
2.0
290.2
n.a.
-S.I
441.0
237.7
4540
225 2
4739
463.6
235.1
133.4
465.6
229.1
47 I t )
233.2
477.2
237,4
481.9
240.6
49.6
-119.6
800
-87.9
73.8
n.a.
n.a.
72.5
n.a.
n.a.
76.6
n.a
81.7
-80.7
73.8
-154.5
122.9
-54.1
72.6
-126.7
177.0
76.0
101.0
117,8
-48.4
72.3
-120.8
166.3
74.3
S8.1
84.1
-82.0
73.2
-155.2
166.1
75.1
91.0
1,173.9
I,167.9
1,1S7.O
1.Z1S.9
1.064,0
220.1
-110.2
1.068.9
228.8
-129.9
1.096.0
235.1
-144.2
1.1562
234,2
-174 6
-SCO
-S7.S
20 EQUALS: Disposable personal income
5.021 7
21
LESS: Personal outlays
4,832.3
22 EQUALS: Personal saving
189.4
794.3
MEMO
Per tapua (chained 1992 dollars)
23 Gross domestic product
24 Persona! consumption expenditure*
25 Disposable personal income
,..,,.
26 Saving rate <percent)
4.3
5.1
G R O S S SAVING
29 Personal saving
30 Undisiribuled corporate profits1
31 Corporate inventory valuation adjustment
Capita! consumption
32 Corporate
33 Noncorporate
-
allowances
34 Gross gnverament saving
35
Federal
36
Consumption of fixed capital
37
Current surplus or deficit (->, national accounts
38
State and local
39
Consumption of fixed capital . . . . . .
........... .
40
Current surplus or deficit [ - ) . national arc pun is
41 Gross investment
-190.2
169.2
69.4
99.7
. _
42 Gross private domestic investment
43 Gross government investment . . .
44 Net foreign investment
45 Statistical discrepancy.
1. With inventory valuation and capita] consumption adjustments.
2. With capital consumption adjustment.
70.6
— 161.7
167,9
72.9
95.0
1,150.9
212.3
-136.4
1.063.3
221.9
-136.3
34.1
-.9
1,014.4
1,116.4
233.7
n.a.
162.4
SOURCE. U.S. Department of Commerce, Suivev itf Cur tent
77 1
89.2
71.9
n.a.
78.0
n.a.
1,144.3
236.7
n.a.
A50
3.10
International Statistics • May 1997
U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions of dollars; quarterly dala seasonally adjusted except as noted'
1995
Item credits or debits
2
Merchandise trade balance2
4
5
6
Merchandise imports
Military transactions, net
Other service transactions, net
8
9
10
U.S. government grants
U.S. government pensions and other transfers
Private remittances and other transfers
1994
-148,405
-166,121
50"" 463
-668,584
1,963
59,779
-4,159
-15,816
-4.544
-19.506
1996
1996
1995
Q4
Ql
Q2
Q3
Q4p
-35,274'
-41,127'
150,032'
-193.159'
489
18,008'
311'
-4.259
-1,012'
-5,684'
-40,593'
-47,370'
153,120'
-200,490'
725
17,687'
-2.215'
-2.364
-1,081'
-5.975'
-47,853
-51,869
150,144
-202,013
515
17,075
-4.098
-2.580
-1.064
-5,832
-41,380
-45.308
158,373
-203,681
1,080
17,883
-2,414
-5.431
-1,076
-6,114
-148,154
-173,424
575.940
-749,364
3,585
64,776
-8,016
-10,959
-3.420
-20.696
-165.095
-187,674
611.669
-799.343
2,809
70,658
-8,416
-14,634
-4.233
-23.605
-30,435
-38,026
149.422
-187.448
978
17,657
-1,890
-2,799
-731
-5,624
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )
-341
-280
-665
-199
-152
-353
166
-326
12 Change in US. official reserve assets (increase. - )
13 Gold
14 Special drawing rights (SDRs)
15 Reserve position in International Monetary Fund
16 Foreign currencies
5,346
0
-441
494
5,293
-9.742
0
-808
-2,466
-6,468
6.668
0
370
-1,280
7,578
191
0
-147
-163
501
17
0
-199
-849
1,065
-523
0
-133
-220
-170
7,489
0
848
-183
6,824
-315
0
-146
-28
-141
-155,700
-8,161
-32,804
-60,270
-54,465
-297,834
-69,146
-34,219
-98,960
-95,509
-312.833
-88,219
-68,588'
1,714
-12,707
-34.420
-23.175'
-49,823'
-74
-3,374
-20,200
-26,175'
-80,968
-33,196
-15,696
-22,933
-9.143
-113,454
-56,663
-104,533
-88,304
-98,206
-7,272
-14,278
-32,539
-44,117
40,253
30,745
6,077
2,144
3,560
-2,473
109,757
68,813
3,734
1,082
32,862
3.266
122.778
111,151
4,331
1,404
4.614
1,278
11.369
12,984
764
1,249
-1,908
280
52,021
55,600
52
-156
-1.264
-211
13,566
-3,384
1.258
220
14,187
1,285
24,235
25,472
1,217
1,061
-1,910
-1,585
32,956
33,463
1,804
279
-4,179
1,789
245,123
111,842
-7.710
34.225
57,006
49,760
314,705
25,283
34,578
99.340
95,268
60.236
402,268
-1,558
87,860
32,765
11,272
1,734
27,321
14,768
47.454'
-35,571
6,506
11,832
35,993
28,694'
86.987'
1,925
7,296
31,212
29,122
17,432'
118,715
-1,151
20.608
43,402
34,820
21,056
149,092
33.239
0
13,724
0
31,548
0
-53,122
13,724
31,548
-53,121
0
29,420
1.153
28,267
0
4,522'
6,653'
-2,131
0
-9,261'
-449'
-8.812
0
-21.804
-8,318
-13,486
0
-26,573
2,119
-28,692
19
Nonbank-reported claims
21
U.S. direct investments abroad, net
22 Change in foreign official assets in United States (increase. +)
24
Other U.S. government obligations
26
27
Other U.S. liabilities reported by U.S. banks3
Other foreign official assets 5 ..."
28 Change in foreign private assets in United States (increase. +)
29
U.S. bank-reported liabilities3
30
U.S. nonbank-reported liabilities
31
Foreign private purchases of U.S. Treasury securities, net
32
Foreign purchases of other U.S. securities, net
33
Foreign direct investments in United States, net
34 Allocation of special drawing rights
35 Discrepancy
36
Due to seasonal adjustment
37
Before seasonal adjustment
153.784
131,682
83,950
-26,980
-29,811
67,338
31,747
16,768
MEMO
Changes in official assets
38 U.S. official reserve assets (increase. —)
39 Foreign official assets in United Stales, excluding line 25
(increase, +t
5.346
-9.742
6,668
191
17
-523
7,489
-315
37,909
108,675
121,374
10.120
52.177
13,346
23,174
32,677
-1,529
3,959
13,573
-1,435
-992
5,555
5.479
3,531
40 Change in Organization of Petroleum Exporting Countries official
1. Seasonal factors are not calculated for lines 12-16, 18-20, 22-34. and 38^10.
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 bunks include all types of depository institutions as well as some brokers and
dealers.
4. Associated primarily with military sales contracts and other transactions arranged with
or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of private
corporations and state and local governments.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current
Business.
Summary Statistics A51
3.11
U.S. FOREIGN TRADE1
Millions of dollars; monthly data seasonally adjusted
1996'
Item
1994
1995
1997
1996"
July
Aug.
Sept.
Oct.
Nov
Dec.
Jan.r
1 Goods and services, balance
2
Merchandise
3
Services
-104,381
-166,123
61.742
-105,064
- 1 7 3 424
68.360
-114,299
-187,766
73.467
-11,964
-17.614
5.650
-10,628
-16.546
5,918
-11.616
-17.639
6.023
-8.066
-14,211
6,145
-7.968
-14.404
6.436
-10,489
-16,871
6,382
-12.707
-19.019
6.312
4 Goods and services, exports
5
Merchandise
6
Services
698,301
502.462
195.839
7S6.529
575,939
210,590
835,414
6)1.507
223,907
67.262
48.792
18.470
69.705
51.106
18.599
68.816
50.317
18,499
71.758
52,893
18,865
72.566
53.302
19,264
71.210
51.924
19.286
70.777
51 474
19.303
7 Goods and services, imports
8
Merchandise
9
Services
-802,682
-668,585
-134,097
-891,593
-749,363
-142,230
-949,714
-799,274
-150.440
-79.226
-66.406
-12,820
-80,333
-67,652
-12,681
-80.432
-67.956
-12,476
-79.824
-67,104
-12,720
-80.534
-67,706
-12,828
-81,699
-68,795
-12,904
-83,484
-70.493
-12.991
I. Data show monthly values consistent with quarterly figures in the U.S. balance of
payments accounts.
3.12
SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and Bureau of
Economic Analysis.
U.S. RESERVE ASSETS
Millions of dollars, end of period
1997
1996
Asset
1 Total
2 Gold stock, including Exchange
Stabilization Fund1
4 Reserve position in International Monetary
Fund:
5 Foreign currencies4
1993
1994
1995
July
Aug.
Sept.
Oct.
Nov
Dec.
Jan.
Feb.'1
73,442
74,335
85,832
85,099
76,781
75,509
75,558
75,444
75,090
68,200
67,479
11.053
9.039
11,051
10,039
11,050
11,037
11,050
11.216
11,050
10,307
11,050
10,177
11,049
10,226
11,049
10,386
11,049
10,312
11,048
9,793
11,048
9.866
11,818
41,532
12,030
41,215
14,649
49,096
15,665
47,168
15,597
39,827
15,421
38,861
15,517
38.765
15,516
38.493
15.435
38.294
14,372
32.987
14.037
32.528
SDR holdings and reserve positions in the IMF also have been valued on tlm basis since July
1974,
3. Includes allocations of SDRs by the International Monetary Fund on Jan. f of the year
indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710million; 1979—
$1,139 million; 1980—Si,152 million; 1981—$1,093 million: plus net transactions in SDRs.
4. Valued at current market exchange rates.
1. Gold held "under earmark" at Federal Reserve Banks for foreign and international
accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold
stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted by the
International Monetary Fund (IMF) in July 1974. Values are based on a weighted average of
exchange rates for the currencies of member countries. From July 1974 through December
1980. sixteen currencies were used; since January 1981, five currencies have been used. U.S.
3.13
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1
Millions of dollars, end of period
1997
1996
Asset
1993
1994
1995
July
1 Deposits
Held in custody
2 U.S. Treasury securities"
3 Earmarked gold'1
Sept.
Oct.
Nov.
Dec.
Jan.
386
250
386
166
171
265
176
170
167
167
379.394
12,327
441.866
12,033
522,170
11.702
580.277
11,273
590.367
11.217
609,801
11,210
619,987
11,204
634.165
11,198
638.049
11,197
646,130
11.197'
1. Excludes deposits and U.S. Treasury securities held for international and regional
organizations
2. Marketable U.S. Treasury bills, noies. and bonds and nonmarketable U.S. Treasury
securities, in each case measured at face (not market) value.
Aug.
Feb.
915
672.059
1 [ .034
3. Held in foreign and international accounts and valued at S42.22 per fine troy ounce; not
included in the gold stock of the United States.
A52
3.15
International Statistics • May 1997
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1996
Item
1994
1997
1995
Jill)
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.P
1 Total'
520,934
630,867
699,525
703,875
719,557
722,701
737,466
752,489
763,404
B\ type
2 Liabilities reported by banks in the United States'
3 US. Treasury bills and certificates
U.S. Treasury bonds and notes
73,386
139,571
107,343
168,534
113.445
186.061
111.034
189.726
116,328
182,122
109,937
186.180
107,014
197,692
112,054
193,435
119.669
188.076
254 059
6,109
47.809
293,690
6,491
54.809
337,450
5,980
56,589
341,037
6,018
56,060
358,225
6,057
56,8^5
363.063
5,890
57,631
366,903
5.928
59,929
380,565
5,967
60,468
388,935
6,007
60,717
215,374
17,235
41,492
236,824
4,180
5,827
222,406
19,473
66,720
310,966
6,296
5,004
245.405
20.153
68,020
350.747
6.910
8.288
246,760
21,662
69,076
354,266
6.722
5.387
246,342
21,351
69,338
369,471
6.944
6,109
246.542
21.764
70,479
371,210
6,587
6,117
250,873
21,360
76,976
375,253
7,034
5.968
253,100
21,343
81,739
382,998
7,379
5.928
262.424
21.151
77.542
390,751
6,717
4.817
Nonmarketable4
5
By area
7 Europe1
8 Canada
10 Asia
11 Africa
12 Other countries
1. Includes the Bank for International Settlements.
2. Principally demand deposits lime deposits, bankers acceptances, commercial paper,
negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of
zero-coupon Treasury bond issues to foreign governments as follows' Mexico, beginning
Match 1988. 20-year maturity issue and beginning March 1990. 30-year maturity issue:
3.16
LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies
Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April
1993, 30-year maturity issue.
5. Debt securities of U.S. government corporations and federally sponsored agencies, and
U.S. corporate stocks and bonds.
SOURCE Based on U.S. Department of the Treasury data and on data reported to the
department by banks (including Federal Reserve Banks) and securities dealers in the United
States, and on the 1989 benchmark survey of foreign portfolio investment in the United
States.
Reported by Banks in the United States'
Millions of dollars, end of period
1996
[tern
1 Banks' liabilities
2 Banks' elaims
3
Deposits
4
Other claims
1
5 Claims ol banks' domestic- customers2
1993
78,259
62,017
20,993
41,024
12,854
1. Dala on claims exclude foreign currencies held by U.S. monetary authorities.
1994
89,308
60.711
19.661
41.050
10,878
1995
109,763
74,016
22,696
51,320
6,145
Mar.
June
Sept.
Dec.
107,514
69,159
22,208
46,951
6,353
111,651
65,864
20,876
44.988
7,464
111,140
68,195
23,931
44,264
7.130
103,820
66,451
22,900
43,551
10.735
2, Assets owned by customers of the reporting bank located in the United States that
represent claims on foreigners held by reporting banks for the accounts of the domestic
customers.
Bank-Reported Data
3.17
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
A53
Reported by Banks in the United States'
Millions of dollars, end of period
July
Aug.
Sept.
Oct.
Nov.
Dec
BY HOLDER AND TYPE OF LIABILITY
1 Total, all foreigners
2 Banks' own liabilities
3
Demand deposits
4
Time deposits"
5
Other'
6
Own foreign offices4
7 Banks' custodial liabilities1
8
U.S. Treasury bills and certificates6
9
Other negotiable and readily transferable
instruments7
10 Other
11 Nonmonctary international and regional organizations'
12
Banks' own liabilities
13
Demand deposits
14
Time deposits2
15
Other1
16
17
18
19
Banks' custodial liabilities"
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
20 Oificial institutions9
21
Banks' own liabilities
22
Demand deposits
23
Time deposits
24
Other1
25
26
27
28
Banks' custodial liabilities5
U.S. Treasury bills and certificates
Other negotiable^ and readily transferable
instruments'
Other
29 Banks1"
30
Banks' own liabilities
31
Unaffilialed foreign banks
32
Demand deposits
33
Time deposits2
34
Other1
35
Own foreign offices4
36
37
38
39
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negotiable and readily transferable
instruments7
Other
40 Other foreigners
41
Banks' own liabilities
42
Demand deposits
43
Time deposits"
44
Other1
45
46
47
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Other negoliable^and readily transferable
instruments'
Other
1,014,996
1,099,548
1,135,821
1,088,244
1,074,289
1,089,888
1,120,227
l,114,840r
1,135,821
1,130,731
718,591
23.386
186,512
113,215
395,478
753,460
24,448
192,556
140.115
396.341
757.099
27,087
188,743
139.694
401.575
718.715
24.992
193,491
144,309
355,923
701,959
23,147
196,561
129,039
353,212
722,802
25,504
192,463
148,499
356.336
753.557
23,867
197.386
146,556
385.748
739,063'
27,638'
193,058'
141,344'
377,023'
757,099
27,087
188 743
139.694
401.575
760,219
26,078
186,101
154,667
393.373
296,405
162,938
346,088
197,355
378,722
220.574
369,529
217,548
372,330
219,949
367.086
212.478
366,670
214,609
375,777
225,046
378,722
220.574
370.512
214,727
42,539
90,928
52,200
96.533
64,036
94,112
56,345
95,636
55,552
96.829
57,702
96.906
54.045
98,016
54.568
96,163
64.036
94.112
62,971
92,814
8.606
8.176
29
3,298
4,849
11,039
10.347
21
4,656
5.670
13,864
13,355
29
5.785
7,541
11,742
10.545
22
3.747
6,776
12,675
12.084
49
4,738
7,297
14,443
13.843
26
5,441
8,376
16,115
15,284
67
6,005
9,212
14,570
13,232
46
4,906
8,280
13,864
13,355
29
5,785
7,541
13,739
13,060
55
5,592
7.413
430
281
692
350
509
244
1,197
865
591
345
600
399
831
600
1,338
1.088
509
244
679
494
265
0
330
2
246
0
201
0
231
0
226
24
265
0
185
0
149
0
212,957
59,935
1,564
23,511
34.860
275,877
83,396
2,098
30,716
50,582
305,489
79,281
1,509
33,660
44,112
299,506
83,812
2,211
37.137
44.464
300.760
81.462
1,459
37 708
42,295
298,450
85.969
2.049
34,902
49.018
296,117
83,648
1,316
35.551
46.781
304,706
82,657
2,181
35,292
45,184
305,489
79.281
1.509
33,660
44.112
307,745
88,218
1,288
32.890
54,040
153.022
139,571
192,481
168,534
226,208
193,435
215.694
186,061
219,298
189,726
212,481
182,122
212.469
186,180
222,049
197.692
226,208
193,435
219,527
188,076
13,245
206
23.603
344
32,345
428
29,262
371
29,281
291
30.051
308
25,085
1.204
24.000
357
32.345
428
31.291
160
678,532
563.617
168,139
10,633
111,171
46,335
395,478
691,464
567,886
171,545
11.758
103,472
56.315
396,341
681.361
562,966
161,391
13,693
91,197
56,501
401,575
646.031
523.939
168,016
11,809
95,128
61,079
355.923
635,007
510 274
157,062
11.116
94,867
51,079
353,212
649,430
524.645
168,309
12,764
91,906
63,639
356.336
678.641
554,225
168,477
11,156
96,223
61,098
385,748
667.985'
547.001'
169,978'
13,304
94,345
62.329'
377,023'
681,361
562,966
161.391
13,693
91.197
56.501
401,575
669,556
553,618
160.245
12,845
89.563
57,837
393,373
114,915
11,264
123.578
15,872
118,395
13.886
122,092
18.091
124.733
18,670
124,785
18,556
124,416
16,865
120,984
14,227
118,395
13,886
115,938
13,969
14.506
89,145
13,035
94,671
12,322
92.187
10.359
93,642
10,864
95,199
11,298
94,931
12,455
95.096
13,295
93,462
12.322
92,187
11,142
90.827
114,901
86.863
11,160
48,532
27,171
121,168
91,831
10.571
53.712
27,548
135.107
101,497
11,856
58,101
31,540
130,965
100,419
10,950
57 479
31,990
125,847
98,139
10,523
59,248
28,368
127,565
98,345
10.665
60.214
27,466
129,354
100,400
11,328
59.607
29,465
127,579'
96,173'
12,107'
58,515'
25.551
135,107
101,497
11,856
58.101
31.540
139,691
105,323
11.890
58,056
35,377
28,038
11,822
29,337
12.599
33,610
13.009
30,546
12,531
27,708
11.208
29.220
11,401
28,954
10,964
31.406
12,039
33,610
13,009
34,368
12.188
14,639
1,577
15.221
1.517
19.104
1,497
16,394
1,621
15,161
1.339
16,152
1,667
16.274
1,716
17,047
2,320
19,104
1,497
20,353
1,827
7,922
8,276
10,466
11,657
10.540
9,934
9,035
MEMO
49 Negotiable time certificates of deposit in custody for
foreigners
17.895
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers. Excludes bonds and notes of maturities longer than one year.
