Full text of Federal Reserve Bulletin : May 2003
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Volume 89 • Number 5 • May 2003
Federal Reserve
BULLETIN
Board of Governors of the Federal Reserve System, Washington, D.C.
PUBLICATIONS COMMITTEE
Lynn S. Fox, Chair • Marianne M. Emerson • Jennifer J. Johnson • Karen H. Johnson
• Stephen R. Malphrus • J. Virgil Mattingly, Jr. • Vincent R. Reinhart • Louise L. Roseman
• Dolores S. Smith • Richard Spillenkothen • David J. Stockton
The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed
except in official statements and signed articles. It is assisted by the Publications Department under the direction of Lucretia M. Boyer.
Table of Contents
191 U.S. INTERNATIONAL
TRANSACTIONS
IN
2002
After slightly narrowing during the cyclical
slowdown of 2001, the U.S. current account
deficit widened in 2002, as it had over the previous decade. Two-thirds of the increase in the
deficit last year was attributable to an increase
in the deficit for trade in goods and services.
In addition, net investment income receded as
receipts from abroad declined more than payments on foreign investments in the United
States. The record $503 billion U.S. current
account deficit registered in 2002 was financed
by continued high levels of private capital
inflows and stepped-up foreign official purchases of U.S. assets.
If economic activity picks up in the United
States and in its major trading partners later this
year, as most forecasters expect, the U.S. external deficit likely will widen as U.S. imports of
goods and services rise by a greater amount than
U.S. exports of goods and services. The decline
in the dollar from early 2002 to date is unlikely
to restrain the widening of the deficit by much,
as it has been relatively small and its effects will
be spread over a number of years.
204
ANNOUNCEMENTS
Federal Open Market Committee directive
Revisions to official staff commentary on Regulation Z
Joint Federal Reserve and Treasury report on
global counterfeiting
Update of interagency policy statement on internal auditing
Interagency paper on sound practices to
strengthen the resilience of the U.S. financial
system
Minutes of discount rate meetings
Enforcement actions
Staff changes
2 0 8 LEGAL
DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and pending cases.
A I FINANCIAL
AND BUSINESS
STATISTICS
These tables reflect data available as of
March 27, 2003.
A 3 GUIDE
TO
TABLES
A4 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A44 International Statistics
A 5 7 GUIDE TO SPECIAL TABLES
STATISTICAL
RELEASES
A 7 0 INDEX
TO STATISTICAL
A 7 2 BOARD
OF GOVERNORS
AND
TABLES
AND
STAFF
A 7 4 FEDERAL OPEN MARKET COMMITTEE
STAFF; ADVISORY
COUNCILS
A 7 6 FEDERAL
A 7 8 MAPS
RESERVE
BOARD
OF THE FEDERAL
A 8 0 FEDERAL RESERVE
AND
OFFICES
PUBLICATIONS
RESERVE
BANKS,
AND
SYSTEM
BRANCHES,
U.S. International Transactions in 2002
Steven B. Kamin, of the Board's Division of International Finance, prepared this article. Faith E.
Darling provided research assistance.
After slightly narrowing during the cyclical slowdown of 2001, the U.S. current account deficit widened in 2002, as it had over the previous decade.
Two-thirds of the increase in the deficit last year was
attributable to an increase in the deficit for trade in
goods and services. In addition, net investment
income receded as receipts from abroad declined
more than payments on foreign investments in the
United States.
Most of the rise in the trade deficit in 2002 was the
result of an increase in the value of imported goods
and services. Imports had declined sharply in the
previous year in response to the slowdown in U.S.
economic activity, and as activity accelerated in 2002,
imports reversed much of their earlier decline.
Although the pace of expansion also began to pick up
in the economies of the United States' foreign trading
partners last year, the value of U.S. exports declined
for the second year in a row, albeit to a much smaller
extent than in 2001.1 These movements caused the
1. In fact, as discussed below, although the value of exports for
2002 as a whole was below its 2001 level, exports actually rose f r o m
the fourth quarter of 2001 to the fourth quarter of 2002.
deficit in goods and services to rise to $436 billion in
2002 (table 1).
A swing in the balance on investment income,
from a $21 billion surplus in 2001 to a $5 billion
deficit in 2002, reflected primarily a decline in net
direct investment income. Increases in the profitability of foreign direct investment in the United States
last year helped to boost payments to foreigners
above the abnormally low levels of 2001. Receipts on
U.S. direct investment abroad were held back by
continued economic slack and low profits in many
foreign economies. The deficit in portfolio income
rose very slightly but would have increased considerably more were it not for the low levels of interest
rates at home and abroad.
The record $503 billion current account deficit
registered in 2002 was also a record as a share of
GDP—4.8 percent (chart 1). The counterpart of this
deficit was a $474 billion surplus in the financial
account balance, an increase of $92 billion over the
2001 financial account surplus. The rise in the surplus was attributable primarily to stepped-up foreign
official purchases of U.S. assets; changes in the components of private capital flows largely offset each
other. The statistical discrepancy in the U.S. international accounts also rose.
An implication of the large U.S. current account
deficits in recent years has been that, taken together,
1. U.S. international transactions, 1998-2002
Billions of dollars except as noted
Item
1998
1999
2000
2001
2002
Change,
2001-02
Trade in goods and services, net
Goods, net
Services, net
-167
-247
80
-262
-346
84
-379
^52
74
-358
-427
69
-436
-484
49
-77
-57
-20
Investment income, net
Compensation of employees, net
Unilateral current transfers, net
13
-5
-45
24
-6
-49
28
-6
-53
21
-6
-49
-5
-6
-56
-26
0
-7
-204
-293
-393
-503
-110
-27
91
55
210
36
373
0
382
93
381
94
-1
64
265
409
382
474
92
1
-3
1
1
1
0
139
31
0
11
29
18
-4.2
-3.9
-4.8
Current account balance
Official capital, net
Private capital, net
Financial account balance
Capital account balance
Statistical discrepancy
MEMO
Current account as percent of GDP
-2.3
-3.2
NOTE. Here and in the following tables, components may not sum to totals
because of rounding.
1. Percentage point change.
-.9'
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis
(BEA), U.S. international transactions accounts.
192
Federal Reserve Bulletin • May 2003
1. U.S. external balances, 1970-2002
Percent of GDP
slowdown in 2001, increases in the prices of oil
and other primary commodities, the reversal of the
dollar's appreciating trend, and movements in real
returns at home and abroad.
U.S. Economic
1972
1977
1982
1987
1992
1997
2002
NOTE. The data are annual.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis
(BEA).
the economies of the rest of world have been running
a current account surplus (see box "The Foreign
Counterpart to the U.S. Current Account Deficit").
MAJOR ECONOMIC INFLUENCES
INTERNATIONAL
TRANSACTIONS
ON U.S.
Several factors had a significant influence on U.S.
international transactions in 2002: the emergence
of the U.S. and foreign economies from the cyclical
2.
Activity
After remaining unchanged during 2001, U.S. real
GDP increased 2.9 percent between the fourth quarter
of 2001 and the fourth quarter of 2002 (table 2).
Economic conditions turned up notably during the
first half of the year. Household spending on both
personal consumption items and housing remained
solid, businesses curtailed their inventory liquidation
and began to raise spending on some types of capital
equipment, and private employment began to edge
higher. For the first half of 2002, real GDP grew
3.1 percent at an annual rate.
However, the momentum of the recovery diminished somewhat as the year progressed. Concerns
about corporate governance weighed on financial
markets, and a rise in international tensions boosted
oil prices and exacerbated uncertainties already faced
by businesses about the economic outlook. By midsummer, stock prices had declined, risk spreads widened, and liquidity eroded in corporate debt markets.
These developments, combined with a high degree of
underlying caution on the part of businesses, contributed to continued weak capital spending. With for-
Change in real GDP in the United States and abroad, 1999-2002
Percent, annual rate
2002
2001
Area
1999
2000
2001
2002
|
HI
United States
4.3
2.3
Total foreign
.1
2.9
-1.1
H2
HI
H2
1.2
3.1
2.7
4.9
4.2
.1
2.8
-.2
.4
3.6
2.1
Asian emerging markets1
China
Indonesia
Korea
Malaysia
Philippines
Taiwan
8.6
4.1
5.3
13.8
11.8
5.1
5.9
6.1
8.0
6.4
5.1
6.2
3.7
4.5
1.0
7.5
1.7
4.2
-.6
3.9
-1.8
5.5
8.0
3.8
7.0
5.5
5.8
4.1
-.9
8.0
6.2
3.3
-3.3
4.0
-6.9
2.9
7.1
-2.6
5.0
2.2
3.7
3.5
6.9
8.9
10.7
8.0
6.1
5.6
4.8
4.2
7.1
-2.7
6.1
4.9
5.9
3.4
Latin America 2
Argentina
Brazil
Mexico
Venezuela
4.4
-.9
3.5
5.6
-4.1
4.4
-1.9
4.0
4.7
5.6
-1.5
-10.3
-.7
-1.5
.9
1.1
-4.0
3.4
2.1
J|~16.7
-1.5
-1.1
.0
-2.0
2.2
-1.4
-18.6
-1.4
-1.0
-.4
1.8
-10.5
3.5
3.2
-17.0
.5
2.9
3.3
.9
-16.4
5.7
3.7
-.5
3.5
2.7
5.1
.8
.6
-2.4
.4
1.1
-1.6
1.2
.1
-3.2
5.2
1.5
2.9
2.6
1.3
2.7
NOTE. Aggregate measures are weighted by moving bilateral shares in U.S.
exports of merchandise. Annual data are four-quarter changes. Half-yearly data
are calculated as Q4/Q2 or Q2/Q4 changes at an annual rate.
1. Weighted average of China, Hong Kong, Indonesia, Korea, Malaysia,
Philippines, Singapore, Taiwan, and Thailand.
2. Weighted average of Argentina, Brazil, Chile, Colombia, Mexico, and
Venezuela.
BQ
RSi
39
fO
bo
Canada
European Union 3
Japan
3. Member countries are Austria, Belgium, Denmark, Finland, France,
Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain,
Sweden, and the United Kingdom.
SOURCE. Various national sources; Federal Reserve seasonal adjustments in
some cases.
U.S. International Transactions in 2002
193
The Foreign Counterpart to the U.S. Current Account Deficit
The counterpart of the current account deficit in the United
States is an aggregate current account surplus in the rest of
the world. Current account balances are influenced by a
variety of factors that differ from country to country, and
those of foreign economies exhibit quite diverse movements as the US. current account changes. In the 1980s,
during the last large run-up in the U.S. current account
deficit, much of the imbalance was matched by current
account surpluses in the economies of the European Union
(EU) and Japan. For example, in 1987, the U.S. current
account deficit reached $161 billion, or 3.4 percent of GDP,
while the EU countries and Japan recorded current account
surpluses of $28 billion and $85 billion respectively
(chart A). This state of affairs was broadly consistent with
the importance of these two areas in U.S. trade at the time:
Together, the EU countries and Japan accounted for about
40 percent of U.S. exports and imports. It was also consistent with the especially marked rise in the foreign exchange
value of the dollar against the currencies of those countries
in the mid-1980s.
The most recent rise in the US. current account deficit
has been associated with a distribution of counterpart surpluses abroad that differs somewhat from the 1980s pattern.
As in the mid-1980s, Japan is running a surplus, although at
about $110 billion last year it is only moderately larger than
in 1987, even as the U.S. deficit is currently about three
times as large as it was then. The European Union's surplus
last year was only about $50 billion, a small counterpart
to the U.S. deficit. Conversely, the Asian emerging-market
economies, whose share of US. imports has risen from
about 16 percent in the mid-1980s to about 24 percent more
recently, ran a current account surplus of nearly $120 billion in 2002, a considerably larger balance than they
A. Current account balances, United States, Japan, and
the European Union, 1975-2002
Billions of dollars
recorded in the mid-1980s (chart B). Finally, the largest
single counterpart to the U.S. imbalance is the global statistical discrepancy, which is the negative of the sum of the
world's current accounts (chart C). In principle, the world's
current accounts should sum to zero, but because of statistical problems and misreporting of payments and receipts, the
statistical discrepancy is generally not zero and can sometimes be quite large. Increases in oil revenues earned by
countries whose international transactions are not well
reported, along with rising cross-border holdings of assets
(returns on which also are frequently underreported), may
explain some of the growth of the discrepancy in recent
years.
B. Current account balances, United States and Asian
emerging markets, 1975-2002
Billions of dollars
1977
1982
1987
1992
1997
2002
NOTE. The data are annual. The Asian emerging markets are China,
Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan,
and Thailand. For 2002, balances for some Asian economies are estimates.
SOURCE. BEA; IMF, World Economic Outlook database.
C. U.S. current account balance and aggregate statistical
discrepancy for all countries, 1975-2002
Billions of dollars
200
1977
1982
1987
1992
1997
2002
NOTE. The data are annual. For membership of the European Union, see
note 3 of table 2 in the main text. The European Union balance is
calculated as the sum of the balances of individual European Union
countries.
SOURCE. BEA; International Monetary Fund (IMF), World Economic
Outlook database.
1977
1982
1987
1992
1997
NOTE. The data are annual.
SOURCE. BEA; IMF, World Economic Outlook database.
2002
194
Federal Reserve Bulletin • May 2003
eign demand for U.S. products weakening as well,
manufacturers trimmed production during the fall.
Employment in the private sector declined again, and
the unemployment rate moved up, reaching 6 percent
in December. For the second half of 2002, the growth
of real GDP declined to 2.7 percent at an annual rate,
and for the fourth quarter it was only 1.4 percent.
Foreign Economic
Activity
After a pronounced slowdown in 2001, economic
activity accelerated in the economies of U.S. trading
partners in 2002 as it did in the United States. Higher
growth abroad reflected a number of factors, including monetary and fiscal stimulus, reductions in the
pace of inventory liquidation, and the effect of
increasing economic activity in the United States.
The pickup in growth abroad, as in the United States,
was concentrated in the first half of last year, as a
strong rally in the high-tech exporting economies of
emerging-market Asia was joined by robust growth
in Canada and, to a lesser extent, Mexico. Growth
in other regions—including the euro area and South
America—remained subdued. As the U.S. economy
decelerated in the second half, the pace of recovery
slowed in Asia and Canada, while performance
remained lackluster in much of the rest of the world.
The Canadian economy registered the strongest
performance among the major foreign economies last
year despite some slowing in the second half. Its
strength reflected robust growth of consumption and
residential construction as well as an end to inventory
runoffs early in the year. As a net oil exporter, Canada
has also benefited from the high level of oil prices,
and because it is less dependent on high-tech production than is the United States, it likewise suffered less
from the on-going weakness in that sector.
The Japanese economy grew during 2002, although
the pace of growth was barely enough to offset the
decline in output that took place in 2001. Japanese
growth was driven mainly by exports, with smaller
contributions coming from increased consumption
and a slower pace of inventory reduction. However,
private investment spending and conditions in labor
markets remained weak, and deflation continued.
Economic performance in the euro area was quite
sluggish last year. Although exports were up, growth
in consumption was modest, and private investment
declined. Economic weakness was especially pronounced in some of the larger countries—Germany,
Italy, and, to a lesser extent, France—while growth
in some of the smaller euro-area countries was more
robust.
In the emerging-market economies last year, economic performance diverged considerably between
Asia and Mexico, on the one hand, and the rest of
Latin America, on the other. The Asian emergingmarket economies generally performed well in 2002;
they were led, as in previous years, by China, where
real GDP again expanded more than 7 percent. Of the
other emerging Asian economies, Korea recorded the
strongest growth. The economy grew more rapidly in
the first half of the year, when global demand for
high-tech products rose most quickly and domestic
demand (especially consumption) surged; growth
slowed in the second half of the year as global
high-tech demand weakened and tensions over
North Korea intensified. Other economies in the
region, including some of the larger Southeast Asian
economies and Taiwan, also exhibited strong performance in the first half of 2002 followed by some
weakening of growth in the second.
One of the few bright spots in Latin America last
year was the Mexican economy—boosted by the U.S.
recovery, its growth was moderate for the year as a
whole despite some late slowing. Conversely, much
of South America was beset by adverse economic,
financial, and political developments. In Brazil, economic activity managed to expand in 2002, despite
considerable financial volatility surrounding the
October presidential election. Argentine GDP contracted further in 2002 after declining 10 percent in
2001, although financial and economic conditions
appeared to stabilize in the second half of the year.
Output plunged in Venezuela in the midst of extreme
economic and political turmoil, including a coup
attempt in April and a national strike declared in
December.
Primary-Commodity
Prices
Oil prices began 2002 at less than $20 per barrel for
West Texas intermediate (chart 2), having declined
considerably in the previous year amidst widespread
economic weakness. Much of the decline occurred
after the events of September 11, 2001, in response to
a fall in jet fuel consumption, weaker economic activity, and reassurances of stable supply from Saudi
Arabia. However, oil prices began rising again in
February and March of 2002 in response to both
improving global economic activity and a productionlimiting agreement among OPEC and some major
non-OPEC producers. As a consequence of this
agreement, actual production declined, albeit not to
the extent implied by the agreed limits. Heightened
tensions in the Middle East, along with severe politi-
U.S. International Transactions in 2002
2. Oil prices, 1986-2002
Dollars per barrel
Coast, which produces a substantial fraction of the
world's cocoa. Production restraint by copper producers led to a slight gain in the price of that commodity.
Finally, the price of gold shot up more than 20 percent last year, most likely in response to heightened
global tensions.
U.S. Price
1986
1990
1994
1998
2002
NOTE. The data are monthly.
SOURCE. Wall Street Journal; BEA.
cal turmoil in Venezuela, also put upward pressure on
oil prices. A strike in Venezuela, which began on
December 2, 2002, caused already meager crude oil
inventories in the United States to fall to levels not
seen since the 1970s; the reduced inventories exacerbated the effect of the reduced production on oil
prices.
Prices of nonfuel primary commodities (chart 3)
also picked up somewhat last year after falling
steadily throughout much of 2001. Most of the
increase in prices reflected decreases in supply.
Adverse weather in many parts of the world reduced
harvests and sent prices of several agricultural
commodities—wheat, soybeans, and cotton—
soaring, albeit from very depressed levels. Also,
cocoa prices rose because of a civil war in Ivory
3.
Competitiveness
Changes in the price competitiveness of U.S. export
and import-competing industries last year were primarily the result of changes in the foreign exchange
value of the dollar, as well as relative movements in
inflation rates at home and abroad. The price-adjusted
broad dollar index is a measure of the foreign
exchange value of the dollar in terms of the currencies of the United States' principal trading partners,
adjusted for relative movements in U.S. and foreign
inflation rates. Having appreciated substantially since
the mid-1990s, the broad real dollar index extended
its mild upward trend into the early part of 2002
(chart 4). However, the dollar weakened sharply in
late spring and early summer amid deepening concerns about U.S. corporate governance and profitability. Around that time, market analysts also appeared
to become more worried about the growing U.S.
current account deficit and its potential negative
influence on the future value of the dollar. After
strengthening a bit around midyear as growth prospects for other major economies appeared to dim, the
broad real dollar index dropped again late in the year
as geopolitical tensions intensified; it registered a
13A percent decline for the year as a whole.
Price of world nonfuel primary commodities,
4. Foreign exchange value of the U.S. dollar, 1990-2002
1993-2002
1995 = 100
—
—
105
—
—
100
—
—
95
—
—
90
—
—
85
1 — -
80
—
—
\
R
^
—
—
7 5
—
70
—
1
195
1
1
1994
1
1
1
1996
1
1
1998
1
2000
1
1
1
65
1
2002
NOTE. The data are monthly. The price shown is a weighted average of
forty-five prices.
SOURCE. IMF, International Financial Statistics, index of nonfuel primary
commodity prices in dollars.
1996= 100
1990
1992
1994
1996
1998
2000
2002
NOTE. The data are monthly. Each data series is a price-adjusted index of
foreign currency units per dollar. The broad index covers a large group of
important U.S. trading partners. The major currencies index covers the
currencies that are widely traded in international financial markets.
196
Federal Reserve Bulletin • May 2003
In 2002, the dollar depreciated against all of the
major currencies—those currencies that trade widely
in international financial markets—but the magnitude
of these declines varied. The dollar showed particular
weakness against the euro; the dollar's decline of
16 percent more than reversed a substantial portion
of its rise against the euro in the preceding couple of
years. The dollar declined about 10 percent against
the yen last year. Relative to the Canadian dollar,
however, the U.S. dollar declined only 1 percent on
balance.
Even as the dollar declined 7 percent on a priceadjusted basis against the major currencies last
year, it appreciated 41/2 percent against a weighted
average of the currencies of other U.S. trading partners. This appreciation occurred despite a decline
in the dollar against the currencies of Asian
emerging-market economies and is accounted for
almost entirely by a rise of the dollar against the
Mexican peso.
3.
DEVELOPMENTS
SERVICES
IN U.S. TRADE IN GOODS
AND
The U.S. trade deficit in goods and services, having
narrowed significantly in 2001, widened in 2002 and
thereby resumed its trend of the past decade (table 3).
The $77 billion expansion of the trade deficit last
year reflected a $51 billion rise in the nominal value
of imports and a $26 billion reduction—the second
annual decline—in exports.
Movements in the annual totals of exports and
imports from 2001 to 2002, however, obscure important movements of these trade figures over the course
of last year. Nominal exports of goods and services
hit their recent low in the fourth quarter of 2001 and
then recovered substantially in the second and third
quarters of 2002 before reversing some of these gains
in the fourth quarter (chart 5). Hence, while the
average value of exports in 2002 was below its 2001
level, owing to its very depressed level at the start of
U.S. international trade in goods and services, 2 0 0 0 - 2 0 0 2
Billions of dollars except as noted
Percent change,
2001-02
Change
Item
2000
2001
2002
2000-01
2001-02
Year over year
Q4 to Q4
20
-77
972
-66
-26
-3
5
279
719
289
683
-13
-53
10
-36
4
-5
14
2
357
48
56
60
31
162
322
53
48
45
28
149
291
51
39
42
22
137
-35
5
-8
-15
-3
-13
-31
-2
-9
-3
-6
-12
-10
-4
-19
-6
-20
-8
-1
-1
-7
5
-13
0
173
80
89
48
25
160
75
88
49
24
157
78
84
50
23
-12
-5
-1
2
-1
-3
3
-4
0
-1
-2
4
-4
0
-5
8
4
1
2
3
Imports
1,443
1,356
1,407
-87
51
4
14
Services
Goods
219
1,224
210
1,146
240
1,167
-8
-78
30
21
14
2
19
13
120
1,104
104
1,042
104
1,063
-17
-62
0
21
0
2
46
10
Capital equipment
Aircraft and parts
Computer equipment1
Semiconductors
Telecommunications equipment . . .
Other machinery and equipment . . .
347
26
90
48
33
150
298
31
74
30
25
138
284
26
75
26
23
134
-49
5
-16
-18
-8
-12
-14
-6
1
-4
-1
-4
-5
-18
2
-14
-6
-3
5
-17
8
6
18
6
Industrial supplies
Automotive vehicles and parts
Consumer goods
Foods, feeds, and beverages
Other
182
196
282
46
51
173
190
284
47
51
166
204
308
50
52
-9
-6
2
1
-1
-7
14
23
3
1
-4
7
8
7
2
12
11
16
10
1
Balance (exports less imports)
-379
-358
-436
Exports
1,064
998
292
772
Capital equipment
Aircraft and parts
Computer equipment1
Semiconductors
Telecommunications equipment
Other machinery and equipment
Industrial supplies
Automotive vehicles and parts
Consumer goods
Foods, feeds, and beverages
Other
Services
Goods
Oil
Non-oil
1. Computers, accessories, peripherals, and parts.
. . . Not applicable.
SOURCE. BEA, U.S. international transactions accounts.
U.S. International Transactions in 2002
5.
I
U.S. imports and exports, 2 0 0 0 - 2 0 0 2
I
I
I
I
I
I
2000
I
I
I
I
2001
I
L
2002
NOTE. The data are quarterly and seasonally adjusted.
SOURCE.
BEA.
the year, these receipts actually grew about 5 percent
between the fourth quarter of 2001 and the fourth
quarter of 2002 (table 3). Similarly, nominal imports
of goods and services rose much more rapidly on a
Q4-to-Q4 basis (14 percent) than they did on a yearover-year basis (4 percent).
4.
Change in the quantity of U.S. exports and imports
of goods and services, 1999-2002
Percent change from fourth quarter to fourth quarter
Item
1999
2000
2001
Exports
5
7
-11
4
Services
Goods
3
6
5
8
-9
-12
11
1
7
-17
13
34
8
13
-14
23
27
14
-21
-4
-24
-35
-20
-1
-3
-2
8
-2
7
3
5
3
-1
7
1
6
3
6
-7
-5
-6
5
-6
3
3
2
-6
5
12
11
-8
10
6
13
11
11
-9
-8
12
10
-3
15
13
11
0
-9
4
10
-21
3
-14
-51
-21
7
-20
14
9
10
-5
-2
-5
5
o
8
10
17
6
5
Capital equipment 1
Aircraft and parts
Computer equipment 2
Semiconductors
Other machinery and equipment
...
Industrial supplies
Automotive vehicles and pans
Consumer goods
Foods, feeds, and beverages
Other
Imports
Services . . . . . . .
Goods
i i . V . ' . y j & v i t , fj,...
Oil
Non-oi!
Capital equipment 1
Aircraft and parts
Computer equipment 2
Semiconductors
Other machinery and equipment .
l i ^ Industrial
M t rsupplies
t T H T f i T
Automotive vehicles and parts
Consumer goods
Foods, feeds, and beverages
Other
17
19
-2
22
14
26
34
23
17
15
BBSS! SIPS
8
14
2
I7H
16
11
6
5
16
2002
NOTE. Quantities are measured in chained (1996) dollars.
1 Data for telecommunications equipment not separately calculated.
2. Computers, accessories, peripherals, and parts.
SOURCE. BEA, national income and product accounts; Federal Reserve
Board.
197
Measured both in terms of nominal values (table 3)
and quantities (table 4), imports rose faster than
exports between the fourth quarter of 2001 and the
fourth quarter of 2002. Imports grew faster than
exports despite the fact that real GDP here and abroad
grew at about the same rate last year. This development is consistent, however, with a historical pattern in which the responsiveness of U.S. imports to
income in the United States has been greater than the
responsiveness of U.S. exports to income in the rest
of the world. Moreover, because capital goods constitute a greater fraction of U.S. exports than they do of
U.S. imports, the weakness in investment spending
both here and abroad last year weighed more heavily
on exports than on imports. Finally, although the
dollar depreciated last year, the lagged effects of its
earlier appreciation continued to support imports
while restraining exports.
Exports
The 5 percent rise in the nominal value of exported
goods and services between the fourth quarter of
2001 and the fourth quarter of 2002 reflects much
stronger growth in exports of services than of goods.
Services receipts rose 14 percent over this period
after having declined sharply in 2001; much of the
rebound was in receipts from foreign travelers in the
United States, which recovered somewhat in 2002
following a plunge immediately after the September 11 terrorist attacks. Receipts from foreigners for
other services moved up smartly as well.
In contrast, nominal exports of goods rose only
2 percent in 2002 (Q4 to Q4); they were held back by
a 1 percent decline in export sales of capital goods.
This slowing likely reflected the pronounced weakness of investment spending during the recent global
slowdown, even as consumption spending held up
more strongly. Especially large percentage declines
in exports of computer and telecommunication equipment were consistent with continued weakness in the
high-tech sector (as well as trend declines in computer prices), while the slight rise in exports of semiconductors reversed very little of their pronounced
decline in 2001.
Outside of the capital goods sector, exports of
industrial supplies grew substantially over the course
of 2002, but most of this increase reflected higher
prices rather than a sharp pick-up in quantities.
Exports of automotive products also showed some
strength; the increase was more than accounted for
by higher shipments of vehicles and parts to Canada.
The relatively flat dollar-value of sales of food, feed,
198
Federal Reserve Bulletin • May 2003
6. Change in the prices of U.S. exports and imports
of goods and services, 1999-2002
5. Distribution of U.S. exports of goods,
by selected regions and countries, 2000-2002
Billions of dollars except as noted
Percent change from fourth quarter to fourth quarter
2001-02
Destination
2000
2001
2002
Change
Item
Percent
change,
Q4 to Q4
AH
772
719
683
-36.2
2.0
Western Europe
179
171
154
-17.8
-1.8
Canada
179
163
161
-2.4
6.2
Latin America
Mexico
Other
170
111
59
159
101
58
148
97
51
-10.6
-3.8
-6.8
-.6
1.1
-3.6
Asia
Japan
Emerging markets 1 ..
194
63
130
173
56
117
167
50
118
-5.6
-6.2
.6
3.3
-2.3
5.8
50
52
52
.3
4.8
Other
1. China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore,
Taiwan, and Thailand.
SOURCE. BEA, U.S. international transactions accounts.
and beverages abroad reflected the offsetting effects
of a sharp contraction in exported quantities of these
products, in part resulting from poor harvests, and
corresponding increases in their prices.
The distribution of U.S. sales of goods to different
parts of the world in 2002 (table 5) was substantially
influenced by the economic performance of our trading partners. Exports of goods to those regions showing the strongest performance last year—Canada, the
Asian emerging-market economies, and Mexico—
moved up on a Q4-to-Q4 basis, while sales to weaker
economies—those of western Europe, Japan, and
South America—declined. The rise over the course
of 2002 in sales to Canada, which account for
nearly a quarter of U.S. goods exports, was primarily
accounted for by automotive products, industrial supplies, and consumer goods and was driven by strong
household spending. Capital goods, which represent
the largest end-use category of sales to Canada,
remained about flat. Exports to the Asian emergingmarket economies were boosted primarily by higher
sales of industrial supplies (especially chemicals)
and capital goods. In both western Europe and
Japan, where economic activity has continued to be
restrained by weak business investment, mild
declines in U.S. goods exports resulted almost
entirely from reductions in sales of capital goods.
The quantity of exports rose 4 percent in 2002
(Q4 to Q4) after declining sharply the previous year
(table 4). As with movements in their value, the
quantity of exported services rose considerably faster
than that of goods. Exports of all major categories
rose except for foods, feeds, and beverages, which
declined markedly, and capital equipment.
1999
2000
2001
2002
Exports
0
1
-2
2
Services
Goods
1
0
2
1
-2
-2
2
1
Capital equipment
Aircraft and parts
Computer equipment
Semiconductors
Other machinery and equipment
-1
2
-7
-4
0
0
5
-A
-5
1
-1
5
-4
-6
0
-1
3
-5
-3
0
Industrial supplies
Automotive vehicles and parts
Consumer goods
Foods, feeds, and beverages
Other
4
1
0
-4
1
4
1
0
0
1
-7
0
0
-1
-2
5
1
-1
7
2
Imports
3
3
-5
4
Services
0
4
3
3
3
-7
7
3
94
-1
31
1
-36
-4
40
0
-4
2
-11
-3
-1
-2
4
-5
-2
-1
-3
3
-12
-3
-1
-2
2
-4
-3
-2
4
1
-1
-3
0
11
1
-1
-2
1
-13
0
-1
-3
-2
4
0
-1
4
1
Oil
Non-oil
Capital equipment
Aircraft and parts
Computer equipment
Semiconductors
Other machinery and equipment . . .