2. Excludes negotiable time certificates of deposit, which are included in "Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
principally of amounts owed to the head office or parent foreign bank, and to foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank,
5. Financial claims on residents of the United States, other than long-term securities, held
by or through reporting hanks for foreign customers.
6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time certificates of
deposit.
8. Principally the International Bank for Reconstruction and Development, the InterAmerican Development Bank, and the Asian Development Bank. Excludes "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for International
Settlements.
10. Excludes centra! banks, which arc included in ''Official institutions."
A54
3.17
International Statistics • May 1997
LIABILITIES TO FOREIGNERS Reported by Banks in the United States'—Continued
1997
1996
Item
1994
1995
1996
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.11
1,120.227
1,114,840'
1,135,821
1,130.731
1,104.112
1,100,270'
1.121,957
1,116,992
379.554'
6.250
21,1(15"
2.790
1.557
39,034'
21 672'
166,412
5,101
23.576
2.450
1.463
3.1.504
376.461
4,832
22 802
2.212
1.746
11.087
•>4 853
2.079
10,362
9,753
1,860
1,740
7,158
20,399
2^268
43^268
7,051
155 543
""212
25.236
AREA
5(1 Total, all foreigners
1,014,996
51 Foreign countries
1.006,390
52 Europe
5.1 Austria
54
Belgium and Luxembourg
55
Denmark
56
Finland
57
France
5S
German v
54 Greece .'
60
lialy
61
Netherlands
62
Norway
63
Portugal
64
Russia
65
Spain
66
Sweden
67
Switzerland
68
Turkey
69
United Kingdom
70
Yugoslavia"
71
Other Europe and other former U.S.S.R.12
390,869
3 588
21,877
2.884
1.436
44,365
27,109
1,400
10,885
15,033
2.338
2,846
2,726
14,675
3,094
40,724
3,341
163,733
245
27,770
72 Canada
T,099.548
1.088.509
l,135,821r
1,088,244
1.074,289
1,089.888
1,121,957'
1,076,502
1,061,614
1,075.445
362.819
3,537
24,792
2.921
2.811
39,218
•>4 035
2.014
10,868
13,745
1,394
2,761
7,948
10,011
3,246
43~625
4,124
139,183
177
26,389
366.412'
5,101
23,576'
2.450
1.463
33,504'
24 554
I.S10'
10.701
10.995
1.288
1.865
7,571
16,921
1,291'
44^215
6,723'
150,308'
206
21,870'
355.894
3.002
22.093
2.871
1 200
36.342
^4 175
1.811
12.785
11.863
1.435
1.784
6.047
19.366
2.738
39.626
5.619
137.668
208
25,061
355.380
4.683
25.155
2.501
1,1 13
37,363
' 1 PS
1,722
12,552
11,460
1,556
1,328
4.988
17.505
1,591
39,074
7,272
136.242
207
25,940
350.316
6.017
22.4X2
2.652
812
37.094
">3 599
1,854
12,509
9,526
1.622
1.473
4,761
20,359
1,814
42^226
7.992
132.424
214
20,786
371,282
6.816
23.232
1,802
1,509
41.069
23 527
1.666
12.793
12,017
1,552
1,388
5,602
17,665
1,424
32^541
8.019
158.018
216
20,431
10.274'
11.183'
1.882
1.723
8.215
18.228
1,656'
37^981'
7,311
164,967'
'232
21.272
••4 554
1.811)
10,701
10,995
1,288
1,865
7,571
16,921
1.291
44.215
6.723
150.308
206
21.870
24,768
30.468
38,014'
28.81 1
30,727
33,199
35.153
33,035'
38.014
34.696
73 Latin Ameriea and Caribbean
74
Argentina
75
Bahamas
75
Bermuda
77
Brazil
78
British West Indies
79
Chile
SO Colombia
81
Cuba
82
Ecuador
83
Guatemala
84
Jamaica
85
Mexico
85
Netherlands Antilles
87
Panama
88
Peru
89
Uruguay
90
Venezuela
91
Other
423,847
17,203
104,014
8.424
9.145
229,599
3.127
4,615
13
875
1.121
529
12,227
5,217
4.551
900
1.597
13,986
6,704
440 212
12,235
94.991
4,897
23.797
239.083
2.826
3.659
8
1.314
1.275
481
24,560
4,673
4,265
974
1,836
11,808
7.530
465,701'
13,794
87,915
5,683'
27.663
250.755'
2.915
3.256
21
1.767
1.282
628
31,230'
5,977'
4,077
834
1.888
17,361
8.655'
438.641
12.501
93.362
4 205
23.183
234 205
2 833
3.329
10
1.405
1.092
562
26,312
5,532
3,852
1.029
1 836
1V261
8,132
424,120
13,320
87,994
4.150
'4 518
227.024
2.462
3.263
14
1.433
1.176
625
24.399
3,615
3,994
1,077
1,799
15,029
8,228
433,522
11.989
86.625
4.880
23,817
233,782
1,205
2.889
33
1.449
1.181
623
26.808
5,290
3,950
936
1,751
15,596
8,718
444,440
11.701
101.007
4.910
24.083
229 493
2.767
2.968
1.3S3
1.207
580
27.673
5.076
4.056
1.024
1,841
16,369
8,285
418.443'
13.860
91,184
6,443
26.952'
226.549'
2,728
2.838
18
1.574
1.235
564
27.981'
4.417
4.002
942
1.753
17,377
7,906
465,701
13,794
87,915
5.683
27.663
250.755
2.915
3 256
21
1.767
1,282
628
31,230
5.977
4.077
834
1,888
17,361
8,655
454,938
16.402
91,116
5.103
22,418
243 901
2.972
2 747
19
1,611
1,338
576
27.087
6.397
3,827
965
1,894
18.016
8,549
92 Asia
154,346
240,595
236.714'
236.006
237.624
243,208
239,416
233,852'
236,714
236,356
10,066
9,844
17.104
2,338
1 587
5J57
62,981
5,124
2,714
6,466
15,494
15.471
33 750
11.714
20.197
3.373
2,708
41)41
109,193
5.749
3,092
12,279
15.582
18,917
30 441
15,990'
18,742'
3.936
2 297'
6X142
107,014'
5.973'
3.378'
10.912
14.303
17.686
28.587
16,125
17,058
3,954
2 561
4 444
112,737
5.622
3.041
11.713
12.947
17.217
34,224
14.775
18,609
4,012
2,161
4,364
109,262
5,406
2,539
10,691
13,891
17,690
26.998
15,450
17,053
3,709
2 436
7,162
112.600
5.545
3.191
11.972
13,032
20.268
29,41 1
16,613'
18,762'
3,832
2.401
5J23
103,678
5.897
1.264
12.729
13.145
1 S.397
30,441
15,990
18,742
3,936
2,297
6,042
107,014
5.973
3,378
10.912
14,303
17,686
27.924
16,666
19,870
4,329
2,159
6*583
106.407
6 047
2.338
9.857
12,936
21.240
105 Africa
106
Egypt
107
Morocco
108
South Africa
109
Zaire
1 10
Oil-exporting countries 1 4
I1 1
Other
6.524
1 879
' 97
433
9
1.343
2,763
7.641
2,136
104
739
10
1,797
2,855
8.069'
2 012
112
458
10
2.508
2,869'
7.558
7.259
1,920
121
632
6
2,075
2,505
7,440
1 894
78
482
6
2,051
2,929
7.058
1 904
74
435
7.671
1.901
1,940
2.694
2,384
2.669
8.069
2,012
'll2
458
10
2.608
2.869
8,443
1,933
"|33
648
13
1.928
2.722
610
5
3.095
2,689
1 12 Other
113
Australia
6,036
5.142
894
6,774
5.647
1.127
7.047'
5,458
1.579'
9 592
8.387
1.205
6.504
5.465
1.0.39
7.760
5,522
2,238
6.763
4,786
1.977
7,715
6,196
1,519
7,047
5.468
1.579
6.098
4,864
1.234
8,606
7,537
613
455
11,0.39
9,300
893
846
13.864'
11.991'
1,339
534
11,742
10.303
831
608
12.675
10.988
1,024
663
14,443
12,761
1,193
489
16,115
14.336
1,304
475
14,570
12.772
1.172
626
13.864
11,991
1.119
534
13.739
12.120
1,103
516
93
94
95
95
97
98
99
10(1
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
101
102
103
104
Philippines
Thailand
Middle Eastern oil-exporting c o u n t r i e s ' '
Olhci
114
. . . .
Other
1 15 Nonmonetary international and regional organizations. . .
116
International15
1 17 Latin American regional16
118 Other regional17
11. Since December 1992. has excluded Bosnia. Croatia, and Slovenia.
12. Includes the Bank for International Settlements Since December 1992. has
included all parts of the former U.S.S.R (except Russia), and Bosnia. Croatia, and Slovenia.
13. Comprises Bahrain. Iran, Iraq. Kuwait. Oman. Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States),
14 Comprises Algeria. Gabon, Libya, and Nigeria.
32,068
15,721
17.485
3,793
2,204
4.134
112,537
5.908
3,429
11,759
14.715
19.455
17
66
641
10
I? Principally the International Bank for Reconstruct ion and Development Excludes
"holdings of dollars"' of the International Monetary Fund
Id Principally the Inter-American Development Bank.
17 Asian, African, Middle Eastern, and European regional organizations, except the Bank
for InkTiiaiinnal Settlements, which is included in "Other Europe "
Bank-Reported Data
A55
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
3.18
Millions of dollars, end of period
Area or country
3 Europe
4
Auslria
5
Belgium and Luxembourg
6
Denmark
7
Finland
8
France
9
Germany
10 Greece
11 Italy
12 Netherlands
13
Norway
14
15
16
17
18
19
20
21
22
Portugal
Russia
Spain
Sweden
Switzerland
Turkey
United Kingdom
Yugoslavia2
Other Europe and other former U.S.S.R
23 Canada
Aug.
Sept.
Jan.p
Nov.
532,539
600,689r
544,126
546,607
544,717
563,488
574,920r
600,689
608,704
478,629
530,608
598,085r
542,012
544.575
543,019
560,410
573,447r
598,085
606,932
123.358
692
6.738
1.129
512
12.146
7,608
604
6,043
2.959
504
938
973
3,530
4.098
5,746
878
66,824
265
1,171
132,150
565
7,624
403
1.055
15,033
9.263
469
5,370
5.346
665
888
660
2,166
2,080
7.474
803
67,784
147
4,355
166,523'
1,662
6.727
492
971
15,246'
8.475
568
6.457'
7.080
808
418
1.669
3,211
2,673
19.798
1.109
85,057
115
3.987
143,424
1,128
7,021
319
1,629
10.570
9.497
527
6,023
6,360
1,397
667
514
3,341
2,802
9.520
1,018
77,775
159
3.157
150,054
849
7.018
230
1,296
11,570
7.559
433
6,625
6,565
1,342
548
794
3.073
2,726
9.266
1.044
85,355
87
3,674
155,277
988
6.903
408
1,350
12,078
8.670
397
5.870
6.956
1.199
484
1,135
4.152
2.976
10.930
1.083
85,732
87
3.879
165.634
1,197
6,828
480
1.068
12.792
8.546
426
5 007
7,386
1,617
517
1,413
3,885
2.919
16,110
962
89,961
118
4,402
168,794
1,097
6,403
651
1,228
12,198
7,195
571
5,957'
7,350
1,894
341
1,533
4,181
2,882
18,071
1,131
92.143'
112
3,856
166,523
1,662
6,727
492
971
15,246
8,475
568
6,457
7.080
808
418
1,669
3,211
2,673
19.798
1,109
85,057
115
3,987
179,472
1,643
7,611
678
1,150
18,105
9,657
636
5,410
8,119
1.058
420
1.673
6,500
3,028
21,455
1,029
86,709
108
4.483
1 Total, all foreigners
2 Foreign countries
July
18,490
20.874
26,436
23.981
25.132
25,343
23,066
22,013
26,436
26,318
24 Latin America and Caribbean
25
Argentina
26
Bahamas
27
Bermuda
28
Brazil
29
British West Indies
30
Chile
31
Colombia
32
Cuba
33 Ecuador
34
Guatemala
35
Jamaica
36
Mexico
37
Netherlands Antilles
38
Panama
39
Peru
40
Uruguay
41
Venezuela
42
Oiher
223.523
5.844
66.410
8,481
9.583
95.74]
3.820
4,004
0
682
366
258
17.749
1.396
2,198
997
503
1,831
3.660
256,944
6.439
58.818
5.741
13.297
124.037
4.864
4.550
0
825
457
323
18.024
9 229
3,008
1.829
466
1,661
3,376
274 116'
7,400'
71,871'
4.103
17,259'
105,502'
5,136'
6,247'
0
1,031
620
345
18,425'
25.209
2,786
2.720'
589
1.702"
3,171'
253 177
6,592
59 300
3.579
15.197
101,043
4.321
4.512
0
897
463
346
16,971
29.224
2.211
2,568
589
1.402
3,962
249.693
7.062
62,297
3.052
15,155
99,363
4,174
4.725
0
932
476
335
17.540
23,713
2 211
2/163
562
1,728
3.905
240,634
7,101
61,830
3,640
15,261
102,157
4,388
4.723
0
965
507
339
17.715
11.207
2,257
2,541
530
1,513
3.960
243,634
7,057
61,991
4,438
15,417
105,891
4,288
4.811
0
957
546
362
17,742
9,406
2,354
2.563
547
1,636
3,628
253.761
7.212
64,911
5,019
16,141
105,234
4,554
4.960
0
952
568
365
17,993
15.074
2,621
2,629
551
1,626
3.351
274,116
7,400
71,871
4,103
17,259
105,502
5,136
6,247
0
1,031
620
345
18,425
25,209
2.786
2.720
589
1,702
3,171
272,032
6,986
62,662
4,444
17,618
109,061
5,508
6,167
0
1,076
612
336
18.309
27,674
2,799
2,866
623
1.597
3,694
43 Asia
China
44
Mainland
45
Taiwan
46
Hontz Kong
47
India
48
Indonesia
49
Israel
50 Japan
51
Korea (South)
52
Philippines
53 Thailand
54
Middle Eastern oil-exporting countries4
107.079
115,431
122,544'
114.986
113,912
113.702
120.092
120,285'
122,544
121,238
836
1.448
9.161
994
1.470
688
59,151
10.286
662
2,902
13.748
5,733
1.023
1.713
12,821
1,846
1,696
739
61,468
14.070
1,318
2,612
9,639
6,486
1,401
1.894
12,802
1,946
1.767'
633
59.967'
18.961'
1,697
2,680'
10,424
8,372
1.349
1.312
13,412
1,785
1,744
659
53,441
18,624
1.265
2,824
9.478
9,093
2,033
1.023
12.464
2,118
1,572
667
54.583
17,644
1.205
2,864
9,489
8,250
1,700
1,700
13,882
1,975
1,653
576
52,326
17,608
1,255
2,705
10.111
8.211
1,420
1.305
12.975
2.190
1.577
1.017
59.343
17,032
1,335
2,699
11,372
7,827
1,292
1,413
13,550
2,027
1,636
624
59,886
18,080
1,519
2,820
10,311
7,127'
1,401
1.894
12,802
1,946
1,767
633
59,967
18,961
1,697
2,680
10,424
8,372
2,016
1,249
11,764
1,824
1,745
691
59,751
20.198
1,492
3,003
8,590
8,915
56 Africa
57
Egypt
58
Morocco
59
South Africa
60
Zaire
61
Oil-exporting countries'
62
Other
3.050
225
429
671
2
856
867
2,742
210
514
465
1
552
1,000
2,776
247
524
584
0
420'
1.001'
2.605
216
602
441
1
470
875
2.735
221
577
512
II
462
952
2.757
241
565
572
1
429
949
2,638
204
543
614
1
414
862
2,557
212
587
551
0
427
780
2,776
247
524
584
0
420
1,001
2,730
246
489
571
0
408
1.016
63 Other
3,129
2,186
943
2 467
1.622
845
5,690
4,577
1.113
3,839
1 020
819
3 049
2.439
610
5,306
3.641
1.665
5 U6
3,798
1,548
6,037
4,336
1,701
5.690
4,577
1,113
5.142
3,741
1.401
4,591
1.931
2,604
3,078
1,473
55
64
65
Other
Australia
Other
66 Nonmonetary international and regional organizations6
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2. Since December 1992, has excluded Bosnia. Croatia, and Slovenia.
3. Includes the Bank for International Settlements. Since December 1992. has included all
parts of the former U.S.S.R. (except Russia), and Bosnia. Croatia, and Slovenia.
1,772
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 Ihe Bank for International Settlements, which is included in "Other Europe."
A56
International Statistics • May 1997
3.19
BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
Payable in U.S. Dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1996
Type of claim
1 Total
2 Banks' claims
3
Foreign public borrowers
4
Own foreign offices2
5
Unaffiliatccl foreign banks
6
Deposits
7
Other
8
All other foreigners
9 Claims of banks' domestic customers1
10 Deposits
11
Negotiable and readily transferable
instruments4
12 Outstanding collections and other
claims
1997
I9961
1995
1994
599,499
655,306
744,133
483.220
23,416
283.015
109,146
59.368
49.978
67.443
532,539
22,518
307,427
101.595
37.658
61.937
100.999
600.689
21.963
342,508
113.582
33.943
79.639
122.636
116,279
64,829
122,767
58,519
143,444
36,008
44.161
15,442
20,087
8,427
8,410
9,625
32,796
30,717
42,679
July
Aug.
544,126
20,234
297.799
108.921
36.145
72.776
117,172
546.607
18.875
299.828
111.8X1
19,118
72.541
116.023
Sept.
Oct.
Nov.
Dec.
574,920'
20,106
135.089
108,009'
32,407'
75.602
1 11,716
600.689
21.963
342.508
113.582
33,943
79.639
122,636
688,310
78.543
49,677
15,224
544,717
22,719
311,588
109,616
35,286
74.330
100.794
Jan.?
744,133
563,488
24 929
330,377
108,778
36,239
72,539
99,404
143,593
80,695
143,444
78,543
46,491
49.677
16.407
15.224
9,396
9,625
608,704
26,016
331,672
121.089
39.612
81.477
129.927
MEMO
13 Customer liability on acceptances
14 Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
United States5
32.270
1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are
for quarter ending with month indicated.
Reporting banks include all types of depository institution as well as some brokers and
dealers.
2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition tiled with bank regulatory
agencies For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
3.20
3.1.527
34,125
40.326
42,679
41,581
43,452
principally of amounts due from the head office or parent foreign bank, and from foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4 Principally negotiable time certificates of deposit, bankers acceptances, and commercial
paper.
5. Includes demand and time deposits and negotiable and nonnegotiable certificates of
deposit denominated in U.S dollars issued b> banks abroad.
BANKS' OWN CLAIMS ON UN AFFILIATED FOREIGNERS Reported by Banks in the United States1
Payable in US. Dollars
Millions of dollars, end of period
1996
Maturity, by borrower and area'
1993
1994
1995
Mar.
I Total
June
Sept
Dec. p
202,566
200,070
225,027
233,482
228,571
231,389
256,315
172.662
17,828
154,834
29,904
10,874
19.030
168.359
15,435
152.924
31.711
7.838
23,873
178.857
14.995
161,862
46,170
7,522
38.648
193.870
19.544
174,326
39,612
8.131
31.481
185,881
14 847
171.034
42.690
8,126
34,564
187.102
15.523
171.77C>
44.087
6 922
37.165
210.073
14.897
195,176
46,242
6,815
39,427
57,413
7,727
60,490
41,418
1,820
3,794
55.770
6,690
58,877
39.851
L376
5,795
55.622
6,751
72,504
40,296
1,295
2.389
57,979
5,470
84,385
40,312
1,326
4,398
57,138
6,806
78,622
38,078
1,279
3.958
57,075
8.811
79.622
17 199
~L32O
3.275
54,131
8,339
103,229
38,131
1,316
4,927
5,310
2,581
14,025
5,606
1,935
447
4,203
1,505
15.717
5,318
1.581
1.385
4.995
2.751
27.681
8.036
1.421
1,286
6,835
2.563
19,368
8,466
1,449
931
8,193
3,689
19.511
9.291
1.410
596
7.134
3.5.3.1
21,382
9,928
1.349
761
6.963
2,645
24,941
9,391
1.361
941
Bv b<inc)wer
2 Maturity ot one year or less
1
Foreign public borrowers
4
All other foreigners
5 Maturity of more than one year
6
Foreign public borrowers
7
All other foreigners
8
9
10
11
12
13
14
[5
16
17
18
19
By area
Maturity of one year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 1
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other'
....
I Reporting banks include all types of depository institutions as well s
dealers.
2. Maturity is time remaining until maturity,
3. includes nonmonetary international and regional organizations.
Bank-Reported Data A57
3.21
CLAIMS ON FOREIGN COUNTRIES
Held by U.S. and Foreign Offices of U.S. Banks'
Billions of dollars, end of period
Area or country
Sept.
1 Total
2 G-IO 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
344.7
407.7
497.3
543.1
528.8
531.2
551.9
574.6
609.2
586.0r
131.3
.0
15.3
9.1
161.8
7.4
12.0
12.6
7.7
47
2.7
5.9
84.3
6.9
17.6
190.6
7.0
19.1
24.7
11.8
211.5
10.2
19.9
31.2
204 4
9.4
19.9
30.0
10.7
4.3
3.1
6.2
87.1
1I 3
22.7
200.0
10.7
18.0
27.5
12.6
44
2.9
6.6
80.3
13.0
24.0
206.0
13.6
19.4
27.3
11.5
37
2.7
6.7
82.4
10.3
28.5
203.4
11.0
17.9
31.5
220.0'
11.3'
5.2
84.7
10.8
22.7
223.3
7.9
18.0
31.4
14.9
4.7
2.7
6.3
101.6
12.2
23.6
45.2
1.1
1.3
.9
4.5
2.0
1.2
13.6
1.6
2.7
1.0
15.4
44.1
.9
1.7
I.I
4.9
2.4
1.0
14.1
1.4
2.5
1.5
50.2
1.2
1.8
.7
5.1
2.3
1.9
13.3
2.0
3.0
1.3
50.2
.9
2.6
12.6
14.3
17.4
61.3
1.3
3.4
.7
5.6
2.1
1.6
17.5
2.0
3.8
1.7
21.7
55.5
1.2
3.3
.6
5.6
2.3
1.6
13.6
2.3
3.4
2.0
19.6
62.1'
1.0
1.7'
.6
6.1
3.0
1.4
16.1'
2.8
4.8
1.7'
22.8
23.9
.5
3.7
3.8
15.0
.9
19.5
.5
3.5
4.0
10.7
.7
20.3
.7
3.5
4.1
11.4
.6
22.4
7
3.0
4.4
13.6
.6
21.2
.8
2.9
4.7
12.3
20.1
.9
2.3
4.9
11.5
19.2'
9'
2.3
5.4'
10.1
.4
103.6
104.0
12.3
10.0
7.1
2.6
17.6
.8
2.6
10.9
13.6
6.4
2.9
16.3
.7
2.6
12.9
13.7
6.8
2.9
17.3
.8
2.8
12.7
18.3
6.4
2.9
16.1
.9
3.1
14.1
21.7
2.8
15.4
1.2
3.0
15.0'
17.8'
6.6'
3.1
16.1'
1.3'
3.0
1.4
9.0
4.0
.7
1.7
9.0
4.4
.5
18.0
4.3
3.3
3.9
3.7
1.8
9.4
4.4
5
19.1
4.4
4.1
4.9
4.5
i.3
9.7
4.7
.5
19.3
5.2
3.9
5.2
4.3
2.9
9.8
4.2
.6
21.7
5.3
4.7
5.4
4.8
10.3
3.8
.5
21.9
5.5
5.4
4.8
4.1
.5
.7
.0
.8
.8
.0
.8
.7
.0
1.0
5.0
1.0
3
3.7
5.2'
1.8
.3
3.1'
105.3'
14.2'
4.0
32.0'
11.5
6.5
.0
2.3
4.8
59.7
6.3
18.8
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
24.0
1.2
.9
.7
3.0
1.2
.4
8.9
1.3
1.7
1.7
2.9
25.6
.4
25 O P E C "
26
Ecuador
27
Venezuela
28
Indonesia
15.8
.6
17.4
.5
5.1
3.3
7.4
29
M i d d l e East countries . . . .
30
African countries . . . .
5.2
2.7
6.2
1.0
.4
3.2
1.7
.8
9.9
2.1
2.6
1.1
2.3
3.6
2.7
5.1
85.7
10.0
20.7
10.6
3.5
3.1
5.7
90.1
10.8
26.2
31 N o n - O P E C developing countries
32
33
34
35
36
37
38
Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other
6.6
10.8
4.4
1.8
16.0
11.4
9.2
6.4
2.6
17.9
43.3
.7
1.1
.5
5.0
1.8
1.2
13.3
1.4
2.6
1.4
7.7
12.0
4.7
2.1
17.8
.4
3.1
6.1
2.6
18.4
2.0
7.3
3.2
.5
6.7
4.4
3.1
3.1
3.1
1.1
9.2
4.2
.4
16.2
3.1
3.3
2.1
4.7
.6
16.9
3.9
3.0
3 3
4.9
18.7
4.1
3.6
3.8
.6
.0
.8
.4
.6
.0
.7
.4
.9
.0
.6
.6
2.4
.8
5.7
3.2
1.3
11.6
1.9
4.7
1.2
16.4
22.1
.7
2.7
4.8
13.3
.6
13.2
3.0
3.3
.6
I7.4 r
33 9'
15.2'
5.9r
3.0
6.21
90.5'
14.8'
21.7'
118.6
6.7
Asia
China
39
40
41
42
43
44
45
46
47
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia
3.2
.4
6.6
3.1
3.6
2.2
3.1
8.5
3.8
2.6
Africa
48
49
50
51
Egypt
Morocco
Zaire
Other Africa3
.6
.0
1.0
52 Eastern Europe
53
Russia4
54
Yugoslavia^
55
Other
3.1
1.9
.6
.6
56 Offshore banking centers
57
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
61
Panama6
62
Lebanon
63
Hong Kong
64
Singapore
65
Other'
58.1
6.9
6.2
21.5
1.1
1.9
.1
13.9
66 Miscellaneous and unallocated*
39.7
6.5
.0
1.6
.6
.9
2.7
.8
.5
1.4
2.3
.7
.4
1.8
.4
.1
1.0
73.0
10.9
8.9
18.0
2.6
2.4
.1
18.7
11.2
72.2
10.2
8.4
20.8
1.3
1.3
.]
19.9
10.1
.1
84.8
12.5
8.7
19.8
.9
1.1
82.8
8.4
8.4
24.3
2.4
1.3
.1
23.1
14.8
.0
43.4
1. The banking offices covered by these data include U.S. offices and foreign branches of
U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not covered
include U.S. agencies and branches of foreign banks. Beginning March 1994. the data include
large foreign subsidiaries of U.S. banks. The data also include other types of U.S. depository
institutions as well as some types of brokers and dealers. To eliminate duplication, the data
arc adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign
branch of the same banking institution.
These data are on a gross claims basis and do not necessarily reflect the ultimate country
risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks
are available in the quarterly Country Exposure Lending Survey published by the Federal
Financial Institutions Examination Council.
66.7
19.2
.0
72.3
2.3
86.9
12.6
6.1
24.4
5.5
1.3
.]
23.6
13.3
.1
4.2
1.0
.3
2.8
6.2
1.4
.3
4.5
99.2
11.0
101.3
6.3
32.4
9.9
1.4
53
28.8
10.7
106.2
17.3
4.1
26.1
13.0
1.6
.1
25.3
15.4
1.7
1.7
.1
27.8
15.9
.1
26.2'
15.4
.1
25.0
13.1
.1
57.3
13.9
.1
49.6'
2. Organization of Petroleum Exporting Countries, shown individually; other members of
OPEC (Algeria. Gabon, Iran. Iraq, Kuwait, Libya. Nigeria. Qatar. Saudi Arabia, and United
Arab Emirates); and Bahrain and Oman (not formally members of OPEC).
3. Excludes Liberia. Beginning March 1994 includes Namibia.
4. As of December 1992. excludes other republics of the former Soviet Union.
5. As of December 1992, excludes Croatia. Bosnia and Hercegovmia, and Slovenia.
6. Includes Canal Zone.
7. Foreign branch claims only.
8. Includes New Zealand. Liberia, and international and regional organizations.
A58
3.22
International Statistics • May 1997
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States
Millions of dollars, end of period
1996
1995
June
Sept.
Dec.
Mar.
June
Sept.
1 Total
45,511
50,597
54,309
49,973
47,673
46,448
49,907
48,990
51,105
2 Payable in dollars
37,456
8 055
38,728
11 869
38.298
16011
34.281
15 692
33,908
13 765
33,903
12 545
36,273
13 634
35,385
13,605
36,402
14.703
By lypc
4 Financial liabilities
5
Payable in dollars
6
Payable in foreign currencies
23,841
16,960
6.881
29,226
18.545
10.681
32,954
18,818
14,136
29,282
15,028
14,254
26,237
13,872
12,365
24,241
12,903
11,338
26,570
13,831
12,739
24.844
12.212
12,632
25,107
11,256
13,851
7 Commercial liabilities
8
Trade payables
9
Advance receipts and other liabilities
21,670
9,566
12,104
21.371
8,802
12.569
21.355
10.005
11.350
20,691
10,527
10,164
21,436
10,061
11,375
22.207
11,013
11.194
23.337
10,815
12,522
24,146
11,081
13,065
25,998
11,605
14,393
20,496
1,174
20,183
1,188
19.480
1,875
19,253
1,438
20,036
1,400
21,000
1,207
22.442
895
23,173
973
25,146
852
13.387
414
1,623
889
606
569
8,610
18,810
175
2,539
975
534
634
13,332
21,703
495
1,727
1,961
552
688
15,543
18,223
778
1,101
1,589
530
1,056
12,138
16,401
347
1,365
1,670
474
948
10,518
15,622
369
999
1,974
466
895
10.138
16,950
483
1.679
2,161
479
1,260
10,246
16,434
498
1,011
1,850
444
1,156
10,790
16.054
547
1,220
2,276
519
830
9,821
11
12
Payable in foreign currencies
By area or country
Financial liabilities
Europe
14
France
17
18
Switzerland
United Kingdom
19
Canada
544
859
629
893
797
632
1,166
951
881
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
4.053
379
114
19
2.850
12
6
3,359
1,148
0
18
1,533
17
5
2,034
101
80
207
998
0
5
1,950
81
138
58
1,030
3
4
1.904
79
144
930
3
3
1,783
59
147
57
866
12
2
1,876
78
126
57
946
16
2
969
31
28
8
826
11
1
1,018
50
25
9
764
4
0
27
Asia
5,818
4,750
19
5,956
4.887
23
8.403
7.314
35
8,023
7,141
25
6,947
6,308
25
5,988
5.436
27
6,390
5,980
26
6,351
6,051
26
6,927
6,602
25
6
0
133
123
135
123
151
122
149
122
150
122
131
122
72
61
132
121
33
109
50
42
39
66
57
67
95
7,398
298
700
729
535
350
2,505
6,827
239
655
684
688
375
2,039
6.773
241
728
604
722
327
2,444
6,776
311
504
556
448
432
2,902
7,263
349
528
660
566
255
3,351
7,700
331
481
767
500
413
3,568
8,425
370
648
867
659
428
3,525
7.916
326
678
839
617
516
3.266
8,654
427
657
959
668
409
3,664
29
Middle Eastern oil-exporting countries'
30
Africa
32
All other1
Commercial liabilities
34
Belgium and Luxembourg
36
37
38
39
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
1,002
879
1.037
1,146
1,219
1.040
959
998
1.094
41
42
43
44
45
46
Latin America and Caribbean
Bahamas
Bermuda
Bra/.il
British West Indies
Mexico
1,533
3
307
209
33
457
142
1,658
21
350
214
27
481
123
1.857
19
345
161
23
574
276
1,836
3
397
107
12
420
204
1,607
1
219
143
5
357
175
1,740
1
205
98
56
416
221
2,110
28
570
128
10
468
243
2,301
35
509
119
10
475
283
2,306
33
355
159
15
441
332
48
Asia
10,594
3,612
1,889
10,980
4,314
1.534
10,741
4,555
1,576
9,978
3,531
1,790
10,275
3,475
1,647
10,421
3,315
1.912
10,474
3,725
1,747
11,389
3.943
1,784
12,229
4,150
1,951
568
309
453
167
428
256
481
252
589
241
619
254
708
254
924
462'
1,013
490
575
574
519
474
483
687
661
618
702
50
51
53
Middle Eastern oil-exporting countries'
Africa
Other
1
[. Comprises Bahrain, Iran, Iraq, Kuwait, Oman. Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States),
2 Comprises Algeria. Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.
Nonbank-Reported Data A59
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
the United States
Reported by Nonbanking Business Enterprises in
Millions of dollars, end of period
Type of claim, and area or country
1992
1993
Sept.
Sept.
1 Total
45,073
49,159
57,888
58,051
53,424
52,509
55,406
58,845
57,230
2 Payable in dollars
3 Payable in foreign currencies
42,281
2,792
45,161
3.998
53,805
4,083
54,138
3,913
49,696
3,728
48,711
3,798
51,007
4,399
54,000
4,845
52,555
4,675
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
26,509
17,695
16,872
823
8,814
7,890
924
27,771
15,717
15,182
535
12,054
10,862
1,192
33,897
18,507
18,026
481
15,390
14,306
1.084
34,574
22,046
21,351
695
12,528
11,370
1.158
29,891
17,974
17,393
581
11,917
10,689
1.228
27,398
15,133
14,654
479
12,265
10,976
1.289
30,772
17,595
17,044
551
13.177
11,290
1,887
33,994
18,364
17,926
438
15,630
13,233
2,397
32,857
18,941
18.317
624
13,916
11,827
2,089
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims .
18,564
16,007
2.557
21,388
18,425
2,963
23,991
21,158
2,833
23,477
21,326
2,151
23,533
21,409
2,124
25,111
22,998
2,113
24,634
22,123
2,511
24,851
22,276
2,575
24,373
22,010
2,363
14
15
Payable in dollars
Payable in foreign currencies
17,519
1,045
19,117
2.271
21,473
2.518
21,417
2,060
21,614
1.919
23,081
2,030
22,673
1.961
22,841
2.010
22,411
1,962
16
17
18
19
20
21
22
Bv area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
9,331
8
764
326
515
490
6,252
7.299
134
826
526
502
530
3,585
7,936
86
800
540
429
523
4.649
7.927
155
730
356
601
514
4,790
7.840
160
753
301
522
530
4,924
7,609
193
803
436
517
498
4,303
8,929
159
1,015
320
486
470
5,568
9,241
151
679
296
488
461
6,169
8,500
126
733
272
520
431
5,333
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
31
32
33
Asia
Japan
Middle Eastern oil-exporting countries'
34
35
Africa
,
Oil-exporting countries'
36
All other'
37
38
39
40
41
42
43
..