Industrial supplies
Automotive vehicles and parts
Consumer goods
Foods, feeds, and beverages
Other
NOTE. Price indexes are chain-weighted. See also notes to table 4.
After declining in 2001 in response to the slowdown in global growth, export prices rose 2 percent
last year (Q4 to Q4, table 6); they were boosted by
higher global growth, an associated firming of commodity prices (including petroleum prices), and perhaps some effects from the weakening dollar. Services prices recovered as demand for travel moved
back up from lows reached after the events of
September 11, 2001. Weather-related supply disruptions drove up prices of foods, feeds, and beverages
7 percent, while higher costs of petroleum products,
natural gas, lumber, and steel led to a 5 percent rise
in prices of industrial supplies. Prices of exported
capital equipment edged down again last year and
reflected trend declines in the prices of computers
and semiconductors.
Imports
The value of imports rose 14 percent from the fourth
quarter of 2001 to the fourth quarter of 2002 (table 3),
though this gain in part reflects a bounce-back from
the depressed levels reached in the aftermath of
September 11, 2001. Services, rebounding especially
quickly, rose 19 percent over the same period. As on
U.S. International Transactions in 2002
the exports side, a surge in travel-related spending by
U.S. residents abroad following the lows reached
after September 11, 2001, accounted for much of
this increase, although other types of services rose
as well. Imports of goods also rose briskly over the
course of last year, with increases on a Q4-to-Q4
basis registered for both the oil and non-oil
categories.
Oil Imports
The value of oil imports rose 46 percent from the
fourth quarter of 2001 to the fourth quarter of 2002
(table 3). This sharp rise primarily reflected a 40 percent rebound in the price of imported oil last year
from its low level at the end of 2001. Additionally,
the pickup in U.S. economic growth in 2002 led
to a small rise in the quantity of oil imports on a
Q4-to-Q4 basis; the quantity of oil imports was also
boosted by some bounce-back from unusually
depressed levels immediately after September 11,
2001, when travel fell off sharply. With domestic oil
consumption last year exceeding the sum of imported
and domestically produced oil, oil inventories
declined.
Non-oil Imports
The quantity of non-oil imports rose 10 percent in
2002 (Q4 to Q4, table 4), reversing a decline of
similar magnitude in the previous year. Reflecting the
consumer-led nature of U.S. real GDP growth last
year, increases were led by double-digit gains in real
imports of automotive products and consumer goods.
Imports of industrial supplies and capital equipment
rose more moderately, with the latter being held back
by a 20 percent decline in imports of aircraft and
parts, which are quite volatile. Imports of both computer equipment and semiconductors bounced back
in 2002 after sharp declines the previous year, but
increases in the larger "Other machinery and equipment" category were more moderate and were well
below the pace of the previous year's decline.
Several factors contributed to the substantial
growth in the quantity of non-oil imports last year,
which considerably outpaced the rise in U.S. GDP.
First, as noted above, imports were unusually
depressed in the fourth quarter of 2001, so some of
the subsequent growth reflected a return to more
normal levels. Second, U.S. non-oil imports, and tradable goods in general, are particularly cyclically sensitive. This sensitivity may result from the fact that
199
the demand for goods tends to fluctuate over the
course of the business cycle more than does the
demand for services and hence more than does GDP
as a whole; therefore, non-oil goods imports are also
likely to fluctuate more widely than total GDP. To
illustrate, the quantity of non-oil imports declined
9 percent in 2001 (Q4 to Q4), when U.S. activity had
slowed but did not decline; non-oil imports then rose
10 percent in 2002, when U.S. growth picked up to
only about 3 percent.2 Third, as noted earlier, over
long periods of time, U.S. imports have tended to
grow more rapidly than U.S. GDP (even as exports
have grown more in line with the GDP of U.S.
trading partners). Finally, imports were likely buoyed
by the value of the dollar, which remained quite
strong by historical standards, notwithstanding some
declines over the course of the year.
Prices of non-oil imports were flat last year after
falling 4 percent in 2001 (table 6). Higher commodity
prices, as well as the effects of the fall in the dollar
later in the year, led to notable increases in the prices
of imported industrial supplies and foods, feeds, and
beverages. However, prices of computers and semiconductors extended their persistent declines, while
still-weak demand in global manufacturing likely
contributed to further declines in the prices of other
machinery and equipment as well as consumer goods.
A brisk 7 percent rise in services prices last year
probably reflected the decline in the dollar.
DEVELOPMENTS
IN THE NONTRADE
CURRENT
ACCOUNT
The major components of the current account other
than trade in goods and services are investment
income and unilateral transfers.
Investment
Income
Net investment income is the difference between the
income that U.S. residents earn on their holdings of
foreign assets (receipts) and the income that foreigners earn on their holdings of U.S. assets (payments).
If the rates of return on both of these holdings were
equal, then movements in net investment income
2. Analogously, the quantity of U.S. goods exports declined 12 percent from the fourth quarter of 2000 to the fourth quarter of 2001,
when foreign growth declined to about zero. With foreign growth
having recovered to nearly 3 percent in 2002, however, it is not clear
why the growth of real goods exports rose only to 1 percent. This slow
growth reflected an anomalous decline in December that was partially
reversed in January 2003.
200
Federal Reserve Bulletin • May 2003
7. U.S. direct investment abroad:
Position and receipts, 1980-2002
6. U.S. net international investment:
Position and income, 1980-2002
Billions of dollars
Billions of dollars
Billions of dollars
Billions of dollars
Net income
1,500
500
—
—
120
—
90
600
—
60
300
—
30
1,200
50
1,000 —
900
i
W'"
1,500
150
Receipts
' ' • l i i i n i i i n
—
—
/
Position
—
2,000
I I I I II I I 1 I I I I II I I I I I II I I I I
1982
1986
1990
1994
1998
milium
Lil
1982
2002
1986
1990
1994
1998
2002
NOTE. The data are annual. The net position is the average of the year-end
positions for the current and previous years. The year-end position for 2002
was constructed by adding the recorded portfolio investment flows during
2002 to the recorded year-end position for 2001. The net position excludes
U.S. holdings of gold.
SOURCE. BEA; Federal Reserve Board.
NOTE. The data are annual. The position is the average of the year-end
current-cost measures for the current and previous years. The year-end
position for 2002 was constructed by adding the recorded direct investment
capital flows and current-cost adjustment during 2002 to the recorded
year-end position for 2001.
SOURCE. BEA; Federal Reserve Board.
would exactly mirror movements in the net international investment position, that is, the difference
between U.S. holdings of foreign assets and foreign
holdings of U.S. assets. The net international investment position turned negative in 1986 and has
declined progressively further since then as large net
financial inflows have financed the United States'
current account deficits (chart 6). Even as foreign
acquisition of U.S. assets has substantially outpaced
U.S. acquisition of foreign assets, however, net
investment income remained positive until 2002
(table 7), as rates of return on U.S. holdings abroad—
primarily through direct investments—have exceeded
returns on foreign holdings in the United States.
direct investment in the United States—declined
$25 billion in 2002, to $78 billion (table 7). A small
increase in direct investment receipts was outweighed
by a much larger rise in payments last year.
The $2 billion pickup in receipts on U.S. direct
investment abroad last year was relatively meager,
considering that the U.S. gross direct investment position abroad rose roughly $100 billion (chart 7) and
that total foreign growth rebounded after stagnating
in 2001. However, profits are likely to be related
more to the level of capacity utilization than to the
growth of real GDP as such. Foreign growth picked
up last year but probably not enough to substantially
increase resource utilization and profits. Moreover,
more than half of U.S. direct investment is in Europe,
where growth remained low relative to that in the
United States or other U.S. trading partners. All of
these factors likely held back the growth of receipts
on U.S. direct investment abroad last year.
Direct Investment Income
Net direct investment income—receipts from U.S.
direct investment abroad less payments on foreign
7. U.S. international investment: Receipts and payments, 1998-2002
Billions of dollars
2002
Change,
2001-02
21
-5
-26
89
150
61
103
126
23
78
128
50
-25
2
27
-61
201
262
-82
155
237
-83
114
197
-1
-41
-40
1998
1999
2000
2001
13
24
28
Direct investment
Net income
Receipts
Payments
66
104
38
75
128
53
Portfolio investment
Net income
Receipts
Payments
-53
153
206
-51
160
211
Item
Net investment income
SOURCE. BEA, U.S. international transactions accounts.
U.S. International Transactions in 2002
8. Foreign direct investment in the United States:
Position and payments, 1980-2002
Billions of dollars
Billions of dollars
201
9. Net portfolio investment:
Position and income, 1980-2002
Billions of dollars
Billions of dollars
^UlJilJlJM
300
61)0 —
—
30
—
60
—
90
Net position
-1
900
1,200
—
Net income
1 I 1I M I I
1982
NOTE. See notes to chart 7.
In contrast to receipts, payments rose a substantial
$27 billion last year, bouncing back after a $38 billion decline in 2001. A small increase in foreign
direct investment holdings in the United States
(chart 8) explains some of the increase in payments.
More importantly, increases in the profitability of
foreign investments in the U.S. last year followed
abnormally low levels in 2001 and helped to boost
payments. The recovery in these profits was widespread, but the industries that fell most sharply in
2001—manufacturing and wholesale trade—showed
the largest growth in 2002.
1986
I I I I 1I I
1990
1994
1998
2002
NOTE. The data are annual. The net position is the Federal Reserve Board's
estimate of the average position during the year. Through 2001 these
estimates are based on quarterly financial flows and year-end position
estimates published by the BEA. For 2002, the average is based on year-end
2001 position data and quarterly financial flows during 2002. The net
position excludes U.S. gold holdings and foreign holdings of U.S. currency.
SOURCE. BEA; Federal Reserve Board.
to net debtor, and it followed the general contour of
the net investment position in subsequent years. More
recently, however, declines in interest rates have
tended to reduce both payments and receipts, thereby
leading the deficit in portfolio income to widen more
slowly than it would have otherwise. This effect was
particularly pronounced last year, when the negative
net income balance widened only $1 billion, to
$83 billion.
Portfolio Investment Income
Unilateral Transfers
Portfolio receipts represent the dividend and interest
income that U.S. residents receive on their holdings
of foreign financial assets, whereas portfolio payments represent the dividends and interest that foreigners receive on their holdings of U.S. financial
assets. The Bureau of Economic Analysis (BEA)
estimates these payments and receipts by applying
estimates of the interest or dividend-payout rates for
various assets to estimates of the holdings of those
assets. Portfolio investment income does not include
capital gains or losses associated with changes in
asset prices.
Movements in net portfolio income—receipts
minus payments—have tracked movements in the
U.S. net portfolio investment position fairly closely
(chart 9) because rates of return on portfolio investments in the United States and abroad are quite
similar (chart 10). Net portfolio income turned negative in 1985, the same year that the net portfolio
investment position moved from that of net creditor
Unilateral transfers include government grant and
pension payments as well as private transfers to and
10. Rate of return on U.S. portfolio investments,
1980-2002
I I I I I 1I I I I
1982
1986
NOTE. The data are annual.
1990
1994
I
1998
2002
202
Federal Reserve Bulletin • May 2003
from foreigners. In 2002, the deficit on net unilateral
transfers widened to $56 billion.
FINANCIAL AND CAPITAL
TRANSACTIONS
ACCOUNT
The counterpart of the increased U.S. current account
deficit last year was a rise in net financial inflows of
foreign savings. In recent years, net private capital
inflows have accounted for most of the overall net
inflows required to finance the current account deficit, and 2002 was no exception. However, even as the
current account deficit rose to a record $503 billion
last year, net private capital inflows remained about
unchanged at $381 billion, while net official inflows
jumped to $93 billion (table 8).
A prominent theme in last year's capital flows was
the reduced demand by private foreign entities for
U.S. corporate assets. Private foreign net purchases of
all U.S. securities declined $62 billion in 2002. Net
purchases of U.S. corporate and other bonds and of
corporate stocks fell $41 billion and $63 billion
respectively. These declines were only partially offset
by a positive $43 billion swing of flows into U.S.
Treasury and agency securities; these flows appear to
8.
have been driven by a flight to safety among investors. Private foreign direct investment in the United
States also fell off substantially, from $131 billion in
2001 to $30 billion in 2002.
The decline in the demand for claims on the U.S.
private sector last year may have been associated
with increased concerns about future profitability and
returns; these concerns were perhaps prompted by
the uneven recovery of the U.S. economy and the
continued poor performance of equity markets. Similar concerns may have prompted an analogous pullback of U.S. investments abroad. Private U.S. net
purchases of foreign securities plummeted from
$95 billion in 2001 to about zero last year. This drop
reflected net sales of foreign bonds by U.S. private
investors for the second consecutive year as well as
sharply reduced purchases of foreign stocks. U.S.
direct investment abroad held up, but that was due
to U.S. corporations not repatriating earnings and
extending more credit to their foreign affiliates; new
equity capital channeled toward direct investment
abroad fell from $50 billion in 2001 to $27 billion
last year.
With private foreign purchases of U.S. assets falling about as much as private U.S. purchases of
Composition of U.S. capital flows, 1997-2002
Billions of dollars
-
2002
1997
1998
1999
2000
2001
2002
HI
H2
-128
-204
-293
-410
-393
-503
-240
-263
0
1
-3
1
1
1
0
0
219
64
265
409
382
474
160
314
18
19
-1
0
-27
-20
-7
0
55
44
9
3
36
38
0
-1
0
5
-5
0
93
97
-4
0
54
55
-1
0
40
42
-2
0
201
8
173
91
4
49
210
-22
126
373
-32
251
382
-18
305
381
92
340
107
-47
155
274
138
185
292
130
26
67
69
185
29
5
106
46
254
-44
43
143
113
378
-77
96
166
192
400
-8
86
202
119
338
53
68
161
56
163
-12
35
104
36
175
66
33
57
19
U.S. net purchases ( - ) of foreign securities
Bonds
Stocks
Stock swaps
-119
-61
-58
-3
-136
-35
-101
-96
-128
-14
-114
-123
-128
-24
-104
-80
-95
12
-107
-45
2
21
-19
-3
-8
11
-18
-2
10
10
0
-1
Direct investment, net
Foreign direct investment in the United States
U.S. direct investment abroad
1
106
-105
36
179
-143
101
289
-189
129
308
-178
3
131
-128
-93
30
-124
-50
14
-64
—43
16
-59
Foreign holdings of U.S. currency
25
,7
22
1
24
22
12
10
Other
-5
-15
-17
23
68
21
37
-16
-91
139
31
0
11
29
79
-51
C u r r e n t account balance
Capital account balance
Financial account balance
Official capital, net
Foreign official assets in the United States
U.S. official reserve assets
Other U.S. government assets
Private capital, net
Net inflows reported by U.S. banking offices
Securities transactions, net
Private foreign net purchases (+) of U.S. securities
Treasury securities
Agency bonds
Corporate and other bonds
Corporate stocks
Statistical discrepancy
SOURCE. B E A , U.S. international transactions accounts.
U.S. International Transactions in 2002
foreign assets, private net capital flows were about
unchanged last year, even as the current account
deficit rose $110 billion. Most of this shortfall in
private financing was made up by a substantial rise in
official net capital inflows to $93 billion, with nearly
all of the remaining shortfall showing up in the
statistical discrepancy. The higher pace of these
acquisitions last year may have reflected the desire of
some foreign authorities to restrain the rise in their
currencies' value against the dollar by intervening in
foreign exchange markets. This explanation is suggested by the concentration of foreign official inflows
in the second and fourth quarters of last year, when
the foreign exchange value of the dollar registered its
largest declines.
Capital account transactions, which consist mainly
of debt forgiveness and wealth transfers associated
with immigration, netted to $1 billion last year, the
same amount as in the previous two years.
PROSPECTS
FOR
203
2003
Forecasters generally expect that rates of economic
growth will pick up both in the United States and in
its major trading partners later this year and in 2004.
Assuming this acceleration of activity takes place as
expected, the U.S. external deficit likely will widen as
U.S. imports of goods and services rise by a greater
amount than U.S. exports of goods and services. The
decline in the dollar that has been observed from
early 2002 to date is unlikely to restrain the widening
of the deficit by much, as it has been relatively
small—about 5 percent for the broad real dollar
index—and its effects will be spread over a number
of years. In fact, the initial effect of a depreciation of
the dollar is generally to raise the U.S. current account
deficit temporarily, since it raises import prices,
and hence the value of imports, more rapidly than it
stimulates sales of exports.
•
204
Announcements
FEDERAL OPEN MARKET
DIRECTIVE
COMMITTEE
The Federal Open Market Committee decided on
March 18, 2003, to keep its target for the federal
funds rate unchanged at 1 VA percent.
While incoming economic data since the January
meeting have been mixed, recent labor market indicators have proven disappointing. However, the hesitancy of the economic expansion appears to owe
importantly to oil price premiums and other aspects
of geopolitical uncertainties. The Committee believes
that as those uncertainties lift, as most analysts
expect, the accommodative stance of monetary policy, coupled with ongoing growth in productivity,
will provide support to economic activity sufficient to
engender an improving economic climate over time.
In light of the unusually large uncertainties clouding the geopolitical situation in the short run and their
apparent effects on economic decisionmaking, the
Committee does not believe it can usefully characterize the current balance of risks with respect to the
prospects for its long-run goals of price stability and
sustainable economic growth. Rather, the Committee
decided to refrain from making that determination
until some of those uncertainties abate. In the current
circumstances, heightened surveillance is particularly
informative.
Voting for the FOMC monetary policy action were
Alan Greenspan, Chairman; William J. McDonough,
Vice Chairman; Ben S. Bernanke; Susan S. Bies;
J. Alfred Broaddus, Jr.; Roger W. Ferguson, Jr.;
Edward M. Gramlich; Jack Guynn; Donald L. Kohn;
Michael H. Moskow; Mark W. Olson; and Robert T.
Parry.
REVISIONS TO OFFICIAL
ON REGULATION
Z
STAFF
COMMENTARY
The Federal Reserve Board on March 28, 2003,
issued revisions to the official staff commentary that
applies and interprets the requirements of Regulation Z, which implements the Truth in Lending Act.
The commentary revisions discuss the status of
certain credit-card-related fees and the rules for
replacing an accepted credit card with one or more
cards.
In addition, the commentary revisions discuss the
disclosure of private mortgage insurance premiums
and the selection of Treasury security yields for determining whether a mortgage loan is covered by provisions in Regulation Z that implement the Home Ownership and Equity Protection Act.
At the time the proposed commentary revisions
were published in December 2002, the Board also
requested comment and information from the public about the design and operation of overdraft or
"bounced check" protection services. Board staff is
continuing to gather information on these services
and will determine at a later date whether additional
guidance for financial institutions is warranted under
Regulation Z or other laws.
The revisions are effective April 1, 2003. The date
for mandatory compliance is October 1, 2003.
JOINT FEDERAL RESERVE AND
TREASURY
REPORT ON GLOBAL
COUNTERFEITING
The Federal Reserve Board and the Treasury Department on March 14, 2003, issued a joint report to
Congress stating that procedures to combat international counterfeiting of U.S. currency are becoming
more effective.
U.S. dollars are held and widely used around the
world, and the popularity and ubiquity of the dollar
make it a potential target for counterfeiters. The
incidence of counterfeiting has declined markedly
with the introduction of the 1996-series currency. An
upcoming new series currency, to be introduced later
this year, will further enhance the security of U.S.
banknotes.
The report, The Use and Counterfeiting of United
States Currency Abroad, Part II, mandated by the
Congress as part of the Anti-Terrorism and Effective
Death Penalty Act of 1996, represents a comprehensive review of the international use and counterfeiting of U.S. currency. The report details how the
combined efforts of the Treasury, United States
Secret Service, and Federal Reserve have held the
incidence of counterfeiting at relatively low nominal
levels.
205
"We continue to improve our currency and resist
efforts by counterfeiters the world over to produce
and pass counterfeit U.S. notes," said Treasury Secretary John W. Snow. "Only by such efforts can we
guarantee that our currency will continue to remain a
symbol of American strength and stability."
"U.S. currency continues to hold an important
place in the payment system at home and abroad and
maintaining its integrity is of utmost concern to the
Federal Reserve," said Roger Ferguson, Vice Chairman of the Board of Governors of the Federal
Reserve System. "A secure currency precludes the
need for businesses, merchants and the public to
expend significant resources and time validating the
genuineness of currency. When payment systems
work well, the economy functions more efficiently."
This second report to the Congress on the use and
counterfeiting of U.S. currency abroad provides further evidence that improved note designs have been
more difficult for counterfeiters to copy. The result
has been much smaller proportions of counterfeits of
new design notes among notes processed at Federal
Reserve Banks.
According to the report, efforts to protect U.S.
currency continue to be effective. The incidence of
counterfeiting is low, with approximately one counterfeit note per 10,000 notes worldwide. The U.S.
Secret Service is working closely with overseas banks
and law enforcement agencies to help suppress counterfeiting activities.
The report highlights important steps the U.S.
government is currently taking to combat global
counterfeiting:
• The Secret Service web site allows law enforcement agencies and currency handlers worldwide to
report instances of counterfeiting and to learn more
about the characteristics of a suspect note.
• The Federal Reserve Bank of New York has
established overseas cash depots at foreign commercial banks. These facilities allow overseas dollar
users to obtain new U.S. currency more efficiently
and increase the repatriation rate of worn and olddesign U.S. currency.
• U.S. enforcement agencies are working with their
overseas counterparts to target cities and countries
that first receive counterfeit notes in the wholesale
distribution chain.
The study concludes that overseas holdings of U.S
currency ranged between $340 billion and $370 billion out of the roughly $620 billion in U.S. currency
held outside U.S. depository institutions in the last
quarter of 2002.
According to the report, advances in reprographic
and computer technology will continue to necessitate
new and innovative responses to maintain the overall
security of U.S. currency. These efforts will include
further security enhancements to the currency design,
enhanced cooperation with international law enforcement agencies and additional training of foreign law
enforcement, and financial officials in counterfeit
detection.
The report is available online at http://
www.federalreserve.gov/boarddocs/rptcongress/
counterfeit2003.pdf.
UPDATE OF INTERAGENCY
ON INTERNAL
AUDITING
POLICY
STATEMENT
The federal banking and thrift regulatory agencies on
March 17, 2003, revised their guidance on the independence of accountants who provide institutions
with both external and internal audit services to
reflect the provisions of the Sarbanes-Oxley Act of
2002.
The updated Interagency Policy Statement on the
Internal Audit Function and Its Outsourcing, which
replaces a policy issued in 1997, also reflects the
agencies' experience with the 1997 policy and incorporates recent developments in internal auditing. It
was issued by the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision.
The Sarbanes-Oxley Act and recently adopted
Securities and Exchange Commission (SEC) rules
prohibit an accounting firm from acting as the external auditor of a public company during the same
period that the firm provides internal audit services to
the company. The revised policy statement separately
discusses the applicability of this prohibition to institutions that are public companies; insured depository
institutions with $500 million or more in assets that
are subject to the annual audit and reporting requirements of section 36 of the Federal Deposit Insurance
Act; and nonpublic institutions that are not subject to
section 36.
The existing guidelines for institutions subject to
section 36 provide for their external auditors to meet
the SEC's independence requirements. Auditors for
these institutions, whether or not they are public
companies, should comply with the prohibition on
internal audit outsourcing in the SEC's rules.
The policy statement encourages nonpublic institutions not subject to section 36, which includes
nonpublic depository institutions with less than
206
Federal Reserve Bulletin • May 2003
$500 million in assets, to refrain from outsourcing
internal audit activities to their external auditor. If
such an institution decides to use the same firm for
both internal and external audit work, however, the
audit committee should document its consideration
of the independence issues associated with this
arrangement.
In addition to changes related to the SarbanesOxley Act, the agencies enhanced the 1997 policy
statement's discussion of the responsibilities of the
board of directors and senior management with
respect to the internal audit function and its placement within an organization, its management and
staffing, and the communication of concerns and
weaknesses in accounting and internal control. The
policy also reiterates the need for institutions to
maintain strong systems of internal control, including internal controls over financial and regulatory
reporting, and high-quality internal audit programs.
Expanded guidance has been provided on the use of
independent reviews of significant internal controls
by small institutions that do not have a formal internal audit manager or staff. The policy statement
also includes guidance for examiners on addressing concerns they may have about the adequacy of
the internal audit function or related outsourcing
arrangements.
INTERAGENCY
PAPER ON SOUND
TO STRENGTHEN
THE RESILIENCE
FINANCIAL
SYSTEM
PRACTICES
OF THE U.S.
Three federal regulatory agencies on April 8, 2003,
issued an "Interagency Paper on Sound Practices to
Strengthen the Resilience of the U.S. Financial System." Among other things, the Board of Governors
of the Federal Reserve System, the Office of the
Comptroller of the Currency, and the Securities and
Exchange Commission identified sound practices
to strengthen the resilience of critical U.S. financial
markets and minimize the immediate systemic effects
of a wide-scale disruption.
On September 5, 2002, the agencies published for
comment a draft of the paper in the Federal Register.
The agencies have incorporated many of the suggestions that were made. The final paper, which applies
most directly to the clearing and settlement activities
of a limited number of financial institutions, provides
more flexibility to firms in managing geographic
dispersion of backup facilities and staffing arrangements, and takes into account other considerations
relevant to cost-effective implementation of sound
practices.
ONLINE RESOURCE
EDUCATION
ON PERSONAL
FINANCIAL
The Federal Reserve Board on March 28, 2003,
announced the launch of an online resource for
researchers, educators, program directors, and others
interested in advancing financial education programs.
The Financial Education Research Center was
developed by the Federal Reserve Bank of Chicago
to promote excellence in financial education by
encouraging research and disseminating information
through its repository of research studies and listings
of major financial education programs throughout
the country. The Center is housed on the Chicago
Reserve Bank's web site (www.chicagofed.org/
cedric/index.cfm).
The Federal Reserve Board and the twelve Federal
Reserve Banks undertake a variety of educational
programs and partnerships with financial education
providers. The Financial Education Research Center
is one aspect of the Federal Reserve's efforts to
increase awareness and further the implementation of
effective financial education programs and initiatives.
To date, little broad-based empirical data have been
gathered regarding the most effective means for
improving individuals' personal financial practices.
The online center is an additional tool for those
interested in supporting financial education.
Inquiries regarding the submission of material for
inclusion on the site should be directed to
cedric@chi.frb.org.
MINUTES
OF DISCOUNT
RATE
MEETINGS
The Federal Reserve Board on March 28, 2003,
released the minutes of its discount rate meetings
from January 6 to January 27, 2003.
ENFORCEMENT
ACTIONS
The Federal Reserve Board on March 17, 2003,
announced the execution of a written agreement by
and between Midstate Bancorp, Inc., Hinton, Oklahoma and the Federal Reserve Bank of Kansas City.
The Federal Reserve Board also announced the
execution of a written agreement by and among the
Legacy Bank, Hinton, Oklahoma, the Federal
Reserve Bank of Kansas City, and the Oklahoma
State Banking Department. The Legacy Bank is a
subsidiary of Midstate Bancorp, Inc.
Announcements
The Federal Reserve Board on March 21, 2003,
announced the execution of a written agreement
by and between Barnes Banking Company, Kaysville, Utah, and the Federal Reserve Bank of
San Francisco.
The Federal Reserve Board on March 27, 2003,
announced the execution of a written agreement by
and among Fifth Third Bancorp, Cincinnati, Ohio;
the Fifth Third Bank, Cincinnati, Ohio; the Federal
Reserve Bank of Cleveland; and the State of Ohio
Department of Commerce, Division of Financial
Institutions.
STAFF
CHANGES
Maureen R English, Associate Director in the Division of Consumer and Community Affairs, retired
from the Board on April 3, 2003, after nearly twentyseven years of service.
The Board of Governors has also approved the
following officer promotions and appointment:
• The promotions of Marianne Emerson to Director and Maureen Hannan to Deputy Director in the
Division of Information Technology;
• The appointment of H. Fay Peters as Deputy
Director in the Management Division.
Marianne Emerson was appointed to the official
staff as an Assistant Director in 1990 and has since
207
managed all of the division's critical operations
through a series of progressively more responsible
assignments. Ms. Emerson has served as Deputy
Director of the Division of Information Technology
since 1999 and as Acting Director since 2002.
Maureen Hannan was appointed to the official staff
in 1998 and had oversight responsibility for the collection and editing of the Board's micro economic
and financial statistical data. Ms. Hannan has represented the Board on many Federal Reserve, interagency, and private-sector forums addressing information technology issues.
H. Fay Peters will have oversight responsibility for
the day-to-day operations of the Management Division, including Human Resources, Finance and
Accounting, Facilities, and the security program for
the Board's premises and personnel. Ms. Peters
joined the Federal Reserve System in 1982 as an
attorney at the Federal Reserve Bank of Boston and
was Assistant Counsel and Assistant Corporate Secretary when she left the Boston Bank in 1988 for a
Senior Counsel position at the Federal Reserve Bank
of Minneapolis. She was promoted in 1999 to Vice
President and Equal Employment Opportunity (EEO)
Officer. Ms. Peters has a B.S. degree in business
administration from Northeastern University and a
J.D. degree from the Boston University School of
Law.
•
208
Legal Developments
ORDERS ISSUED UNDER BANK
COMPANY ACT
HOLDING
Orders Issued Under Section 3 of the Bank
Holding Company Act
Allied Irish Banks, p.I.e.
Dublin, Ireland
Order Approving Acquisition of Shares of a Bank
Holding Company
Allied Irish Banks, p.l.c. ("Allied Irish"), 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 up to 25 percent of the voting shares of
M&T Bank Corporation (" M&T") 1 and thereby indirectly
acquire shares of M&T's subsidiary banks, including its
lead subsidiary bank, Manufacturers and Traders Trust
Company, both in Buffalo, New York ("Trust Company"). 2 In addition, Allied Irish has requested the Board's
approval under section 4(c)(8) and (j) of the BHC Act
(12 U.S.C. § 1843(c)(8) and (j)) and section 225.24 of the
Board's Regulation Y (12 C.F.R. 225.24) to acquire shares
of nonbanking subsidiaries of M&T.3 Allied Irish also
has applied under section 211.22(b)(2) of Regulation K
(12 C.F.R. 211.22(b)(2)) to change its home state for purposes of the International Banking Act (12 U.S.C. §3101
et seq. "IBA") from Maryland to New York.