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
1,833
2,032
3.581
3.705
3,526
2,851
5,269
4.773
4.502
13,893
778
40
686
11,747
445
29
16,224
1,336
125
654
12.699
872
161
19,536
2,424
27
520
15,228
723
35
21,159
2,355
85
502
17,013
635
27
15.345
1,552
35
851
11,816
487
50
14,500
1,965
81
830
10,393
554
32
13,827
1,538
77
1,019
10,100
461
40
17,644
2,168
84
1,242
13.024
392
23
17,184
864
668
3
1,657
892
3
1,871
953
141
1,235
471
3
2,160
1,404
4
1,579
871
3
1,890
1,171
13
1,571
852
1,826
1,001
13
83
9
99
1
373
0
138
9
188
6
276
5
277
5
197
5
176
568
669
9.812
239
1,658
1,335
481
602
2,651
9,162
213
1,525
1,239
420
588
2,514
8,451
189
1,537
933
552
362
2.094
9,824
231
1,830
1,070
452
520
2,656
9,776
247
1,803
1.410
442
579
2,607
9
1.746
113
1,417
12,809
411
17
13
9,105
184
1,947
1.018
423
432
2,377
9,540
213
1,881
1,027
311
557
2,556
9.200
218
1,669
1,023
341
612
2,469
8,862
224
1,706
997
338
438
2,479
1,988
2,003
1,971
1,951
2,045
2,074
2.032
4,370
21
210
777
83
1,109
319
4,359
26
245
745
66
1,026
325
4,364
30
272
898
79
993
285
4,151
30
273
809
106
870
308
4,340
28
837
103
1,021
313
4,156
14
290
857
119
901
302
44
Canada
1,286
1,781
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
3,043
28
255
357
40
924
345
3.274
182
460
71
990
293
4,117
9
234
612
83
1,243
348
52
53
54
Asia
Japan
Middle Eastern oil-exporting countries1
4,866
1,903
693
6.014
2,275
704
6,982
2,655
708
6,516
2,011
707
6,826
1,998
775
7,312
1.870
974
7,100
2,010
1.024
6,883
1,877
879
7.216
1,918
930
55
Africa
554
78
493
72
454
67
478
60
544
74
654
87
667
107
688
83
716
142
56
57
Oil-exporting countries"
Other'
1. Comprises Bahrain. Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
1,006
2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.
264
A60
3.24
International Statistics D May 1997
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1996
Transaction, and area or country
1995
1996'
Jan.Jan.
Jan.p
Sept.
July
U.S. corporate securities
STOCKS
1 Foreign purchases
2 Foreign sales
3 Net purchases, or sales (—) . . . .
4 Foreign countries
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean .. .
Middle East1
Other Asia
Japan
Africa
Other countries
Nonmonetary international and
regional organizations . . .
19 Foreign purchases
20 Foreign sales
21 Net purchases, or sales ( - ) .
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Foreign countries
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries
462,950
451,710
625,595
612,366
72,993
70,119
49,557
52,211
46,136
44,071
42,599
42,550
57,758
56,751
67,406
65,470
57,051
56,629
72,993
70,119
11,240
13,229
2,874
-2,654
2,065
1,007
1,936
11,445
13,303
2,875
-2,653
2,051
75
1,013
1,939
451
2,875
4,912
-1,099
-1,837
3,507
-2,283
8,066
-1,517
5,814
-337
2,503
-2,725
2
68
6,329
-2.343
1,101
1,365
2,706
3,925
2,253
5,558
-1,602
898
-318
-81
-52
3.232
532
959
322
294
-167
422
1.374
-386
-188
363
124
615
-1.490
31
-1.077
-15
-1.347
-611
33
108
3,310
-209
83
219
538
2,551
-250
1,046
-179
-1,642
-791
-33
-201
200
-109
-85
-13
-123
475
191
252
-153
-575
104
-6
166
447
-219
116
-132
144
909
742
-653
15
511
313
5
-54
53
-237
-8
139
682
464
736
959
-57
259
-525
-23
12
-229
-1,064
-18
-160
-470
1,487
-9
994
3,232
532
959
322
294
-167
422
1,374
-1
-2,176
-1,559
-8
32
-3
-29
40,668
30,277
47,406
34.667
42,907
32.825
-I
-2,176
-1,559
-8
32
-205
-74
293.533
206.951
422,276
294.958
48,777
36.603
86,582
127,318
87,036
127,147
70.318
1,143
5.938
74,975
5,200
5,136
2.440
882
54,615
4,230
22,922
1,637
23,108
13,694
600
-325
1,463
494
57,591
2,569
6,141
1,869
5,659
2,250
234
246
2.874
-232
-343
10
-76
48,777
36,603
27.962
17,458
32,333
20,901
12,174
10,504
11.432
13,549
10,391
12,739
10,082
12,178
10,387
11,453
13,551
10,406
12.749
10,082
12,178
6,442
73
-274
337
-58
6,265
379
3,189
480
1,661
1,597
89
-62
6.502
345
255
442
258
4 790
514
1,811
205
1,186
905
31
138
6,184
169
626
146
125
4,305
474
1.272
201
3.243
2,583
17
62
8,350
565
381
244
403
6,231
122
1,144
65
3,681
1,963
109
80
6,279
713
-260
93
59
5,316
181
2,954
211
787
1,037
45
-51
5,710
98
209
533
-132
4,357
435
2.222
513
3,727
2,245
132
10
4,623
252
-27
148
-30
4.351
391
2,940
412
1,644
1,395
79
-7
6,442
73
-274
337
-58
6,265
379
3,189
480
1,661
1,597
89
36 Nonmonetary international and
regional organizations . . .
37,407
23,858
-62
-15
117
Foreign securities
37 Stocks, net purchases, or sales ( - )
38
Foreign purchases
39
Foreign sales
40 Bonds, net purchases, or sales ( - )
41
Foreign purchases
42
Foreign sales
-50,291
345,540
395,831
-48,405
889,541
937,946
43 Net purchases, or sales ( - ) , of stocks and bonds
-98,696
-58,111
457 442
515,553
-46,271
1.118,725
-1,042
52,225
53,267
3,436
109,527
106,091
-5,139
37.643
42.782
- 3.418
80.692
84.110
-1,197
34.016
35,213
-5,189
84,461
89,650
-1,733
31,195
32,928
-4,430
113,087
117,517
-2,329
40,117
42,446
-5,771
116,354
122.125
-1.928'
47.554'
49.482'
-1,972'
105,614"
107,586'
-5,902
41,850
47,752
-10.742
98,795
109,537
-1,042
52,225
53,267
3,436
109,527
106.091
2,394
-8,557
-6,386
-6,163
-8,100
-3,900 r
-16,644
2,394
2,346
-8,620
-6,244
-5,637
-8,122
-3,932 r
-16,633
2,346
3,301
919
380
-1.685
-333
34
-603
-5,960
807
-2,181
-1,174
231
-53
-59
-5,298
882
-1,470
-1.016
486
-25
683
-5,505
222
-1,277
971
-6,093
-574
937
-819
656
-468
-1.105
-2,805'
-577'
3,943
-4,120'
-632'
-115
-258
-11,150
-2.177
-1.497
-773
2,218
36
-1.072
3,301
63
-142
-526
22
32
-11
1,164,996
-104,382
44 Foreign countries
-97,891
45
46
47
48
49
50
51
-48,125
-7,812
-7,634
-34,056
-25,072
-327
63
-103,511
Europe
Canada
Latin America and Caribbean
Asia
Japan
Africa
Other countries
52 Nonmonetary international and
regional organizations
-57,209
-6,017
-7,420
-27,684
-5,928
-1,529
-3,652
-80S
1 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait. Oman, Qatar,
Saudi Arabia, and United Arab Emirates (Trucial Stales).
2,456
-49
919
380
-1,685
-333
34
-603
48
2. Includes state and local government securities and securities of U.S. government
agencies and corporations. Also includes issues of new debt securities sold abroad by U.S.
corporations organized to finance direct investments abroad.
Securities Holdings and Transactions/Interest and Exchange Rates A61
3.25
MARKETABLE U.S. TREASURY BONDS AND NOTES
Foreign Transactions'
Millions of dollars; net purchases, or sales ( - ) during period
Area or country
1 Total estimated
134,115
244.2731"
2 Foreign countries
133.676
246,115'
49,976
591
6,136
1.891
358
-472
34,754
6,718
252
117.511'
1,481
18.072
-529
2,350
480
48,609
_2
25,152
23,459
25,540
-69
13,233
3
4
5
6
7
8
9
10
Europe
Belgium and Luxembourg
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other Europe and former U.S.S.R.
Canada
Latin America and Caribbean . . .
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Other
July
Aug.
Sept.
22,225
47,960
12,340
14,738
24,321
20,831
47,662
22,225
48,396
12,304
14,895
23,784
22.023
46.519
22,691
4,410
38
18.471
-39
556
-671
-255
1,233
694
322
395
11,245
4,621
1,734
13,104
489
-264
116
431
718
7,977
3,637
-215
12.992
-320
2,813
-423
169
-599
10,121
1,231
-1,744
8,478
330
3,449
729
-45
-54
-152
4,221
313
14,778
370
1,499
855
241
2,914
1,587
667
7,103
73
467
-237
-282
-730
7,623
189
-988
4,410
38
556
-671
-255
241
2,914
1,587
10,243
-3
23.991
16
986
22,989
3,964
2.384
-31
267
-491
146
3,088
-3.725
6,327
2,924
163
190
-19,359
-45
-1,547
-17,767
20,713
4,875
30
622
1,479
-29
926
582
9,889
6.629
-13
1,181
12.906
15,228
-960
16,744
7,593
-2
551
-436
-395
-3
36
537
338
-4
-1,192
-1.146
-2
1,143
773
252
-466
-287
347
-157
-52
-90
64,428
31,229'
2,725
6,461
3,785
8,540
12,376
Jan.'
-68
2,922
10,052
1,298
1,337
-12
26
-517
7,265
5,280'
-780
212
5,292
9,724
667
10,243
-3
6,461
3,785
8,540
4.264
29
-1,198
16,979
1,464
908
97,962
41,508
1,085
1.292
439
9
261
-1,842
-1,390
-779
-466
-484
94,045
246,115'
86,875'
159,240'
22,691
8,370
14,321
48,396
9,629
38,767
12,304
3,587
8.717
14,895
17,188
-2,293
23.784
4,838
18,946
22,023
3,840
18,183
46,519
13,662
32,857
22,691
8,370
14,321
3,075
2
10,232
1
1,242
0
-219
0
323
-1
4,969
1
-1,876
0
337
0
2,279
0
1,242
0
32,467
20 Nonmonetary international and regional organizations
21
International
22
Latin American regional
Jan.Jan.
4.264
29
-1,198
-1
-484
-1
MEMO
23 Foreign countries
24
Official institutions
25
Other foreign
133,676
39,631
Oil-exporting countries
26 Middle East 2
27 Africa3
1. Official and private transactions in marketable US. 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.
3.26
2. Comprises Bahrain, Iran, Iraq, Kuwait. Oman. Qatar. Saudi Arabia, and United Arab
Emirates (Trucial States)
3. Comprises Algeria. Gabon, Libya, and Nigeria.
DISCOUNT RATES OF FOREIGN CENTRAL BANKS'
Percent per year, averages of daily figures
Rate on Mar. 3 , 1997
Rate on Mar. 31, 1997
Country
Country
Austria
Canada.
...
France"
Percent
Month
effective
2.5
2.5
3.25
3 25
3.10
Apr. 1996
Apr. 1995
Nov. 1996
Nov 1996
Jan 1997
Percent
Month
effective
2.5
6.75
.5
2.5
1.0
Apr. 1996
Jan. 1997
Sept. 1995
Apr. 1996
Sept. 1996
Germany . . .
Italy
Switzerland .
2. Since February 1981, the rate has been that at which the Bank of France discounts
Treasury bills for seven to ten days.
3.27
FOREIGN SHORT-TERM INTEREST RATES'
Percent per year, averages of daily figures
1997
1996
Type or country
1 Eurodollars
2 United Kingdom
7 France
8 Italy
10 Japan
1994
4.63
5.45
5.57
5.25
4.03
5 09
5.72
8 45
5.65
2.24
1995
5.93
6.63
7 14
4 43
2.94
4 30
6.43
10 43
4.73
1.20
1996
5.38
5.99
4.49
3.21
1.92
291
3.81
8 19
3.19
.58
1. Rates are for three-month interbank loans, with the following exceptions: Canada,
finance company paper; Belgium, three-month Treasury biJJs; and Japan, CD rate.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
5.49
5.75
4.10
3.02
1.82
2.70
3.63
8.42
3.04
.53
5.41
5.93
3.54
3.04
1.56
2.82
3.39
7.99
3.02
.52
5.38
6.27
3.05
3.09
1.80
2.92
3.35
7.40
3.03
.51
5.43
6.31
3.16
3.13
1.99
2.99
3.33
7.22
3.01
.51
5.44
6.28
3.18
3.03
1.72
2.94
3.23
7.21
3.00
.53
5.36
6.16
3.16
3.08
1.61
2.95
3.22
7 33
3.10
.54
5.50
6.17
3.25
3.16
1.77
3.12
3.26
7.40
3.40
.55
A62
3.28
International Statistics • May 1997
FOREIGN EXCHANGE RATES1
Currency units per dollar except as noted
1995
1996
73.161
11.409
33.426
1.3664
8.6397
6.3561
5.2340
5.5459
1.6216
242.50
74.073
10.076
29.472
1.3725
8.3700
5.5999
4.3763
4.9864
1.4321
231.68
78.283
10.589
30.970
1.3638
8.3389
5.8003
4.5948
5.1158
1.5049
240.82
79.179
10.748
31.471
1.3508
8.3299
5.8576
4.5694
5.1652
1.5277
239.76
79.684
10.640
31.153
1.3381
8.3294
5.8053
4.5512
5.1156
1.5118
238.38
79.661
10.923
31 992
1.3622
8.3290
5.9428
4.6388
5.2427
1.5525
245.70
77.756
11.289
33.087
1.3494
8.3260
6 1199
4.7766
5.4145
1.6047
251.54
76.768
11.785
34.556
1.3556
8.3227
6.3867
4.9792
5.6536
1.6747
262.42
78.747
11.932
34.961
1.3725
8.3258
6.4628
5.0632
5.7154
1.6946
266.86
7.7290
31.394
149.69
1,611.49
102.18
2.6237
1.8190
59.358
7.0553
165.93
7.7357
32.418
160.35
1.629.45
93.96
2.5073
1.6044
65.625
6.3355
149.88
7.7345
35.506
159.95
1,542.76
108.78
2.5154
1.6863
68.765
6.4594
154.28
7.7322
35.804
160.81
,523.82
112.41
2.5074
1.7141
70.071
6.4810
154.28
7.7323
35.839
166.45
1,513.66
112.30
2.5234
1.6958
70.975
6.3554
152.83
7.7355
35.882
165.93
1,528.44
113.98
2.5251
1.7420
70.501
6.4716
156.54
7 7397
35.904
163.11
1,567.91
117.91
2.4900
1.8023
70.088
6.4589
160.53
7.7474
35.891
158.60
1.655.00
122.96
2.4866
1.8812
69.084
6.6323
168.24
7.7460
35.885
156.57
1.691.21
122.77
2.4773
1.9071
69.789
6.7915
170.35
1.5275
3.5526
806.93
133.88
49.170
7.7161
1.3667
26.465
25.161
153.19
1.4171
3.6284
772.69
124.64
51.047
7.1406
1.1812
26.495
24.921
157.85
1.4100
4.3011
805.00
126.68
55.289
6.7082
1.2361
27.468
25.359
156.07
1.4124
4.5799
828.24
128.60
57.016
6.6006
1.2586
27.532
25.474
158.63
1.4025
4.6577
830.56
127.28
56.987
6.6269
1.2752
27.522
25 459
166.23
1.3999
4.6873
841.92
130.69
56.730
6.8283
1.3290
27.516
25.600
166.39
1.4061
4.6402
854.07
134 79
57.278
7.0692
1.3913
27.477
25.726
165.85
1.4193
4.4557
868.39
141.85
57.772
7.4069
1.4541
27.554
25.957
162.56
1.4378
4.4319
882.62
143.72
57.873
7.6502
1.4634
27.551
25 959
160.96
Country/currency unit
1
2
3
4
5
6
7
8
9
10
Australia/dollar
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.. H
Ireland/pound2
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
New Zealand/dollar2
Norway/krone
Portugal/escudo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/bant
s .
United Kingdom/pound". .
MEMO
31 United States/dollar'
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.
87.99
86.97
88.71
91.01
95.60
3. Index of weighted-average exchange value of U.S dollar against the currencies of ten
industrial countries. The weight for each of the ten countries is the 1972-76 average world
trade of that country divided by the average world trade of all ten countries combined. Series
revised as of August 1978 (see Federal Reserve Bulletin, vol. 64 (August 1978), p. 700).
A63
Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference
Anticipated schedule of release dates for periodic releases
Issue
December 1996
Page
A72
Issue
Page
SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference
Title and Date
Assets and liabilities of commercial banks
March 31, 1996
June 30, 1996
September 30, 1996
December 31, 1996
November
November
February
May
1996
1996
1997
1997
A96
A100
A64
A64
Terms of lending at commercial banks
May 1996
August 1996
November 1996
February 1997
August
November
February
May
1996
1996
1997
1997
A64
A104
A68
A68
Assets and liabilities of U.S. branches and agencies offoreign banks
March 31, 1996
June 30, 1996
September 30, 1996
December 31, 1996
September
November
February
May
1996
1996
1997
1997
A64
A108
A72
A72
January
July
October
January
1996
1996
1996
1997
A68
A64
A64
A64
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
Residential lending reported under the Home Mortgage Disclosure Act
1994
1995
September 1995
September 1996
A68
A68
Pro forma balance sheet and income statements for priced service operations
September 30, 1995
March 31, 1996
June 30, 1996
September 30, 1996
A64
4.20
Special Tables O May 1997
DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities
Consolidated Report of Condition, December 31, 1996
Millions of dollars except as noted
Banks with domestic
offices only1
Banks with foreign offices1
Item
Total
1 Total assets
2 Cash and balances due from depository institutions
3
Cash items in process of collection, unposted debits, and currency and coin
4
Cash items in process of collection and unposted debits
5
Currency and coin
6
Balances due from depository institutions in the United States
7
Balances due from banks in foreign countries and foreign central banks
8
Balances due from Federal Reserve Banks
Total
Foreign
Domestic
Over 100
Under 100
4,551.336
2,795.769
735,165
2,164,928
1,436,850
318,716
334,890
238.795
115.031
n.a.
n.a.