Notice of the proposal, affording interested persons an
opportunity to comment, has been published (67 Federal
Register 69,223 (2002)). The time for filing comments has
1. Under the terms of the proposal, Allied Irish would sell its
wholly owned subsidiary bank holding company, Allfirst Financial
Inc., Baltimore, Maryland ("Allfirst"), to M&T in exchange for the
shares of M&T and other consideration. M&T and Trust Company
have filed related applications with the Board to acquire Allfirst and
Allfirst's nonbanking subsidiaries; to merge Allfirst's lead subsidiary
bank, Allfirst Bank, also in Baltimore, into Trust Company; and for
Trust Company to retain and operate branches at the locations of
Allfirst Bank's offices. By order dated today, the Board has approved
the M&T proposal. M&T Bank Corporation (Order dated March 11,
2003) ("M&T Order").
2. M&T's other subsidiary bank is M&T Bank, N.A., Oakfield,
New York.
3. Allied Irish proposes to acquire shares in: (1) Martindale Andres
& Company, LLC, West Conshohocken, Pennsylvania, and thereby
engage in financial and investment advisory activities pursuant to
section 225.28(b)(6) of Regulation Y (12 C.F.R. 225.28(b)(6)); and
(2) Keystone Financial Life Insurance Corporation, Phoenix, Arizona, and thereby engage in providing credit insurance as principal,
agent, or broker pursuant to section 225.28(b)(ll) of Regulation Y
(12 C.F.R. 225.28(b)(ll)).
expired, and the Board has considered the proposal and all
comments received in light of the factors set forth in
sections 3 and 4 of the BHC Act.
Allied Irish, with total assets of $87.3 billion, is the
largest banking organization in Ireland. 4 Through Allfirst,
it operates banks in Delaware, the District of Columbia,
Maryland, Pennsylvania, and Virginia. Allied Irish also
operates a branch in New York, New York, and representative offices in Atlanta, Georgia; Chicago, Illinois;
Los Angeles, California; Philadelphia, Pennsylvania;
San Francisco, California; and White Plains, New York.
M&T, with total consolidated assets of $34.1 billion,
is the 33rd largest commercial banking organization in
the United States.5 M&T operates banks in Maryland,
New York, Pennsylvania, and West Virginia.
Interstate Analysis
Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of the bank holding company if certain conditions are
met. For purposes of the BHC Act, the home state of Allied
Irish is Maryland, and Allied Irish proposes to acquire
banks in Maryland, New York, Pennsylvania, and West
Virginia.6
The Board may not approve a proposal subject to section 3(d) if, after consummation, the applicant would control more than 10 percent of the total deposits of insured
depository institutions in the United States.7 In addition,
the Board may not approve a proposal if, after consummation, the applicant would control 30 percent or more of the
total deposits of insured depository institutions in any state
in which both the applicant and the organization to be
4. Asset data and ranking are as of September 30, 2002, and are
based on the exchange rate then available.
5. Asset data and ranking are as of September 30, 2002. All other
banking data are as of June 30, 2002, unless otherwise noted.
6. A bank holding company's home state is the state in which the
total deposits of all banking subsidiaries of the company were the
largest on July 1, 1966, or the date on which the company became a
bank holding company, whichever is later. 12 U.S.C. § 1841(o)(4)(C).
For purposes of section 3(d) of the BHC Act, the Board considers a
bank to be located in the states in which the bank is chartered,
headquartered, or operates a branch.
Pursuant to the IBA and section 211.22(b)(2) of Regulation K
(12 C.F.R. 211.22(b)(2)), Allied Irish has applied to change its home
state from Maryland to New York on consummation of the proposed
transaction. The Board has determined that Allied Irish satisfies the
criteria for changing its home state and that allowing the proposed
change would be consistent with competitive equity between foreign
and domestic banks.
7. 12 U.S.C. § 1842(d)(2)(A). Insured depository institutions
include all insured banks, savings banks, and savings associations.
209
acquired operate an insured depository institution, or such
higher or lower percentage as established by state law.8
On consummation of this proposal and the related acquisition of Allfirst by M&T, Allied Irish would control less
than 1 percent of the total deposits of insured depository
institutions in the United States. Allied Irish would
control less than 30 percent of total deposits held by
insured depository institutions in Maryland, New York, or
Pennsylvania.9
All other requirements of section 3(d) of the BHC Act
are met. Allied Irish is adequately capitalized and adequately managed, as defined by applicable law. In addition,
M&T's subsidiary banks have been in existence for the
minimum time required by applicable state law.10 In view
of all the facts of record, the Board is permitted to approve
the proposal under section 3(d) of the BHC Act.
Financial, Managerial, and Supervisory Considerations
The BHC Act 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.11 In assessing the financial and managerial strength of Allied Irish and its subsidiaries, the
Board has reviewed information provided by Allied Irish,
confidential supervisory and examination information, and
publicly reported and other financial information.
Since May 2002, Allied Irish has been subject to a
written agreement with the Federal Reserve Bank of Richmond, the Maryland Commissioner of Financial Regulation, and the Central Bank of Ireland (the "Written Agreement") that addresses matters related to foreign exchange
trading losses resulting from the illicit activities of a trader
employed by Allfirst Bank. Among other things, the Written Agreement required Allied Irish to conduct a comprehensive and timely review of its U.S. operations, including
risk management and internal controls, and required Allied
Irish to submit a plan to the three regulatory agencies for
improving the oversight of its U.S. operations. The Board
has carefully considered Allied Irish's record of compliance with the requirements of the Written Agreement and
concludes that its record is consistent with approval of this
proposal.12 The Written Agreement was lifted as of Feb8. 12 U.S.C. § 1842(d)(2)(B)-(D).
9. Maryland's deposit cap is the same as that set forth in section 3(d)(2)(B) of the BHC Act. See Md. Code Ann., Fin. Inst.
§ 5-906(b) (Michie 2001) (30 percent). New York and Pennsylvania
do not have deposit caps applicable to the proposal.
10. N.Y. Banking Law § 142-a(l) (5 years). Maryland, Pennsylvania and West Virginia do not have minimum age requirements
applicable to the proposal. The Board also has taken into account the
record of compliance of the subsidiary depository institutions of
Allied Irish and M&T with applicable state community reinvestment
laws.
11. One commenter expressed concern about the future prospects
of the organizations under the proposal. Allied Irish has acknowledged it would be deemed to control M&T for purposes of the BHC
Act and would be required to serve as a source of strength for M&T
after consummation. See 12 C.F.R. 225.4(a)(1).
12. The Board also has carefully considered a comment requesting
closer scrutiny of the application and notice in light of the foreign
ruary 14, 2003, contingent on consummation of M&T's
acquisition of Allfirst.
Allied Irish's capital levels exceed the minimum levels
that would be required under the Basel Capital Accord, and
its capital levels are considered equivalent to the capital
levels that would be required of a U.S. banking organization. Based on all the facts of record, the Board concludes
that the financial and managerial resources and future
prospects of the organizations involved in the proposal are
consistent with approval.
Section 3 of the BHC Act also provides that the Board
may not approve an application involving a foreign bank
unless it is "subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities
in the bank's home country." 13 The home country supervisor of Allied Irish is the Central Bank of Ireland ("CBI"),
which is responsible for the supervision and regulation of
Irish financial institutions.
In approving applications under the BHC Act, the Board
previously has determined that Irish banks, including
Allied Irish, are subject to comprehensive consolidated
supervision by the CBI.14 In this case, the Board finds that
the CBI continues to supervise Allied Irish in substantially
the same manner as it supervised Irish banks at the time of
those previous determinations. Based on this finding and
all the facts of record, the Board concludes that Allied Irish
continues to be subject to comprehensive supervision on a
consolidated basis by its home country supervisor.
In addition, section 3 of the BHC Act requires the Board
to determine that a foreign bank has provided adequate
assurances that it will make available to the Board such
information on its operations and activities and those of its
affiliates that the Board deems appropriate to determine
and enforce compliance with the BHC Act.15 The Board
has reviewed the restrictions on disclosure in relevant
jurisdictions in which Allied Irish operates and has communicated with relevant government authorities concerning
access to information. In addition, Allied Irish previously
exchange trading losses. The commenter asserted that the questions
associated with the management of Allied Irish were of greater
concern because Allied Irish would be able to place four directors on
the board of directors of M&T, thereby giving it more influence over
M&T than it could exercise by virtue of its shareholdings alone. As
noted above, the Board has carefully considered the record of Allied
Irish's management in complying with the terms of the Written
Agreement.
13. 12 U.S.C. § 1842(c)(3)(B). Under Regulation Y, the Board uses
the standards enumerated in Regulation K to determine whether
a foreign bank that has submitted an application under section 3 of
the BHC Act is subject to consolidated home country supervision.
See 12 C.F.R. 225.13(a)(4). Regulation K provides that a foreign bank
will be considered to be subject to comprehensive supervision or
regulation on a consolidated basis if the Board determines that the
bank is supervised and regulated in such a manner that its home
country supervisor receives sufficient information on the worldwide
operations of the bank, including its relationship to affiliates, to assess
the bank's overall financial condition and its compliance with law and
regulations. See 12 C.F.R. 211.24(c)(l)(ii).
14. See Anglo Irish Bank Corporation, pic, 85 Federal Reserve
Bulletin 587 (1999); Allied Irish Banks, pic, 83 Federal Reserve
Bulletin 607 (1997).
15. See, e.g., 12 U.S.C. § 1842(c)(3)(A).
210
Federal Reserve Bulletin • May 2003
has committed to make available to the Board such information on the operations of Allied Irish and its affiliates
that the Board deems necessary to determine and enforce
compliance with the BHC Act and other applicable federal
law. Allied Irish also previously has committed to cooperate with the Board to obtain any waivers or exemptions
that may be necessary to enable Allied Irish and its affiliates to make such information available to the Board.
In light of these commitments, the Board concludes that
Allied Irish has provided adequate assurances of access to
any appropriate information that the Board may request.
Based on these and all the facts of record, the Board
concludes that the supervisory factors it is required to
consider are consistent with approval.
Allied Irish's New York branch controls deposits of
$1.5 billion, representing less than 1 percent of market
deposits. M&T operates the 20th largest depository institution in the market, controlling deposits of approximately
$4.1 billion, representing less than 1 percent of market
deposits. On consummation of the proposal, Allied Irish
would control deposits of $5.6 billion. The market would
remain unconcentrated under the DOJ Merger Guidelines
and the HHI (907 points) would remain unchanged. Based
on all the facts of record, the Board concludes that consummation of the proposal would not result in any significantly
adverse effects on competition or on the concentration of
banking resources in the New York market or in any other
relevant banking market.
Competitive Considerations
Convenience and Needs Considerations
As part of the Board's review under section 3 of the BHC
Act, the Board has considered carefully the competitive
effects of the proposal in light of all the facts of record. As
discussed in detail in the M&T Order, the Board concluded
that the combination of M&T and Allfirst would not likely
result in any significantly adverse effects on competition or
on the concentration of banking resources in any of the
banking markets in which M&T or Allfirst operate banks.
Based on all the facts of record, the Board concludes that
competitive considerations related to the M&T and Allfirst
aspects of this proposal are consistent with approval for the
reasons discussed in the M&T Order and incorporated
herein.
Allied Irish operates a branch and M&T operates a bank
in the Metropolitan NY-NJ-PA-CT banking market
("New York market"). 16 The Board has reviewed the
competitive effects of the proposal in this banking market
in light of all the facts of record, including the number of
competitors that would remain in the market, the relative
share of total deposits in depository institutions in the
market ("market deposits")17 controlled by Allied Irish
and M&T, the concentration level of market deposits and
the increase in this level as measured by the HerfindahlHirschman Index ("HHI") under the Department of Justice
Merger Guidelines ("DOJ Merger Guidelines"), and other
characteristics of the market.18
In acting on proposals under section 3 of the BHC Act, the
Board is required to consider the effect of the proposal on
the convenience and needs of the communities to be
served.19 The Board has carefully reviewed the effect of
the proposal on convenience and needs considerations in
light of all the facts of record, including comments received
on the proposal and the records of performance of the
relevant depository institutions under the Community Reinvestment Act ("CRA"). 20 In the M&T Order, the Board
reviewed the records of CRA performance of the relevant
insured depository institutions and considered other information relating to the convenience and needs factor. Based
on all the facts of record, the Board concludes that convenience and needs considerations are consistent with
approval for the reasons discussed in the M&T Order and
incorporated herein.
16. The New York market is defined as New York City; Dutchess,
Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan, Ulster, and
Westchester Counties in New York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, Warren, and portions of Mercer Counties in New Jersey;
Pike County in Pennsylvania; and Fairfield and portions of Litchfield
and New Haven Counties in Connecticut.
17. Market share data are as of June 30, 2002, and are based on
calculations in which the deposits of thrift institutions are included at
50 percent. See First Hawaiian, Inc., 77 Federal Reserve Bulletin 52
Nonbanking Activities
Allied Irish also has filed notice under section 4(c)(8) and
(j) of the BHC Act to acquire nonbanking subsidiaries of
M&T. The Board has determined by regulation that the
types of activities for which notice has been provided are
closely related to banking for purposes of section 4(c)(8) of
the BHC Act and, therefore, permissible for bank holding
companies.21
To approve this notice, the Board must determine that
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, conflicts of interests, or
unsound banking practices." 22
As part of its evaluation of the public interest factors, the
Board considers the financial condition and managerial
resources of the notificant and its subsidiaries, including
(1991).
18. Under the DOJ Merger Guidelines, 49 Federal Register 26,823
(1984), a market is considered unconcentrated if the post merger HHI
is under 1000. The Department of Justice has informed the Board that
a bank merger or acquisition generally will not be challenged (in the
absence of other factors indicating anticompetitive effects) unless the
post merger HHI is at least 1800 and the merger increases the HHI by
more than 200 points. The Department of Justice has stated that the
higher than normal HHI thresholds for screening bank mergers for
anticompetitive effects implicitly recognize the competitive effects of
limited-purpose lenders and other nondepository financial institutions.
19. 12 U.S.C. § 1842(c)(2).
20. 12 U.S.C. § 2901 etseq.
21. See 12 C.F.R. 225.28(b)(6) and (11).
22. 12 U.S.C. §1843(j)(2)(A).
Legal Developments
the companies to be acquired, and the effect of the proposed transaction on those resources. For the reasons noted
above, and based on all the facts of record, the Board has
concluded that financial and managerial considerations are
consistent with approval of the proposal.
The Board also has considered the competitive effects of
the proposed transaction under section 4 of the BHC Act.
Allied Irish and M&T compete in providing credit-related
insurance and financial and investment advisory services.
The markets for these nonbanking activities are regional,
national, or international in scope and are unconcentrated.
The record in this case also indicates that there are numerous providers of these services. Based on all the facts of
record, the Board concludes that consummation of the
proposal would have a de minimus effect on competition
for the relevant nonbanking activities.
The Board concludes that the conduct of the proposed
nonbanking activity within the framework of Regulation Y
and Board precedent is not likely to result in adverse
effects, such as undue concentration of resources, conflicts
of interests, or unsound banking practices, that would
outweigh the public benefits of the proposal, such as
increased customer convenience and gains in efficiency.
Accordingly, based on all the facts of record, the Board has
determined that the balance of public interest factors that
the Board must consider under the standard in section 4(j)
of the BHC Act is consistent with approval of Allied
Irish's notice.
Conclusion
Based on the foregoing, and in light of all facts of record,
the Board has determined that the applications and notice
should be, and hereby are, approved. In reaching its conclusion, the Board has considered all the facts of record in
light of the factors it is required to consider under the BHC
Act and the IB A. The Board's approval is specifically
conditioned on compliance by Allied Irish with all the
commitments and representations made or relied on in
connection with the application and notice and with the
conditions stated or referred to in this order. The Board's
determination also is conditioned specifically on the
Board's receiving access to information on the operations
or activities of Allied Irish and any of its affiliates that the
Board determines to be appropriate to assess and enforce
compliance by Allied Irish and its affiliates with applicable
federal statutes. The Board's determination on the nonbanking activities also is subject to all the terms and
conditions set forth in Regulation Y, including those in
sections 225.7 and 225.25(c) (12 C.F.R. 225.7 and
225.25(c)), 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
action, the commitments and conditions relied on by the
Board in reaching its decision are deemed to be conditions
211
imposed in writing in connection with its findings and
decision and, as such, may be enforced in proceedings
under applicable law.
The acquisition of up to 25 percent of M&T may not be
consummated before the fifteenth calendar day after the
effective date of this order, or later than three months after
the effective date of this order, unless such period is
extended for good cause by the Board or the Federal
Reserve Bank of Richmond, acting pursuant to delegated
authority.
By order of the Board of Governors, effective March 11,
2003.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn.
ROBERT DEV. FRIERSON
Deputy Secretary of the Board
SouthTrust Corporation
SouthTrust of Alabama, Inc.
SouthTrust Bank
All in Birmingham, Alabama
Order Approving the Acquisition of Bank Holding
Companies, Merger of Banks, and Establishment of
Branches
SouthTrust Corporation ("SouthTrust") and its wholly
owned subsidiary, SouthTrust of Alabama, Inc. ("SouthTrust Alabama"), both bank holding companies subject to
the provisions of the Bank Holding Company Act ("BHC
Act"), have requested the Board's approval under section 3 of the BHC Act (12 U.S.C. §1842) to acquire
Founders Bancshares ("Founders") and its wholly owned
subsidiaries, Skillman Bancshares ("Skillman") and
Founders National Bank ("Founders Bank"), all in Dallas,
Texas. SouthTrust's subsidiary bank, SouthTrust Bank
("SouthTrust Bank"), a state member bank in Birmingham, has requested the Board's approval under section 18(c) of the Federal Deposit Insurance Act (12 U.S.C.
§ 1828(c)) ("Bank Merger Act") to merge with Founders
Bank, with SouthTrust Bank as the surviving entity.1 In
addition, SouthTrust Bank proposes to retain and operate
branches at the main and branch offices of Founders Bank.2
Notice of the proposal, affording interested persons an
opportunity to comment, has been published in accordance
with the relevant statutes and the Board's Rules of Procedure (12 C.F.R. 262.3(b)) in the Federal Register
1. Under the proposal, SouthTrust Alabama would acquire all the
issued and outstanding stock of Founders. Simultaneously with the
acquisition of Founder's stock, Founders and Skillman would merge
with and into SouthTrust Alabama and Founders Bank would merge
with and into SouthTrust Bank.
2. See 12 U.S.C. §§321 & 1831u. The Founders Bank offices to be
acquired by SouthTrust Bank are at 9696 Skillman Street and 10600
Forest Lane, both in Dallas.
212
Federal Reserve Bulletin • May 2003
(68 Federal Register 3,029 (2003)) and locally. As required
by the BHC Act and the Bank Merger Act, reports on the
competitive effects of the merger were requested from
the U.S. Attorney General and the relevant banking agencies. The time for filing comments has expired, and the
Board has considered the applications and all comments
received in light of the factors set forth in section 3 of the
BHC Act, the Bank Merger Act, and the statutory provisions that govern the retention and operation of interstate
branches.
SouthTrust, with total assets of $50.8 billion, is the
largest banking organization in Alabama. SouthTrust operates depository institutions in Alabama, Florida, Georgia,
Mississippi, North Carolina, South Carolina, Tennessee,
and Texas. SouthTrust Bank is the 19th largest depository
institution in Texas, controlling deposits of approximately
$1.8 billion, representing less than 1 percent of total deposits of insured depository institutions in the state ("state
deposits").3 Founders Bank is the 230th largest depository
institution in Texas, controlling deposits of $102.5 million,
representing less than 1 percent of state deposits. On consummation of the proposal, SouthTrust Bank would
become the 18th largest depository institution in Texas,
controlling deposits of approximately $1.9 billion, representing less than 1 percent of state deposits.
Interstate Analysis
Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of the bank holding company if certain conditions
are met. For purposes of the BHC Act, the home state
of SouthTrust is Alabama, and SouthTrust proposes to
acquire a bank in Texas.4 Based on a review of all the facts
of record, including a review of relevant state statutes, the
Board finds that all conditions for an interstate acquisition
enumerated in section 3(d) are met in this case.5 In light of
all the facts of record, the Board is permitted to approve
the proposal under section 3(d) of the BHC Act.
3. Asset data are as of December 31, 2002. Deposit and state
ranking data are as of June 30, 2002, and are adjusted to reflect
mergers and acquisitions completed through December 6, 2002. In
this context, depository institutions include commercial banks, savings banks, and savings associations.
4. See 12 U.S.C. § 1841(o)(4)(C).
5. 12 U.S.C. § 1842(d)(1)(A) & (B), 1842(d)(2)(A) & (B). SouthTrust is well capitalized and well managed, as defined by applicable
law. Founders Bank has been in existence and operated for the
minimum period of time required by Texas law. On consummation of
the proposal, SouthTrust would control less than 10 percent of the
total amount of deposits of insured depository institutions in the
United States. SouthTrust also would control less than 20 percent of
the total deposits of insured depository institutions in Texas, the
maximum percentage of total deposits in the state that is permitted
under state law to be controlled by a bank holding company after an
interstate acquisition. See Tx. Fin. Code Ann. §202.002. All other
requirements under section 3(d) of the BHC Act also would be met on
consummation of the proposal.
Financial and Managerial Considerations
The BHC Act and the Bank Merger Act require the Board
to consider the financial and managerial resources and
future prospects of the companies and banks involved in a
proposal and certain other supervisory factors under the
BHC Act. In assessing the financial and managerial
strength of SouthTrust and its subsidiaries, the Board has
reviewed information provided by SouthTrust, confidential
supervisory and examination information, and publicly
reported and other financial information. Based on all the
facts of record, the Board concludes that the financial and
managerial resources and future prospects of the organizations involved in the proposal are consistent with approval,
as are other supervisory factors under the BHC Act.
Competitive Considerations
Section 3 of the BHC Act and the Bank Merger Act
prohibit the Board from approving a proposal that would
result in a monopoly or would be in furtherance of an
attempt to monopolize the business of banking. The BHC
Act and the Bank Merger Act also prohibit the Board from
approving a proposed bank acquisition that would substantially lessen competition in any relevant banking market
unless the anticompetitive effects of the proposal are
clearly outweighed in the public interest by the probable
effect of the proposal in meeting the convenience and
needs of the community to be served.6
SouthTrust Bank and Founders Bank compete directly in
the Dallas, Texas, banking market ("Dallas banking market"). 7 SouthTrust Bank is the 21st largest depository
institution in the market, controlling less than 1 percent of
total deposits in depository institutions in the market
("market deposits").8 Founders Bank is the 41st largest
depository institution in the market, also controlling less
than 1 percent of market deposits. On consummation of the
proposal, SouthTrust Bank would become the 16th largest
depository institution in the market, controlling less than
1 percent of market deposits.
The Board has reviewed the competitive effects of the
proposal in the Dallas banking market in light of all the
facts of record, including the number of competitors that
would remain in the market, the relative share of market
deposits controlled by SouthTrust Bank and Founders
Bank, the concentration level of market deposits and the
increase in this level as measured by the HerfindahlHirschman Index ("HHI") under the Department of Justice
6. 12 U.S.C. § 1842(c)(1)(A) & (B); 12 U.S.C. § 1828(c)(5)(A)
&(B).
7. The Dallas banking market is defined as Dallas and Rockwall
Counties, Denton and Lewisville in Denton County, McKinney and
Piano in Collin County, Forney and Terrell in Kaufman County,
Midlothian, Waxahachie and Ferris in Ellis County, and Grapevine
and Arlington in Tarrant County, all in Texas.
8. Market share data are as of June 30, 2002, and are based on
calculations in which the deposits of thrift institutions are included at
50 percent. See First Hawaiian,
(1991).
Inc., 77 Federal
Reserve
Bulletin
52
Legal Developments
Merger Guidelines ("DOJ Guidelines"), and other characteristics of the market.9
The Department of Justice has reviewed the proposal
and advised the Board that consummation would not likely
have a significantly adverse effect on competition in any
relevant market. In addition, no federal banking agency has
indicated that the proposal raises competitive issues.
Based on all the facts of record, the Board concludes that
consummation of the proposal would not result in any
significantly adverse effects on competition or on the concentration of banking resources in the Dallas banking market or in any other relevant banking market.
Convenience and Needs Considerations
In acting on this proposal, the Board also must consider the
convenience and needs of the communities to be served
and take into account the records of performance of the
relevant insured depository institutions under the Community Reinvestment Act (12 U.S.C. §2901 et seq.) ("CRA").
The CRA requires the federal supervisory agencies to
encourage insured depository institutions to help meet the
credit needs of local communities in which they operate,
consistent with safe and sound operation. The CRA
requires the appropriate federal financial supervisory
agency to take into account an insured depository institution's record of meeting the credit needs of its entire
community, including low- and moderate-income ("LMI")
neighborhoods, in evaluating bank expansion proposals.
The Board has considered carefully the effects of the
proposal on the convenience and needs of the communities
to be served in light of all the facts of record, including
confidential supervisory information, comments received
on the proposal, information on the performance under
the CRA of the relevant insured depository institutions,
publicly available data, and information submitted by
SouthTrust.
The Board received comments from five community
organizations opposing the proposal and expressing concerns about the record of SouthTrust Bank in meeting the
convenience and needs of the communities it serves. Four
of the commenters criticized SouthTrust Bank's record of
lending to LMI and minority borrowers and borrowers in
LMI census tracts in several of the bank's assessment areas
in Alabama, Georgia, Mississippi, North Carolina, and
South Carolina.10 These commenters also criticized SouthTrust Bank's high denial rates of mortgage applications by
9. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984),
the HHI for the Dallas banking market would not increase and would
remain moderately concentrated at 1,262 points. The Department of
Justice has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anticompetitive effects) unless the post-merger HHI is at
least 1800 and the merger increases the HHI by more than 200 points.
10. The commenters alleged, among other things, that SouthTrust
Bank and its wholly owned subsidiary, SouthTrust Mortgage Corporation ("SouthTrust Mortgage"), engaged in disparate treatment of
minority and nonminority individuals in mortgage lending by citing
data submitted under the Home Mortgage Disclosure Act, 12 U.S.C.
§2801 etseq. ("HMDA").
213
African Americans in North Carolina, Alabama, Mississippi, and Georgia and stated that the denial rates suggested that SouthTrust Bank did not offer, or use effectively, flexible mortgage lending products. In addition, all
five commenters criticized SouthTrust Bank's record of
providing community development investments and services in one or more of the bank's assessment areas.11
A. CRA Performance
Evaluations
As provided in the CRA, the Board has evaluated the
convenience and needs factor in light of examinations of
the CRA performance records of the relevant depository
institutions by the appropriate federal supervisors. An institution's most recent CRA performance evaluation is a
particularly important consideration in the applications process because it represents a detailed, on-site evaluation of
the institution's overall record of performance under the
CRA by its appropriate federal supervisor.12
SouthTrust Bank received a "satisfactory" CRA rating
at its most recent CRA performance evaluation, as of
April 2, 2001, from the Federal Reserve Bank of Atlanta.
Founders Bank also received a "satisfactory" CRA rating
at its most recent CRA performance evaluation, as of
December 12, 1997, from the Office of the Comptroller of
the Currency. SouthTrust has indicated that it intends to
implement the CRA-related programs and activities and
to offer the CRA-related products of SouthTrust Bank at
the offices of Founders Bank on consummation of the
proposal.
B. SouthTrust Bank's CRA Performance
Record
1. Lending Test. Examiners rated SouthTrust Bank overall "high satisfactory" under the lending test at its most
recent CRA performance examination for the review period
January 1, 1999, through December 31, 2000.13 Examiners
concluded that the bank's lending reflected a good responsiveness to the credit needs of its assessment areas. They
indicated that during the review period, SouthTrust Bank
bought or originated 58,175 HMDA loans, totaling
$6.1 billion, in its assessment areas. Moreover, examiners
commended SouthTrust Bank for originating more than
90 percent of its small business, HMDA, and small farm
loans in its assessment areas. Examiners also noted that
11. Commenters requested that SouthTrust Bank develop relationships with community development credit unions and other community organizations and enter into commitments with specific community organizations/Neither the CRA nor the federal banking agencies'
CRA regulations require depository institutions to make pledges or
enter into agreements with any organization. Instead, the Board
focuses on the existing record of an applicant and the programs that
the applicant has in place to meet the credit needs of the communities
it serves. See Fifth Third Bancorp, 80 Federal Reserve Bulletin 838
(1994).
12. See Interagency Questions and Answers Regarding Community
Reinvestment, 66 Federal Register 36,620 and 36,639 (2001).
13. Examiners took into account the home mortgage originations
and purchases of SouthTrust Bank and SouthTrust Mortgage in evaluating the performance of SouthTrust Bank.
214
Federal Reserve Bulletin • May 2003
SouthTrust Bank's lending data reflected a good distribution of lending in geographies of different income levels
and a good distribution of lending to borrowers of different
income levels and businesses of different sizes.
As noted above, several commenters asserted that
SouthTrust Bank's rate of denial for African-American
applicants in some areas suggested that the bank did not
offer, or use effectively, flexible lending products. Examiners reported that SouthTrust Bank used flexible lending
practices in serving the credit needs of its assessment areas,
which included a variety of affordable housing programs.
In addition, since the examination, SouthTrust represented
that SouthTrust Bank and SouthTrust Mortgage have made
2,821 loans totaling more than $258 million through affordable loan programs. SouthTrust also represented that it
continues to offer a variety of affordable housing programs,
including a no-down-payment program that offers a fixed
rate mortgage with no down payment and no closing costs.
Moreover, SouthTrust offers a first-time homebuyer program designed for LMI borrowers to obtain financing for a
home in circumstances where a traditional loan program
would not be available to them because of loan-to-value or
down-payment requirements.
Examiners found that SouthTrust Bank made a relatively high amount of community development loans, totaling $174.2 million. These loans funded the construction,
renovation, and purchase of affordable single and multifamily housing and industrial development in such areas
as Birmingham ($1.9 million), Tampa, Florida ($15.7 million), Atlanta, Georgia ($3.8 million), Biloxi, Mississippi
($404,000), Raleigh, North Carolina ($7.7 million),
Charleston, South Carolina ($200,000), Memphis, Tennessee ($2.8 million), and Beaumont, Texas ($1.3 million).
SouthTrust reported that during 2001 and 2002, the bank
made more than 600 community development loans that
totaled more than $250 million throughout its assessment
areas. These loans exceeded the amounts indicated in the
following states: Alabama ($38 million), Georgia ($22 million), Mississippi ($36 million), North Carolina ($14 million), and South Carolina ($8 million).
Commenters cited criticisms of SouthTrust Bank's
lending performance and ratings assigned to the bank in
several assessments areas in the bank's overall assessment
area.14 Commenters noted that the bank received "low
satisfactory" ratings under the lending test for Mississippi
and North Carolina. In addition, commenters noted that
examiners characterized SouthTrust Bank's geographic
distribution of mortgage loans and small business loans in
North Carolina as poor. One commenter also noted that the
bank's lending to borrowers of different income levels in
Mississippi was considered by examiners to be poor. Several commenters pointed out examiner criticisms of SouthTrust Bank's community development lending in certain
14. In addition to the bankwide ratings, examiners also assigned
overall ratings and separate ratings under the lending, investment and
service tests for SouthTrust Bank's performance in six states, five
multistate Metropolitan Statistical Areas ("MSAs"), and six other
MS As that are part of the bank's assessment areas.
geographic areas in Alabama, North Carolina, South Carolina, and Tennessee.