37612
70.135
16,017
81,501
2.536
n.a.
n.a.
14,908
63,916
141
157,294
112,496
84,414
28,082
22,704
6,219
15 876
79,275
44,838
29.822
15,016
20,750
3,617
10 070
16,820
4
T
1
n.a.
....
1
MEMO
9 Non-interest-bearing balances due from commercial banks in the United States
(included m balances due from depository institutions in the United States)
10 Total securities, held-to-malurity (amortized cost) and available-for-sale (fair value)
11
U.S. Treasury securities
12 U.S. government agency and corporation obligations (excludes mortgage-backed
securities)
13
Issued by U.S. government agencies
14
Issued by U.S. government-sponsored agencies
15 Securities issued by states and political subdivisions in the United States
16
General obligations
17
Revenue obligations
18
Industrial development and similar obligations
19 Mortga«c-backed securities (MBS)
20
Pass-through securities
21
Guaranteed by GNMA
22
Issued by FNMA and FHLMC
23
Pnvatelv issued
24
Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS)
25
Issued or guaranteed by FNMA, FHLMC or GNMA
26
Collaleralized by MBS issued or guaranteed by FNMA, FHLMC. or GNMA
27
All other mortgage-backed securities. .
....
28
Other debt securities
29
Other domestic debt securities
30
Foreign debt securities
31
Equity securities
32
Investments in mutual funds
33
Other equity securities with readily determinable fair value
34
All other equity securities
35 Federal funds sold and securities purchased under agreements to resell
36
Federal funds sold
37
Securities purchased under agreements to resell
38 Total loans- and lease-financing receivables, gross
3()
LESS: Unearned income on loans
40 Total loans and leases (net of unearned income)
41
LESS: Allowance for loan and lease losses
42
LESS' Allocated transfer risk reserves .
....
43 EQUALS: Total loans and leases, net
67
68
69
70
71
72
Tola} loans and leases, yroxs, by dilatory
Loans secured by real estate
Construction and land development
Farmland
.
....
One- to four-family residential properties
Revolving, open-end loans, extended under lines of credit
All other loans
Multifamily (five or more) residential properties
Nonfarm nonresidential properties
Loans to depository institutions
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 farmers
Commercial and industrial loans
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Acceptances of other banks
US banks
.
. .
Foreign banks
Loans to individuals for household, family, and other personal expenditures (includes
purchased paper)
..
.
Credit cards and related plans
Other (includes single payment and installment)
Obligations (other than securities) of states and political subdivisions in the United States
(includes nonrated industrial development obligations)
All other loans
....
Loans to foreign governments and official institutions
Other loans
Loans for purchasing and carrying securities
All other loans (excludes consumer loans)
Lease-financing receivables
73
74
75
76
77
78
79
X0
Assets held in trading accounts
Premises and fixed assets (including capitalized lenses)
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
44
45
46
47
4X
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
n.a.
13,791
17.290
6.842
792.208
165,291
368.346
69.266
47,562
1,778
320,785
67,488
331,411
72,264
92,451
23.761
128.756
6.022
122,734
74,583
56,035
18,054
494
333 390
222,798
76,534
143.674
2,590
110.592
88.768
2,724
19,100
68.437
n.a.
n.a.
21,752
2,650
5.175
13,927
26.794
2,667
24,127
20,733
14,869
5.699
165
181.574
125,175
49,864
73 556
1.755
56.399
42.655
1.058
12.687
57.378
14.966
42.412
12.601
1.149
3,743
7.709
96
n.a.
n.a.
219
n.a.
n.a.
n.a
4 302
4,283
n.a.
n.a.
0
19
0
n.a.
n.a.
39.906
539
39.366
1,262
63
531
668
26.698
n.a.
n.a.
20,514
n.a.
n.a.
n.a
177,273
120,892
n.a.
n.a.
1,755
56,381
42,655
n.a.
n.a.
17.472
14.427
3,045
11,339
1,086
3,212
7,042
69.746
2,274
67,472
38,950
30,221
8,465
264
133 261
86,002
23,160
62,062
780
47,259
39,596
1,405
6,257
9,456
8,891
566
7,734
1,117
1,332
5,285
32,216
1.081
31,135
14.900
10,945
3.890
66
18,555
11,621
3,510
8.056
55
6,934
6,517
260
156
1,603
n.a.
n.a.
1,416
384
100
933
163.475
145,373
18,102
107,064
92,273
14,791
595
n.a.
n.a.
106,470
n.a.
n.a.
41,461
38,373
3.088
14,950
14,727
223
2,800,446
4.754
2,795.693
53,425
39
2,742,228
1,679,814
2,031
1,677.783
33.460
39
1,644,285
322.110
1,028
321,083
n.a.
n.a.
n.a.
1 357,704
1,003
1.356,701
n.a.
n.a.
n.a.
935,166
1,942
933,224
17,241
0
915.982
185,466
781
184,685
2,724
0
181,961
1,131.946
563.018
28,046
463,954
38,152
10,853
250,292
30,792
219,500
17,127
147,530
7,581
7,000
387
194
15,122
151,288
150,734
553
203
n.a.
n.a.
104,975
8,032
11,383
54,298
2.792
51,506
2,303
28,959
195
n.a.
n.a.
n.a.
18,499
30,989
n.a.
n.a.
72
n.a.
n.a.
\
..
n.a.
f
1
n.a.
114,079
n.a.
n.a.
n.a
41,131
705,889
n.a.
n.a.
1.542
n.a.
n.a.
106,303
53,949
7.4X6
44.868
7.510
523,612
407 888
115,724
1.267
237
1.030
43,600
3,412
174
40,014
30
140,301
29,084
111,217
776
0
776
534,972
29,672
2,643
346.591
51,667
294,924
18,632
137,435
62,704
50.538
7,312
4.854
6,727
383,311
378,804
4,507
491
237
253
558,476
234,291
324.185
263 259
97^531
165.729
33,146
n.a.
n.a.
230.113
n.a.
n.a.
267.003
134.990
132,012
28,215
1.770
26,444
18,353
151,284
n.a.
n.a.
n.a.
n.a.
77,746
9,895
140,193
10,732
129.461
n.a.
n.a.
64,756
30
70.443
9,751
60.691
n.a.
n.a.
4,986
9,865
69,751
981
68,769
17,179
51,590
59.770
7,530
10,178
35
10,144
1,861
8,283
12,307
928
913
n.a.
„ .,
n.a.
n.a.
682
240.815
64.056
5413
6,153
18,247
n.a.
44.510
139.340
239,783
37.131
3.181
5,712
17.920
n.a.
31.992
101.559
f
956
21,235
1.743
416
312
n.a.
11,741
32.318
1
5,690
489
26
16
n.a.
776
5,463
t
1
n.a.
t
1
n.a.
t
I
n.a.
T
1
t
n.a.
1
n.a.
I
40,745
n.a.
n.a.
Commercial Banks A65
4.20
DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued
Consolidated Report of Condition, December 31, 1996
Millions of dollars except as noted
Banks with domestic
offices only2
Banks with foreign oliice.s1
Item
Total
Total
Foreign
Domestic
Over 100
Under 100
81 Total liabilities. limited-life preferred stuck, and equity capital
4,551,336
2,795.769
n.a.
n.a.
1.436,850
318,716
82 Total liabilities
4,177,507
2,584,890
735,165
1,954,048
1,306,951
285.667
83 Total deposits
84
Individuals, partnerships, and corporations
85
U.S. government
86
States and political subdivisions in the United States
87
Commercial banks in the United States
88
Other depository institutions in the United States
89
Banks in foreign countries
90
Foreign governments and official institutions
91
Certified and official checks
92
Residual
3 175 019
2,808! 190
n.a.
1,825,641
473,319
3O7i)17
n.a.
1,352.322
1,256,081
6,053
40,357
23^070
3,116
6^901
1.561
8,258
1,073,520
994,745
2,687
54.226
8J28
3,103
'234
275.858
25<U4h
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
Total transaction accounts
Individuals, partnerships, and corporations
US government
Slates and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and official checks
Residual4
63,017
n.a.
n.a.
18.422
285.390
143
144
145
146
147
148
Demand deposits (included in total transaction accounts)
Individuals, partnerships, and corporations
U S government
States and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions
Certified and official checks
Residual4
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
Trading liabilities
Other borrowed money
Banks' liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge Act and agreement subsidiaries, and lBF\s
All other liabilities
MEMO
Holdings of commercial paper included in total loans gross
Total individual retirement (IRA) and Keogh plan accounts . . . .
Total brokered deposits
Fully insured brokered deposits
Issued in denominations of less than $100 000
Issued in denominations of $100,000. or in denominations greater than $100,000 and
participated out by the broker in shares of $100,000 or less
Money market deposit accounts (MMDAs)
Other savings deposits (excluding MMDAs)
Total time deposits of less than $100 000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All negotiable order of withdrawal (NOW) accounts
Footnotes appear at the end of table 4.22
92,098
34,906
855
8.182
n.a.
n.a.
n.a.
225,163
177,636
47,527
18,393
150,374
217,317
17,937
46,230
n.a.
83,835
n.a.
81,620
4.317
n.a.
n.a.
n.a.
373,274
210,329
n.a.
2.485
n.a.
n.a.
0
f
n.a.
9.509
n.a.
182
1
n.a.
n.a.
82.018
71.434
383
7,705
404
106
n.a.
n.a.
1,969
5
7,340
n.a.
362.799
307,242
4,041
9,950
23,070
2,385
6,901
42,485
37,994
8,258
n.a.
194,101
168,552
2,342
6,052
8.726
850
234
5
7,340
n.a.
930.295
894,770
1.974
25,292
6,655
784,222
742.844
299
36,378
2,156
193.840
178.912
n.a.
n.a.
1,108
n.a.
0
0
0
0
730
269
0
2,248
0
605
0
28
222,678
n.a.
n.a.
18,393
n.a.
135,697
13,620
268
0
n.a.
87,187
58,791
28,396
3,262
106
17
372
1,628
403
103
n.a.
n.a.
1,969
17
103
13,159
554
n.a
n.a.
n.a.
4
3.303
1,602
1,700
178
0
63,579
n.a.
115,934
312
4,696
n.a
21,933
n.a.
2,937
n.a.
129,896
33.049
70,033
24 422
19,808
2,247
1,111
66,051
20,801
17,892
2.882
n.a.
15,150
1.119
1,058
822
17,560
347,214
157.385
268,986
136,809
19,901
58,788
15.010
184,771
134,886
338,157
123,769
2,638
93,480
n.a
52
300
21
289,298
251,902
2,388
17,848
8,728
855
234
956
n.a.
315,652
238,029
77,623
2 ,833
150,480
336 604
' I H265
50.948
n.a.
108,706
958
1,215
n.a.
n.a.
1.969
8,258
n.a.
952
1
33
7,340
486
20,864
n.a
422,026
361.311
4,079
15,065
23,070
2,386
6.901
Total nontransaction accounts
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in the United States
Commercial banks in the United States
U.S. branches and agencies of foreign banks
Other commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries
Foreign branches of other U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
Residual
149 Number of banks
30.262
. ...
136 Total equity capital
137
138
139
140
141
142
n.a.
n.a.
53,332
n a.
98,999
36,467
9,113
64,631
248
n.a
2,814
3,353
16
21
236
28.176
28.910
104.420
31.486
847
38,521
6,513
A66
4.22
Special Tables • May 1997
DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities
Consolidated Report of Condition. December 3!, 1996
Millions of dollars except as noted
Members
Nonmembers
Total
1 Total assets
3,920.494
Stale
2,233,021
2 Cash and balances due from depository institutions
253.389
208.068
161.091
46.977
45,321
3 Total securities, held-io-maturity (amortized cost) and available-for-sale (fair value)
4
U.S. Treasury securities
5
U.S. government agency and corporation obligations (excludes mortgage-backed securit
6
Securities issued by slates and political subdivisions in ihe United Stales
7
Mortgage-backed securities (MBS)
Pass-through securities .
Issued or guaranteed by FNMA, FHLMC. or GNMA
Other pass-through securities
Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS), . .
Issued or guaranteed by FNMA. FHLMC. or GNMA
All other mortgage-backed securities
Olher debt securities
Equity securities
Investments in mutual funds
Other equity securities with readily determinable fair values
All other equity securities
423,862
96.025
230.557
49.841
49,685
28,046
91,389
59,953
59.420
533
31.436
26,967
4.47(1
6,065
5,530
752
655
4,124
174.947
36.121
37,782
20,299
71,289
47,004
46.657
347
24,285
21,210
3.075
5,075
4,382
620
529
3,233
55,610
13,720
11,903
7,748
20,101
12,949
12.764
186
7,151
5,756
1,395
990
1,148
132
126
890
193,305
46,184
52,276
25.803
19 Federal funds sold and securities purchased undei agreements to resell . . .
101,962
53,850
151,815
97.623
96.788
835
54,192
46.114
8.079
11.059
9.151
1.501
1.432
6,218
60,426
37,670
37.367
303
22,756
19,147
3,609
4.995
3.620
748
778
2.094
162.880
134.229
91.737
42.492
28,652
2,478.336
3,726
2.474.610
1,901,763
2,040
1,899,723
1.471.821
1,557
1,470,265
429,942
484
429.458
576,573
1,686
574,887
1,103.901
75,856
24.878
651.181
85.251
565.929
38.062
313.923
70.480
40 348
565.588
766
801,034
50,364
11,722
494,357
68,450
425.906
26,709
217,882
65,968
20.844
463,196
499
622,760
38.851
9,046
384,043
55,019
329,024
20,480
170,341
60.566
16,635
340,044
225
178.273
11.513
2,677
110,314
13.431
96,883
6,229
47,541
5,402
4,210
123.152
274
302.867
25.492
13.156
156,824
16,801
140.023
11.353
96,041
4,512
19,504
102,392
267
525.330
18.323
80.841
72.759
396.214
14,849
75,208
63.952
11.286
44,657
45,849
66,415
3,562
30,551
18.103
129.1 16
3,474
5,634
8.808
40,745
565,008
38,250
509.932
13,216
321.765
25,034
188.167
2,495
55.076
41 Total liabilities
3,546.666
2,734,266
2,025,495
708.771
812.400
42 Total deposits
43
Individuals, partnerships, and corporations
U.S. government .
45
States and political subdivisions in the United Stales
46
Commercial banks in the United States
47
Other depository institutions in the United States
Certified and official checks
49
Banks in foreign countries, foreign governments, and foreign official institutions ..
2,701.700
2,501,173
9.227
115.447
32.756
7 43s
17.567
8,750
2,013,824
1,866.379
7.754
75,589
30,513
4.810
12,770
8,219
1.525.675
1,415,177
6,621
54,221
24,771
4,001
9,60!
3.930
488,149
451,202
1,133
21,368
5,743
809
3,167
4,288
687.876
189.300
166,888
1.222
13.458
1.901
530
20 Total loans- and lease-financing receivables, gross
21
LESS: Unearned income on loans
22 Total loans and leases (net of unearned income)
Total loans and leases, gross, by category
Loans secured by real estate
Construction and land development
Farmland
One- to four-family residential properties
Revolving, open-end loans, extended under lines of credit
All other loans
Multifamily (five or more) residential properties
Nonfarm nonresidential properties
Loans to depository institutions
Loans to tinance agricultural production and other loans to fanners
Commercial and industrial loans
Acceptances of other banks
Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
36 Obligations (other than securities) of stales and political subdivisions in the United J
37 All other loans
38 Lease-financing receivables
23
24
25
26
27
28
29
30
31
32
33
34
35
39 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs..
40 Remaining assets
634.794
1.473
39 858
2.242
2.623
4,797
5.31
50
51
52
53
54
55
56
57
Total Iransacuon accounts
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in the United States
Commercial banks in the United Stales
Other depository institutions in the United Slates
Certified and official checks
Banks in foreign countries, foreign governments, and foreign official inslitulions . . .
793,343
684.647
6,851
40.617
32.202
3 347
17,567
8.113
604.043
517.758
5,629
27.160
30,301
2,816
12,770
7,609
457,040
392,694
4,559
19,934
24,616
2,262
9,603
3,373
147,003
125,064
1,070
4,236
504
58
59
60
61
62
63
64
65
Demand deposits (included in total transaction accounts)
Individuals, partnerships, and corporations
U.S. government
Stales and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Certified and official checks
Banks in foreign counlries, foreign governments, and foreign official institutions .
599,385
513.788
6.755
17.630
32.199
3,339
17.567
8.108
482.741
409,970
5.571
13.712
30,299
2,815
12 770
7.605
364.575
310,126
4.510
10,092
24,614
2,260
9,603
3,369
118,166
99.844
1,061
5,685
554
3,lft7
4,236
116,644
103,818
1.184
1.918
1.900
524
4.797
503
66
67
68
69
70
71
72
Total nonlransaction accounts
Individuals, partnerships, and corporations
U.S. government
States and political subdivisions in the United States
Commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries, foreign governments, and foreign official inslitutions . . .
1,908.357
1.816.526
2.376
74,829
9.364
4.087
637
1,409.780
1,348.621
2,125
48,429
7,584
1,994
610
1,068,634
1,022.483
2,062
34,288
7,235
1,739
557
341,146
326,138
63
14.142
349
255
52
498,577
467.905
251
26,400
1,780
2.093
28
7.226
5,685
555
3,167
3,620
4.797
Commercial Banks A67
4.22
DOMESTIC OFFICES Insured Commercial Bank Assets and Liabilities—Continued
Consolidated Report of Condition. December 31, 1996
Millions of dollars except as noted
Nonmembers
Tool
73
74
75
76
77
78
Federal funds purchased and securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs
Remaining liabilities
313,167
21,833
254,984
13,948
63,579
177.456
269,063
20,360
200,879
13,625
54.683
161,833
182,817
10,456
157,613
9,428
40,565
98,941
86,246
9,904
43,266
4.197
14,118
62,892
44.105
1,473
54,105
323
8,896
15.623
65,170
9,184
2,527
937
3.140
4.493
1,063
343
1,743
4,977
64.785
9,119
2,482
922
3,106
4,493
1,063
213
1,720
4.919
29,578
4.262
2.342
584
613
2,651
523
213
1,014
1,486
35.207
4.857
140
338
2.493
1,841
540
0
706
3.432
385
65
45
14
34
0
(I
36,762
36,746
15,889
20.857
17
151,234
46.342
38.758
5,952
111,249
31,827
26,999
3,717
86,331
24.214
20,463
2,984
24,918
7,614
6 535
733
39.985
14,515
11.759
2.234
MEMO
79 Trading assets at large banks5
80
U.S Treasury securities (domestic offices)
81
U.S. government agency corporation obligations
82
Securities issued by states and political subdivisions in the United States
83
Mortgage-backed securities
84
Other debt securities
85
Certificates of deposit
86
Commercial paper
87
Bankers acceptances
88 Other trading assets
89
Revaluation gains on interest rate, foreign exchange rate, and other commodity and
equity contracts
90 Total individual retirement (IRA) and Keogh plan accounts
91 Total brokered deposits
92
Fully insured brokered deposits
93
Issued in denominations of less than $100,000
94
Issued in denominations of $100,000, or in denominations greater than $100,000 and
participated out by the broker in shares of $ 100,000 or less
95
96
97
98
99
100
Money market deposit accounts (MMDAs)
Other savings deposits
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All negotiable order of withdrawal (NOW) accounts
101 Number of banks
NOTE. 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
1. All transactions between domestic and foreign offices of a bank are reported in "net due
from" and "net due to" 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.
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.
13(1
22
58
32,806
23.281
17,479
5.802
9.525
560,162
321.182
711,563
292.065
23,386
190.789
457,308
244,493
486,008
201,471
20,500
119,697
352.667
178,829
378,764
152.932
5,442
91.134
104,641
65,664
107,244
48 539
15,058
28,562
102.853
76,688
225,555
90.594
2,887
71,092
9,509
3,744
2,729
1,015
5,765
2. "'Over 100" refers to banks whose assets, on June 30 of the preceding calendar year,
were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.)
"Under 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.)
3. 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).
4. "Residual" equals the sum of the "n.a." categories listed above it.
5. Components of "Trading assets at large banks" are reported only by banks with either
total assets of $ I billion or more or with $2 billion or more in the par/notional amount of their
off-balance-sheet derivative contracts.
A68
4.23
Special Tables • May 1997
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 3-7, 1997'
Commercial and industrial loans
Type and maturity
of loan
Amount of
loans
(thousands of
dollars)
Average size
(thousands of
dollars)
Weighted
average
maturity
Loan rate (percent)
Days
average
effective3
Standard
error4
Loans
secured
by
collateral
(percent)
Loans made
under
commitment
(percent)
Participation loans
(percent)
Most
common
base pricing
rale5
ALL BANKS
1 Overnight6
14,059,455
9,795
10.3
56.0
2 One month or less (excluding overnight) .
3
Fixed rate
4
Floating rate
12,507,927
9,735,318
2.772,609
1,433
2,423
589
18
17
19
6.58
6.56
6.65
.16
.16
.26
25.7
25.6
25.9
80.5
86.1
60.7
5.3
6.2
1.8
Other
Other
Domestic
5 More than one month and less than one
year
6
Fixed rate
7
Floating rate
13,897,547
5.249,575
8,647,972
202
300
169
161
148
168
7.51
6.68
8.01
.15
.22
.20
46.5
38.4
51.5
90.0
9.1
5.9
11.0
Prime
Foreign
Prime
8 Demand7
9
Fixed rate
10 Floating rate
15,579,044
5,149,169
10,429,875
341
1,318
250
7 15
6.22
7.61
.19
.30
.19
49.5
15.1
66.4
48.8
30.1
58.1
4.6
11.0
1.5
Domestic
11 Total short-term
56,043,973
450
6.81
33.6
67.5
5.1
Other
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
33,960,193
308,494
512,871
631,138
5,135,464
4,850,149
22.522,079
1,267
16
220
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
22,083,779
1,903,568
3.542.919
1.715,339
4,479,098
2,165,760
8,277,095
26 Total long-term
10,413,252
683
2,350
6,802
21,450
226
26
196
677
1,995
6,513
21,767
6.28
9.63
7.83
7.20
6.69
6.51
6.02
.21
.08
.14
.09
.14
.06
.05
19.8
81.5
70.6
51.1
38.0
24.6
11.8
65.1
41.9
74.8
90.2
82.9
77.4
57.7
5.0
.9
13.2
12.2
6.1
8.0
3.8
Other
Other
Other
Foreign
Foreign
Other
Other
129
161
151
159
162
86
7.62
9.57
9.08
8.63
8.13
6.85
6.28
.19
.05
.06
.08
.19
.32
.27
54.8
77.1
75.0
67.2
62.8
44.3
36.8
71.4
88.2
90.6
91.1
84.5
73 4
47.5
5.3
1.0
4.8
5.7
10.9
3.1
3.9
Prime
Prime
Prime
Prime
Prime
Other
Domestic
58.5
87.5
8.0
56.3
94.1
89.4
61.2
40.5
79.3
31.7
50.8
80.3
94.5
5.0
23
2.2
9.5
5.8
Other
Other
Other
Other
Domestic
59.1
85.7
75.8
64.6
53.1
76.8
83.5
90.8
91.7
8.8
3.5
9.0
8.5
9.2
Prime
Prime
Prime
Prime
Prime
323
7.95
2,295,540
205,530
459,102
135,786
1.495,121
183
21
230
701
3,944
45
47
57
41
42
7.58
9.58
8.79
8.07
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35 500-999
36
1,000 or more
8,117,712
336,204
1,262,346
812,436
5,706.726
413
29
234
47
47
46
39
48
8.05
9.58
8.99
8.48
7.69
679
Prime
34
158
112
67
45
35
26
27 Fixed rate (thousands of dollars)
28
1-99
29
100-499
30
500-999
31
1.000 or more
3,809
Prime
.24
.14
.15
.31
.20
.06
.07
Loan rate (percent)
Prime rate9
Days
Effective1
Nominal*
LOANS MADE BELOW PRIME
37 Overnight6
38 One month or less (excluding overnight)
39 More than one month and less than one
year
40 Demand'
13,952,324
11,659,552
11,170
3.214
17
5.91
6.37
5.75
6.18
9.7
23.8
55.7
79.9
1.5
5.2
8.25
8.25
8,662,760
10,543,049
837
2,217
154
6.40
6.18
6.23
6.06
31.3
34.5
89.4
33.5
8.3
5.6
8.29
8.25
41 Total short-term
44,817,684
2,243
63.3
4.7
8.26
42 Fixed rate
43 Floating rate
32,649,184
12,168,500
3,388
1,176
31
105
6.15
6.28
5.99
6.10
18.1
37.7
64.4
60.2
5.0
4.0
8.25
8.27
44 Total long-term
4,877,869
6.46
44.1
89.0
6.4
45 Fixed rate
46 Floating rate
1,502.996
3,374.873
6.48
6.45
41.0
45.5
89.8
88.7
3.2
7.7
Footnotes appear at the end of the table.
46
466
1,072
43
47
6.63
6.64
8.29
8.27
Financial Markets A69
4.23
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 3-7, 1997'—Continued
Commercial and industrial loans—Continued
Type and maturity
of loan
Amount of
loans
(thousands of
dollars)
Average size
(thousands of
dollars)
Weighted
average
maturity2
Days
Loan rate (percent)
Weighted
average
effective3
Standard
error4
Loans
secured
by
collateral
(percent)
Loans made
under
commitment
(percent)
Participation loans
(percent)
Most
common
base pricing
rate"*
LARGE BANKS
1 Overnight6
11,580,487
10.154
•
5.99
.20
10.8
57.3
1.8
Othei
2 One month or less (excluding overnight) .
3
Fixed rate
4
Floating rate
10,951,112
8,716,397
2,234,715
3,224
4,516
1,524
17
17
18
6.53
6.58
6.34
.14
.08
.26
22.6
23.9
17.2
80.7
87.3
54.7
4.7
5.7
1.2
Other
Other
Domestic
8.847,833
3,995,198
4,852.634
560
2.333
345
146
132
158
6.97
6.45
7.40
.13
.14
.19
32.8
30.3
34.9
91.2
90.6
91 7
8.1
5.7
10.0
Foreign
Foreign
Prime
8 Demand7
9
Fixed rate
10 Floating rate
13.398,289
4,821,836
8.576,453
565
3,920
381
*
6.94
6.17
7.37
.16
.20
.19
46.0
11.2
65.5
42.2
26.5
51.0
5.1
11.8
1.3
Domestic
Domestic
Prime
11 Total short-term
44,777,721
1,016
48
6.60
.13
28.6
65.2
4.7
Other
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
28,880,594
37,409
232.145
427,604
4.249,626
4,350,022
19,583.788
4,820
35
247
695
2,361
6,855
21,345
29
148
62
54
45
33
23
6.26
8.37
7.36
7.08
6.76
6.53
6.06
.13
.10
.04
.09
.15
.04
.05
17.6
79.4
58.2
38.4
37.6
21.9
11.3
65.5
88.7
91.4
92.1
85.9
77.6
57.5
5.2
1.3
5.7
8.4
6.1
7.9
4.3
Other
Other
Other
Other
Foreign
Other
Other
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
15.897,126
769,567
1,937,808
1,023.267
2.883,909
1,727,852
7,554.724
418
31
205
677
2,042
6,519
22,533
110
159
154
154
141
90
85
7.21
9.37
8.95
8.54
7.80
6.83
6.22
.18
.10
.07
.10
.13
35
.29
48.4
72.5
69.6
61.0
55.2
46.0
36.8
64.7
91.9
92.4
92.8
84.5
68.4
42.5
3.9
1.5
3.3
5.6
6.2
2.4
3.6
Prime
Prime
Prime
Prime
Prime
Other
Fed funds
5 More than one month and less than one
year
6
Fixed rate
7
Floating rate
Months
26 Total long-term
7,508,208
801
45
7.73
.13
52.3
92.2
6.9
Prime
27 Fixed rate (thousands of dollars)
28
1 99
29
100-499
30
500-999
31
1,000 or more
1.331,739
25,415
97,028
79.091
1.130,205
838
32
227
688
4,299
41
43
47
41
41
7.02
9.26
8 29
8.05
6.79
.22
.30
.21
.28
.21
43.2
79.8
67.2
58.1
39.3
92.7
63.4
71.4
88.2
95.5
7.0
2.9
6.1
9.5
7.0
Domestic
Other
Other
Other
Domestic
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1,000 or more
6,176,469
111,202
719,379
549,679
4,796.210
793
39
242
682
4,106
46
36
37
38
49
7.89
9.19
8.83
8.42
7.65
.11
.05
.09
.11
.27
54.3
74.3
66.1
57.2
51.7
92.1
89.3
96.2
93.3
91.4
6.8
3.2
7.8
7.4
6.7
Prime
Prime
Pnme
Prime
Prime
Loan rate (percent)
Prime rate9
Days
Effective'
Nominal8
5.96
6.37
5.79
6.18
10.1
21.6
56.9
79.8
1.8
4.6
8.25
8.25
LOANS MADE BELOW PRIME 1 0
37 Overnight*
38 One month or less (excluding overnight)
39 More than one month and less than one
year
11.483,048
10.380,634
11,343
4,830
6,609,517
9 799 241
2,599
3 252
140
6.26
6 14
6.10
6 02
24.3
33 6
89.7
29.0
7.6
58
8.25
8.25
41 Total short-term
38,272,440
4.390
39
6.17
6.01
21.7
61.6
4.6
8.25
43 Floating rate
27,992,121
10.280,318
5,987
2,543
28
90
6.17
6.16
6.02
5.99
16.4
36.1
64.5
53.9
5.1
3.2
8.25
8.25
17
Months
44 Total long-term
3,820,651
1,968
47
6.54
6.36
41.6
90.3
2.7
8.25
45 Fixed rate
46 Floating rate
1,025,482
2,795,169
1,809
2,033
40
49
6.39
6.59
6.27
6.40
34.6
44.2
95.7
88.3
3.0
2.6
8.25
8.25
Footnotes appear at the end of the table.
A70
4.23
Special Tables • May 1997
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made. February 3-7, 1997'—Continued
Commercial and industrial loans—Continued
Type and maturity
of loan
Amount of
loans
(thousands of
dollars)
Average size
(thousands of
dollars)
Weighted
average
maturity2
Loan rate (percent)
Days
Weighted
average
effective3
5.70
Standard
error
Loans
secured
by
collateral
(percent)
Loans made
under
commitment
(percent)
.38
8.0
50.0
.0
Fed funds
8.9
11.3
44
Foreign
Fed funds
Prime
Participation loans
(percent)
Most
common
base pricing
rale
OTHER BANKS
1 Overnight6
2,478,968
8,405
*
2 One month or less (excluding overnight)
3
Fixed rate
4
Floating rate
1,556,815
1,018.921
537,894
292
488
166
21
19
24
6.91
6.36
7.95
.20
.25
.31
47.7
40.1
62.2
79.0
75.6
85.4
5 More than one month and less than one
year
6
Fixed rate
7
Floating rale
5,049.714
1,254,377
3,795,338
96
80
102
186
199
181
8.45
7.40
8.80
.18
.25
.23
70.5
64.0
72.7
83.8
71.6
87.8
10.9
6.7
12.3
Prime
Other
Prime
2,180.754
327,333
1,853,421
99
122
96
*
8.45
6.97
8.71
.23
.46
.23
70.7
71.6
70.6
89.7
82.3
91.1
2.1
.0
2.5
Prime
Other
Prime
8 Demand7
9
Fixed rale
10 Floating rate
11,266,252
140
107
7.6.1
.17
53.7
76.9
6.5
Prime
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
5,079,599
271.084
280,726
201,534
885,837
500,127
2,938,291
244
15
202
659
2,300
6,371
22.172
57
159
144
96
44
60
42
6.33
9.80
8.21
7.46
6.32
6.40
5.75
.24
.11
.25
.26
.18
.22
47
32.4
81.8
80.9
77.8
39.9
48.4
15.1
62.6
35.4
61.1
86.3
68.7
75.2
59.5
3.9
.8
19.5
20.3
6.4
S.7
.0
Fed funds
Other
Other
Foreign
Fed funds
Fed funds
Fed funds
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
6,186,653
1,134,001
1,605,111
692,072
1,595,189
437,908
722,371
104
23
1S7
678
1,914
6,491
16,061
162
161
149
166
181
67
175
8.70
9.71
9.25
8.75
8.72
6.96
6.85
.22
!02
.09
.11
.32
.52
.45
71.1
80.3
81.5
76.4
76.4
37.8
37.1
88.6
85.7
88.3
88.6
84.6
92.8
100.0
8.7
.7
6.5
5.7
19.4
5.6
7.1
Prim
Prim
Prim
Prim
Prim
Prim
Foreit n
Prime
11 Total short-term
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 dollars)
33
1-99
34
100-499
35
500-999
36
1,000 or more
2,905,043
127
49
8.50
.14
74.6
75.2
10.9
963,800
180,115
362.074
56.695
364.915
88
20
231
720
3,139
51
48
60
42
44
8.35
9.63
8.93
8.11
7.19
.23
.16
.13
.40
.15
74.3
96.1
95.3
65.5
44.0
60.8
27.3
45.3
69.2
91.4
2.3
-> 2
1.1
9.6
2.3
1.941.243
225,003
542,967
262,758
910.516
164
26
226
673
2.758
48
52
59
43
42
8.58
9.77
9.21
8.59
7.90
.15
.09
.08
.15
.31
74.7
91.4
88.6
80.1
60.8
82.4
70.6
66.7
85.7
93.6
15.2
3.7
10.6
10.9
22.0
Other
Other
Other
Other
Domeslic
Prime
Prime
Prime
Prime
Prime
Loan rate (percent)
Days
Effective3
Prime rate"
Nominal*
LOANS MADE BELOW PRIME'"
37 Overnight6
38 One month or less (excluding overnight)
39 More than one month and less than one
year
40 Demand
2,469,276
1,278.917
10,433
865
2,053.243
743,808
263
427
41 Total short-term
6,545,245
42 Fixed rate
43 Floating rate
4.657,063
1.888.182
5.68
6.30
5.53
6.11
7.9
41.4
49.9
80.0
.0
10.2
8.25
8.26
199
6.85
6.70
6.65
6.53
53.9
46.4
88.5
93.5
10.3
22
8.41
8.31
581
76
6.29
6.11
33.2
72.8
5.5
8.31
939
300
48
158
6.02
6.94
5.86
6.73
28.1
46.0
64.1
94,4
4.3
8.5
8.27
8.39
20
Months
44 Total long-term
45 Fixed rate
46 Floating rate
Footnote?, appear at the end of the lable.
1,057,218
238
42
7.00
6.81
53.3
84.3
19.6
8.36
477 514
579,704
180
327
52
34
7 13
6.89
6.93
6.70
54.8
52.0
77.0
90.3
3.9
32.5
8.37
8.35
Financial Markets A71
4.23
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 3-7, 1997'—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 ihose banks. Construction and land development loans include both unsecured 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 December 31, 1995, assets of most of the large banks were at least $7.0 billion.
Median total assets for all insured banks were roughly $62.0 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 "basic" or "reference" rate); the federal funds
rale; domestic money market rates other than the federal funds rait; foreign money markei
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 rale 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.
A72
4.30
Special Tables • May 1997
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1996
Millions of dollars except as noted
All s atesItem
Total assets
Total
including
IBFs3
New
IBKs
only"
Total
including
IBFs
York
IllllO s
Califom a
IBFs
only
Total
including
IBFs *
IBFs
only
Total
including
IBFs
IBFs
only
820,838
280,627
637,692
230.821
68,109
24,121
67,418
15,376
2 Claims on nonrelaled parties
3 Cash and balances due from depository institutions
4
Cash items in process of collection and unposted debits
5 Currency and coin (L'.S. and foreign)
6
Balances with depository institutions in Uniled Stales
7
U.S. branches and agencies of other foreign banks
(including IBFs)
8
Other depository institutions in United Stales (including IBFs).
9
Balances with banks in foreign countries and with foreign central
banks
'
10
Foreign branches of U.S. banks
11
Other banks in foreign countries and foreign central banks
Balances with Federal Reserve Banks
12
725.194
109,440
2,656
559.935
96,345
2,541
110.476
67,036
14
56,3.36
n.a
35,043
6.3,048
2,897
15
2
2,195
9,368
2.322
63,138
135.246
77,814
0
n.a.
40,011
n.a
1,688
61.235
8,323
60
1
3,819
9,059
7,359
0
n.a.
3,004
58.794
4.344
38.899
1.111
52.572
3,765
33,963
1,080
2,001
1,688
3.668
194
0
150
2.978
26
42.660
1 1.36
41,524
37.803
36.624
31,993
6.37
4.355
13
1
Total securities and loans
Total securities, book value
U.S. Treasury
Obligations of U.S. government agencies and corporations
Other bonds, notes, debentures, and corporate stock (including state
and local securities)
18
Securities of foreign governmental units
19
All Other
14
15
16
17
20 Federal funds sold and securities purchased under agreements to
resell
21
U.S. branches and agencies of other foreign banks
22
Commercial banks in Uniled Stales
23
Other
24
25
26
Total loans, gross
LESS: Unearned income on loans
EQl Al.s: Loans, net
21
0
0
812
609
0
634
0
4,426
918
301
301
15,812
830
31,384
n.a.