Although examiners criticized the bank's lending and
assigned ratings of "low satisfactory" in some assessment
areas, examiners also commended the bank's lending performance in other areas and assigned the bank "high
satisfactory" ratings under the lending test in those areas.
For example, the bank received "high satisfactory" ratings
under the lending test statewide in Alabama, Florida, and
Texas. After considering SouthTrust Bank's entire record
in all the assessment areas reviewed, examiners assigned a
"high satisfactory" rating under the lending test for the
bank as a whole.
Similarly, in considering the convenience and needs
factor under the BHC Act and the Bank Merger Act, the
Board has considered the overall record of lending of
SouthTrust Bank in all the markets in which it participates.
The Board has reviewed carefully the examiners' evaluation of the bank's lending performance in the assessment
areas reviewed and the conclusions on the bank's overall
record of lending in the performance evaluation. In addition, the Board has considered supervisory information,
information provided by SouthTrust, and publicly available information on the bank's record of lending since the
examination in certain assessment areas, including those
areas highlighted by the commenters.
2. Investment Test. Examiners rated SouthTrust Bank
"high satisfactory" for its record of responding to the
community development needs of its overall assessment
area through investments and stated that the bank made
significant use of community development investments to
support community development initiatives. Examiners
indicated that the bank made a significant level of qualified
community development investments and grants, which
totaled more than $146 million during the assessment
period.15 Examiners also noted that SouthTrust Bank's
investment portfolio totaled approximately $9.9 billion
as of December 31, 2000. Overall, examiners found that
SouthTrust Bank showed good responsiveness to credit
and community development needs.
Examiners indicated that SouthTrust Bank exhibited
an excellent responsiveness to credit and community development needs in Alabama through its investment activities
and reported that the bank invested approximately $31 million in community development financial institution investments ("CDFI investments"), low-income housing tax
credits, and municipal bonds.16 In Georgia, SouthTrust
Bank invested approximately $14 million in municipal
bonds and Federal National Mortgage Association wraps
15. SouthTrust represented that since its most recent performance
evaluation, it has increased the amount of its qualified investments for
community development purposes by an additional $90 million.
16. CDFI investments are investments by depository institutions in
private-sector financial intermediaries, including credit unions, that
have community development as their primary purpose. One commenter criticized the bank's commitment to community development
in Alabama outside the Birmingham MSA. The Board notes that
SouthTrust Bank received an "outstanding" rating under the investment test in Alabama, which included a review of the bank's assessment areas outside Birmingham.
Legal Developments
("FNMA wraps").17 Examiners also commended the bank
for making an in-kind donation of a vacant branch in
Georgia to a local business that conducts job training,
credit counseling, and home ownership seminars to LMI
individuals. Examiners reported that during the review
period, SouthTrust Bank made qualifying investments of
$14.4 million in North Carolina, more than $3.5 million in
Mississippi, and $1.7 million in Tennessee.18
SouthTrust represented that since the most recent
examination, SouthTrust Bank has undertaken other measures to provide economic and community support to
projects and programs that assist LMI and minority populations. SouthTrust stated that the bank provided a branch
location for a community development credit union and
conducted three faith-based empowerment conferences in
Alabama. In addition, SouthTrust Bank hired a technical
assistance manager to provide investment and technical
assistance to community development credit unions, community development corporations, and nonprofit organizations in Alabama and North Carolina. SouthTrust also
stated that SouthTrust Bank received approval from the
Federal Home Loan Bank of Atlanta for funding from the
Economic Development and Growth Enhancement Program to support an organization in Augusta, Georgia, that
will construct an office building in a low-income census
tract. In addition, SouthTrust represented that the bank
obtained funding from the same Federal Home Loan Bank
to support initiatives of six local housing organizations that
serve LMI persons and their communities, including organizations in North Carolina.
3. Service Test. Examiners rated SouthTrust Bank an
overall "low satisfactory" in its most recent performance
evaluation for its provision of community development and
retail banking services.19 Examiners found SouthTrust
Bank's delivery systems and branch locations reasonably
accessible, and that its hours of operation were convenient
to most portions of its overall assessment area. Examiners
noted that 18 percent of the bank's total branches were in
LMI areas, which was highly representative of the number
of families and businesses in LMI census tracts in SouthTrust Bank's assessment areas. In addition, examiners
found that SouthTrust Bank provided an adequate level of
17. FNMA wraps are investments in pools of mortgages backed by
investment-grade bond issuances used to aid in CRA initiatives, such
as affordable housing projects.
18. Commenters underscored that examiners gave SouthTrust Bank
"low satisfactory" ratings under the investment test for Mississippi
and the Charlotte MSA, and "needs to improve" ratings in the
Augusta, Georgia, and Chattanooga, Tennessee, MSAs. However,
examiners gave the bank "high satisfactory" ratings under the investment test in Georgia, North Carolina, and Tennessee. In addition,
SouthTrust represented that since the last performance evaluation, it
made three investments in the Augusta MSA, totaling $2.4 million,
and one in the Chattanooga MSA, totaling more than $911,000.
SouthTrust also represented that since the performance evaluation,
SouthTrust Bank has made community development investments of
$44 million in Georgia, $9.7 million in Tennessee, $12 million in
Mississippi, and $18 million in North Carolina.
19. Commenters noted that SouthTrust Bank was rated "low satisfactory" on the service test in North Carolina and the Chattanooga
MSA.
215
community development services and stated that personnel
used their financial expertise to provide financial services
to benefit residents in the bank's assessment areas. Examiners also noted that the services provided were highly
responsive to affordable housing needs in SouthTrust
Bank's assessment areas.
C. HMD A
The Board also has carefully considered SouthTrust's lending record in light of public comments received by the
Board on HMDA data reported by SouthTrust.20 In considering this proposal, the Board has reviewed publicly available HMDA data for 2000 and 2001 from SouthTrust
Bank, SouthTrust Mortgage, and lenders that operate in
SouthTrust Bank's assessment areas, and preliminary
HMDA data from 2002 from SouthTrust Bank and SouthTrust Mortgage.21 Moreover, the Board has reviewed
information about the loan underwriting processes of
SouthTrust Bank and SouthTrust Mortgage, including
management and audit functions governing loan underwriting, the credit review processes, and fair lending training
provided to personnel.
The HMDA data generally indicate disparities in the rate
SouthTrust denies applications by African Americans compared with those by nonminority applicants in many of the
markets reviewed. In addition, the data generally indicate
that the number and dollar volume of HMDA-reportable
loan originations by SouthTrust to African-American and
LMI borrowers and borrowers in LMI census tracts, as a
percentage of its total HMDA-reportable lending in 2000
and 2001, were below the percentage of the HMDAreporting lenders in the aggregate in many of the areas
reviewed.
The Board is concerned when the record of an institution
indicates disparities in lending and believes that all banks
are obligated to ensure that their lending practices are
based on criteria that ensure not only safe and sound
lending but also equal access to credit by creditworthy
applicants regardless of their race, gender, or national
origin. The Board recognizes, however, that HMDA data
alone provide an incomplete measure of an institution's
lending in its community because these data cover only a
few categories of housing-related lending. HMDA data,
moreover, provide only limited information about the covered loans.22 HMDA data, therefore, have limitations that
20. Based on 2001 HMDA data, commenters criticized SouthTrust's record of home mortgage lending to African Americans, LMI
borrowers, or borrowers in LMI census tracts in certain of the bank's
assessment areas in Alabama, North Carolina, and South Carolina.
Commenters also expressed concern about the bank's high rate of
denials for African-American applicants in certain assessment areas in
Alabama, Georgia, Mississippi, North Carolina, and South Carolina.
21. As a part of its review, the Board has evaluated the HMDA
data for SouthTrust Bank and SouthTrust Mortgage, separately and
combined, in certain markets.
22. The data do not, for example, account for the possibility that an
institution's outreach efforts may attract a larger proportion of marginally qualified applicants than other institutions attract and do not
provide a basis for independent assessment of whether an applicant
216
Federal Reserve Bulletin • May 2003
make them an inadequate basis, absent other information,
for concluding that an institution has not assisted adequately in meeting its community's credit needs or has
engaged in illegal lending discrimination.
Because of the limitations of HMDA data, the Board has
considered these data carefully in light of other information, including confidential supervisory information,
examination reports that provide on-site evaluation of the
compliance with fair lending laws by SouthTrust Bank and
SouthTrust Mortgage, and the overall lending and community development activities of SouthTrust. At the last
examination, examiners found no violations of the substantive provisions of fair lending and consumer protection
laws at SouthTrust Bank or SouthTrust Mortgage and no
evidence of prohibited discrimination or other illegal credit
practices.
In addition, the SouthTrust HMDA data generally indicate that the volume of home mortgage originations
increased significantly from 2000 to 2001, and the percentage increases in originations in the markets reviewed were
comparable with those of the aggregate of lenders. The
volume of HMDA loans to African Americans, LMI borrowers, and borrowers in LMI census tracts also increased
between 2000 and 2001 in a number of the markets
reviewed. Moreover, the 2001 HMDA data indicate that
the ratio of denial rates of applications from African
Americans compared with denial rates for nonminorities
was comparable with this ratio for the aggregate of lenders
in many of the markets reviewed.
As noted above, SouthTrust has in place a number of
programs designed to help meet the credit needs of its
communities, and examiners found that SouthTrust Bank
has engaged in substantial lending throughout its assessment areas. In addition, SouthTrust has represented that it
has undertaken several initiatives since its most recent
performance evaluation and implemented additional programs in an effort to improve its lending to minority and
LMI individuals and in LMI areas.
The record indicates that SouthTrust has sound CRA
performance overall in a number of areas. The record also
indicates that there are opportunities for improvement in
SouthTrust Bank's overall satisfactory CRA record, and
in particular, its HMDA lending record, and the Board
encourages SouthTrust to pursue those opportunities.
Based on all the facts of record, and for the reasons
discussed above, the Board concludes that considerations
relating to the convenience and needs of the communities
to be served, including the CRA performance records of
the institutions involved in the proposal, are consistent
with approval of the proposal.23
D. Conclusion on Convenience and Needs
Considerations
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn.
In reviewing the effect of the proposal on the convenience
and needs of the communities to be served, the Board has
considered carefully all the facts of record, including the
comments received and the responses to the comments,
evaluations of the performance of SouthTrust Bank and
Founders Bank under the CRA, the relevant HMDA data
for SouthTrust Bank and SouthTrust Mortgage, other information provided by SouthTrust, and confidential supervisory information. The Board also has reviewed information
submitted by SouthTrust on its CRA performance and
activities to help ensure compliance with fair lending laws
since the last performance evaluation.
who was denied credit was, in fact, creditworthy. Credit history
problems and excessive debt levels relative to income (reasons most
frequently cited for a credit denial) are not available from HMDA
data.
Conclusion
Based on the foregoing and all facts of record, the Board
has determined that the applications should be, and hereby
are, approved. In reaching its conclusion, the Board has
considered all the facts of record in light of the factors that
it is required to consider under the BHC Act, the Bank
Merger Act, and the statutory provisions that govern the
retention and operation of interstate branches.
The Board's approval is specifically conditioned on
compliance by SouthTrust and SouthTrust Bank with all
the commitments and representations made in connection
with the applications. These commitments, representations,
and conditions are deemed to be conditions imposed in
writing by the Board in connection with its findings and
decisions and, as such, may be enforced in proceedings
under applicable law.
The proposed transactions may not be consummated
before the fifteenth calendar day after the effective date of
this order, or later than three months after the effective date
of this order, unless such period is extended for good cause
by the Board or the Federal Reserve Bank of Atlanta,
acting pursuant to delegated authority.
By order of the Board of Governors, effective March 19,
2003.
ROBERT DEV. FRIERSON
Deputy Secretary of the Board
23. Several commenters suggested that SouthTrust provided the
Board with insufficient information when describing how it meets the
convenience and needs of the communities it serves, and requested
that SouthTrust provide the Board with specific information about its
lending operations, level and types of community development loans
and investments, and policies, practices, and initiatives for affordable
loan products. The Board has accumulated a significant record in this
case, including examination reports on the CRA and compliance
records of SouthTrust, comments received from the public, information from SouthTrust in the application and in responses to requests
for additional information from the Board, and responses by SouthTrust to the commenters. The Board has carefully evaluated the effect
of the proposal on the convenience and needs of the communities to
be served in light of all the information in the record and concludes
that the record in this case is sufficient to warrant consideration of and
action on the proposal at this time.
Legal Developments
The Wakashio Bank, Limited
Tokyo, Japan
Order Approving the Formation of a Bank Holding
Company
The Wakashio Bank, Limited, Tokyo, Japan ("Wakashio"),
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 its affiliate, Sumitomo Mitsui Banking Corporation,
also in Tokyo ("SMBC"), and by acquiring Manufacturers
Bank, Los Angeles, California ("Bank"). 1 Wakashio does
not propose to expand the banking or nonbanking operations of SMBC in the United States or to acquire or control
any additional U.S. banks.2
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published
(68 Federal Register 5640 (2003)). 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.
SMBC, with total consolidated assets equivalent to
$857.1 billion, ranks fourth among the world's commercial
banks by assets.3 Bank, SMBC's subsidiary depository
institution, has total consolidated assets of $1.1 billion and
controls deposits of $825.8 million, representing less than
1 percent of total deposits of insured depository institutions
in California.4 Wakashio has total assets of $4 billion and
controls no U.S. depository institutions.5
Factors Reviewed by the Board
The BHC Act sets forth the factors that the Board must
consider when reviewing the formation of a bank holding
company or the acquisition of a bank.6 These factors are
the competitive effects of the proposal in the relevant
geographic markets; the financial and managerial resources
and future prospects of the companies and banks involved;
the convenience and needs of the community to be served,
217
including the records of performance of the relevant
insured depository institutions under the Community Reinvestment Act ("CRA"); 7 the availability of information
needed to determine and enforce compliance with the BHC
Act and other applicable federal banking laws; and, in the
case of applications involving a foreign bank, whether
the bank is subject to comprehensive supervision and
regulation on a consolidated basis by its home country
supervisor.8
The Board has considered these factors in light of a
record that includes information provided by Wakashio,
SMFG, and SMBC; confidential supervisory and examination information from various federal agencies; and publicly reported financial and other information. The Board
also has considered information from the Financial Services Agency of Japan ("FSA"), the primary home country
supervisor of SMBC. The Board notes that the FSA has
issued a preliminary approval of the proposed restructuring. In addition, the Board has considered all comments
received on the proposal.
Competitive Considerations
Section 3 of the BHC Act prohibits the Board from approving a proposal that would result in a monopoly. The BHC
Act also prohibits the Board from approving a proposed
bank acquisition that would substantially lessen competition in any relevant banking market unless the anticompetitive effects of the proposal are clearly outweighed in the
public interest by the probable effect of the proposal in
meeting the convenience and needs of the community to be
served.9 This proposal represents an internal reorganization
of existing operations and would not result in either an
expansion of operations or an acquisition of an additional
bank in the United States. Based on all the facts of record,
the Board concludes that consummation of the proposal
would not have a significantly adverse effect on competition or on the concentration of banking resources in any
relevant banking market.
Financial and Managerial Considerations
1. The merger of Wakashio and SMBC is scheduled to take place
on March 17, 2003. Wakashio would be the surviving entity and
would be renamed Sumitomo Mitsui Banking Corporation ("New
SMBC"). Before the merger, Sumitomo Mitsui Financial Group, Inc.,
also in Tokyo ("SMFG") and the parent holding company of
Wakashio and SMBC, plans to transfer ownership of Bank from
SMBC to SMFG. SMFG has committed to promptly transfer Bank to
New SMBC in accordance with required approvals and applicable
waiting periods.
2. The Board has separately approved Wakashio's application to
acquire the U.S. branches of SMBC. See The Wakashio Bank, Limited
(Order dated March 14, 2003).
3. Asset and ranking data are as of September 30, 2002.
4. Asset, deposit, and state ranking data are as of June 30, 2002. In
this context, depository institutions include commercial banks, savings associations, and savings banks.
5. Asset data are as of September 30, 2002.
6. A commenter has questioned the permissibility of a recently
announced investment by The Goldman Sachs Group, Inc., New York,
New York, in SMFG. The Board has previously reviewed this transaction and has not found that the proposal would cause Goldman to
control SMFG for purposes of the BHC Act.
The Board has carefully considered the financial and managerial resources and future prospects of Wakashio, SMBC,
and Bank and the effect the proposed transaction would
have on such resources in light of all the facts of record,
which include the examination records of Bank. The Board
has also consulted with the FSA. The transaction confers
some accounting and regulatory benefits in Japan under
standards applied by the FSA.
No expansion or restructuring of existing U.S. operations
would result from the proposed reorganization. In addition,
the proposal would not materially affect the management
of SMBC's operations, including its subsidiary insured
depository institution, in the United States. The corporate
7. 12 U.S.C. §2901 et seq.
8. See 12 U.S.C. § 1842(c).
9. 12 U.S.C. § 1842(c)(1).
218
Federal Reserve Bulletin • May 2003
reorganization would be effected through the exchange of
shares. No debt would be issued by Wakashio, SMBC, or
any of its subsidiaries as part of the transactions that would
effect the reorganization. This transaction results in no
substantive change in the capital of SMBC.
In this light, and based on all the facts of record, the
Board concludes that the financial and managerial
resources and future prospects of Wakashio, SMBC, and
Bank are consistent with approval.
Convenience and Needs Factor
The Board has carefully considered the effects of the
proposal on the convenience and needs of the communities
to be served in light of all the facts of record, including a
comment received on the proposal, information on the
performance under the CRA of the relevant subsidiary
insured depository institution received from the Federal
Deposit Insurance Corporation ("FDIC"), publicly available data, and information submitted by Wakashio. As
noted above, the U.S. operations of SMBC and Bank would
remain unaffected by the proposed reorganization.
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 CRA. As
provided in the CRA, the Board evaluates an institution's
record of performance in light of examinations by the
appropriate 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 the institution's overall record of performance under the CRA by its appropriate
federal supervisor.10
Bank received a "satisfactory" rating at its most recent
CRA performance evaluation by its primary federal supervisor, the FDIC, as of October 22, 2001.11
In reviewing the effect of the proposal on the convenience and needs of the communities to be served, the
Board has carefully considered all the facts of record,
including the views of the commenter,12 Wakashio's
10. See Interagency Questions and Answers Regarding Community
Reinvestment, 66 Federal Register 36,620 and 36,639 (2001).
11. The commenter noted that Bank received a "low satisfactory"
rating in its performance evaluation under the investment test.
Although examiners determined that Bank had not acted in a leadership role relative to community development investments, they considered its investments to be responsive to the needs identified in Bank's
assessment areas, including those neighborhoods designated as lowand moderate-income. Wakashio states that Bank has substantially
improved its community development investments since the date of
the last evaluation, noting that Bank currently has approximately
$8.3 million in community development investments. These investments include $5 million in a CRA-qualified fund investment that
closed in December 2002.
12. The commenter also noted that the section of the examination
addressing the lending test stated that the distribution of small business loans reflected poor dispersion among businesses with gross
annual revenue of $1 million or less. Bank has defined its business
strategy as serving manufacturers, distributors, wholesalers, importers, and commercial real estate developers that have revenues of more
than $5 million and require loans of more than $1 million. The
examiners noted that Bank's business lending was well distributed in
response, and reports of examinations of Bank's CRA
performance. Based on the review of the entire record and
for the reasons discussed above, the Board concludes that
considerations relating to the convenience and needs factor, including the CRA performance record of the relevant
depository institution, is consistent with approval.
Other Supervisory Considerations
Section 3 of the BHC Act also provides that the Board may
not approve an application involving a foreign bank unless
the bank is subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities
in the bank's home country.13 The Board previously determined, in applications under the International Banking Act
and the BHC Act, that certain Japanese commercial banks
were subject to comprehensive consolidated supervision by
their home country supervisor.14 In this case, the Board has
determined that on consummation of the transaction, New
SMBC would be supervised on substantially the same
terms and conditions as these banks.
In addition, section 3 of the BHC Act requires the Board
to determine that a foreign bank has provided adequate
assurances that it will make available to the Board such
information on its operations and activities and those of its
affiliates that the Board deems appropriate to determine
and enforce compliance with the BHC Act.15 The Board
has reviewed the restrictions on disclosure in jurisdictions
where Wakashio would have material operations and has
communicated with relevant government authorities concerning access to information. Wakashio has committed
that, to the extent not prohibited by applicable law, it will
make available to the Board such information on the operations of New SMBC and its affiliates that the Board deems
necessary to determine and enforce compliance with the
its assessment area and that almost half of the loans originated in its
Los Angeles and Orange County assessment areas were made to
businesses in low- and moderate-income census tracts. The examiners
also stated that Bank's low loan penetration among small businesses
was given less weight in the bank's overall rating because of its
primary target market and business strategy.
Examiners rated Bank "high satisfactory" under the lending test, in
part because they concluded that it had an outstanding record of
originating and maintaining community development loans, and they
described the bank as a leader in community development lending.
13. 12 U.S.C. § 1842(c)(3)(B). Under Regulation Y, the Board uses
the standards enumerated in Regulation K to determine whether a
foreign bank that has applied under section 3 of the BHC Act is
subject to consolidated home country supervision. See 12 C.F.R.
225.13(a)(4). Regulation K provides that a foreign bank will be
considered to be subject to comprehensive supervision or regulation
on a consolidated basis if the Board determines that the bank is
supervised or regulated in such a manner that its home country
supervisor receives sufficient information on the worldwide operations
of the bank, including its relationship to any affiliates, to assess the
bank's overall financial condition and its compliance with law and
regulation. See 12 C.F.R. 211.24(c)(1).
14. See The Sumitomo Bank, Limited, 82 Federal Reserve Bulletin
369 (1996); Mizuho Holdings, Inc., 86 Federal Reserve Bulletin 776
(2000); UJF Holdings, Inc., 87 Federal Reserve Bulletin 270 (2001);
and Mitsubishi Tokyo Financial Group, Inc., 87 Federal Reserve
Bulletin 349 (2001).
15. See 12 U.S.C. § 1842(c)(3)(A).
Legal Developments
BHC Act and other applicable federal law. Wakashio also
has committed to cooperate with the Board to obtain any
waivers or exemptions that may be necessary to enable its
affiliates to make any such information available to the
Board. In light of these commitments, the Board has concluded that Wakashio has provided adequate assurances
of access to any appropriate information the Board may
request. For these reasons, and based on all the facts of
record, the Board has concluded that the supervisory factors it is required to consider under section 3(c)(3) of the
BHC Act are consistent with approval.
Conclusion
Based on the foregoing and in light of all the facts of
record, the Board has determined that the application
should be, and hereby is, approved. In reaching its conclusion, the Board has considered all the facts of record in
light of the factors that it is required to consider under
the BHC Act and other applicable statutes. The Board's
approval is specifically conditioned on compliance by
Wakashio, SMBC, SMFG, and New SMBC with all the
representations and commitments made in connection with
the application, with the conditions stated or referred to in
this order, and on the receipt by Wakashio of all necessary
regulatory approvals. These representations, commitments,
and conditions are deemed to be conditions imposed in
writing by the Board in connection with its findings and
decision and, as such, may be enforced in proceedings
under applicable law.
The banking transaction shall not be consummated
before the fifteenth calendar day after the effective date of
this order, and the transaction may not be consummated
later than three months after the effective date of this order,
unless such period is extended for good cause by the Board
or by the Federal Reserve Bank of San Francisco, acting
pursuant to delegated authority.
By order of the Board of Governors, effective March 14,
2003.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn.
ROBERT DEV. FRIERSON
Deputy Secretary of the Board
Orders Issued Under Sections 3 and 4 of the Bank
Holding Company Act
Forest Merger Corporation
Arlington, Virginia
FBR TRS Holdings, Inc.
Arlington, Virginia
Order Approving Formation of Bank Holding
Companies and Determination on Financial Holding
Company Elections
219
Friedman, Billings, Ramsey Group, Inc., Arlington, Virginia ("FBRG"), a financial holding company within the
meaning of the Bank Holding Company Act ("BHC Act"),
has submitted applications and notices on behalf of Forest
Merger Corporation ("Forest") and Forest's wholly owned
subsidiary, FBR TRS Holdings, Inc. ("Holdings"), under
sections 3 and 4 of the BHC Act in connection with a
reorganization of FBRG and its subsidiaries. Forest and
Holdings (jointly, "Applicants"), which are currently
owned and controlled by FBRG, have requested the
Board's approval under section 3 of the BHC Act
(12 U.S.C. § 1842) to become bank holding companies and
to acquire control of FBRG, FBR Asset Investment Corporation, Arlington ("Asset"), FBR Bancorp, Inc., Arlington
("Bancorp"), a financial holding company, and FBR
National Bank & Trust, Bethesda, Maryland ("Bank"). 1
On consummation of the proposal, FBRG and Asset would
be merged with and into Forest, with Forest as the surviving corporation, and Forest would be renamed Friedman,
Billings, Ramsey Group, Inc. ("New FBR").
As part of this proposal, Applicants have also filed
elections to become financial holding companies pursuant
to section 4(k) and (/) of the BHC Act (12 U.S.C. § 1843(k)
& (/)) and section 225.82 of the Board's Regulation Y
(12 C.F.R. 225.82).
Notice of the proposal, affording interested persons
an opportunity to submit comments, has been published
(68 Federal Register 1,851; 3,531; and 3,885 (2003)). 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 sections 3 and 4 of the BHC Act.
FBRG, with total consolidated assets of $496 million, is
a bank holding company that qualifies as a financial holding company and is engaged primarily in securities underwriting and dealing, securities brokerage, investment advi1. In connection with the reorganization, Applicants have also
requested the Board's approval under section 3 to acquire interests in
the following banks: 5.2 percent of the voting shares of ITLA Capital
Corporation, a bank holding company that controls Imperial Capital
Bank, both in La Jolla, California; voting authority over 5.58 percent
of the voting shares of Pacific Crest Capital, Inc., a bank holding
company that controls Pacific Crest Bank, both in Agoura Hills,
California; voting authority over 5.77 percent of the voting shares of
Hingham Institution for Savings, Hingham, Massachusetts; voting
authority over 9.7 percent of the voting shares of Bancorp Rhode
Island, Inc., Providence, a bank holding company that controls Bank
Rhode Island, East Providence, both in Rhode Island; voting authority
over 5.1 percent of the voting shares of The Banc Corporation,
Birmingham, a bank holding company that controls The Bank,
Warrior, both in Alabama; and voting authority over approximately
5.1 percent of the voting shares of Pacific Union Bank, Los Angeles,
California.
Applicants have also requested the Board's permission under section 4 to acquire interests in the following savings associations: voting
authority over 5.74 percent of the voting shares of First Bell Bancorp,
Inc., Pittsburgh, parent company of Bell Federal Savings and Loan
Association, Bellevue, both in Pennsylvania; voting authority over
5.67 percent of the voting shares of Quaker City Bancorp, Inc., parent
company of Quaker City Bank, both in Whittier, California; and
voting authority over 6.1 percent of the voting shares of Hawthorne
Financial Corporation, parent company of Hawthorne Savings, F.S.B.,
both in El Segundo, California.
220
Federal Reserve Bulletin • May 2003
sory, and merchant banking activities.2 In the United States,
FBRG conducts its securities and advisory activities
through several subsidiaries subject to regulation by the
Securities and Exchange Commission ("SEC"), including
Friedman, Billings, Ramsey & Co., Inc., Arlington, a
broker-dealer registered with the SEC under section 15 of
the Securities Exchange Act of 1934 (15 U.S.C. §78o).
Bank is the only bank controlled by FBRG and, with assets
of $90.2 million, it is the 107th largest depository institution in Maryland. Bank controls deposits of approximately
$33.4 million in the state, representing less than 1 percent
of deposits in depository institutions in Maryland.3
Factors Governing Board Review of Transaction
The BHC Act sets forth the factors that the Board must
consider when reviewing the formation of a bank holding
company or the acquisition of a bank. These factors are the
competitive effects of the proposal in the relevant geographic markets; the financial and managerial resources
and future prospects of the companies and banks involved
in the proposal; the convenience and needs of the communities to be served, including the records of performance
under the Community Reinvestment Act (12 U.S.C. §2901
et seq.) ("CRA") of the insured depository institutions
involved in the transaction, and other supervisory factors.
The Board has considered these factors in light of a
record that includes information provided by FBRG, confidential supervisory and examination information from various federal agencies, and publicly reported financial and
other information. In addition, the Board has considered a
public comment received on the proposal.
Competitive Considerations
Section 3 of the BHC Act prohibits the Board from approving a proposal that would result in a monopoly or would be
in furtherance of any attempt to monopolize the business of
banking in any relevant market. The BHC Act also prohibits the Board from approving a proposed bank acquisition
that would substantially lessen competition in any relevant
banking market unless the anticompetitive effects of the
proposal are clearly outweighed in the public interest by
the probable effect of the proposal in meeting the convenience and needs of the community to be served.4 This
proposal represents an internal reorganization of the existing operations of FBRG and would not result in either an
expansion of operations or the acquisition of an additional
bank. There is also no evidence in this case that the
transaction would lessen competition or create a monopoly
in any relevant market. Based on all the facts of record, the
Board has determined that competitive factors are consistent with approval of the proposal.
2. Asset data for FBRG are as of September 30, 2002.
3. Asset data for Bank are as of December 31, 2002. Deposit and
ranking data are as of June 30, 2002.
4. 12 U.S.C. § 1842(c)(1).
Financial, Managerial, and Other Supervisory
Considerations
The BHC Act 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. In evaluating the financial and managerial factors, the Board has reviewed confidential examination and other supervisory information evaluating the
financial and managerial strength of Applicants; FBRG and
its affiliates, including its regulated subsidiaries; and Bank.
After consummation of the proposal, New FBR would
elect to be treated as a real estate investment trust
("REIT") under the Internal Revenue Code ("IR Code"). 5
New FBR and its subsidiaries and affiliates would continue
to engage only in activities that are permissible for a
financial holding company under section 4(k) of the BHC
Act.
Certain requirements applicable to New FBR under the
IR Code might limit its ability to serve as a source of
financial strength to Bank, because the requirements may
limit the amount of capital available to a bank subsidiary
of a bank holding company that is organized as a REIT.6
Applicants note, however, that New FBR may downstream
capital to Holdings and retain income earned at the Holdings level to support the operations of Bank.7
Applicants have also stated that, for a variety of business
reasons unrelated to the BHC Act requirements, Applicants
intend to discontinue being financial holding companies
and to limit the activities of Bank to those of a limitedpurpose trust company. In particular, Applicants have committed that, within six months of consummation of the
proposed reorganization, Bank will limit its operations
so that it no longer meets the definition of a bank under
section 2(c)(1) of the BHC Act. New FBR would then
cease to be a bank holding company.
Bank is currently well capitalized under relevant federal
guidelines, and all the subsidiaries of FBRG that are subject to regulatory capital requirements exceed the required
minimum capital levels. The Board notes that after
accounting for certain requirements under the IR Code,
New FBR would have, pro forma, more than adequate
capital to support the ongoing operations of Bank for six
months.
The Board has carefully considered the financial and
managerial resources of Applicants and Bank in light of all
the facts of record, including commitments made by Appli5. See 12 U.S.C. §§856-860.
6. Under the IR Code, the amount of non-REIT assets that a REIT
may hold in a taxable REIT subsidiary, which is subject to taxation at
ordinary corporate rates, is limited to 20 percent of the REIT's total
assets. See 12 U.S.C. § 856(c). A REIT is also required to distribute 90 percent of its net income to its shareholders each year. See
12 U.S.C. § 857(a). Holdings, which would be the parent of Bancorp
and Bank, would be organized as a taxable REIT subsidiary.
7. Applicants note that income earned by a taxable REIT subsidiary is not subject to the mandatory distribution requirement until paid
as a dividend to the REIT. Moreover, funds invested by a REIT in its
taxable REIT subsidiary are not subject to the mandatory distribution
requirement.
Legal Developments
cants, and has concluded that considerations relating to the
financial and managerial resources and future prospects of
the organizations involved are consistent with approval, as
are other supervisory factors.
Convenience and Needs Considerations
In acting on a proposal under section 3 of the BHC Act, the
Board is required to consider the effects of the proposal on
the convenience and needs of the communities to be served
and take into account the records of the relevant depository
institutions under the CRA.8 The CRA requires the federal
financial supervisory agencies to encourage financial institutions to help meet the credit needs of local communities
in which they operate, consistent with safe and sound
operation, and requires the appropriate federal supervisory
agency to take into account the credit needs of its entire
community, include low- and moderate-income neighborhoods, in evaluating bank holding company formation proposals. The Board has, therefore, 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,
including a comment received on the proposal, and the
records of the relevant depository institutions under the
CRA.9
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 CRA. In this
case, the Board notes that the proposal would effect a
corporate reorganization and would not result in an expansion of operations or the acquisition of an additional bank.
In addition, FBRG holds a small number of shares as a
passive minority investor in several depository institutions
over which it exercises no control.
As provided in the CRA, the Board evaluates the record
of performance of an institution in light of examinations by
the appropriate federal supervisors of the CRA performance records of that institution. An institution's most
recent CRA performance evaluation is a particularly important consideration in the applications process because it
represents a detailed, on-site evaluation of the institution's
overall record of performance under the CRA by its appropriate federal supervisor.10
8. See 12 U.S.C. § 2903(a)(2).
9. The commenter expressed concern about several institutions in
which Applicants would hold less than a 10 percent voting interest
by asserting that Home Mortgage Disclosure Act (12 U.S.C. §2801
et seq.) ("HMDA") data reported by Hingham Institution for Savings
("Hingham") and Bell Federal Savings and Loan Association
("Bell") revealed a pattern of excluding African-American and Hispanic communities and individuals in the Boston, Massachusetts, and
Pittsburgh, Pennsylvania, Metropolitan Statistical Areas ("MSA").
The commenter also made a similar allegation based on a review of
the HMDA data of Pacific Crest Mortgage Company for loans made
in the Riverside County, California, MSA. Pacific Crest Mortgage is
not affiliated with any company involved in this proposal.
The commenter also objected to one institution's participation in a
loan program based on anticipated tax refunds. The Board notes that
neither FBRG nor its subsidiaries or affiliates makes this type of loan.
10. The Interagency Questions and Answers Regarding Community Reinvestment provide that a CRA examination is an important
221
The Board has reviewed in detail Bank's record of
performance under the CRA, as well as information presented by Applicants related to the convenience and needs
factor. Before its acquisition by FBRG, Bank, then doing
business as Rushmore Trust and Savings, FSB ("Rushmore"), received an overall rating of "satisfactory" from
its primary federal supervisor, the Office of Thrift Supervision ("OTS"), at its most recent evaluation for CRA
performance, as of June 1999.11
Each of the institutions in which Applicants would have
an investment of less than 10 percent also received a
"satisfactory" or better rating from its federal supervisory
agency in its most recent examination for CRA performance.12 Moreover, examiners found no evidence of prohibited discrimination, other illegal credit practices, or
violations of the fair lending laws at any of the depository
institutions involved in the proposal.
Based on all the facts of record, the Board has concluded
that considerations related to the convenience and needs of
the communities to be served, including the CRA performance records of the institutions involved, are consistent
with approval.
Nonbanking Activities
In connection with the reorganization, Applicants have
also filed notices under section 4(c)(8) and (j) of the BHC
Act to retain interests of greater than 5 percent of the
voting shares of three savings and loan associations held
by FBRG and thereby engage in operating savings and
loan associations.13 To approve the notices, the Board must
determine that the proposed acquisitions may reasonably
be expected to produce benefits to the public that outweigh
possible adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices.14
FBRG has indicated that it expects the proposal would
improve the financial position and future business prospects of the organization. The proposal also represents a
reorganization of FBRG, and would not entail the acquisition of any new banking interests or commencement of any
new nonbanking activities. Therefore, the Board has conand often controlling factor in the consideration of an institution's
CRA record. See 66 Federal Register 36,620 and 36,639 (2001).
11. Rushmore converted to a national bank immediately prior to its
acquisition by FBRG in 2001.
12. These institutions received the following ratings from the federal supervisors as of the dates indicated: (1) Hingham, "satisfactory,"
Federal Deposit Insurance Corporation ("FDIC"), January 2001;
(2) Bell, "satisfactory, " OTS, June 2001; (3) Imperial Capital Bank,
"satisfactory," FDIC, March 2001; (4) Pacific Crest Bank, "satisfactory," FDIC, September 2002; (5) Quaker City Bank, "outstanding,"
OTS, June 2001; (6) Hawthorne Savings Bank, F.S.B., "outstanding,"
OTS, July 2002; (7) Bank Rhode Island, "satisfactory," FDIC,
July 2002; (8) The Bank, "satisfactory," Federal Reserve Bank of
Atlanta, September 2001; and (9) Pacific Union Bank, "outstanding,"
FDIC, April 2001.
13. The Board has previously determined that operating a savings
association is closely related to banking for purposes of section 4(c)(8)
of the BHC Act. See 12 C.F.R. 225.28(b)(4)(ii).
14. See 12 U.S.C. § 1843(j)(2)(A).
222
Federal Reserve Bulletin • May 2003
eluded that the conduct of the proposed nonbanking activities within the framework established in this order, prior
orders, and Regulation Y is unlikely to result in any of the
adverse effects noted above that would not be outweighed
by the public benefits of the proposal, such as gains in
efficiency.
Accordingly, based on all the facts of record, the Board
has determined that the balance of public interest factors
that it must consider under the standard of section 4(j) of
the BHC Act is favorable and consistent with approval.
Conclusion Regarding Bank Holding Company
Formation
Based on the foregoing, the Board has determined that
the applications and notices should be, and hereby are,
approved.15 In reaching its conclusion, the Board has considered all the facts of record in light of the factors the
Board is required to consider under the BHC Act.
The Board's approval is specifically conditioned on
compliance by Applicants with all the commitments made
in connection with the applications and notices. For purposes of this action, the commitments 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 banking acquisitions shall not be consummated
before the fifteenth calendar day after the effective date of
this order, and the proposal shall not be consummated later
than three months after the effective date of this order,
unless such periods are extended for good cause by the
Board or the Federal Reserve Bank of Richmond, acting
pursuant to delegated authority.
15. The commenter requested that the Board hold a hearing on the
proposal. Section 3 of the BHC Act does not require the Board to hold
a public hearing on an application unless the appropriate supervisory
authority for the bank to be acquired makes a timely written recommendation of denial of the application. The Board has not received
such a recommendation from the appropriate supervisory authority.
The Board's regulations provide for a hearing under section 4 of the
BHC Act if there are disputed issues of material fact that cannot be
resolved in some other manner. 12 C.F.R. 225.25(a)(2). Under its
rules, the Board also may, in its discretion, hold a public meeting or
hearing on an application to acquire a bank if a meeting or hearing is
necessary or appropriate to clarify factual issues related to the application and to provide an opportunity for testimony. 12 C.F.R. 225.16(e).
The Board has considered carefully the commenter's request in
light of all the facts of record. In the Board's view, the public has had
ample opportunity to submit comments on the proposal, and in fact,
the commenter has submitted a written comment that the Board has
considered carefully in acting on the proposal. The request fails to
identify disputed issues of fact that are material to the Board's
decision that would be clarified by a public meeting or hearing.
Moreover, the commenter's request fails to demonstrate why its
written comments do not present its views adequately or why a
meeting or hearing would otherwise be necessary or appropriate. For
these reasons, and based on all the facts of record, the Board has
determined that a public meeting or hearing is not required or warranted in this case. Accordingly, the request for a hearing on the
proposal is denied.
Financial Holding Company Elections
Applicants have also filed with the Board elections to
become financial holding companies pursuant to section 4(k) and (I) of the BHC Act and section 225.82 of
Regulation Y. Applicants have certified that Bank is well
capitalized and well managed and have provided all the
information required under Regulation Y.
The Board has reviewed the examination ratings
received by Bank under the CRA and other relevant examinations and information. Based on all the facts of record,
the Board has determined that these elections to become
financial holding companies will become effective on consummation of the proposal, if on that date Bank remains
well capitalized and well managed and has at least a
satisfactory CRA rating.
By order of the Board of Governors, effective March 14,
2003.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn.
ROBERT DEV. FRIERSON
Deputy Secretary of the Board
M&T Bank Corporation
Buffalo, New York
Order Approving the Acquisition of a Bank Holding
Company, Merger of Banks, and Establishment of
Branches
M&T Bank Corporation ("M&T"), 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
merge with Allfirst Financial Inc. ("Allfirst") and thereby
acquire Allfirst's subsidiary banks, including its lead subsidiary bank, Allfirst Bank, both in Baltimore, Maryland.1
In addition, M&T has requested the Board's approval
under section 4(c)(8) and (j) of the BHC Act (12 U.S.C.
§ 1843(c)(8) and (j)) and section 225.24 of the Board's
Regulation Y (12 C.F.R. 225.24) to acquire the nonbanking
subsidiaries of Allfirst.2 M&T also has filed notice under
section 4(c)(13) of the BHC Act (12 U.S.C. § 1843(c)(13))
and subpart A of the Board's Regulation K (12 C.F.R. 211,
subpart A) to acquire certain foreign investments controlled by Allfirst.
1. Allfirst's other subsidiary bank is Allfirst Financial Center, N.A.,
Millsboro, Delaware ("Allfirst Delaware"). M&T would acquire Allfirst from Allied Irish Banks, p.l.c., Dublin, Ireland ("Allied Irish"), in
exchange for shares of M&T and other consideration. Allied Irish has
filed a related application to acquire the shares of M&T. By order
dated today, the Board has approved the Allied Irish proposal. Allied
Irish Banks, p.l.c. (Order dated March 11, 2003).
2. The nonbanking subsidiaries are listed in Appendix A.
Legal Developments
M&T's lead bank, Manufacturers and Traders Trust
Company, also in Buffalo ("Trust Company"), a state
member bank, has applied under section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. § 1828(c)) (the
"Bank Merger Act") to merge with Allfirst Bank, with
Trust Company as the surviving institution. In addition,
Trust Company proposes to retain and operate branches at
the locations of the main office and branches of Allfirst
Bank,3 including Allfirst Bank's foreign branch in George
Town, Cayman Islands.
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been published in
accordance with the BHC Act, the Bank Merger Act, and
the Board's Rules of Procedure (12 C.F.R. 262.3(b)) in the
Federal Register (67 Federal Register 69,223 (2002)) and
locally. As required by the Bank Merger Act, reports on the
competitive effects of the merger were requested from the
United States Attorney General, Federal Deposit Insurance
Corporation, and the Office of the Comptroller of the
Currency. 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 sections 3 and 4
of the BHC Act, the Bank Merger Act, and the statutory
provisions that govern the retention and operation of interstate branches.
M&T, with total consolidated assets of $34.1 billion, is
the 33rd largest commercial banking organization in the
United States, controlling less than 1 percent of the total
assets of insured commercial banks in the United States
("total banking assets"). 4 M&T operates banks in Maryland, New York, Pennsylvania, and West Virginia. M&T is
the sixth largest banking organization in New York, controlling deposits of $15.7 billion, representing approximately 3 percent of total deposits in depository institutions
in the state ("state deposits").5 M&T is the sixth largest
banking organization in Pennsylvania, controlling deposits
of $4.5 billion, representing approximately 2.4 percent of
state deposits, and the seventeenth largest banking organization in Maryland, controlling deposits of $470 million,
representing less than 1 percent of state deposits.
Allfirst, with total consolidated assets of $18.3 billion, is
the 46th largest commercial banking organization in the
United States, controlling less than 1 percent of total banking assets. The banks owned by Allfirst operate in Delaware, the District of Columbia, Maryland, Pennsylvania,
and Virginia. Allfirst is the second largest banking organization in Maryland, controlling deposits of $7.5 billion,
representing approximately 10.6 percent of state deposits,
and the eighth largest banking organization in Pennsylvania, controlling deposits of $3.6 billion, representing
approximately 1.9 percent of state deposits.
After consummation of the proposal, M&T would
become the 22nd largest commercial banking organization
3. See 12 U.S.C §§321, 601, and 1831u. The branches are listed in
Appendix B.
4. Asset data are as of September 30, 2002.
5. Unless otherwise noted, depository institutions include commercial banks, savings banks, and savings associations. Deposit data are
as of June 30, 2002.
223
in the United States, with total consolidated assets of
$52.4 billion, representing less than 1 percent of total
banking assets. M&T would remain the sixth largest banking organization in Pennsylvania, controlling deposits of
$8.1 billion, representing approximately 4.3 percent of
state deposits, and the second largest banking organization
in Maryland, controlling deposits of approximately $8 billion, representing approximately 11.3 percent of state
deposits.6
Interstate Analysis
Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of the bank holding company if certain conditions are
met. The Board may not approve a proposal subject to
section 3(d) if, after consummation, the applicant would
control more than 10 percent of the total deposits of
insured depository institutions in the United States.7 In
addition, the Board may not approve a proposal if, after
consummation of the proposal, the applicant would control
30 percent or more of the total deposits of insured depository institutions in any state in which both the applicant
and the organization to be acquired operate an insured
depository institution, or such higher or lower percentage
as established by state law.8
For purposes of the BHC Act, the home state of M&T is
New York, the home state of Allfirst is Maryland, and
Allfirst's subsidiary banks are located in Delaware, the
District of Columbia, Maryland, Pennsylvania, and Virginia.9 On consummation of the proposal, M&T would
control less than 1 percent of the total deposits of insured
depository institutions in the United States.10 M&T would
control less than 30 percent of total deposits held by
insured depository institutions in Maryland or Pennsylvania, the only states in which both M&T and Allfirst
operate banks.11
All other requirements of section 3(d) of the BHC Act
are met. M&T is adequately capitalized and adequately
managed, as defined by applicable law. In addition, Allfirst's subsidiary banks have been in existence for the
minimum age requirements established by applicable state
6. M&T does not currently control deposits in Delaware, the District of Columbia, or Virginia, so the percentage of deposits in those
states would not increase on consummation of this proposal.
7. 12 U.S.C. § 1842(d)(2)(A). Insured depository institutions
include all insured banks, savings banks, and savings associations.
8. 12 U.S.C. § 1842(d)(2)(BMD).
9. A bank holding company's home state is the state in which the
total deposits of all banking subsidiaries of the company were the
largest on July 1, 1966, or the date on which the company became a
bank holding company, whichever is later. 12 U.S.C. § 1841(o)(4)(C).
For purposes of section 3(d) of the BHC Act, the Board considers a
bank to be located in the states in which the bank is chartered,
headquartered, or operates a branch.
10. Data are as of June 30, 2002.
11. Maryland's deposit cap is the same as that set forth in section 3(d)(2)(B) of the BHC Act. See Md. Code Ann., Fin. Inst.
§5-906(b) (Michie 2001) (30 percent). Pennsylvania does not have a
deposit cap applicable to the proposal.
224
Federal Reserve Bulletin • May 2003
law.12 Based on a review of all the facts of record, including a review of relevant state statutes, the Board finds that
all conditions for an interstate acquisition enumerated in
section 3(d) are met in this case. In light of all the facts of
record, the Board is permitted to approve the proposal
under section 3(d) of the BHC Act.
Competitive Factors
The Bank Merger Act and section 3 of the BHC Act
prohibit the Board from approving a proposal that would
result in a monopoly or be in furtherance of a monopoly.13
The acts also prohibit the Board from approving a proposal
that would substantially lessen competition in any relevant
banking market unless the anticompetitive effects of the
proposal in that banking market are clearly outweighed in
the public interest by the probable effect of the proposal in
meeting the convenience and needs of the community to be
served.14
M&T and Allfirst compete directly in seven banking
markets.15 The Board has reviewed carefully the competitive effects of the proposal in each of these banking markets in light of all the facts of record, including the number
of competitors that would remain in the markets, the relative share of total deposits in depository institutions controlled by M&T and Allfirst in the markets ("market deposits"), 16 the concentration level of market deposits and the
increase in this level as measured by the HerfindahlHirschman Index ("HHI") under the Department of Justice
Merger Guidelines ("DOJ Guidelines"),17 and other characteristics of the markets.
12. Pursuant to 12 U.S.C. § 1842(d)(l)(B)(ii), the applicable age
requirement for the District of Columbia is five years. See D.C. Code
Ann. §26-706.01(a). Delaware, Maryland, Pennsylvania, and Virginia
do not have minimum age requirements applicable to the proposal.
The Board also has taken into account M&T's record of compliance
with applicable state community reinvestment laws.
13. 12 U.S.C. §§ 1828(c)(5)(A) and 1842(c)(1)(A).
14. See 12 U.S.C. §§ 1828(c)(5)(B) and 1842(c)(1)(B).
15. The markets are described in Appendix C. The proposal's
effects on the concentration of banking resources in them are discussed in Appendix D.
16. Deposit and market share data are based on annual branch
reports filed as of June 30, 2002, and on calculations in which the
deposits of thrift institutions are included at 50 percent. The Board has
previously indicated that thrift institutions have become, or have the
potential to become, significant competitors of commercial banks.
See, e.g., Midwest Financial Group, 75 Federal Reserve Bulletin 386
(1989); National City Corporation, 70 Federal Reserve Bulletin 743
(1984). Thus, the Board regularly has included thrift deposits in the
calculation of market share on a 50 percent weighted basis. See, e.g.,
First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991).
17. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984),
a market is considered unconcentrated if the post merger HHI is under
1000, and moderately concentrated if the post merger HHI is between
1000 and 1800. The Department of Justice has informed the Board
that a bank merger or acquisition generally will not be challenged (in
the absence of other factors indicating anticompetitive effects) unless
the post merger HHI is at least 1800 and the merger increases the HHI
by more than 200 points. The Department has stated that the higher
than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effects of limitedpurpose lenders and other nondepository financial institutions.
Consummation of the proposal would be consistent with
Board precedent and the DOJ Guidelines in all relevant
banking markets. After consummation of the proposal, one
market would remain unconcentrated and six markets
would remain moderately concentrated as measured by the
HHI. The Department of Justice has reviewed the proposal
and advised the Board that its consummation would not
likely have a significantly adverse effect on competition
in any relevant banking market. In addition, no banking
agency has indicated that the proposal raises competitive
issues. Based on these and all the facts of record, the Board
concludes that consummation of the proposal is not likely
to result in any significantly adverse effects on competition
or on the concentration of banking resources in the banking
markets noted above or in any other relevant banking
market.
Financial, Managerial, and Other Supervisory Factors
The Bank Merger Act and section 3 of the BHC Act also
require that the Board consider the financial and managerial resources and future prospects of the organizations
involved in a proposal as well as certain other supervisory
factors under the BHC Act.18 The Board has considered
carefully the financial and managerial resources and future
prospects of M&T, Allfirst, and their respective subsidiary
banks and other supervisory factors in light of all the facts
of record, including comments received on the proposal,
reports of examination and other confidential supervisory
information assessing the financial and managerial
resources of the organizations, and information provided
by M&T and Allfirst. Based on all the facts of record, the
Board concludes that considerations relating to the financial and managerial resources and future prospects of the
organizations involved are consistent with approval, as are
the other supervisory factors that the Board must consider
under section 3 of the BHC Act.
Convenience and Needs Factor
In acting on proposals under the Bank Merger Act and
section 3 of the BHC Act, the Board is required to consider
the effect of the proposal on the convenience and needs of
the communities to be served.19 The Community Reinvestment Act (12 U.S.C. §2901 et seq.) ("CRA") requires that
each insured depository institution be assessed on its record
of meeting the credit needs of its entire community, including low- and moderate-income ("LMI") neighborhoods,
consistent with safe and sound operation of the institution.
The CRA requires the Board, in evaluating proposals under
the Bank Merger Act and section 3 of the BHC Act, to take
into account the CRA performance records of the insured
depository institutions involved.20 The Board has carefully
considered the convenience and needs factor and the CRA
performance records of each subsidiary bank of M&T and
18. 12 U.S.C. §§ 1828(c)(5) and 1842(c).
19. 12 U.S.C. §§ 1828(c)(5) and 1842(c)(2).
20. 12 U.S.C. §§ 2903(a)(2) and 2902(4).
Legal Developments
Allfirst in light of all the facts of record, including public
comments on the proposal.
A. Summary of Public Comments
Two commenters submitted letters about the proposal. One
commenter contended, based on data submitted under the
Home Mortgage Disclosure Act (12 U.S.C. §2801 et seq.)
("HMDA"), that M&T engaged in disparate treatment of
minority individuals in home mortgage lending, and that
M&T denied loan applications from minorities more frequently than it denied applications from nonminorities.
The other commenter asserted that M&T's branch distribution in the New York Consolidated Metropolitan Statistical
Area ("CMSA") was inadequate, and that although 30 percent of the tracts in the assessment area were LMI tracts,
only 14 percent of M&T's branches were in LMI tracts.
That commenter also expressed concern about M&T's
commitment to retaining branches in New York City's
LMI neighborhoods.
B. CRA Performance
Examinations
An institution's most recent CRA performance evaluation
is a particularly important consideration in the applications
process because it represents a detailed evaluation of the
institution's overall record of performance under the CRA
by its appropriate federal supervisor.21 Both of M&T's
subsidiary banks received ratings of "satisfactory" or better in the most recent examinations of their CRA performance. Trust Company, which accounts for approximately
98 percent of the total consolidated assets of M&T,
received an "outstanding" rating from the Federal Reserve
Bank of New York, as of June 2002 ("2002 Evaluation").
Trust Company also received an "outstanding" rating from
the New York State Banking Department, as of April 2000.
M&T Bank, National Association, Oakfield, New York,
received a "satisfactory" rating from the Office of the
Comptroller of the Currency, as of January 2000.
Allfirst Bank received a "satisfactory" rating from the
Federal Reserve Bank of Richmond, as of January 2001
("2001 Evaluation").22 M&T has stated that it intends to
retain Allfirst Bank's CRA program and structure after
consummation of the proposal to assist M&T in ascertaining the needs of the communities served by Allfirst.
C. CRA Performance of Trust Company
Overview: In the 2002 Evaluation,23 Trust Company
received "outstanding" ratings under the lending, invest21. See Interagency Questions and Answers Regarding Community
Reinvestment, 66 Federal Register 36,620 and 36,639 (2001).
22. Allfirst Delaware does not grant credit to the public in the
ordinary course of business, and it is treated as a special purpose bank
that is not subject to evaluation under the CRA. See 12 C.F.R.
25.11(b)(3).
23. The 2002 Evaluation covered a review period of January 1,
2000, through December 31, 2001.
225
ment, and service performance tests.24 Examiners characterized the level of Trust Company's responsiveness to
retail credit needs in its assessment areas as excellent.
Trust Company and its affiliates originated and purchased
more than $4.3 billion of HMDA-reportable loans during
the review period. Examiners concluded that Trust Company's lending was good in terms of overall geographic
distribution and distribution to borrowers of different
income levels.
Examiners stated that Trust Company offered a number
of innovative and flexible lending products to increase
lending in LMI geographies and to LMI borrowers, including Federal Housing Administration ("FHA") mortgages,
which were offered throughout Trust Company's assessment areas. During the review period, Trust Company
made 674 mortgage loans totaling $40 million through a
program that featured below-market interest rates, reduced
down-payment requirements, and other favorable terms.
Trust Company made more than 19,800 small business
loans during the review period, totaling more than $2.5 billion.25 Examiners noted that Trust Company had a good
distribution of loans to businesses of different sizes
throughout its assessment areas.
Examiners characterized Trust Company's community
development lending performance as excellent. During the
evaluation period, Trust Company extended qualified community development loan commitments totaling $294 million and issued $35 million in letters of credit for affordable housing and other community development purposes.
Examiners concluded that Trust Company's $92 million
in loan commitments to LMI healthcare facility projects
for the elderly indicated a high level of responsiveness to
community credit needs in light of the large elderly population in many of Trust Company's assessment areas.
Examiners stated that Trust Company's community
development investments exhibited excellent responsiveness to the most urgent credit and community development
needs in its assessment areas. Trust Company's qualified
investments totaled $56 million, including investments of
$40 million during the evaluation period. Examiners
reported that $7 million in investments were for revitalizing inner cities, which examiners described as a critical
need in Trust Company's assessment areas in upstate
New York. Examiners also noted grants totaling $1.1 million to a school in an LMI area, which examiners considered to be a nonroutine investment.
Examiners concluded that Trust Company's branches
were readily accessible to all portions of its assessment areas.26 Examiners stated that Trust Company also
24. Trust Company elected to have the Federal Reserve Bank of
New York ("FRBNY") consider the lending activity in its assessment
areas by certain Trust Company subsidiaries and affiliates, including
M&T Mortgage Corporation and M&T Real Estate, Inc., both in
Buffalo, New York, and subsidiaries of Trust Company, and M&T
Bank, National Association, a direct subsidiary of M&T.
25. For purposes of this analysis, small business loans are business
loans with an original amount of $1 million or less.
26. One commenter referred to portions of the previous CRA
evaluation of Trust Company, as of June 2000 ("2000 Evaluation"),
which assessed Trust Company's branch distribution as weak in
226
Federal Reserve Bulletin • May 2003
enhanced distribution of banking services through ATMs,
on-line banking, telephone banking, and other alternative
delivery systems. They further noted that Trust Company
offered Lifeline Checking Accounts, an electronic benefits
transfer program, low-fee checking accounts for nonprofit
organizations, and other products designed to directly or
indirectly assist LMI individuals.
Examiners described Trust Company as a leader in providing community development services. During the
review period, Trust Company employees participated in
more than 400 workshops, seminars, and conferences
throughout its assessment areas and provided technical
assistance to more than 100 organizations that addressed
the needs of LMI individuals and communities. Trust
Company also participated in the Federal Home Loan
Bank Affordable Housing Program by sponsoring 24 grant
applications to construct and rehabilitate housing for LMI
individuals.
New York. In the 2002 Evaluation, Trust Company
received an "outstanding" rating under the lending test in
its New York assessment areas.27 During the review period,
Trust Company originated or purchased HMDA-reportable
loans in New York totaling more than $3.36 billion. Examiners reported that in 2000, Trust Company's 3 percent
market share of deposits in its assessment areas compared
favorably with its 3 percent market share of all HMDAreportable loans originated or purchased in New York
State.
Examiners concluded that the distribution of Trust Company's HMDA-reportable loans among borrowers of different income levels was good, as was the geographic distribution of its lending. Examiners stated that Trust
Company's distribution of HMDA-reportable loans to lowincome borrowers was adequate and consistent with available lending opportunities, which had been limited by
economic conditions and by disparities between housing
prices and income levels.28 Examiners characterized Trust
service to LMI census tracts in the New York-Northern New JerseyLong Island-Connecticut Consolidated Metropolitan Statistical Area
("New York CMSA"). The 2002 Evaluation rated Trust Company as
"outstanding" for its performance under the service test in the New
York CMSA. The 2002 Evaluation noted that an increased percentage
of Trust Company's branches in the New York CMSA were in LMI
census tracts compared with 2000, and that a number of branches
were contiguous to LMI census tracts in the New York CMSA.
Examiners also reported in the 2002 Evaluation that Trust Company's
alternative delivery systems enhanced its distribution of banking
services in the New York CMSA.
27. Trust Company's New York assessment areas in the 2002
Evaluation consisted of a portion of the New York CMSA; the
Buffalo-Niagara Falls, Rochester, Albany-Schenectady-Troy, UticaRome, Binghamton, and Jamestown Metropolitan Statistical Areas
("MSAs"); portions of the Syracuse and Elmira MSAs; Seneca,
Tompkins, Wyoming, Cattaraugus, Sullivan, and Ulster Counties; and
portions of Courtland, Steuben, and Allegany Counties.
28. One commenter, citing the 2000 Evaluation, asserted that Trust
Company's lending to low-income borrowers in the New York CSMA
was weak. The 2002 Evaluation noted that Trust Company's performance exceeded the performance of lenders in the aggregate ("aggregate lenders") in the New York CMSA and that the high cost of real
estate and the relatively low incomes in the New York CSMA limited
home ownership opportunities for low-income families.
Company's distribution of HMDA-reportable loans to
moderate-income borrowers as good. To assist LMI borrowers in New York, Trust Company offered loans through
the Federal National Mortgage Association (Fannie Mae)
"Get Started" program, as well as FHA mortgages and
flexible mortgages through the State of New York Mortgage Association.
During the review period, Trust Company originated
and purchased nearly 16,000 small business or small farm
loans in New York, totaling almost $2 billion. Examiners
stated that Trust Company's distribution of loans among
businesses of different sizes was good.
Examiners described Trust Company's community
development lending performance as excellent.29 Trust
Company's loan commitments in New York during the
review period totaled $246 million, and Trust Company
also provided $30 million in letters of credit. Examiners
reported that Trust Company's community development
lending for affordable housing, an identified credit need in
Trust Company's assessment areas, totaled $136 million.
In the 2002 Evaluation, Trust Company received an
"outstanding" rating under the investment test in its
New York assessment areas. Examiners stated that Trust
Company's level of qualified community development
investments, which totaled $44 million, exhibited excellent
responsiveness to credit and community development needs
in New York. More than $20 million of the investments
were invested on a statewide basis, including $10 million in
collateral trust notes to develop affordable housing, $5 million in mortgage-backed securities to fund loans to LMI
borrowers, and $4 million to community development organizations. Examiners reported that Trust Company also
invested $2 million in projects qualifying for low-income
housing tax credits and contributed $4 million to support
charitable community development projects and programs.