637
48
634
n.a.
4.125
964
36 885
n.a.
18
4,054
n.a.
462,759
48,257
327,963
36,043
55,054
6,144
42,521
1,409
110,670
31,901
33.634
8.945
n.a
n.a.
101.641
30,432
32,733
7,828
n.a.
n.a.
3.438
588
362
692
4.901
403
398
n.a.
n.a.
45,135
1.3,127
32.008
8 945
4^360
4.585
38,47b
11,860
26,616
7,828
3,886
3.942
2,489
647
692
229
1.841
46.3
3,748
494
3.254
398
217
181
53.867
11,392
11,943
30.532
6.475
4.326
277
1.872
48,299
10.293
10.862
27,144
5,186
3,986
1,226
612
145
469
636
257
0
3,269
202
269
931
138
76
8
152,287
39.330
18
39.312
226,451
130
226,322
28.229
51,666
14
51
2
28,215
51,616
.5,452
211
22 374
6.927
6,706
20,104
23.302
7,350
6,406
65
14,234
4.203
.1,992
8.268
5,644
4.035
3.979
145
3,967
2,550
2,540
221
138
941
152
211
138
56
0
10
0
15.309
395
14,915
15.800
9,893
337
9.557
1.609
1.416
0
1.416
59
199
352,089
n.a.
n.a.
751
686
379
2,381
55
5,454
37,627
7
37.620
1,011
i.OH
1.556
993
622
0
Tola! loans, grass, bv cutegorv
28 Loans lo depository institutions
29
Commercial banks in Uniled States (including IBFs)
30
U.S. branches and agencies of other foreign banks
31
Other commercial banks in Uniled Slates
Other depository institutions in Uniled States (including IBFs)
32
33
Banks in foreign countries
34
Foreign branches of U.S banks . .
. .
Olher banks in foreign countries
35
36 Loans to other financial institutions
37
38
39
40
41
42
43
44
45
Commercial and induslnal loans
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Acceptances of other banks
U.S. banks
Foreign banks
Loans to foreign government and official instilulions (including
foreign cenlral banks)
Loans for purchasing or carrying securities (secured and unsecured) . .
All other loans
46 Lease financing receivables (net of unearned income)
47
U.S. addressees (domicile)
48
Non-U.S. addressees (domicile)
....
49 Trading assets
50 All other assets
5|
Customers' liabilities on acceptances outstanding
52
U.S. addressees (domicile)
53
Non-U.S. addressees (domicile)
54
Other assets including other claims on nonrelated parties
55 Net due from related depository institutions5
56
Net due from head office and other related depository institutions5. .
57
Net due from establishing entitv. head offices, and olher related
depository institutions*
31.529
36,021
12.379
11,138
1,241
153
23,490
584
22,906
40.954
874
221,482
190.173
31.309
13.529
209
13.320
657
49
608
64
0
64
430
15.369
33.911
129,669
106,774
22 895
313
27
286
11.128
63
1,880
3.879
11,963
5,484
2 027
66
186
3,291
11,528
4.029
318
312
0
0
0
303
297
5
246
2.454
58,870
28,458
6,114
4,173
1.941
22,344
77,757
77,757
5
64.266
14.862
9.023
6.604
2,419
25.839
95 645
95,645
n.a
n.a.
n.a.
2.454
145,381
n.a.
622
0
1,609
2,542
34,424
11,522
2,903
1.244
117
399
171
228
0
594
0
594
3,617
1 12
112
0
0
510
0
510
65
319
0
112
0
0
0
30,408
29,032
1.376
204
6
198
39
0
0
18
57
760
5
66
171
263
58
349
0
0
0
235
0
0
0
213
15
15
0
1,977
n.a.
n.a.
n.a.
1,977
120,345
n.a.
3.658
2,180
1,942
0
0
0
7
260
163
10.965
63
0
46
1.198
5
239
1.478
5,061
5.061
n.a.
n.a.
n.a.
260
14.753
n.a.
319
0
0
0
0
0
0
461
161
100
0
0
5
148
n.a.
n.a.
n.a.
1,484
6,183
6,183
6,317
n.a.
5,176
1,945
148
n.a.
145,381
n.a.
120,345
n.a.
14,753
n.a.
6,317
58 Total liabilities4
820,838
280,627
637,692
230,821
68,109
24,121
67,418
15,376
59 Liabilities lo nonrelated parties
678.757
260.779
575,385
217,386
42,359
23,053
40,921
11,613
U.S. Branches and Agencies
4.30
A73
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks. December 31. 1996'—Continued
Millions of dollars except as noted
All s atcsItem
T IKll
exc uding
IE Fs 1
60 Total deposits and credit balances
61
individuals, partnerships, and corporations
62
U.S. addressees (domicile) . . .
63
Non-US, addressees (domieilei
64
Commercial hanks m United Stales (including IBFs)
65
U.S. branches and agencies ot other foreign banks
66
Other commercial banks in United Stales
67
Banks in foreign countries
68
Foreign branches of U.S. banks . .
69
Other banks in foreign countries
70
Foreign governments and official institutions
(including foreign central banks)
71
Ail other deposits and credit balances . . .
72
Certified .ind official checks .
...
73 Transaction accounts and credit balances (excluding IBFs)
74
Individuals, partnerships, and corporations
75
U S addressees (domicile) .
76
Non-US, addressee-, (domicile)
77
Commercial banks in United States (including IBFs)
78
U.S. branches and agencies of other foreign hanks
79
Other commercial banks in United States
80
Banks in lorei'jn countries
81
Foreign branches ot US. banks
82
Other banks in foreign countries
83
horeign governments and official institutions
(including foreign central banks) . . .
84
All othei deposits and credit balances
85
Cerldied and official checks
86 Demand deposits i included in transaction accounts
itnd credit balances)
.
87
Individuals, partnerships., and corporations
88
U.S. addressees (domicile)
89
Non-U.S. addressees (domicile;
90
Commercial banks in United Slates (including IBFs)
92
93
94
95
96
97
98
....
Footnotes appear at end of table.
Illinois
IBFs
only
Tual
excluding
IBFs
IBFs
only
Total
excluding
IBFs '
IBFs
only
216.970
158,416
144.757
13.659
27,274
16,730
10.544
12.729
5.229
7,50(1
197.507
13.908
184,825
130,953
123,719
7,234
25,236
15.631
9,605
10,947
4.000
6.948
180.926
9.187
6.657
4,761
3,079
1,682
3.9 2
16,847
14.582
13.855
727
1.353
836
517
468
225
243
5.953
73
0
5.420
12.754
33,298
118
4.672
12.682
335
30.851
117
195
1,048
1
377
8,406
6.560
4,518
2.042
6.778
5,206
3.915
1.291
475
13.432
4
687
36,786
4.901
108.496
4.824
1(13.673
469
8,717
39.550
35.264
4.286
101.222
4,252
96.97(1
528
173
355
633
0
633
735
630
105
1.135
1,004
1.828
131
1,723
2 19
4
19
716
0
104
42
23
11
694
8
687
30
0
30
0
0
0
6
0
6
432
39
377
395
113
335
4
4
19
->
1
8
7,956
6.182
4,374
1,808
6.591
5,081
3.852
36
"M
' 33
299
244
171
73
(1
2^
10
671
8
664
0
28
0
2K
">98
281
275
6
0
Q
0
6
0
6
391
80
135
4
3
u
2
1
8
208.564
151,856
140,23')
11,617
27.235
16.7(16
10.529
1 1,870
5.221
6.649
178.047
125.747
119.804
5,943
25.202
15.608
9.594
10.253
3,992
6.261
6,293
4.456
2.K6I
1.595
527
173
16.535
14,288
13,567
720
1 351
836
517
462
102
237
4.988
12.615
4.276
12.568
204
0
393
41
s
423
1113
377
1
197.507
13,908
L
H432
41,687
36.786
4.901
108.496
4 824
103.673
33.298
118
o
354
1.106
1.0(14
180.926
9
475
n.a.
1
229
n.d.
i
87
469
8,717
39,550
35,264
4,286
10 222
4.252
96,970
30,85 1
117
n.a.
Sll
479
3.541
468
3.073
311
294
287
7
39
24
14
X60
8
851
34
73
1,290
8
364
305
218
87
1
0
82ft
....
California
Total
excluding
IBFs
834
99 Nontransaetiun accounts (including MMDAs, excluding IBFs)
!()()
Individuals, partnerships, and corporations
101
U.S. addressees (domicile)
102
Non-U.S. addressees (domicile)
103
Commercial banks in United States (including IBFs)
104
U.S. branches and agencies of other foreign banks
105
Other commercial banks in United States
106
Banks in foreign countries
107
Foreign branches of US. banks
108
Other banks in foreign countries
109
Foreign governments and official institutions
(including foreign central banks)
110
All other deposits and credit balances .
....
York
1 3Fs
oI y
Other commercial banks in United Slates
Banks in foreign countries
Foreign branches ol U.S. banks
Other banks in foreign coumnes
..
Foreign governments and official institutions
(including foreign central banks!
All other deposits and credit balances
Certified and official checks
11 1 IBF deposit liabilities
112
Individuals, partnerships, and corporations
i 13
U.S. addressees (domicile >
114
Non-U.S. addressees (domtctlei . . . .
115
Commercial banks in United States (including IBFs)
116
U.S. branches and agencies of other foreign banks
117
Other commercial banks in United States
118
Banks in foreign countries . .
1 19
Foreign branches of U.S. banks
120
Other banks in foreign countries
121
Foreign governments and official institutions
(including foreign central banks)
i22
All other deposits and eredil balance.*. . .
Ne»
3.912
5,953
633
0
633
735
630
105
1 828
104
1.723
73
0
73
716
0
1,290
n.a.
811
479
3,541
468
3,073
1
1,048
1
A74
4.30
Special Tables • May 1997
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1996'—Continued
Millions of dollars except as noted
AH stated
Total
including
IBFs1
123 Federal funds purchased and securities sold under agreements to
repurchase
124
U.S. branches and agencies of other foreign banks
125 Other commercial banks in United States
126
Other
127 Other borrowed money
128 Owed to nonrelated commercial banks in United States (including
IBFs)
129 Owed to U.S. offices of nonrelated U.S. banks
130 Owed to U.S. branches and agencies of nonrelated
foreign banks
131 Owed to nonrelated banks in foreign countries
132
Owed to foreign branches of nonrelated U.S banks
133 Owed to foreign offices of nonrelated foreign banks
134 Owed to others
135 All other liabilities
136
Branch or agency liability on acceptances executed and
outstanding
137
13H
,
Trading liabilities
Other liabilities to nonrelated parties
139 Net due to related depository institutions^
140
Net owed to head office and other related depository institutions". .
141
Net owed to establishing entity, head office, and other related
depository institutions'
.
IBFS
only3
Total
including
IBF.s
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
92.091
14,999
9 753
67.339
89,617
19.259
5,771
1,277
12,211
+1.123
78,072
9,400
5,909
62,764
57.393
12,138
2,220
208
9,710
21.800
8.013
4.138
2,055
1.820
20,537
4 455
2.786
120
1,549
14.470
5 420
1.147
1,711
2,563
8.171
2,502
691
949
862
25,855
9.815
11,326
1.859
13,601
5,641
4,718
400
9,324
3,300
5,401
1.279
1,508
396
664
62
16,040
31.891
1.927
29,964
31,872
9,467
27,122
1,766
25.357
2.674
7.960
19,415
768
18,647
24,377
4,318
14,862
623
14,239
2,220
6,024
8.941
1,000
7,941
2.271
4,122
8.848
1.000
7,848
221
1,111
2,297
108
2,189
4,367
601
2,286
108
2,178
115
82.572
3,064
2,890
74,169
2.521
3,240
216
4,529
94
9.273
51,188
22,110
113
2,777
6,319
47,884
19.966
n.a.
112
2,409
2.189
167
884
0
216
465
3,127
937
1
92
142.081
142,081
19.848
n.a.
62,308
62,308
13,436
n.a.
25,750
25,750
1.068
n.a.
26.497
26,497
19,848
1.068
13.436
MEMO
142 Non-inleresl-bearing balances with commercial banks
in United States
143 Holding of commercial paper included in total loans
144 Holding of own acceptances included in commercial anil
industrial loans
145 Commercial and industrial loans with remaining maturity of one year
or le^s
146
Predetermined interest rates
147
Floating interest rates
14S Commercial and industrial loans with remaining maturity of more
than one year
,
149
Predetermined interest rates
150
Floating interest rates
IBFs
only
52
150
765
1.660
534
1.474
80
21
1.099
162
127.630
76.488
51.142
74,165
46,411
27,755
19,639
11,041
8.598
19.660
13,563
6.097
92.854
20,356
72.499
54,833
12,906
41,927
14,536
2,448
12,088
10,707
3,352
7,354
U.S. Branches and Agencies A75
4.30
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1996'—Continued
Millions of dollars except as noted
All states2
Item
151 Components of total nontransaction accounts,
included in total deposits and credit balances of
nontransaction accounts, including IBFs
152 Time CDs in denominations of $100,000 nr more
153 Other time deposits in denominations of $100,000
or more
154 Time CDs in denominations of $100,000 or more
with remaining maturity of more than 12 months
Total
excluding
IBFs-
IBFs
only1
t
210,094
170,214
33,406
New York
1
All slates2
155 Immediately available funds with a maturity greater than one day
included m other borrowed money
156 Number of reports filed6
Total
excluding
IBFs
t
5,962
4,411
n.a.
1.449
6.094
102
New York
IBFs
only
Total
including
IBFs
IBFs
only
46,802
485
n.a.
0
25,947
242
n.a.
0
Illinois
IBFs
only
Total
excluding
IBFs
t
16.477
13,032
1
IBFs
only
t
n.a.
n.a.
28,259
Total
including
IBFs
1. Data are aggregates of categories reported on the quarterly form FF1EC 002, "Report of
Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." 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 tiled a
monthly FR 886a report. Aggregate data from that report were available through the Federal
Reserve monthly statistical release G. 11, last issued on July 10, 1980. Data in this table and in
the G.I 1 tables arc not strictly comparable because of differences in reporting panels and in
definitions of balance sheet items.
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 [hat no IBF data have been reported for that item,
IBFs
only
181,009
146.656
n.a.
6,474
Total
excluding
IBFs
California
1
3,244
201
California
Illinois
Total
including
IBFs
IBFs
only
Total
including
IBFs
[RFs
only
15,396
106
n.a.
0
3,301
40
n.a.
0
cither because the 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 an\. 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.ll monthly 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 0.11 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 majorityowned banking subsidiaries of the bank and of its parent holding company (including
subsidiaries owned boih directly and indirectly),
6. In some cases two or more offices of a foreign bank within the same metropolitan area
file a consolidated report.
A76
Index to Statistical Tables
References are to pages A3—A75 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Assets and liabilities (See also Foreigners)
Commercial banks, 16—21
Domestic finance companies, 33
Federal Reserve Banks, 10
Foreign banks, U.S. branches and agencies, 72-75
Foreign-related institutions, 20
Automobiles
Consumer credit, 36
Production, 44, 45
BANKERS acceptances, 5, 10, 22, 23
Bankers balances, 16-21, 72-75. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 31
Rates, 23
Business activity, nonfinancial, 42
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 43
Capital accounts
Commercial banks, 16-21, 64-67
Federal Reserve Banks, 10
Central banks, discount rates, 61
Certificates of deposit, 23
Commercial and industrial loans
Commercial banks, 16-21, 64-67, 68-71
Weekly reporting banks, 18
Commercial banks
Assets and liabilities, 16-21, 64-67
Commercial and industrial loans, 16-21, 64-67, 68-71
Consumer loans held, by type and terms, 36, 68-71
Deposit interest rates of insured, 15
Number, by classes, 64-67
Real estate mortgages held, by holder and property, 35
Terms of lending, 68-71
Time and savings deposits, 4
Commercial paper, 22, 23, 33
Condition statements (See Assets and liabilities)
Construction, 42, 46
Consumer credit, 36
Consumer prices, 42
Consumption expenditures, 48, 49
Corporations
Profits and their distribution, 32
Security issues, 31, 61
Cost of living (See Consumer prices)
Credit unions, 36
Currency in circulation, 5, 13
Customer credit, stock market, 24
DEBT (See specific types of debt or securities)
Demand deposits, 16-21,64-67
Depository institutions
Reserve requirements, 8
Reserves and related items, 4, 5, 6, 12, 64-67
Deposits (See also specific types)
Commercial banks, 4, 16-21, 64-67
Federal Reserve Banks, 5, 10
Interest rates, 15
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 32
EMPLOYMENT, 42
Eurodollars, 23, 61
FARM mortgage loans, 35
Federal agency obligations, 5, 9, 10, 11, 28, 29
Federal credit agencies, 30
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 27
Receipts and outlays, 25, 26
Treasury financing of surplus, or deficit, 25
Treasury operating balance, 25
Federal Financing Bank, 30
Federal funds, 6, 23, 25
Federal Home Loan Banks, 30
Federal Home Loan Mortgage Corporation, 30, 34, 35
Federal Housing Administration, 30, 34, 35
Federal Land Banks, 35
Federal National Mortgage Association, 30, 34, 35
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 5, 10, 11, 27
Federal Reserve credit, 5, 6, 10, 11
Federal Reserve notes, 10
Federally sponsored credit agencies, 30
Finance companies
Assets and liabilities, 33
Business credit, 33
Loans, 36
Paper, 22, 23
Float, 5
Flow of funds, 37-41
Foreign banks, assets and liabilities of U.S. branches and agencies,
72-75
Foreign currency operations, 10
Foreign deposits in U.S. banks, 5
Foreign exchange rates, 62
Foreign-related institutions, 20
Foreign trade, 51
Foreigners
Claims on, 52, 55, 56, 57, 59
Liabilities to, 5), 52, 53, 58, 60, 61
GOLD
Certificate account, 10
Stock, 5, 51
Government National Mortgage Association, 30. 34, 35
Gross domestic product, 48, 49
HOUSING, new and existing units, 46
INCOME, personal and national, 42, 48, 49
Industrial production, 42, 44
Insurance companies, 27, 35
Interest rates
Bonds, 23
Consumer credit, 36
Deposits, 15
Federal Reserve Banks, 7
Foreign central banks and foreign countries, 61
Money and capital markets, 23
Mortgages, 34
Prime rate, 22
International capital transactions of United States, 50-61
All
International organizations, 52, 53, 55, 58, 59
Inventories, 48
Investment companies, issues and assets, 32
Investments (See also specific types)
Commercial banks, 4, 16-21, 64-67
Federal Reserve Banks, 10, 11
Financial institutions, 35
LABOR force, 42
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Commercial banks, 16-21, 64-67
Federal Reserve Banks, 5, 6, 7, 10, 11
Financial institutions, 35
Insured or guaranteed by United States, 34, 35
MANUFACTURING
Capacity utilization, 43
Production, 43, 45
Margin requirements, 24
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Mining production, 45
Mobile homes shipped, 46
Monetary and credit aggregates, 4, 12
Money and capital market rates, 23
Money stock measures and components, 4, 13
Mortgages (See Real estate loans)
Mutual funds, 13,32
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 26
National income, 48
OPEN market transactions, 9
PERSONAL income. 49
Prices
Consumer and producer, 42, 47
Stock market, 24
Prime rate, 22
Producer prices, 42, 47
Production, 42, 44
Profits, corporate, 32
REAL estate loans
Banks, 16-21,35
Terms, yields, and activity, 34
Type of holder and property mortgaged, 35
Repurchase agreements, 6
Reserve requirements, 8
Reserves
Commercial banks. 16-21
Depository institutions, 4, 5, 6, 12
Federal Reserve Banks, 10
U.S. reserve assets, 51
Residential mortgage loans, 34, 35
Retail credit and retail sales, 36, 42
SAVING
Flow of funds, 37^tl
National income accounts, 48
Savings institutions, 35, 36, 37-41
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 30
Foreign transactions, 60
New issues, 31
Prices, 24
Special drawing rights, 5, 10, 50, 51
State and local governments
Holdings of U.S. government securities, 27
New security issues, 31
Rates on securities, 23
Stock market, selected statistics, 24
Stocks (See also Securities)
New issues. 31
Prices, 24
Student Loan Marketing Association, 30
TAX receipts, federal, 26
Thrift institutions, 4. (See also Credit unions and Savings
institutions)
Time and savings deposits, 4, 13, 15, 16-21, 64-67
Trade, foreign, 51
Treasury cash. Treasury currency, 5
Treasury deposits, 5, 10, 25
Treasury operating balance, 25
UNEMPLOYMENT, 42
U.S. government balances
Commercial bank holdings, 16-21
Treasury deposits at Reserve Banks, 5, 10, 25
U.S. government securities
Bank holdings, 16-21,27
Dealer transactions, positions, and financing, 29
Federal Reserve Bank holdings, 5, 10, 11, 27
Foreign and international holdings and
transactions, 10, 27, 61
Open market transactions, 9
Outstanding, by type and holder, 27, 28
Rates, 23
U.S. international transactions, 50-62
Utilities, production, 45
VETERANS Administration, 34, 35
WEEKLY reporting banks, 18
Wholesale (producer) prices, 42, 47
YIELDS (See Interest rates)
A78
Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN, Chairman
ALICE M. RIVLIN, Vice Chair
EDWARD W. KELLEY, JR.