Trust Company received an "outstanding" rating under
the service test in the New York assessment areas. Examiners stated that Trust Company's branches were readily
accessible to all geographies and to individuals of different
income levels and that variations in products and services
did not inconvenience LMI individuals or customers in
LMI geographies. Examiners also reported that Trust Company organized or participated in many workshops on
affordable housing and financial literacy. In addition, Trust
Company employees served on the boards and committees
of organizations that addressed the needs of LMI individuals and communities.
29. One commenter urged that Trust Company increase its community development lending to nonprofit organizations and its staffing
levels for community development programs in New York City. The
CRA requires that, in considering an acquisition proposal, the Board
carefully review the actual performance records of the relevant depository institutions in helping to meet the credit needs of their communities. Neither the CRA nor the federal banking agencies' CRA regulations require depository institutions to provide commitments for future
performance or staffing levels. Trust Company's CRA-related activities will be reviewed by the FRBNY in future performance evaluations, and its CRA performance record will be considered in any
subsequent applications by Trust Company to acquire a depository
institution.
Legal Developments
Pennsylvania. Examiners noted that during the review
period, Trust Company significantly expanded its presence
in Pennsylvania as a result of Trust Company's merger
in October 2000 with Keystone Financial Bank, National
Association, Harrisburg, Pennsylvania.30 Accordingly,
Trust Company was engaged in integrating and developing
products, systems, and staff during the review period.
The 2002 Evaluation rated Trust Company's performance under the lending test as "high satisfactory" in its
Pennsylvania assessment areas. During the review period,
Trust Company originated or purchased HMDA-reportable
loans in Pennsylvania totaling more than $757 million.
Examiners concluded that the geographic distribution of
Trust Company's HMDA-reportable loans was good, as
was distribution among borrowers of different income levels. Examiners characterized Trust Company's distribution
of HMDA-reportable loans to moderate-income borrowers
as good and its distribution to low-income borrowers as
adequate. During the review period, Trust Company made
286 home purchase loans in Pennsylvania through its
Opportunity Loan program, which focuses on LMI borrowers and features reduced down-payment requirements,
prepurchase counseling, and options for financing closing
costs.
During the review period, Trust Company originated
and purchased more than 2,100 small business loans in
Pennsylvania, totaling more than $247 million. Examiners
reported that Trust Company's distribution of loans among
businesses of different sizes was good.
Examiners described Trust Company's community
development lending performance as good. Trust Company's loan commitments totaled $43 million, and Trust
Company also provided $5 million in letters of credit
to support economic development. Examiners noted that
Trust Company's lending commitments for affordable
housing totaled $16 million and that its commitments for
economic development totaled $26 million.
In the 2002 Evaluation, Trust Company received an
"outstanding" rating under the investment test in its Pennsylvania assessment areas. Examiners stated that Trust
Company's level of qualified community development
investments, which totaled $11.4 million, demonstrated
strong responsiveness to credit and community development needs. Examiners favorably cited Trust Company's
$2.3 million investment in a small business investment
company that financed small- and medium-sized manufacturing, distribution, and service companies in eastern Pennsylvania. Examiners also noted that Trust Company's
30. Before the review period, Trust Company's Pennsylvania
branches operated in the Scranton-Wilkes-Barre-Hazleton MSA.
After the merger with Keystone Financial Bank, National Association,
Trust Company's Pennsylvania assessment areas for the review period
consisted of the Pennsylvania portions of the PhiladelphiaWilmington-Atlantic City, PA-NJ-DE-MD CMSA; the HarrisburgLebanon-Carlisle, Scranton-Wilkes-Barre-Hazleton, Altoona, State
College, Reading, York, Allentown-Bethlehem-Easton, and Williamsport MSAs, in Pennsylvania; a portion of the Lancaster MSA, in
Pennsylvania; and Adams, Bedford, Bradford, Clearfield, Clinton,
Franklin, Huntingdon, Monroe, Montour, Northumberland, Schuylkill,
Snyder, Sullivan, Tioga, and Union Counties.
227
investments in agencies engaged in community revitalization totaled $1.5 million and that its grants to community
development organizations totaled more than $1 million.
Trust Company received an "outstanding" rating under
the service test in the Pennylvania assessment areas. Examiners stated that Trust Company's branches were readily
accessible to all geographies and to individuals of different
income levels and that variations in products and services
did not inconvenience LMI individuals or customers in
LMI geographies. Examiners also reported that Trust Company organized or participated in many workshops on
affordable housing and financial literacy. In addition, Trust
Company employees served on the boards and committees
of organizations that addressed the needs of LMI individuals and communities.
D. CRA Performance of Allfirst Bank
In the 2001 Evaluation, Allfirst Bank received "high satisfactory" ratings under the lending, investment, and service
performance tests.31 Allfirst Bank originated and purchased
HMDA-reportable loans totaling more than $750 million in
its assessment areas during the review period. Examiners
concluded that the overall distribution of loans to borrowers of different income levels was good, and loan penetration for LMI geographies ranged from good to excellent in
Allfirst Bank's assessment areas.
Examiners noted that Allfirst Bank assisted LMI borrowers in obtaining affordable housing by offering FHA and
Department of Veterans Affairs ("VA") loans and other
mortgage loans through state and local affordable housing
programs. In 2000, Allfirst Bank originated 459 mortgage
loans through these programs, totaling $93.4 million.
Allfirst Bank made more than 6,100 small business loans
in its assessment areas during the review period, totaling
more than $695 million. Examiners stated that the bank's
record of lending to businesses of different sizes ranged
from adequate to good, while its small business loan penetration for LMI geographies ranged from good to excellent. Examiners noted that Allfirst Bank originated 108
Small Business Administration loans, totaling $21 million
during 2000. Examiners reported that Allfirst Bank made a
relatively high level of community development loans during the review period, totaling almost $101 million.
Allfirst Bank's qualified community development investments during the review period consisted primarily of
investments in projects qualifying for low-income housing
tax credits. Examiners noted that the bank had created the
Allfirst Affordable Housing Fund, which promoted affordable housing by facilitating investment in projects qualifying for low-income housing tax credits and by providing
bridge financing to developers. During the review period,
Allfirst Bank also made community development grants
and contributions totaling $3.3 million.
Examiners considered Allfirst Bank's branch and ATM
locations to be readily accessible to all portions of the
31. The 2001 Evaluation covered a review period of January 1,
1999, through December 31, 2000.
228
Federal Reserve Bulletin • May 2003
bank's assessment areas. Examiners also noted that Allfirst
Bank provided affordable homebuying workshops and
seminars and counseling to small business owners.
E. HMDA Data
The Board also has considered M&T's lending record in
light of comments on the 2001 HMDA data reported by
M&T's subsidiaries. The Board notes that 2001 HMDA
data indicate that M&T's denial disparity ratio for Hispanic applicants was higher than the denial disparity
ratio for the aggregate lenders in five of the six MSAs
reviewed.32 In addition, M&T's denial disparity ratio for
African Americans was higher than the denial disparity
ratios for aggregate lenders in the two MSAs in which, of
the six MSAs reviewed, M&T made most of its mortgage
loans. The data reviewed also indicate that the percentages
of M&T's total HMDA-reportable loans to AfricanAmerican and Hispanic individuals in 2001 were below the
percentages for the aggregate lenders in three MSAs and
above the percentages for the aggregate lenders in three
MSAs.33 Finally, the percentage of M&T's total HMDAreportable loans to LMI individuals in 2001 exceeded the
percentage for the aggregate lenders in five of the six
MSAs reviewed.
The Board is concerned when an institution's record
indicates disparities in lending and believes that all banks
are obligated to ensure that their lending practices are
based on criteria that ensure not only safe and sound
banking, but also equal access to credit by creditworthy
applicants regardless of their race or income level. The
Board recognizes, however, that HMDA data alone provide
an incomplete measure of an institution's lending in its
community because the data cover only a few categories of
housing-related lending. HMDA data, moreover, provide
only limited information about the covered loans.34 HMDA
data, therefore, have limitations that make the data an
inadequate basis, absent other information, for concluding
that an institution has not adequately assisted in meeting its
community's credit needs or has engaged in illegal lending
discrimination.
32. The denial disparity ratio compares the denial rate for minority
loan applicants with that for nonminority applicants. The Board
reviewed the 2000 and 2001 HMDA data for Trust Company and its
affiliates in the following MSAs: Buffalo, New York City, and
Nassau-Suffolk, New York; Philadelphia and Harrisburg, Pennsylvania; and Baltimore, Maryland. The Board's review included the
HMDA data for M&T Mortgage Corporation and M&T Real Estate,
Inc.
33. The data indicate that the percentages of Trust Company's total
HMDA-reportable loans to minorities were not markedly below the
percentages for the aggregate lenders in the three MSAs in which
Trust Company lagged those lenders.
34. The data, for example, do not account for the possibility that an
institution's outreach efforts may attract a larger proportion of marginally qualified applicants than other institutions attract and do not
provide a basis for an independent assessment of whether an applicant
who was denied credit was, in fact, creditworthy. Credit history
problems and excessive debt levels relative to income (reasons most
frequently cited for a credit denial) are not available from HMDA
data.
Because of the limitations of HMDA data, the Board has
carefully considered the data and comments in light of
other information. Examiners conducting a fair lending
review of Trust Company in connection with the 2002
Evaluation reviewed loan applications from the Buffalo
MSA and found that credit criteria were consistently
applied to all applicants regardless of race. Examiners
discovered no evidence of prohibited discrimination or
other illegal credit practices. The Board has also considered the HMDA data in light of the overall lending records
of M&T and Allfirst. Those records, which include the
programs discussed above, show that the organizations'
subsidiary banks make credit available to all applicant
groups and significantly help to meet the credit needs of
their communities, including LMI areas.
F. Conclusion on the Convenience and Needs Factor
In reviewing the proposal's effect on the convenience and
needs of the communities to be served by the combined
organization, the Board has carefully considered the entire
record, including the public comments received and reports
of examinations of the CRA performance of the institutions involved. 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 insured depository institutions, are consistent with
approval of the proposal.
Nonbanking Activities
M&T also has filed notice under section 4(c)(8) and (j) of
the BHC Act to acquire nonbanking subsidiaries of Allfirst.
The Board has determined by regulation that the types of
activities for which notice has been provided are closely
related to banking for purposes of section 4(c)(8) of the
BHC Act and, therefore, permissible for bank holding
companies.35 M&T has committed to conduct the nonbanking activities in accordance with the Board's regulations
and orders governing these activities for bank holding
companies.
To approve this notice, the Board must determine that
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, conflicts of interests, or
unsound banking practices." 36
As part of its evaluation of the public interest factors, the
Board considered the financial condition and managerial
resources of M&T and its subsidiaries, including the companies to be acquired, and the effect of the proposed
transaction on those resources. For the reasons noted
above, and based on all the facts of record, the Board has
concluded that financial and managerial considerations are
consistent with approval of the proposal.
35. See 12 C.F.R. 225.28(b)(1), (3), (6), (11), and (14).
36. 12 U.S.C. §1843(j)(2)(A).
Legal Developments
The Board also has considered the competitive effects of
the proposed transaction under section 4 of the BHC Act.
To the extent that M&T and Allfirst offer different types of
nonbanking products or services, the proposal would not
result in a significant loss of competition. M&T and Allfirst
compete directly in the following activities: originating and
servicing capital equipment leases, providing credit-related
insurance, providing commercial real estate lending services, and providing financial and investment advisory
services. The markets for these nonbanking activities are
regional, national, or international in scope and are unconcentrated. The record in this case also indicates that there
are numerous providers of these services. Based on all the
facts of record, the Board concludes that consummation of
the proposal would have a de minimis effect on competition for the relevant nonbanking activities.
M&T has indicated that consummation of the proposal
would provide customers of the two organizations with
access to services across a broader geographic area. M&T
also has asserted that customers of both organizations
would gain access to a broader variety of nonbanking
products, including investment products and insurance
products.
The Board concludes that the conduct of the proposed
nonbanking activities within the framework of Regulation Y and Board precedent is not likely to result in adverse
effects, such as undue concentration of resources, conflicts
of interests, or unsound banking practices, that would
outweigh the public benefits of the proposal discussed
above. Accordingly, based on all the facts of record, the
Board has determined that the balance of public interest
factors that the Board must consider under the standard in
section 4(j) of the BHC Act is consistent with approval of
M&T's notice.
Trust Company also intends to operate Allfirst's existing
limited-purpose foreign branch in George Town, Cayman
Islands, under section 25 of the Federal Reserve Act and
the general consent provisions of section 211.3(b) of Regulation K (12 C.F.R. 211.3(b)). Trust Company has made
certain commitments in connection with this acquisition. In
addition, M&T has provided notice under section 4(c)(13)
of the BHC Act (12 U.S.C. § 1843(c)(13)) and section 211.9
of the Board's Regulation K (12 C.F.R. 211.9)) of its
intention to acquire certain foreign investments controlled
by Allfirst.37 The Board has concluded that all the factors it
is required to consider under the Federal Reserve Act, the
BHC Act, and the Board's Regulation K in connection
with this notice are consistent with approval.
Conclusion
Based on the foregoing, and in light of all the facts of
record, the Board has determined that the applications and
37. These investments are in Compania La Proa, Ltd., George
Town, Cayman Islands, and Bemberg Industrial, S.A., Buenos Aires,
Argentina.
229
notices should be, and hereby are, approved.38 In reaching
its conclusion, the Board has considered all the facts of
record in light of the factors it is required to consider under
the BHC Act, the Bank Merger Act, the Federal Reserve
Act, and the statutory factors it is required to consider
when reviewing an application for retaining and operating
branches.39 The Board's approval is specifically conditioned on compliance by M&T with all the commitments
made in connection with these applications and notices and
with the conditions stated or referenced in this order. The
Board's determination on the nonbanking activities also is
subject to all the terms and conditions set forth in Regulation Y, including those in sections 225.7 and 225.25(c)
(12 C.F.R. 225.7 and 225.25(c)), 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 action, 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 banking acquisitions shall not be consummated
before the fifteenth calendar day after the effective date of
this order, and the 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 by the Federal Reserve Bank of New York, acting
pursuant to delegated authority.
By order of the Board of Governors, effective March 11,
2003.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn.
ROBERT DEV. FRIERSON
Deputy Secretary of the Board
38. One commenter suggested, particularly in light of the 2000
Evaluation, that the Board condition its approval of the proposal on a
requirement that M&T commit to keep the branches Trust Company
operates in LMI neighborhoods in the New York City area open for
ten years and open five new branches there within the next two years.
As previously noted, the 2002 Evaluation rated Trust Company "outstanding" both in the delivery of retail and community development
services in all assessment areas and for its performance on the service
test in the New York CMSA. See also discussion in footnote 29.
39. One commenter requested that the Board extend the comment
period on the proposal. The Board has accumulated a significant
record in this case, including reports of examination, supervisory
information, public reports and information, and considerable public
comment. In the Board's view, commenters have had ample opportunity to submit their views and, in fact, they have provided substantial
written submissions that have been considered carefully by the Board
in acting on the proposal. Moreover, the BHC Act and Regulation Y
require the Board to act on proposals submitted under those provisions
within certain time periods. 12 U.S.C. §§ 1842(b) and 1843(j)(l);
12 C.F.R. 225.15(d) and 225.24(d). Based on a review of all the facts
of record, the Board has concluded that the record in this case is
sufficient to warrant Board action at this time and that an extension of
the comment period is not warranted.
230
Federal Reserve Bulletin • May 2003
APPENDIX A
Nonbanking Subsidiaries of Allfirst to be
Acquired Under the Notice
1. Allfirst Mortgage Corporation, Baltimore, Maryland,
and thereby engage in extending credit and servicing
loans pursuant to section 225.28(b)(1) of Regulation Y
(12 C.F.R. 225.28(b)(1));
2. Loans USA, Inc., Pasadena, Maryland, and thereby
engage in extending credit and servicing loans pursuant
to section 225.28(b)(1) of Regulation Y (12 C.F.R.
225.28(b)(1));
3. Allfirst Leasing Corporation, Baltimore, Maryland, and
thereby engage in leasing personal or real property
pursuant to section 225.28(b)(3) of Regulation Y
(12 C.F.R. 225.28(b)(3));
4. Zirkin-Cutler Investments, Inc., Bethesda, Maryland,
and thereby engage in financial and investment advisory
activities pursuant to section 225.28(b)(6) of Regulation Y (12 C.F.R. 225.28(b)(6));
5. Allfirst Life Insurance Corporation, Phoenix, Arizona,
and thereby engage in providing credit insurance
as principal, agent, or broker pursuant to section 225.28(b)(ll) of Regulation Y (12 C.F.R.
225.28(b)(ll)); and
6. Williams, Daniels & Associates, Inc., Baltimore, Maryland, and thereby engage in data processing activities
pursuant to section 225.28(b)(14) of Regulation Y
(12 C.F.R. 225.28(b)(14)).
APPENDIX B
Branches to be Established by Trust Company
District of Columbia
555 12th Street, N.W.
1730 Pennsylvania Avenue, N.W.
1899 L Street, N.W.
5630 Connecticut Avenue, N.W.
500 C Street, S.W.
6434 Georgia Avenue, N.W.
2865 Alabama Avenue, S.E.
1680 K Street, N.W.
2440 Wisconsin Avenue, N.W.
2620 Connecticut Avenue, N.W.
Maryland
776 East 25th Street, Baltimore
207 West Bel Air Avenue, Aberdeen
801 Elkridge Landing Road, Linthicum Heights
101 Big Elk Mall, Elkton
25 South Charles Street, Baltimore
D Street & Arnold Avenue, Andrews Air Force Base
1230 Bay Dale Drive, Arnold
5 South Bond Street, Bel Air
12 Office Street, Bel Air
579 Baltimore Pike, Bel Air
5910 York Road, Baltimore
432 South Broadway, Baltimore
5738 Ritchie Highway, Baltimore
32 York Road, Towson
7500 B Connelley Drive, Hanover
11325 Seven Locks Road, Potomac
405 Sunburst Highway, Cambridge
823 South Salisbury Boulevard, Salisbury
155 East Carroll Street, Salisbury
705 Frederick Road, Baltimore
17724 Garland Groh Boulevard, Hagerstown
37660 Mohawk Drive, Charlotte Hall
6304 Kirby Road, Clinton
10431 York Road, Cockeysville
4511 Knox Road, College Park
10025 Governor Warfield Parkway, Columbia
26 North Court Street, Frederick
19 East Cross Street, Baltimore
632 East Bayfront Road, Deale
126 Market Street, Denton
15850 Crabbs Branch Way, Rockville
One Bank Street & Quince Orchard Road, Gaithersburg
6395 Dobbin Road, Columbia
930 Dual Highway, Hagerstown
17 Center Place, Dundalk
10090 Southern Maryland Boulevard, Dunkirk
8314 Pulaski Highway, Baltimore
3150 Solomon's Island Road, Edgewater
1325-D Liberty Road, Sykesville
One Boxridge Drive, Abingdon
809 Eastern Boulevard, Baltimore
3700 Donnell Drive, Forestville
11807 Livingston Road, Fort Washington
1201 Agora Drive, Suite 1-A, Bel Air
5585 Spectrum Drive, Frederick
20 East Franklin Street, Baltimore
Frederick Towne Mall, 1301 West Patrick Street,
Frederick
215 North Frederick Avenue, Gaithersburg
12914 Middlebrook Road, Germantown
223 Glebe Road, Easton
7560 South Ritchie Highway, Glen Burnie
12041 Georgia Avenue, Wheaton
7599 Greenbelt Road, Greenbelt
100 North Greene Street, Baltimore
1200 North Main Street, Hampstead
279 North Pennsylvania Avenue, Hancock
212 Mount Carmel Road, Parkton
715 North Howard Street, Baltimore
120 Shawan Road, Hunt Valley
5642 Baltimore National Pike, Baltimore
400 East Pratt Street, Baltimore
34th & Charles Street, Baltimore
10420 Montgomery Avenue, Kensington
3706 Howard Avenue, Kensington
60 Kent Town Market, Chester
6267 Kenwood Avenue, Baltimore
8640 Guilford Road, B-90, Columbia
Legal Developments
10410 Campus Way South, Largo
14060 Baltimore Boulevard, Laurel
9600 Medical Center Drive, Rockville
2525 Pot Springs Road, Lutherville-Timonium
7900 Ritchie Highway, Suite 207, Glen Burnie
1115 Merritt Boulevard, Baltimore
21006 Frederick Road, Germantown
12831 Coastal Highway, Ocean City
101 West Washington Street, Hagerstown
8812 Waltham Woods Road, Baltimore
2730 North Salisbury Boulevard, Salisbury
200 Northern Avenue, Hagerstown
5100 Campbell Boulevard, White Marsh
18216 Downsville Pike, Hagerstown
5805 Stevens Forest Road, Columbia
491 Olde Mill Shopping Center Road, Millersville
3221 Spartan Drive, Olney
4800 Hampden Lane, Bethesda
561 East Ordnance Road, Glen Burnie
9780 Grofs Mill Drive, Owings Mills
6262 Oxon Hill Road, Oxon Hill
9840 Reisterstown Road, Owings Mills
7904 Harford Road, Baltimore
2027 Somerville Road, Annapolis
3470 Annapolis Road, Baltimore
13409 Pennsylvania Avenue, Hagerstown
2301 Cleanleigh Drive, Baltimore
8675 Bel Air Road, Baltimore
3717 Old Court Road, Pikesville
3741 Old Court Road, Pikesville
19616-M Fisher Avenue, Poolesville
10128 River Road, Potomac
510 Solomon's Island Road North, Prince Frederick
126 Chartley Boulevard, Reisterstown
2841 Tome Highway, Colora
8493 Fort Smallwood Road, Pasadena
4 Courthouse Square, Rockville
51 West Edmonston Drive, Rockville
5201 Roland Avenue, Baltimore
222 Phillip Morris Drive, Salisbury
7615 Bellona Avenue, Towson
7005 Security Boulevard, Baltimore
5724 Wabash Avenue, Baltimore
929 West Seventh Street, Frederick
534 Ritchie Highway, Severna Park
456-D Ritchie Highway, Severna Park
576 Ritchie Highway, Severna Park
8737 Colesville Road, Silver Spring
87 High Street, Waldorf
110 West Market Street, Snow Hill
5230 North Point Boulevard, Baltimore
3401 Eastern Avenue, Baltimore
9125 Baltimore National Pike, Ellicott City
St. Paul & Saratoga Streets, Baltimore
504 East Ridgeville Boulevard, Mount Airy
400 Englar Road, Westminster
12200 Tech Road, Silver Spring
9625 Deereco Road, Timonium
405 Washington Avenue, Towson
University Hospital, 22 South Greene Street,
First Floor, Baltimore
14700 Main Street, Upper Marlboro
17301 Valley Mall Drive, Hagerstown
11175 Mall Circle, Waldorf
118 New Market Place, Gambrills
199 Thomas Johnson Drive, Frederick
26075 Ridge Road, Damascus
4126 East Joppa Road, Baltimore
448 Prospect Boulevard, Frederick
943 Pulaski Highway, Havre de Grace
3331 Corridor Market Place, Laurel
1001 Twin Arch Road, Mount Airy
6093 Spring Ridge Parkway, Frederick
67 West Street, Annapolis
625-A Baltimore Boulevard, Westminster
1409 Pulaski Highway, Edgewood
38 West Ridgely Road, Timonium
Pennsylvania
109 West Market Street, York
1123 North George Street, York
121 West Market Street, York
21 East Market Street, York
800 East Market Street, York
960 South George Street, York
710 East Main Street, Annville
1275 Baltimore Street, Hanover
248 North Mill Street, Birdsboro
200 East Philadelphia Avenue, Boyertown
835 East Philadelphia Avenue, Boyertown
801 East Philadelphia Avenue, Suite 2, Boyertown
510 West Broad Street, Bethlehem
2715 North Meridian Boulevard, Wyomissing
3045 Market Street, Camp Hill
750 Lombard Road, Red Lion
2 West High Street, Carlisle
812 '/2 West High Street, Carlisle
375 South Cedar Crest Boulevard, Allentown
44 Lincoln Way West, Chambersburg
55 South Main Street, Chambersburg
1603 Manheim Pike, Lancaster
4950 Jonestown Road, Harrisburg
369 Locust Street, Columbia
900 Country Club Road, Red Lion
105 Dart Drive, Hanover
6960 Delta Road, Delta
3995 Carlisle Road, Dover
4200 Derry Street, Harrisburg
1701 Oregon Pike, Lancaster
500 Eisenhower Drive, Hanover
4000 Perkiomen Avenue, Reading
482 Fishing Creek Road, Etters
Market & Main Streets, Fawn Grove
50 North Fifth Street, Reading
69 East Forrest Avenue, Shrewsbury
202 West High Street, Gettysburg
231
232
Federal Reserve Bulletin • May 2003
255 South Spring Garden Street, Carlisle
44 Natural Springs Road, Gettysburg
701-703 South Antrim Way, Greencastle
2001 Lincoln Way East, Chambersburg
1000 Haines Road, York
5528 Carlisle Pike, Mechanicsburg
13 Baltimore Street, Hanover
3502 Paxton Street, Harrisburg
213 Market Street, Harrisburg
730 Main Street, Hellertown
740 West Chocolate Avenue, Hershey
344 South 10th Street, Lemoyne
4711 Horseshoe Pike, Honey Brook
8 East Main Street, Hummelstown
3621 Old Philadelphia Pike, Intercourse
3201 Lehigh Street, Allentown
4120 Linglestown Road, Linglestown
2100 North Second Street, Harrisburg
301 North George Street Ext., Manchester
5219 Simpson Ferry Road, Mechanicsburg
2075 Scotland Avenue, Chambersburg
10 North Main Street, Mercersburg
21 George Street, Reading
210 East Main Street, New Holland
370 North 7th Street, Lebanon
2775 Paxton Street, Harrisburg
2551 Walnut Street, Penbrook
1750 Philadelphia Avenue, Chambersburg
425 Westminster Avenue, Hanover
2186 East High Street, Pottstown
2055 South Queen Street, York
837 Quentin Road, Lebanon
425 Loucks Road, York
11973 Buchanan Trail East, Waynesboro
5021 Route 873, Schnecksville
One West Lancaster Avenue, Shillington
1990 Carlisle Road, York
35-39 East King Street, Shippensburg
200 Luther Road, Shrewsbury
2421 Old Philadelphia Pike, Lancaster
4830 Penn Avenue, Sinking Spring
33 Roth Church Road, Spring Grove
160 Spring Street, Reading
903 State Drive, Lebanon
One South Front Street, Steelton
10 North Main Street, Stewartstown
430 Stouffer Avenue, Chambersburg
75 Main Street, Strausstown
423 North Enola Road, Enola
10 Penn Newberry Commons, Etters
1250 West Tilghman Street, Allentown
2 West Franklin Street, Topton
4435 Pottsville Pike, Reading
4206 Union Deposit Road, Harrisburg
1355 East Lehman Street, Lebanon
28 Walnut Bottom Road, Shippensburg
1629 South Market Street, Elizabethtown
1603 Lincoln Highway, East, Lancaster
441 West Main, Mount Joy
1802 Roosevelt Avenue, York
1475 Kenneth Road, York
1200 Market Street, Lemoyne
1401 West Market Street, York
1847 Columbia Avenue, Lancaster
2903 North 7th Street, Harrisburg
400 North Third Street, Womelsdorf
750 Hellam Street, Wrightsville
800 Penn Avenue, Wyomissing
2801 East Market Street, York
Virginia
43911 Farmwell Hunt Plaza, Ashburn
14245-R Centreville Square, Store 8, Centreville
21099 Dulles Towne Circle, Sterling
1025 Herndon Parkway, Herndon
345 East Market Street, Leesburg
10254 Main Street, Fairfax
6832 Old Dominion Drive, McLean
1416 North Point Village Center, Reston
Bowman & Fountain Drives, Reston
21700 Town Center Plaza, Sterling
8601 Westwood Center Drive, Vienna
10697 Braddock Road, Fairfax
Cayman Islands
Cardinal Avenue, George Town
APPENDIX C
Banking Markets in which M&T and Allfirst
Compete Directly
Maryland
Hagerstown
Washington County, Maryland; and
Fulton County, Pennsylvania.
Pennsylvania
Harrisburg
Cumberland, Dauphin, Juniata, Lebanon,
and Perry Counties.
Lancaster
Lancaster County.
Lehigh Valley
Carbon, Lehigh, and Northampton
Counties.
Philadelphia
Bucks, Chester, Delaware, Montgomery,
and Philadelphia Counties, Pennsylvania;
and Burlington, Camden, Gloucester, and
Salem Counties, the City of Trenton, and
the townships of Ewing, Hamilton, and
Lawrence, New Jersey.
Reading
Berks County.
York
Adams and York Counties.
Legal Developments
APPENDIX
D
APPENDIX D— CONTINUED
Data for Banking Markets in which M&T and
Allfirst Compete Directly
Lehigh Valley
Allfirst operates the 20th largest depository institution in the market, controlling
deposits of approximately $108.1 million, representing approximately 1.4 percent of market deposits. M&T operates
the 25th largest depository institution
in the market, controlling deposits of
approximately $44.3 million, representing less than 1 percent of market deposits. On consummation of the proposal,
M&T would operate the 14th largest
depository institution in the market,
controlling deposits of approximately
$152.5 million, representing approximately 2 percent of market deposits. The
HHI would increase by 2 points to 1193.
Philadelphia
M&T operates the 15th largest depository institution in the market, controlling
deposits of approximately $696.5 million, representing approximately less
than 1 percent of market deposits. Allfirst
operates the 95th largest depository institution in the market, controlling deposits
of approximately $42.1 million, representing less than 1 percent of market
deposits. On consummation of the proposal, M&T would operate the 15th largest depository institution in the market,
controlling deposits of approximately
$738.5 million, representing 1 percent
of market deposits. The HHI would
increase by 1 point to 1057.
Reading
Allfirst operates the fourth largest
depository institution in the market,
controlling deposits of approximately
$525.6 million, representing approximately 12.1 percent of market deposits.
M&T operates the 11th largest depository institution in the market, controlling
deposits of approximately $110.9 million, representing 2.6 percent of market
deposits. On consummation of the proposal, M&T would operate the fourth
largest depository institution in the market, controlling deposits of approximately $636.5 million, representing
14.7 percent of market deposits. The
HHI would increase by 71 points to
1333.
Maryland
Hagerstown
Allfirst operates the largest depository
institution in the market, controlling
deposits of approximately $496.9 million, representing approximately
16.8 percent of market deposits. M&T
operates the fourth largest depository
institution in the market, controlling
deposits of approximately $339.7 million, representing approximately
11.4 percent of market deposits. On consummation of the proposal, M&T would
operate the largest depository institution
in the market, controlling deposits of
approximately $836.6 million, representing 28.2 percent of market deposits.
The HHI would increase by 384 points
to 1461.
Pennsylvania
Harrisburg
Lancaster
233
Allfirst operates the largest depository
institution in the market, controlling
deposits of approximately $1.07 billion,
representing approximately 13.4 percent
of market deposits. M&T operates the
eighth largest depository institution in
the market, controlling deposits of
approximately $432.5 million, representing approximately 5.4 percent of market
deposits. On consummation of the proposal, M&T would operate the largest
depository institution in the market,
controlling deposits of approximately
$1.5 billion, representing 18.8 percent
of market deposits. The HHI would
increase by 146 points to 909.
Allfirst operates the seventh largest
depository institution in the market,
controlling deposits of approximately
$266.5 million, representing approximately 4.4 percent of market deposits.
M&T operates the 19th largest depository institution in the market, controlling
deposits of approximately $12.9 million,
representing less than 1 percent of market deposits. On consummation of the
proposal, M&T would operate the seventh largest depository institution in the
market, controlling deposits of approximately $279.4 million, representing
4.6 percent of market deposits. The HHI
would increase by 2 points to 1269.
234
Federal Reserve Bulletin • May 2003
APPENDIX D— CONTINUED
York
Allfirst operates the largest depository
institution in the market, controlling
deposits of approximately $1.38 billion,
representing approximately 24.9 percent
of market deposits. M&T operates the
14th largest depository institution in the
market, controlling deposits of approximately $61.3 million, representing
approximately 1.1 percent of market
deposits. On consummation of the proposal, M&T would operate the largest
depository institution in the market,
controlling deposits of approximately
$1.44 billion, representing approximately
26 percent of market deposits. The HHI
would increase by 55 points to 1227.
ORDERS ISSUED UNDER
BANKING ACT
INTERNATIONAL
Bancolombia, S.A.
Medellin, Colombia
Order Approving Establishment of an Agency
Bancolombia, S.A. ("Bank"), Medellin, Colombia, a foreign bank within the meaning of the International Banking
Act ("IBA"), has applied under section 7(d) of the IB A
(12 U.S.C. § 3105(d)) to establish an agency in Miami,
Florida. The Foreign Bank Supervision Enhancement Act
of 1991, which amended the IBA, provides that a foreign
bank must obtain the approval of the Board to establish an
agency in the United States.
Notice of the application, affording interested persons an
opportunity to comment, has been published in a newspaper of general circulation in Miami, Florida (Miami Daily
Business Review, April 1, 2002). The time for filing comments has expired, and the application and all comments
received have been considered.
Bank, with total consolidated assets of approximately
$4.3 billion, is the largest commercial bank in Colombia.1 Bank's shares are publicly traded in Colombia and
the United States. Suramericana de Inversiones S.A.
("Suramericana"), a Colombian insurance company, and
Compania de Cementos Argos, S.A. ("Argos"), a Colombian industrial company, control approximately 53 percent
of Bank's shares.2 Bank's remaining shares are widely
1. Unless otherwise indicated all data are as of December 31, 2002.
2. Due to significant cross-shareholdings, Suramericana and Argos
are subsidiaries of each other. Suramericana and Argos are part of a
loosely associated group of Colombian financial services and industrial companies collectively referred to as Grupo Empresarial Antioqueno ("Grupo"). Other Grupo-associated companies own a combined 9.1 percent of Bank's voting shares. Grupo is not a legal entity
and has no formal status under Colombian corporate, securities, or
banking laws, although Grupo companies informally coordinate when
held, with no individual or entity controlling more than
10 percent of voting shares.
Bank engages in commercial and retail banking
and international trade services through more than
320 branches, and it engages in leasing, trust, fiduciary,
asset management, investment banking, and securities
brokerage services through several subsidiaries. In addition, Bank operates bank subsidiaries in Panama and the
Cayman Islands. Bank does not have any operations in the
United States.
The proposed agency would complement and expand
Bank's current business. It primarily would offer corporate
banking, correspondent banking, international trade, private banking, cash management, and portfolio investment
services.
In order to approve an application by a foreign bank to
establish an agency in the United States, the IBA and
Regulation K require the Board to determine that the
foreign bank applicant engages directly in the business of
banking outside 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. 211.24).3 The Board may also take
into account additional standards as set forth in the IBA
and Regulation K (12 U.S.C. §3105(d)(3)-(4); 12 C.F.R.
211.24(c)(2)-(3)).
The IBA includes a limited exception to the general
requirement relating to comprehensive, consolidated supervision (12 U.S.C. §3105(d)(6)). This exception provides
that, if the Board is unable to find that a foreign bank
seeking to establish a branch, agency, or commercial lending company is subject to comprehensive supervision or
regulation on a consolidated basis by the appropriate
making certain strategic business decisions. Suramericana and Argos
are considered to control Bank for purposes of the Bank Holding
Company Act of 1956, as amended ("BHC Act"), and the IBA and
are considered to be "ultimate parents" of Bank for purposes of
Regulation K. The 37.9 percent of Bank's voting shares not owned by
Grupo-associated companies are widely held, with no single individual or entity owning 5 percent or more of voting shares.
3. In assessing this standard, the Board considers, among other
factors, the extent to which the home country supervisors:
(i) Ensure that the bank has adequate procedures for monitoring and
controlling its activities worldwide;
(ii) Obtain information on the condition of the bank and its subsidiaries and offices through regular examination reports, audit
reports, or otherwise;
(iii) Obtain information on the dealings with and relationship between
the bank and its affiliates, both foreign and domestic;
(iv) Receive from the bank financial reports that are consolidated on a
worldwide basis or comparable information that permits analysis
of the bank's financial condition on a worldwide consolidated
basis;
(v) Evaluate prudential standards, such as capital adequacy and risk
asset exposure, on a worldwide basis.
These are indicia of comprehensive, consolidated supervision. No
single factor is essential, and other elements may inform the Board's
determination.
Legal Developments
authorities in its home country, the Board may nevertheless
approve an application by such foreign bank if:
(i) The appropriate authorities in the home country of the
foreign bank are actively working to establish arrangements for the consolidated supervision of such bank;
and
(ii) All other factors are consistent with approval
(12 U.S.C. §3105(d)(6)(A)).
In deciding whether to exercise its discretion to approve
an application under authority of this exception, the Board
shall also consider whether the foreign bank has adopted
and implemented procedures to combat money laundering
(12 U.S.C. §3105(d)(6)(B)). The Board also may take into
account whether the home country of the foreign bank is
developing a legal regime to address money laundering or
is participating in multilateral efforts to combat money
laundering (12 U.S.C. §3105(d)(6)(B)).
As noted above, Bank engages directly in the business of
banking outside the United States. Bank also has provided
the Board with information necessary to assess the application through submissions that address the relevant issues.
With respect to supervision by home country authorities,
the Board previously has determined, in connection with
an application involving another bank in Colombia, that
the bank's home country authorities were working to establish arrangements for the consolidated supervision of the
bank.4 Bank is supervised by the Colombia Superintendency of Banking on substantially the same terms and
conditions as that other bank.
The Colombian government has taken a number of steps
to combat money laundering. In the past decade, Colombia
has enacted legislation to prevent money laundering and
has established a regulatory infrastructure to assist this
effort. Colombia has established a Financial Information
and Analysis Unit in the Ministry of Finance, which is
responsible for gathering and centralizing information from
public and private entities in Colombia, as well as analyzing such information. The Prosecutor General's office has
established a unit to investigate and prosecute money laundering cases and forfeiture actions. In addition, the Superintendency has issued circulars that require financial institutions to establish systems for the prevention of money
laundering.
Colombia participates in international fora that address
the issues of asset forfeiture and the prevention of money
laundering. Colombia is a party to the 1988 U.N. Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances ("Convention"), and the United States has
certified that Colombia has taken adequate measures to
achieve full compliance with the goals and objectives of
the Convention. Colombia also has signed the U.N. Convention against Transnational Organized Crime and is a
member of the Organization of American States InterAmerican Drug Abuse Control Commission Experts Group
to Control Money Laundering. Colombia is not a member
4. Banco de Bogota, S.A., 87 Federal Reserve Bulletin 552 (2001).
235
of the Financial Action Task Force ("FATF"), although
FATF's recommendations have been taken into account by
Bank in developing its manuals, internal procedures, and
training courses.
Bank has taken measures to ensure compliance with
Colombian law and regulations, including implementing
policies and procedures related to "know-your-customer"
practices, suspicious transaction reporting, record keeping,
and employee training.5 An internal central compliance
unit monitors Bank's adherence to these policies and
procedures.
Based on all the facts of record, it has been determined
that Bank's home country authorities are actively working
to establish arrangements for the consolidated supervision
of Bank, and that considerations relating to the steps taken
by Bank and its home country to combat money laundering
are consistent with approval under this standard.
The additional standards set forth in the IBA (12 U.S.C.
§3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)) have also been
taken into account. The Superintendency has no objection
to the establishment of the proposed agency.
Bank must comply with the minimum capital standards
of the Basel Capital Accord ("Accord"), as implemented
by Colombia. Bank's capital is in excess of the minimum
levels that would be required by the Accord and is considered equivalent to the capital that would be required of a
U.S. banking organization. Managerial and other financial
resources of Bank are also considered consistent with
approval, and Bank appears to have the experience and
capacity to support the proposed agency. Bank has established controls and procedures for the proposed agency to
ensure compliance with U.S. law, as well as controls and
procedures for its worldwide operations generally.
With respect to access to information about the operations of Bank and its parents, the restrictions on disclosure
in relevant jurisdictions in which Bank and its parents
operate have been reviewed and communications with
relevant government authorities regarding access to information have been conducted. Bank and its parents have
committed to make available to the Board such information on the operations of Bank and any of its affiliates that
the Board deems necessary to determine and enforce compliance with the IBA, the BHC Act, and other applicable
federal law. To the extent that the provision of such information to the Board may be prohibited by law, Bank and
its parents have committed to cooperate with the Board to
obtain any necessary consents or waivers that might be
required from third parties for disclosure of such information. In addition, subject to certain conditions, the Superintendency 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, Bank has provided adequate
assurances of access to any necessary information that the
Board may request.
5. Bank's foreign bank subsidiaries have adopted the same policies
and procedures for the prevention of money laundering.
236
Federal Reserve Bulletin • May 2003
On the basis of all the facts of record, and subject to the
commitments made by Bank and its parents, as well as the
terms and conditions set forth in this order, Bank's application to establish an agency should be, and hereby is,
approved.6 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 or recommend termination of any of Bank's
direct or indirect activities in the United States. Approval
of this application also is specifically conditioned on compliance by Bank and its parents with the commitments
made in connection with this application and with the
conditions in this order.7 The commitments and conditions
referred to above are conditions imposed in writing in
connection with this decision and may be enforced in
proceedings under 12 U.S.C. §1818 against Bank and its
affiliates.
By order, approved pursuant to authority delegated by
the Board, effective March 27, 2003.
ROBERT DEV. FRIERSON
Deputy Secretary of the Board
DEPFA BANK pic
Dublin, Ireland
Order Approving Establishment of an Agency
DEPFA BANK pic ("Bank"), Dublin, Ireland, a foreign
bank within the meaning of the International Banking Act
("IBA"), has applied under section 7(d) of the IBA
(12 U.S.C. §3105(d)) to establish an agency in New York,
New York. The Foreign Bank Supervision Enhancement
Act of 1991, which amended the IBA, provides that a
foreign bank must obtain the approval of the Board to
establish an agency in the United States.
Notice of the application, affording interested persons
an opportunity to comment, has been published in a
newspaper of general circulation in New York, New York
(New York Post, October 3, 2002). The time for filing
comments has expired, and all comments have been
considered.
6. Approved by the Director of the Division of Banking Supervision and Regulation, with the concurrence of the General Counsel,
pursuant to authority delegated by the Board. See 12 C.F.R.
265.7(d)(12).
7. The Board's authority to approve the establishment of the proposed agency parallels the continuing authority of the State of Florida
to license offices of a foreign bank. The approval of this application
does not supplant the authority of the State of Florida, or its agent, the
Florida Department of Banking and Finance, to license the proposed
office of Bank in accordance with any terms or conditions that it may
impose.
Bank, with total assets of approximately $146 billion,
is the largest bank in Ireland.1 Bank was formed in 2002 as
part of a reorganization of the DEPFA Group. In that
reorganization, the group's public finance business was
separated from its real property business. Bank is the
parent company of the public finance business, which
includes DEPFA Deutsche Pfandbriefbank AG, Frankfurt,
Germany. DEPFA Holding Verwaltungsgesellschaft mBH
("DEPFA Holding"), Dusseldorf, Germany, owns
40.8 percent of Bank. DEPFA Holding also owns 40.8 percent of Aareal Bank AG, Wiesbaden, Germany, which took
over all the real property business formerly conducted by
members of the DEPFA Group. DEPFA Holding is an
investment vehicle for eight primarily financial institutions
in Germany, Switzerland, and France. No other shareholder owns more than 5 percent of the shares of Bank.
Bank is a qualifying foreign banking organization under
Regulation K.
Bank currently operates a U.S. nonbanking subsidiary,
DEPFA USA Inc., New York, New York, that provides
research and advisory services in the areas of economics,
banking, and capital markets.
Bank seeks to establish the New York agency to expand
the range of services offered and activities in the United
States. On establishment of the proposed agency, Bank
intends to liquidate DEPFA USA Inc. and transfer its assets
and business to the agency. In addition, the proposed
agency would provide a range of services to U.S. municipalities and government-sponsored entities.
In order to approve an application by a foreign bank
to establish an agency in the United States, the IBA and
Regulation K require the Board to determine that the
foreign bank applicant engages directly in the business of
banking outside the United States and has furnished to the
Board the information it needs to assess the application
adequately. The Board also shall take into account whether
the foreign bank and any foreign bank parent is subject to
comprehensive supervision or regulation on a consolidated
basis by its home country supervisor (12 U.S.C.
§ 3105(d)(2); 12 C.F.R. 211.24).2 The Board may also take
into account additional standards as set forth in the IBA
1. Asset data are as of June 30, 2002.
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
of the bank's financial condition on a worldwide consolidated
basis;
(v) Evaluate prudential standards, such as capital adequacy and risk
asset exposure, on a worldwide basis. These are indicia of comprehensive, consolidated supervision. No single factor is essential, and other elements may inform the Board's determination.
Legal Developments
and Regulation K (12 U.S.C. §3105(d)(3)-(4); 12 C.F.R.
211.24(c)(2)-(3)).
As noted above, Bank engages directly in the business of
banking outside the United States. Bank also has provided
the Board with information necessary to assess the application through submissions that address the relevant issues.
With respect to supervision by home country authorities,
the Federal Reserve previously has determined, in connection with applications involving other banks in Ireland, that
those banks were subject to home country supervision on a
consolidated basis.3 Bank is supervised by the banking
regulatory authorities in Ireland on substantially the same
terms and conditions as those other banks. Based on all the
facts of record, it has been determined that Bank is subject
to comprehensive supervision on a consolidated basis by
its home country supervisor.
The Board has also taken into account the additional
standards set forth in section 7 of the IBA and Regulation K (see 12 U.S.C. §3105(d)(3)-(4); 12 C.F.R.
211.24(c)(2)-(3)). The home country supervisor of Bank
has no objection to the establishment of the proposed
agency.
Ireland's risk-based capital standards are consistent with
those established by the Basel Capital Accord. Bank's
capital is in excess of the minimum levels that would be
required by the Basel Capital Accord and is considered
equivalent to capital that would be required of a U.S.
banking organization. Managerial and other financial
resources of Bank also are considered consistent with
approval, and Bank appears to have the experience and
capacity to support the proposed agency. In addition, Bank
has established controls and procedures for the proposed
agency to ensure compliance with U.S. law, as well as
controls and procedures for its worldwide operations
generally.
Ireland is a member of the Financial Action Task Force
and subscribes to its recommendations on measures to
combat money laundering. In accordance with these recommendations, Ireland has enacted laws and developed
regulatory standards to deter money laundering. Money
laundering is illegal in Ireland, and financial institutions
are required to establish internal policies, procedures, and
systems for the detection and prevention of money laundering throughout their worldwide operations. Bank has policies and procedures to comply with these laws and regulations that are monitored by governmental entities
responsible for anti-money laundering compliance.
With respect to access to information about Bank's
operations, the Board has reviewed the restrictions on
disclosure in relevant jurisdictions in which Bank operates
and has communicated with relevant government authorities regarding access to information. Bank and its ultimate
parent, DEPFA Holding, have committed to make available to the Board such information on the operations of
3. See Anglo Irish Bank Corporation pic, 85 Federal Reserve
Bulletin 587 (1999); Allied Irish Banks, p.l.c., 83 Federal Reserve
Bulletin 607 (1997); Bank of Ireland, 81 Federal Reserve Bulletin 511
(1995).
237
Bank and any of its affiliates that the Board deems necessary to determine and enforce compliance with the IBA,
the Bank Holding Company Act, and other applicable
federal law. To the extent that the provision of such information to the Board may be prohibited by law or otherwise, Bank and DEPFA Holding have committed to cooperate with the Board to obtain any necessary consents or
waivers that might be required from third parties for disclosure of such information. In light of these commitments
and other facts of record, and subject to the condition
described below, it has been determined that Bank and
DEPFA Holding have provided adequate assurances of
access to any necessary information that the Board may
request.
On the basis of all the facts of record, and subject to the
commitments made by Bank and DEPFA Holding, as well
as the terms and conditions set forth in this order, Bank's
application to establish an agency in New York, New York,
is hereby approved.4 Should any restrictions on access to
information on the operations or activities of Bank and its
affiliates subsequently interfere with the Board's ability to
obtain information to determine and enforce compliance by
Bank or its affiliates with applicable federal statutes, the
Board may require termination of any of Bank's direct or
indirect activities in the United States. Approval of this
application also is specifically conditioned on compliance
by Bank with the commitments made in connection with
this application and with the conditions in this order.5 The
commitments and conditions referred to above are conditions imposed in writing by the Board in connection with
this decision and may be enforced in proceedings under
12 U.S.C. § 1818 against Bank and its affiliates.
By order, approved pursuant to authority delegated by
the Board, effective March 21, 2003.
ROBERT DEV. FRIERSON
Deputy Secretary of the Board
The Wakashio Bank, Limited
Tokyo, Japan
Order Approving Establishment of Branches
The Wakashio Bank, Limited, Tokyo, Japan ("Wakashio"),
a foreign bank within the meaning of the International
Banking Act ("IBA"), has applied under section 7(d) of
the IBA (12 U.S.C. §3105(d)) to establish branches in
Los Angeles and San Francisco, California, and New York,
4. Approved by the Director of the Division of Banking Supervision and Regulation, with the concurrence of the General Counsel,
pursuant to authority delegated by the Board.
5. The Board's authority to approve the establishment of the
proposed agency parallels the continuing authority of the State of
New York to license offices of a foreign bank. The Board's approval
of this application does not supplant the authority of the New York
State Banking Department to license the proposed agency of Bank in
accordance with any terms or conditions that it may impose.
238
Federal Reserve Bulletin • May 2003
New York.1 The Foreign Bank Supervision Enhancement
Act of 1991, which amended the IBA, provides that a
foreign bank must obtain the Board's approval to establish
a branch in the United States.
Notice of the application, affording interested persons an
opportunity to comment, has been published in a newspaper of general circulation in Los Angeles, California
(Los Angeles Times, January 21, 2003); San Francisco,
California (San Francisco Chronicle, January 21, 2003);
and New York, New York (New York Times, January 28,
2003). The time for filing comments has expired, and all
comments have been considered.2
Wakashio, with consolidated assets of approximately
$4 billion,3 is a community bank that serves individuals
and small businesses in the Tokyo metropolitan area.
Wakashio was a subsidiary of Sumitomo Mitsui Banking
Corporation ("SMBC"), also in Tokyo.4 As part of an
internal reorganization on January 17, 2003, Wakashio
became a direct subsidiary of Sumitomo Mitsui Financial
Group ("SMFG"), the top-tier holding company of
SMBC.5 SMBC plans to merge with and into Wakashio,
with Wakashio as the surviving entity.6
SMBC has three branches in the United States that offer
general commercial banking services for Japanese and
U.S. corporate customers. On the merger of SMBC into
Wakashio, New SMBC would acquire these branches.
The proposed branches would continue the operations
and activities of the former SMBC branches. The transaction confers some accounting and regulatory benefits in
Japan under standards applied by the Financial Services
Agency of Japan ("FSA"). No expansion or restructuring
of existing U.S. operations would result from the proposed
reorganization. In addition, the proposal would not materially affect the management of SMBC's operations, including its subsidiary insured depository institution, in the
United States. The corporate reorganization would be
effected through the exchange of shares. No debt would be
issued by Wakashio, SMBC, or any of its subsidiaries as
part of the transactions that would effect the reorganization. This transaction results in no substantive change in
the capital of SMBC.
In order to approve an application by a foreign bank to
establish branches in the United States, the IBA and Regulation K require the Board to determine that the foreign
bank applicant engages directly in the business of banking
outside of the United States and has furnished to the Board
the information it needs to assess the application ade1. The Board has separately approved Wakashio's application to
become a bank holding company with respect to Manufacturers Bank,
Los Angeles, California. See The Wakashio Bank, Limited (Order
dated March 14, 2003) ("Section 3 Order").
2. One comment was received. See Section 3 Order for a discussion of the concerns expressed by the commenter.
3. Asset data are as of September 30, 2002. Dollar amounts are
converted from Japanese yen at ¥121.65 = US $1.
4. SMBC, with total consolidated assets equivalent to $857.1 billion, ranks fourth among the world's commercial banks by assets.
5. SMFG was formed in December 2002.
6. Wakashio would be renamed Sumitomo Mitsui Banking Corporation ("New SMBC") on consummation of the merger.
quately. The Board also shall take into account whether the
foreign bank and any foreign bank parent is subject to
comprehensive supervision or regulation on a consolidated
basis by its home country supervisor (12 U.S.C.
§3105(d)(2); 12 C.F.R. 211.24).7 The Board may also take
into account additional standards as set forth in the IBA
and Regulation K (12 U.S.C. §3105(d)(3)-(4); 12 C.F.R.
211.24(c)(2)).
As noted above, Wakashio engages directly in the business of banking outside the United States. Wakashio also
has provided the Board with information necessary to
assess the relevant issues in the application. The Board has
previously determined, in applications under the IBA and
Bank Holding Company Act ("BHCA"), that certain Japanese commercial banks were subject to comprehensive
consolidated supervision by their home country supervisor.8 In this case, the Board has determined that on
consummation of the transaction, New SMBC would be
supervised on substantially the same terms and conditions
as these banks.
Based on all the facts of record, the Board has determined that New SMBC would be subject to comprehensive
supervision on a consolidated basis by its home country
supervisor after consummation of the proposal.
The additional standards set forth in section 7 of the
IBA and Regulation K (see 12 U.S.C. §3105(d)(3)-(4);
12 C.F.R. 211.24(c)(2)) have also been taken into account.
The FSA has no objection to the establishment of the
proposed branches.
Japan has enacted laws, and the FSA has promulgated
implementing regulations, designed to prevent money laundering. The laws and regulations require financial institutions, including savings banks, to establish and implement
policies, procedures, and controls for preventing and
detecting money laundering and to report certain cash
transactions and suspicious transactions to appropriate
authorities. Compliance with applicable laws and regulations is monitored by the FSA and the institution's external
7. In assessing this standard, the Board considers, among other
factors, the extent to which the home country supervisors:
(i) Ensure that the bank has adequate procedures for monitoring and
controlling its activities worldwide;
(ii) Obtain information on the condition of the bank and its subsidiaries and offices through regular examination reports, audit
reports, or otherwise;
(iii) Obtain information on the dealings with and relationship between
the bank and its affiliates, both foreign and domestic;
(iv) Receive from the bank financial reports that are consolidated on a
worldwide basis or comparable information that permits analysis
of the bank's financial condition on a worldwide consolidated
basis;
(v) Evaluate prudential standards, such as capital adequacy and risk
asset exposure, on a worldwide basis. These are indicia of comprehensive, consolidated supervision. No single factor is essential, and other elements may inform the Board's determination.
8. See The Sumitomo Bank, Limited, 82 Federal Reserve Bulletin
369 (1996); Mizuho Holdings, Inc., 86 Federal Reserve Bulletin 776
(2000); UJF Holdings, Inc., 87 Federal Reserve Bulletin 270 (2001);
and Mitsubishi Tokyo Financial Group, Inc., 87 Federal Reserve
Bulletin 349 (2001).
Legal Developments
auditors. Wakashio has policies and procedures to comply
with these laws and regulations.
Financial factors are considered consistent with approval
of this non-expansionary reorganization. Managerial
resources of Wakashio also are considered consistent with
approval, and Wakashio appears to have the experience
and capacity to support the proposed branches. In addition,
Wakashio has established controls and procedures for the
proposed branches to ensure compliance with U.S. law, as
well as controls and procedures for its worldwide operations generally.
With respect to access to information about Wakashio's
operations, the restrictions on disclosure in relevant jurisdictions in which Wakashio operates have been reviewed
and the relevant government authorities have been communicated with regarding access to information. Wakashio
has committed to make available to the Board such information on the operations of New SMBC and any of its
affiliates that the Board deems necessary to determine and
enforce compliance with the IBA, the BHCA, and other
applicable federal law. To the extent that the provision of
such information to the Board may be prohibited by law or
otherwise, Wakashio has committed to cooperate with the
Board to obtain any necessary consents or waivers that
might be required from third parties for disclosure of such
information. In addition, subject to certain conditions, the
FSA may share information on Wakashio'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 has determined that
Wakashio has provided adequate assurances of access to
any necessary information that the Board may request.
On the basis of all the facts of record, and subject to the
commitments made by Wakashio, and the terms and con-
239
ditions set forth in this order, Wakashio's application to
establish branches is hereby approved. Should any restrictions on access to information on the operations or activities of New SMBC and its affiliates subsequently interfere
with the Board's ability to obtain information to determine
and enforce compliance by New SMBC or its affiliates
with applicable federal statutes, the Board may require or
recommend termination of any of New SMBC's direct or
indirect activities in the United States. Approval of this
application also is specifically conditioned on compliance
by New SMBC with the commitments made in connection
with the application and with the conditions in this order.9
The commitments and conditions referred to above are
conditions imposed in writing by the Board in connection with this decision and may be enforced in proceedings under 12 U.S.C. §1818 against New SMBC and its
affiliates.
By order of the Board of Governors, effective March 14,
2003.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn.
ROBERT DEV. FRIERSON
Deputy Secretary of the Board
9. The authority to approve the establishment of the proposed
branches parallels the continuing authority of the States of California
and New York to license offices of a foreign bank. The approval of
this application does not supplant the authority of those states or their
agents, the California Department of Financial Institutions or the New
York State Banking Department ("Departments"), to license the proposed offices of New SMBC in accordance with any terms or conditions that the Departments may impose.
Legal Developments continue on page 240.
240
Federal Reserve Bulletin • May 2003
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Section 3
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
ABM Holding Company,
Miltonvale, Kansas
Bank of Commerce Holdings, Inc.,
Sarasota, Florida
Bank of Granite Corporation,
Granite Falls, North Carolina
BNW Bancorp, Inc.,
Bellingham, Washington
Cera Stichting VZW,
Belgium
Cera Beheersmaatschappij N.V.,
Belgium
Cera Holding CVBA,
Belgium
Almancora CVA,
Belgium
Almanij N.V.,
Belgium
KBC Bankverzekeringsholding N.V.,
Belgium
KBC Bank N.V.,
Belgium
First Bancorp, Inc.,
Lebanon, Virginia
First Banks, Inc.,
St. Louis, Missouri
Citizens State Bank,
Miltonvale, Kansas
The Bank of Commerce,
Sarasota, Florida
First Commerce Corporation,
Charlotte, North Carolina
Bank NorthWest,
Bellingham, Washington
LBS Bank,
New York, New York
Nova Ljubljanska Banka d.d,
Ljubljana, Slovenia
Kansas City
March 12, 2003
Atlanta
March 14, 2003
Richmond
March 6, 2003
San Francisco
March 5, 2003
New York
March 24, 2003
Richmond
March 20, 2003
St. Louis
March 3, 2003
Minneapolis
March 19, 2003
Atlanta
March 15, 2003
San Francisco
March 5, 2003
Atlanta
March 5, 2003
Kansas City
March 21, 2003
Kansas City
March 21, 2003
New York
March 19, 2003
First Commonwealth Bank,
Wise, Virginia
Bank of Ste. Genevieve,
Sainte Genevieve, Missouri
Allegiant Bancorp, Inc.,
St. Louis, Missouri
Montana First National Bancorporation,
First National Bancorp, Inc.,
Kalispell, Montana
Libby, Montana
Montana First National Bank,
Kalispell, Montana
Charter Banking Corporation,
F.N.B. Corporation,
Tampa, Florida
Naples, Florida
Southern Exchange Bank,
Tampa, Florida
Foundation Bank,
Foundation Bancorp, Inc.,
Bellevue, Washington
Bellevue, Washington
Georgia Commerce Bancshares, Inc., Georgia Commerce Bank,
Atlanta, Georgia
Atlanta, Georgia
First BankCentre,
Healthcare Bancorp, Inc.,
Broken Arrow, Oklahoma
Broken Arrow, Oklahoma
Heritage Bank,
Heritage Bancshares, Inc.,
Topeka, Kansas
Topeka, Kansas
Interchange Financial Services
Bridge View Bancorp,
Englewood Cliffs, New Jersey
Corporation,
Saddle Brook, New Jersey
Legal Developments
241
Section 3—Continued
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Liberty Financial Services, Inc.,
Sioux City, Iowa
Liberty National Bank,
Sioux City, Iowa
Frontier Bank,
Rock Rapids, Iowa
Rock Rivers Bancorp.,
Rock Rapids, Iowa
Mechanics Bank,
Water Valley, Mississippi
Bank of Morton,
Morton, Mississippi
Putnam Savings Bank,
Putnam, Connecticut
Chicago
February 28, 2003
St. Louis
March 6, 2003
Atlanta
March 6, 2003
Boston
March 11, 2003
Dallas
March 19, 2003
Richmond
March 6, 2003
Atlanta
March 14, 2003
Richmond
March 19, 2003
New York
February 28, 2003
Minneapolis
March 11, 2003
Mechanics Banc Holding Company,
Water Valley, Mississippi
Morton Bancorp, Inc.,
Morton, Mississippi
Putnam Bancorp MHC, Inc.,
Putnam, Connecticut
PSB Holdings, Inc.,
Putnam, Connecticut
Ruff Management, LLC,
Longview, Texas
Surrey Bancorp,
Mount Airy, North Carolina
United Community Banks, Inc.,
Blairsville, Georgia
Uwharrie Capital Corp.,
Albemarle, North Carolina
VSB Bancorp, Inc.,
Staten Island, New York
Waumandee Bancshares, Ltd.,
Waumandee, Wisconsin
Ruff Family Partners, Ltd.,
Longview, Texas
Surrey Bank & Trust,
Mount Airy, North Carolina
First Georgia Holding, Inc.,
Brunswick, Georgia
First Georgia Bank,
Brunswick, Georgia
Cabarrus Bank & Trust Company,
Concord, North Carolina
Victory State Bank,
Staten Island, New York
Waumandee State Bank,
Waumandee, Wisconsin
Section 4
Applicant(s)
Nonbanking Activity/Company
Reserve Bank
Effective Date
FNB Corp.,
Asheboro, North Carolina
Integra Bank Corporation,
Evansville, Indiana
Dover Mortgage Company,
Charlotte, North Carolina
Integra Reinsurance Company, Ltd.,
Turks and Caicos Islands,
British West Indies
Integra Bank, National Association,
Evansville, Indiana
Ocean Bank,
Miami, Florida
To engage de novo in the nonbanking
activity of extending credit and
servicing loans
Richmond
March 25, 2003
St. Louis
March 7, 2003
Atlanta
March 12, 2003
Chicago
March 11, 2003
Ocean Bankshares, Inc.,
Miami, Florida
SSB Holding Co., Inc.,
Baxter, Iowa
242
Federal Reserve Bulletin • May 2003
APPLICATIONS APPROVED UNDER BANK MERGER ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Applicant(s)
Bank(s)
Reserve Bank
Effective Date
Bridge View Bank,
Englewood Cliffs, New Jersey
First Bank,
Creve Coeur, Missouri
The First Bank and Trust Company,
Lebanon, Virginia
State Bank of La Crosse,
La Crosse, Wisconsin
Interchange Bank,
Saddle Brook, New Jersey
First Bank & Trust,
San Francisco, California
First Commonwealth Bank,
Wise, Virginia
First National Bank,
La Crescent, Minnesota
New York
March 19, 2003
St. Louis
March 14, 2003
Richmond
March 20, 2003
Minneapolis
March 21, 2003
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.
seeking damages for personal injury. On March 30,
2003, the district court granted the government's motion
to dismiss the action.