SUSAN M. PHILLIPS
OFFICE OF BOARD MEMBERS
DIVISION OF INTERNATIONAL FINANCE
JOSEPH R. COYNE, Assistant to the Board
DONALD J. WINN, Assistant to the Board
EDWIN M. TRUMAN, Staff Director
THEODORE E. ALLISON, Assistant to the Board for Federal
Reserve System Affairs
LYNN S. FOX, Deputy Congressional Liaison
WINTHROP P. HAMBLEY, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
PORTIA W. THOMPSON, Equal Employment Opportunity
Programs Adviser
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SIEGMAN, Senior Associate Director
DALE W. HENDERSON, Associate Director
DAVID H. HOWARD, Senior Adviser
DONALD B. ADAMS, Assistant Director
THOMAS A. CONNORS, Assistant Director
PETER HOOPER III, Assistant Director
KAREN H. JOHNSON, Assistant Director
CATHERINE L. MANN, Assistant Director
RALPH W. SMITH, JR., Assistant Director
LEGAL DIVISION
DIVISION OF RESEARCH AND STATISTICS
i. VIRGIL MATTINGLY, JR., General Counsel
MICHAEL J. PRELL, Director
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
KATHLEEN M. O'DAY, Associate General Counsel
ROBERT DEV. FRIERSON, Assistant General Counsel
KATHERINE H. WHEATLEY, Assistant General Counsel
EDWARD C. ETTIN, Deputy Director
DAVID J. STOCKTON, Deputy Director
MARTHA BETHEA, Associate Director
WILLIAM R. JONES, Associate Director
MYRON L. KWAST, Associate Director
PATRICK M. PARKINSON, Associate Director
THOMAS D. SIMPSON, Associate Director
LAWRENCE SLIFMAN, Associate Director
OFFICE OF THE SECRETARY
WILLIAM W. WILES. Secretary
JENNIFER J. JOHNSON, Deputy Secretary
BARBARA R. LOWREY, Associate Secretary and Ombudsman
DIVISION OF BANKING
SUPERVISION AND REGULATION
RICHARD SPILLENKOTHEN, Director
STEPHEN C. SCHEMERING, Deputy Director
WILLIAM A. RYBACK, 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
STEPHEN M. HOFFMAN, JR., 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 Director,
National Information Center
MARTHA S. SCANLON, Deputy Associate Director
PETER A. TINSLEY, Deputy Associate Director
DAVID S. JONES, Assistant Director
STEPHEN A. RHOADES, Assistant Director
CHARLES S. STRUCKMEYER, Assistant Director
ALICE PATRICIA W H I T E , Assistant Director
JOYCE K. ZICKLER, Assistant Director
GLENN B. CANNER, Senior Adviser
JOHN J. MINGO, Senior Adviser
DIVISION OF MONETARY AFFAIRS
DONALD L. KOHN, Director
DAVID E. LINDSEY, Deputy Director
BRIAN F. MADIGAN, Associate Director
RICHARD D. PORTER, Deputy Associate Director
VINCENT R. REINHART, Assistant Director
NORMAND R.V. BERNARD, Special Assistant to the Board
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
GRIFFITH L. GARWOOD, Director
GLENN E. LONEY, Associate Director
DOLORES S. SMITH, Associate Director
MAUREEN P. ENGLISH. Assistant Director
IRENE SHAWN MCNULTY, Assistant Director
A79
LAURENCE H. MEYER
OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT
DIVISION OF RESERVE BANK OPERATIONS
AND PAYMENT SYSTEMS
S. DAVID FROST, Staff Director
SHEILA CLARK, £"£0 Programs Director
CLYDE H. FARNSWORTH, JR., Director
DIVISION OF HUMAN RESOURCES
MANAGEMENT
DAVID L. SHANNON, Director
JOHN R. WEIS, Associate Director
JOSEPH H. HAYES, JR., Assistant Director
FRED HOROWITZ, Assistant Director
DAVID L. ROBINSON, Deputy Director (Finance and Control)
LOUISE L. ROSEMAN, Associate Director
JACK DENNIS, JR., Assistant Director
EARL G. HAMILTON, Assistant Director
JEFFREY C. MARQUARDT, Assistant Director
FLORENCE M. YOUNG, Assistant Director
OFFICE OF THE INSPECTOR GENERAL
BRENT L. BOWEN, Inspector General
OFFICE OF THE CONTROLLER
GEORGE E. LIVINGSTON, Controller
STEPHEN J. CLARK, Assistant Controller (Programs and Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
DIVISION OF SUPPORT SERVICES
ROBERT E. FRAZIER, Director
GEORGE M. LOPEZ, Assistant Director
DAVID L. WILLIAMS, Assistant Director
DIVISION OF INFORMATION RESOURCES
MANAGEMENT
STEPHEN R. MALPHRUS, Director
MARIANNE M. EMERSON, Assistant Director
Po KYUNG KIM, 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
DONALD L. ROBINSON, Assistant Inspector General
BARRY R. SNYDER, Assistant Inspector General
A80
Federal Reserve Bulletin • May 1997
Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET COMMITTEE
MEMBERS
WILLIAM J. MCDONOUGH, Vice Chairman
ALAN GREENSPAN, Chairman
LAURENCE H. MEYER
MICHAEL H. MOSKOW
ROBERT T. PARRY
J. ALFRED BROADDUS, JR.
JACK GUYNN
EDWARD W. KELLEY, JR.
SUSAN M. PHILLIPS
ALICE M. RIVLIN
ALTERNATE MEMBERS
THOMAS C. MELZER
CATHY E. MINEHAN
THOMAS M. HOENIG
JERRY L. JORDAN
ERNEST T. PATRIKIS
STAFF
DONALD L. KOHN, Secretary and Economist
NORMAND R.V. BERNARD, Deputy Secretary
JOSEPH R. COYNE, Assistant Secretary
GARY P. GILLUM, Assistant Secretary
J. VIRGIL MATTINGLY, JR., General Counsel
THOMAS C. BAXTER, JR., Deputy General Counsel
MICHAEL J. PRELL, Economist
EDWIN M. TRUMAN, Economist
JACK BEEBE, Associate
Economist
ROBERT A. EISENBEIS, Associate Economist
MARVIN S. GOODFRIEND, Associate Economist
WILLIAM C. HUNTER, Associate Economist
DAVID E. LINDSEY, Associate Economist
FREDERIC S. MISHKIN, Associate Economist
LARRY J. PROMISEL, Associate Economist
CHARLES J. SIEGMAN, Associate Economist
LAWRENCE SLIFMAN, Associate Economist
DAVID J. STOCKTON, Associate Economist
PETER R. FISHER, Manager, System Open Market Account
FEDERAL ADVISORY COUNCIL
WALTER V. SHIPLEY, President
CHARLES E. NELSON, Vice President
WILLIAM M. CROZIER, JR.. First District
WALTER V. SHIPLEY, Second District
WALTER E. DALLER, JR., Third District
ROBERT W. GILLESPIE, Fourth District
KENNETH D. LEWIS, Fifth District
STEPHEN A. HANSEL, Sixth District
ROGER L. FITZSIMONDS, Seventh District
THOMAS H. JACOBSEN, Eighth District
RICHARD M. KOVACEVICH, Ninth District
CHARLES E. NELSON, Tenth District
CHARLES T. DOYLE, Eleventh District
WILLIAM F. ZUENDT, Twelfth District
HERBERT V. PROCHNOW, Secretary Emeritus
JAMES ANNABLE, Co-Secretary
WILLIAM J. KORSVIK, Co-Secretary
A81
CONSUMER ADVISORY COUNCIL
JULIA W. SEWARD, Richmond, Virginia
WILLIAM N. LUND, Augusta, Maine
RICHARD S. AMADOR, LOS Angeles, California
WAYNE-KENT A. BRADSHAW, LOS Angeles, California
THOMAS R. BUTLER, Riverwoods, Illinois
ROBERT A. COOK, Crofton, Maryland
HERIBERTO FLORES, Springfield, Massachusetts
EMANUEL FREEMAN, Philadelphia, Pennsylvania
DAVID C. FYNN, Cleveland, Ohio
ROBERT G. GREER, Houston, Texas
ERROL T. LOUIS, Brooklyn, New York
PAUL E. MULLINGS, McLean, Virginia
CAROL PARRY, New York, New York
PHILIP PRICE, JR., Philadelphia, Pennsylvania
RONALD A. PRILL, Minneapolis, Minnesota
LISA RICE, Toledo, Ohio
JOHN R. RINES, Detroit, Michigan
KENNETH R. HARNEY, Chevy Chase, Maryland
SISTER MARILYN ROSS, Omaha, Nebraska
MARGOT SAUNDERS, Washington, D.C.
GAIL K. HILLEBRAND, San Francisco, California
GAIL SMALL, Lame Deer, Montana
TERRY JORDE, Cando, North Dakota
YVONNE S. SPARKS, St. Louis, Missouri
GREGORY D. SQUIRES, Milwaukee, Wisconsin
GEORGE P. SURGEON, Chicago, Illinois
THEODORE J. WYSOCKI, JR., Chicago, Illinois
FRANCINE C. JUST A, New York, New York
JANET C. KOEHLER, Jacksonville, Florida
EUGENF I. LEHRMANN, Madison, Wisconsin
THRIFT INSTITUTIONS ADVISORY COUNCIL
DAVID F. HOLLAND, Burlington, Massachusetts, President
CHARLES R. RINEHART, Irwindale, California, Vice President
BARRY C. BURKHOLDER, Houston, Texas
DAVID E. A. CARSON, Bridgeport, Connecticut
MICHAEL T. CROWLEY, JR., Milwaukee, Wisconsin
DOUGLAS A. FERRARO, Englewood, Colorado
WILLIAM A. FITZGERALD, Omaha, Nebraska
STEPHEN D. HAILER, Akron, Ohio
EDWARD J. MOLNAR, Harleysville, Pennsylvania
GUY C. PINKERTON, Seattle, Washington
TERRY R. WEST, Jacksonville, Florida
FREDERICK WILLETTS, III, Wilmington, North Carolina
A82
Federal Reserve Board Publications
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A83
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FAMILY FINANCES IN THE U.S.: RECENT EVIDENCE FROM THE
SURVEY OF CONSUMER FINANCES. January 1996
A84
Maps of the Federal Reserve System
1
9
MINNEAPOLIS
SAN FRANCISCO
BOSTON
2 •
7
12
•
•
Jbatt
_
-2
• NEW YORK
CHICAGO •
10
CLEVELAND
KANSAS CITY | 1
4 « •5
>
5
_
RICHMOND
ST. LOUIS
8
PHILADELPHIA
6
ATLANTA
11 •
DALLAS
ALASKA
HAWAII
LEGEND
Both pages
•
Federal Reserve Bank city
n Board of Governors of the Federal
Reserve System, Washington, D.C.
Facing page
• Federal Reserve Branch city
— Branch boundary
NOTE
The Federal Reserve officially identifies Districts by number and Reserve Bank city (shown on both pages) and by
letter (shown on the facing page).
In the 12th District, the Seattle Branch serves Alaska,
and the San Francisco Bank serves Hawaii.
The System serves commonwealths and territories as
follows: the New York Bank serves the Commonwealth
of Puerto Rico and the U.S. Virgin Islands; the San Francisco Bank serves American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. The Board of
Governors revised the branch boundaries of the System
most recently in February 1996.
A85
1-A
2-B
3-C
4-D
5-E
Baltimore
VAl
NC
Buffalo
BOSTON
•Cincinnati
Bi
/
T
/
NY
NEW YORK
CLEVELAND
PHILADELPHIA
7-G
6-F
TN —
•Charlotte
RICHMOND
8-H
•Nashville
KY
Birmingham _
Detroit*
MS
•
Jacksonville
New Orleans
•Memphis
Little)
Rock (
yMiami
ATLANTA
J Louisville
MO
ST .
CHICAGO
Louis
9-1
• Helena
MINNEAPOLIS
12-L
10-J
Omaha*
Denver
Seattle
Oklahoma City
Portland
KANSAS CITY
11-K
Salt Lake City
El Paso
•Los Angeles
S;m Antonio
DALLAS
SAN FRANCISCO
A86
Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106
Cathy E. Minehan
Paul M. Connolly
NEW YORK*
10045
William C. Brainard
Frederick J. Mancheski
John C. Whitehead
Thomas W. Jones
14240 Bal Dixit
William J. McDonough
Ernest T. Patrikis
PHILADELPHIA
19105
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Buffalo
Donald J. Kennedy
Joan Carter
Carl W. Turnipseed'
G. Watts Humphrey, Jr.
David H. Hoag
45201 George C. Juilfs
15230 John T. Ryan, III
Jerry L. Jordan
Sandra Pianalto
RICHMOND*
23219
J. Alfred Broaddus, Jr.
Walter A. Varvel
Baltimore
Charlotte
21203
28230
Cincinnati
Pittsburgh
ATLANTA
Claudine B. Malone
Robert L. Strickland
Rebecca Hahn Windsor
Dennis D. Lowery
30303
Hugh M. Brown
David R. Jones
35283 D. Bruce Can32231 Patrick C. Kelly
33152 Kaaren Johnson-Street
37203 James E. Dalton, Jr.
70161 JoAnnSlaydon
Jack Guynn
Patrick K. Barron
CHICAGO*
60690
Michael H. Moskow
William C. Conrad
Detroit
48231
ST. LOUIS
63166
Birmingham
Jacksonville
Miami
Nashville
New Orleans
Little Rock
Louisville
Memphis
«
MINNEAPOLIS
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
Lester H. McKeever, Jr.
Arthur C. Martinez
Florine Mark
John F. McDonnell
Susan S. Elliott
72203 Robert D. Nabholz, Jr.
40232 John A. Williams
38101 John V. Myers
Thomas C. Melzer
W. LeGrande Rives
55480
Jean D. Kinsey
David A. Koch
Matthew J. Quinn
Gary H. Stern
Colleen K. Strand
A. Drue Jennings
Jo Marie Dancik
Peter I. Wold
Barry L. Eller
Arthur L. Shoener
Thomas M. Hoenig
Richard K. Rasdall
Roger R. Hemminghaus
Cece Smith
Alvin T. Johnson
I. H. Kempner, III
H. B. Zachry, Jr.
Robert D. McTeer, Jr.
Helen E. Holcomb
Judith M. Runstad
Gary G. Michael
Anne L. Evans
Carol A. Whipple
Gerald R. Sherratt
Richard R. Sonstelie
Robert T. Parry
John F. Moore
59601
64198
80217
73125
68102
75201
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Charles A. Cerino'
Harold J. Swart1
William J. Tignanelli1
Dan M. Bechter'
James M. Mckee
FredR. Herr1
James D. Hawkins1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso
David R. Allardice1
Robert A. Hopkins
Thomas A. Boone
Martha L. Perine
John D.Johnson
Carl M. Gambs'
Kelly J. Dubbert
Bradley C. Cloverdyke
Sammie C. Clay
Robert Smith, III'
James L. Stull'
MarkL. Mullinix1
Raymond H. Laurence1
Andrea P. Wolcott
Gordon R. G. Werkema2
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks. Connecticut 06096; East Rutherford, New Jersey 07016; Utica
at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306;
Indianapolis, Indiana 46204; Milwaukee, Wisconsin 53202; and Peoria, Illinois 61607.
1. Senior Vice President.
Vice President
2. Executive
@FedFRASER