Sedgwick v. United States, No. 02-5378 (D.C. Circuit, filed
November 26, 2002). Appeal of the dismissal of appellant's claim for a declaratory judgment under the Federal Tort Claims Act and the Constitution regarding the
banking agencies' alleged failure to intervene on his
behalf in civil litigation involving a regulated institution.
On March 20, 2003, the court of appeals summarily
affirmed the district court's dismissal of the action.
Community Bank & Trust v. United States, No. 01-571C
(Ct. Fed. CI., filed October 3, 2001). Action challenging
on constitutional grounds the failure to pay interest on
reserve accounts held at Federal Reserve Banks.
Albrecht v. Board of Governors, No. 02-5325 (D.C. Cir.,
filed October 18, 2002). Appeal of district court order
dismissing challenge to the method of funding of the
retirement plan for certain Board employees.
Caesar v. United States, No. 02-0612 (EGS) (D.D.C.),
removed on April 1, 2002 from No. 02-1502 (D.C.
Superior Court, originally filed March 1, 2002). Action
Artis v. Greenspan, No. 01-CV-0400 (EGS) (D.D.C., complaint filed February 22, 2001). Employment discrimination action. On August 15, 2001, the district court consolidated the action with Artis v. Greenspan, No. 99-CV2073 (EGS) (D.D.C., filed August 3, 1999), also an
employment discrimination action.
Fraternal Order of Police v. Board of Governors,
No. 1:98CV03116 (WBB)(D.D.C., filed December 22,
1998). Declaratory judgment action challenging Board
regulation on labor-management relations at Reserve
Banks.
A1
Financial and Business Statistics
A3
DOMESTIC FINANCIAL STATISTICS
Money Stock and Bank Credit
A4
A5
A6
Federal Finance
GUIDE TO TABLES
Reserves and money stock measures
Reserves of depository institutions and Reserve Bank
credit
Reserves and borrowings—Depository
institutions
A25 Federal debt subject to statutory limitation
A25 Gross public debt of U.S. Treasury—
Types and ownership
A26 U.S. government securities
dealers—Transactions
A27 U.S. government securities dealers—
Positions and financing
A28 Federal and federally sponsored credit
agencies—Debt outstanding
Securities Markets and Corporate Finance
Policy Instruments
A7
A8
A9
Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Federal Reserve open market transactions
Federal Reserve Banks
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holding
Monetary and Credit Aggregates
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock measures
Commercial Banking Institutions—
Assets and Liabilities
A15
A16
A17
A19
A20
All commercial banks in the United States
Domestically chartered commercial banks
Large domestically chartered commercial banks
Small domestically chartered commercial banks
Foreign-related institutions
A29 New security issues—Tax-exempt state and local
governments and U.S. corporations
A30 Open-end investment companies—Net sales
and assets
A30 Domestic finance companies—Assets and liabilities
A31 Domestic finance companies—Owned and managed
receivables
Real Estate
A3 2 Mortgage markets—New homes
A3 3 Mortgage debt outstanding
Consumer Credit
A34 Total outstanding
A34 Terms
Flow of Funds
A35
A37
A3 8
A39
Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities
Financial Markets
ALL Commercial paper outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Interest rates—Money and capital markets
A24 Stock market—Selected statistics
DOMESTIC NONFINANCIAL STATISTICS
Selected Measures
A40 Output, capacity, and capacity utilization
A42 Industrial production—Indexes and gross value
A2
Federal Reserve Bulletin • May 2003
INTERNATIONAL STATISTICS
Summary
Reported by Nonbanking
Enterprises in the United
Statistics
A44 U.S. international transactions
A45 U.S. reserve assets
A45 Foreign official assets held at Federal Reserve
Banks
A46 Selected U.S. liabilities to foreign official
institutions
Reported by Banks in the United
A46
A47
A49
A50
States
Liabilities to, and claims on, foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A51 Banks' own claims on unaffiliated foreigners
Business
States
A52 Liabilities to unaffiliated foreigners
A53 Claims on unaffiliated foreigners
Securities
Holdings
and
Transactions
A54 Foreign transactions in securities
A55 Marketable U.S. Treasury bonds and
notes—Foreign transactions
Interest and Exchange
Rates
A56 Foreign exchange rates
A57 GUIDE TO SPECIAL TABLES AND
STATISTICAL RELEASES
A58 INDEX TO STATISTICAL TABLES
A3
Guide to Tables
SYMBOLS AND
c
e
n.a.
n.e.c.
P
r
ABBREVIATIONS
ABS
ATS
BIF
CD
CMO
CRA
FAMC
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSA
FSLIC
G-7
Corrected
Estimated
Not available
Not elsewhere classified
Preliminary
Revised (Notation appears in column heading
when about half the figures in the column have
been revised from the most recently published
table.)
Amount insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is in millions)
Calculated to be zero
Cell not applicable
Asset-backed security
Automatic transfer service
Bank insurance fund
Certificate of deposit
Collateralized mortgage obligation
Community Reinvestment Act of 1977
Federal Agricultural Mortgage Corporation
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Farm Service Agency
Federal Savings and Loan Insurance Corporation
Group of Seven
GENERAL
INFORMATION
*
0
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
G-10
GDP
GNMA
GSE
HUD
IMF
IOs
IPCs
IRA
MMDA
MSA
NAICS
NOW
OCDs
OPEC
OTS
PMI
POs
REIT
REMICs
RHS
RP
RTC
SCO
SDR
SIC
TIIS
VA
Group of Ten
Gross domestic product
Government National Mortgage Association
Government-sponsored enterprise
Department of Housing and Urban
Development
International Monetary Fund
Interest only, stripped, mortgage-backed securities
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Metropolitan statistical area
North American Industry Classification System
Negotiable order of withdrawal
Other checkable deposits
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Private mortgage insurance
Principal only, stripped, mortgage-backed securities
Real estate investment trust
Real estate mortgage investment conduits
Rural Housing Service
Repurchase agreement
Resolution Trust Corporation
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Treasury inflation-indexed securities
Department of Veterans Affairs
include not fully guaranteed issues) as well as direct obligations of the U.S. Treasury.
"State and local government" also includes municipalities,
special districts, and other political subdivisions.
A4
1.10
Domestic Financial Statistics • May 2003
RESERVES AND M O N E Y STOCK MEASURES
Percent annual rate of change, seasonally adjusted1
2002
2003
2002
Monetary or credit aggregate
Feb.
Q3
Q4
-12.6
-12.3
-12.2
8.8
-13.5
-12.4
-14.0
7.5
-2.0
-4.8
-3.5
6.9
.3
-2.1
1.2
5.0
-2.1
-4.5
.6
5.1
15.4
13.9
11.5
5.7
13.0
1.6
19.0
7.5
14.7
26.0
16.3
6.7
4.4
-3.1
4.4
10.0
Concepts of money*
5 Ml
6 M2
7 M3
5.7
6.7
5.8
-.6
4.1
4.1
3.1
9.1
7.7
4.5
7.1
7.5
11.2
8.3
.8
-.9
8.1
17.2
7.8
3.2
7.5r
1.7
6.0
-.7
19.3
11.2
7.7
Nontransaction
8 In M2 5
9 In M3 only6
7.0
3.8
5.4
4.2
10.8
4.5
7.8
8.2
7.5
-15.3
10.5
37.2
1.9
16.9r
7.2
-15.2
9.1
.2
20.4
-16.1
5.1
15.1
-6.3
12.4
20.1
-6.3
3.7
16.9
-9.1
-4.0
14.3
-8.7
9.9
20.9
-7.3
-13.3
3.6
-9.0
-32.6
18.6
-8.0
14.6
15.8
-8.5
18.4
31.0
-12.3
1.5
24.0
-16.6
-8.1
20.5
-12.3
-3.2
20.5
-6.5'
11.1
22.3
-5.9
10.7
13.9
—4.4
16.9
21.7
-2.8 r
15.6
21.3
-5.2
13.4
26.9
-6.8
2.0
-7.8
3.5
-9.2
3.9
4.7
-.8
-4.4
1.9
-2.8
-41.3
1.9
68.7
-8.0
25.0
-14.6
-35.3
-3.7
-20.1
3.0
3.6
-.7
-4.7
27.5
.2
45.0
14.6r
-4.8
11.6
55.3
12.0
77.7
7.9'
-23.8
10.1
34.0
-19.0
Reserves of depository
Total
Required
Nonborrowed
Monetary base 3
Nov.
Jan.'
Q2
1
2
3
4
Oct.
Dec.
Ql
institutions1
components
Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time 7
Large time8-9
Thrift institutions
13
Savings, including MMDAs
14
Small time7
15
Large time 8
10
11
12
Money market mutual funds
16 Retail
17 Institution-only
Repurchase agreements and eurodollars
18 Repurchase agreements 10
19 Eurodollars 10
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 (I) 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 is as follows:
M l : (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government, and
foreign banks and official institutions, less cash items in the process of collection and Federal
Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of
withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions,
credit union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted 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 (3) balances in retail
money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh
balances at depository institutions and money market funds.
Seasonally adjusted M2 is calculated by summing savings deposits, small-denomination
time deposits, and retail money fund balances, each seasonally adjusted separately, and
adding this result to seasonally adjusted M1.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2)
balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all
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.
5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances, each seasonally adjusted separately.
6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) eurodollars (overnight and
term) of U.S. addressees, each seasonally adjusted separately.
7. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRA and Keogh account balances at commercial banks and thrift institutions
are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
10. Includes both overnight and term.
Money Stock and Bank Credit
1.11
A5
RESERVE BALANCES OF DEPOSITORY INSTITUTIONS1
Millions of dollars
Average of
daily figures
Average of daily figures for week ending on date indicated
Jan. 15
Jan. 22
Jan. 29
Feb. 5
Feb. 12
Feb. 19
Feb. 26
SUPPLYING RESERVE FUNDS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Reserve Bank credit outstanding
Securities held outright
U.S. Treasury 2
Bills3
Notes and bonds, nominal 3
Notes and bonds, inflation-indexed 3
Inflation compensation 4
Federal agency 3
Repurchase agreements 5
Loans to depository institutions
Primary credit 6
Secondary credit 6
Seasonal credit
Adjustment credit 6
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account
Treasury currency outstanding
20
21
22
23
24
25
Currency in circulation
Reverse repurchase agreements 7
Foreign official and international accounts . . .
Dealers
Treasury cash holdings
Deposits with Federal Reserve Banks, other than
reserve balances
U.S. Treasury, general account
Foreign official
Service-related
Required clearing balances
Adjustments to compensate for float
Other
Other liabilities and capital
Reserve balances with Federal Reserve Banks 8 .
690,026
621,828
621,818
219,169
389,156
12,242
1,251
10
29,476
89
0
0
46
42
604
38,029
11,043
2,200
34,539
694,979
629,416
629,406
226,682
389,219
12,242
1,263
10
25,395
28
15
0
11
2
565
39,575
11,043
2,200
34,597
696,613
631,830
631,820
228,026
390,305
12,242
1,247
10
24,558
19
15
0
4
0
977
39,229
11,043
2,200
34,650
692,996
629,416
629,406
226,682
389,219
12,242
1,263
10
24,428
16
6
0
11
0
-291
39,426
11,043
2,200
34,597
696,984
629,416
629,406
226,682
389,219
12,242
1,263
10
27,036
19
12
0
7
0
786
39,726
11,043
2,200
34,597
690,574
629,416
629,406
226,682
389,219
12,242
1,263
10
20,143
52
45
0
7
0
744
40,220
11,043
2,200
34,597
694,474
629,415
629,405
226,682
389,219
12,242
1,261
10
24,393
15
11
0
4
0
577
40,074
11,043
2,200
34,597
691,400
629,951
629,941
226,941
389,504
12,242
1,253
10
19,285
31
28
0
3
0
1,698
40,436
11,043
2,200
34,630
701,766
631,009
630,999
227,294
390,217
12,242
1,245
10
30,067
19
14
0
5
0
831
39,840
11,043
2,200
34,657
696,923
634,932
634,922
230,030
391,412
12,242
1,238
10
23,321
13
10
0
4
0
1,322
37,335
11,043
2,200
34,684
678,660
12,862
12,862
0
370
677,745
18,534
18,534
0
366
680,336
18,222
17,954
268
354
676,426
18,152
18,152
0
369
675,941
18,567
18,567
0
368
674,782
18,397
18,397
0
360
675,778
18,483
18,483
0
360
678,459
18,949
17,878
1,071
356
682,830
17,925
17,925
0
358
682,262
17,738
17,738
0
347
16,074
4,891
134
10,808
10,407
402
242
20,061
9,781
17,053
5,773
126
10,907
10,484
423
247
19,651
9,469
16,236
5,053
125
10,819
10,330
489
239
19,664
9,693
16,755
5,244
173
11,128
10,538
590
210
19,738
9,395
17,637
6,133
113
11,166
10,539
627
225
19,916
12,395
18,034
7,162
114
10,538
10,355
183
221
19,873
6,968
16,456
5,392
108
10,724
10,355
368
232
19,513
11,724
15,954
4,681
115
10,918
10,317
601
239
19,450
6,104
16,157
5,048
132
10,730
10,315
415
247
19,659
12,738
16,510
5,249
111
10,904
10,337
567
245
19,964
8,029
ABSORBING RESERVE FUNDS
26
27
28
29
30
31
32
33
Wednesday figures
End-of-month figures
Dec.
Jan.
Feb.
Jan. 15
Jan. 22
Jan. 29
Feb. 5
Feb. 12
Feb. 19
Feb. 26
708,078
629,416
629,406
226,682
389,219
12,242
1,263
10
39,500
40
0
0
31
9
418
38,703
11,043
2,200
34,597
697,826
629,416
629,406
226,682
389,219
12,242
1,263
10
24,750
7
1
0
6
0
3,768
39,884
11,043
2,200
34,597
701,055
636,921
636,911
230,843
392,593
12,242
1,233
10
26,900
5
1
0
4
0
4
37,225
11,043
2,200
34,710
698,283
629,416
629,406
226,682
389,219
12,242
1,263
10
30,000
15
5
0
10
0
-507
39,359
11,043
2,200
34,597
711,435
629,416
629,406
226,682
389,219
12,242
1,263
10
36,750
13
6
0
7
0
5,372
39,884
11,043
2,200
34,597
692,303
629,416
629,406
226,682
389,219
12,242
1,263
10
20,500
11
4
0
7
0
1,961
40,414
11,043
2,200
34,597
687,800
629,411
629,401
226,682
389,219
12,242
1,257
10
27,750
15
13
0
2
0
-9,649
40,273
11,043
2,200
34,597
691,731
630,957
630,947
227,238
390,217
12,242
1,250
10
20,746
4
0
0
4
0
-516
40,541
11,043
2,200
34,630
706,863
631,273
631,263
227,561
390,217
12,242
1,242
10
34,496
17
13
0
4
0
3,838
37,239
11,043
2,200
34,657
700,685
636,006
635,996
230,606
391,913
12,242
1,235
10
25,750
6
1
0
5
0
1,307
37,616
11,043
2,200
34,684
687,518
21,091
21,091
0
367
674,736
18,370
18,370
0
361
681,634
18,018
18,018
0
343
676,076
17,813
17,813
0
369
676,437
18,523
18,523
0
360
675,733
18,466
18,466
0
361
677,992
17,986
17,986
0
356
681,216
17,604
17,604
0
360
684,226
17,850
17,850
0
348
682,915
17,421
17,421
0
343
16,356
4,420
136
10,648
10,534
114
1,152
18,977
11,608
16,558
5,509
102
10,724
10,356
368
223
19,478
16,163
15,406
4,268
224
10,721
10,336
385
193
19,739
13,868
16,785
5,192
253
11,128
10,538
590
213
19,631
15,449
17,635
6,119
122
11,166
10,539
627
228
19,549
26,771
17,882
7,030
100
10,538
10,355
183
214
19,574
8,127
16,782
5,664
148
10,724
10,355
368
246
19,274
3,250
14,777
3,527
103
10,918
10,317
601
228
19,265
6,383
15,553
4,407
134
10,730
10,315
415
281
19,665
17,121
16,246
4,950
154
10,904
10,337
567
238
19,699
11,988
SUPPLYING RESERVE FUNDS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Reserve Bank credit outstanding
Securities held outright
U.S. Treasury 2
Bills3
Notes and bonds, nominal 3
Notes and bonds, inflation-indexed 3
Inflation compensation 4
Federal agency 3
Repurchase agreements 5
Loans to depository institutions
Primary credit6
Secondary credit6
Seasonal credit
Adjustment credit6
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account
Treasury currency outstanding
20
21
22
23
24
25
Currency in circulation
Reverse repurchase agreements 7
Foreign official and international accounts
Dealers
Treasury cash holdings
Deposits with Federal Reserve Banks, other than
reserve balances
U.S. Treasury, general account
Foreign official
Service-related
Required clearing balances
Adjustments to compensate for float
Other
Other liabilities and capital
Reserve balances with Federal Reserve Banks 8 . . . .
ABSORBING RESERVE FUNDS
26
27
28
29
30
31
32
33
1. Amounts of vault cash held as reserves are shown in table 1.12, line 2.
2. Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury
securities.
3. Face value of the securities.
4. Compensation that adjusts for the effect of inflation on the original face value of
inflation-indexed securities.
5. Cash value of agreements, which are fully collateralized by U.S. Treasury and federal
agency securities.
6. The Federal Reserve Banks began offering primary credit and secondary credit on
January 9, 2003. The adjustment credit program was discontinued.
7. Cash value of agreements, which are fully collateralized by U.S. Treasury securities.
The Federal Reserve Banks began using these agreements on December 13, 2002.
8. Excludes required clearing balances and adjustments to compensate for float.
A6
Domestic Financial Statistics • May 2003
1.12
RESERVES AND BORROWINGS
Depository Institutions1
Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification
1
2
3
4
5
6
7
8
9
10
11
12
Reserve balances with Reserve Banks 2
Total vault cash3
Applied vault cash 4
Surplus vault cash 5
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks 7
Total borrowing at Reserve Banks
Primary
Secondary
Seasonal
Adjustment
2002
2003
2000
2001
2002
Dec.
Dec.
Dec.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
7,022
45,245
31,451
13,794
38,473
37,046
1,427
210
9,053
43,919
32,024
11,895
41,077
39,428
1,649
67
9,873
43,334
30,300
13,033
40,173
38,176
1,997
80
8,520
42,892
31,335
11,557
39,854
38,217
1,637
333
8,731
42,231
30,176
12,055
38,907
37,431
1,476
229
8,836
42,933
29,849
13,084
38,685
37,134
1,550
143
9,695
42,144
29,446
12,698
39,141
37,525
1,616
272
9,873
43,334
30,300
13,033
40,173
38,176
1,997
80
45
35
185
148
169
60
120
23
10,004
46,210
32,738
13,471
42,743
41,082
1,660
27
12
0
13
2
9,807
45,939
32,066
13,873
41,873
39,966
1,908
25
21
0
5
111
99
'
33
34
'
60
211
'
45
35
Biweekly averages of daily figures for two-week periods ending on dates indicated
2003
2002
1
2
3
4
5
6
7
8
9
10
11
12
2
Reserve balances with Reserve Banks
Total vault cash 3
Applied vault cash 4
Surplus vault cash 5
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks 7
Total borrowing at Reserve Banks
Primary
Secondary
Seasonal
Adjustment
Oct. 30
Nov. 13
Nov. 27
Dec. 11
Dec. 25
Jan. 8
Jan. 22
Feb. 5
Feb. 19
Mar. 5
9,634
42,465
30,573
11,892
40,207
38,688
1,519
111
8,864
41,720
28,302
13,418
37,166
35,492
1,674
366
10,497
42,605
30,514
12,092
41,010
39,441
1,569
214
9,559
41,827
29,419
12,408
38,978
37,394
1,583
133
10,408
43,740
30,292
13,448
40,700
38,225
2,475
57
9,200
45,148
31,935
13,213
41,135
39,495
1,640
36
107
4
67
299
50
83
48
10
10,894
44,363
31,500
12,863
42,394
40,631
1,763
18
9
0
9
9,336
50,026
35,378
14,648
44,714
43,196
1,518
34
28
0
6
9,431
46,005
30,911
15,095
40,342
38,009
2,332
25
21
0
4
10,654
43,567
32,024
11,543
42,678
41,215
1,463
21
17
0
5
'
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. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by
those banks and thrift institutions that are not exempt from reserve requirements. Dates
refer to the maintenance periods in which the vault cash can be used to satisfy reserve
requirements.
57
157
'
29
8
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.
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).
Policy Instruments
1.14
A7
FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Primary credit
Federal Reserve
Bank
1
Secondary credit2
On
4/11/03
Seasonal credit 3
On
4/11/03
On
4/11/03
Boston
New York . . .
Philadelphia .
Cleveland . . .
Richmond . . .
Atlanta
Chicago
St. Louis
Minneapolis .
Kansas City .
Dallas
San Francisco
Range of rates for primary credit
Effective date
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
2.25
2.25
In effect Jan. 9, 2003
(beginning of program)
Effective date
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
Effective date
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
Effective date
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
2001—June 27
29
Aug. 21
23
Sept. 17
18
Oct. 2
4
Nov. 6
8
Dec. 11
13
3.25-3.50
3.25
3.00-3.25
3.00
2.50-3.00
2.50
2.00-2.50
2.00
1.50-2.00
1.50
1.25-1.50
1.25
3.25
3.25
3.00
3.00
2.50
2.50
2.00
2.00
1.50
1.50
1.25
1.25
2002—Nov.
0.75-1.25
0.75
0.75
0.75
0.75
0.75
of rates for adjustment credit in recent years4
Range(or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
5.25
5.25
1996—Jan. 31 . . .
Feb. 3 . . .
5.00-5.25
5.00
5.00
5.00
1998—Oct. 15 . . .
16 . . .
Nov. 17 . . .
19 ...
4.75-5.00
4.75
4.50-4.75
4.50
4.75
4.75
4.50
4.50
1999—Aug. 24 ...
26 . . .
Nov. 16 . . .
18 . . .
4.50-4.75
4.75
4.75-5.00
5.00
4.75
4.75
4.75
5.00
In effect Dec. 31, 1995
2000—Feb.
2
4
Mar. 21
23
May 16
19
2001—Jan.
Feb.
Mar.
Apr.
2001—May
3
4
5
31
1
20
21
18
20
15
17
1. Available for very short terms as a backup source of liquidity to depository institutions
that are in generally sound financial condition in the judgment of the lending Federal Reserve
Bank.
2. Available in appropriate circumstances to depository institutions that do not qualify for
primary credit.
3. Available to help relatively small depository institutions meet regular seasonal needs for
funds that arise from a clear pattern of intrayearly movements in their deposits and loans and
that cannot be met through special industry lenders. The discount rate on seasonal credit takes
Range (or
level)—All
F.R. Banks
F.R. Bank
of
N.Y.
5.00-5.25
5.25
5.25-5.50
5.50
5.50-6.00
6.00
5.25
5.25
5.50
5.50
5.50
6.00
5.75-6.00
5.50-5.75
5.50
5.00-5.50
5.00
4.50-5.00
4.50
4.00-4.50
4.00
3.50-4.00
3.50
5.75
5.50
5.50
5.00
5.00
4.50
4.50
4.00
4.00
3.50
3.50
6
7
In effect Jan. 8, 2003
(end of program)
into account rates charged by market sources of funds and ordinarily is reestablished on the
first business day of each two-week reserve maintenance period.
4. Was available until January 8, 2003, to help depository institutions meet temporary
needs for funds that could not be met through reasonable alternative sources. For earlier data,
see the following publications of the Board of Governors: Banking and Monetary Statistics,
1914-1941, and 1941-1970-, and the Statistical Digest, 1970-1979, 1980-1989, and
1990-1995. See also the Board's Statistics: Releases and Historical Data web pages
(http://www.federalreserve.gOv/releases/H 15/data.htm).
A8
DomesticNonfinancialStatistics • May 2003
1.15
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1
Requirement
Type of deposit
Net transaction accounts2
1 $0 million-$6 million 3
3 More than $42.1 million5
1. Required reserves must be held in the form of deposits with Federal Reserve Banks or
vault cash. Nonmember institutions may maintain reserve balances with a Federal Reserve
Bank indirectly, on a pass-through basis, with certain approved institutions. For previous
reserve requirements, see earlier editions of the Annual Report or the Federal Reserve
Bulletin. Under the Monetary Control Act of 1980, depository institutions include commercial
banks, savings banks, savings and loan associations, credit unions, agencies and branches of
foreign banks, and Edge Act corporations.
2. Transaction accounts include all deposits against which the account holder is permitted
to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, or telephone or preauthorized transfers for the purpose of making payments to third
persons or others. However, accounts subject to the rules that permit no more than six
preauthorized, automatic, or other transfers per month (of which no more than three may be
by check, draft, debit card, or similar order payable directly to third parties) are savings
deposits, not transaction accounts.
3. Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the
amount of reservable liabilities subject to a zero percent reserve requirement each year for the
succeeding calendar year by 80 percent of the percentage increase in the total reservable
liabilities of all depository institutions, measured on an annual basis as of June 30. No
corresponding adjustment is made in the event of a decrease. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement. Effective with the reserve
maintenance period beginning December 26, 2002, for depository institutions that report
weekly, and with the period beginning January 16, 2003, for institutions that report quarterly,
the exemption was raised from $5.7 million to $6.0 million.
Percentage of
deposits
Effective date
0
3
10
12/26/02
12/26/02
12/26/02
0
12/27/90
0
12/27/90
4. The Monetary Control Act of 1980 requires that the amount of transaction accounts
against which the 3 percent reserve requirement applies be modified annually by 80 percent of
the percentage change in transaction accounts held by all depository institutions, determined
as of June 30 of each year. Effective with the reserve maintenance period beginning
December 26, 2002, for depository institutions that report weekly, and with the period
beginning January 16, 2003, for institutions that report quarterly, the amount was increased
from $41.3 million to $42.1 million.
5. The reserve requirement was reduced from 12 percent to 10 percent on April 2, 1992,
for institutions that report weekly, and on April 16, 1992, for institutions that report quarterly.
6. For institutions that report weekly, the reserve requirement on nonpersonal time deposits
with an original maturity of less than 1.5 years was reduced from 3 percent to 1.5 percent for
the maintenance period that began December 13, 1990, and to zero for the maintenance
period that began December 27, 1990. For institutions that report quarterly, the reserve
requirement on nonpersonal time deposits with an original maturity of less than 1.5 years was
reduced from 3 percent to zero on January 17, 1991.
The reserve requirement on nonpersonal time deposits with an original maturity of 1.5
years or more has been zero since October 6, 1983.
7. The reserve requirement on eurocurrency liabilities was reduced from 3 percent to zero
in the same manner and on the same dates as the reserve requirement on nonpersonal time
deposits with an original maturity of less than 1.5 years (see note 5).
Policy Instruments
1.17
FEDERAL RESERVE OPEN MARKET
A9
TRANSACTIONS1
Millions of dollars
2003
2002
Type of transaction
and maturity
2000
2002
2001
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
U . S . TREASURY SECURITIES 2
Outright transactions (excluding matched
transactions)
Treasury bills
1
Gross purchases
2
Gross sales
Exchanges
4
For new bills
Redemptions
5
Others within one year
Gross purchases
6
7
Gross sales
Maturity shifts
8
Exchanges
9
10
Redemptions
One to five years
U
Gross purchases
12
Gross sales
Maturity shifts
N
Exchanges
14
Five to ten years
15
Gross purchases
tft
Gross sales
Maturity shifts
17
Exchanges
18
More than ten years
19
Gross purchases
20
Gross sales
Maturity shifts
21
22
Exchanges
All maturities
Gross purchases
23
24
Gross sales
Redemptions
25
8,676
0
477,904
477,904
24,522
15,503
0
542,736
542,736
10,095
21,421
0
657,931
657,931
0
4,838
0
45,828
45,828
0
529
0
63,083
63,083
0
750
0
53,314
53,314
0
0
0
62,947
62,947
0
250
0
51,394
51,394
0
0
0
53,374
53,374
0
0
0
71,075
71,075
0
8,809
0
62,025
-54,656
3,779
15,663
0
70,336
-72,004
16,802
12,720
0
89,108
-92,075
0
1,104
0
11,052
-14,183
0
445
0
8,987
-5,040
0
1,286
0
11,174
-15,189
0
0
0
6,143
-5,435
0
0
0
3,688
-1,419
0
0
0
13,448
-12,059
0
0
0
6,216
-6,834
0
14,482
0
-52,068
46,177
22,814
0
-45,211
64,519
12,748
0
-73,093
88,276
1,755
0
-11,052
13,283
1,921
0
-629
3,396
0
0
-11,174
15,189
0
0
-6,143
5,435
0
0
-2,380
1,308
339
0
-13,448
12,059
0
0
-6,216
6,834
5,871
0
-6,801
6,585
6,003
0
-21,063
6,063
5,074
0
-11,588
3,800
577
0
0
900
690
0
-6,714
1,645
51
0
0
0
0
0
0
0
0
0
722
111
314
0
0
0
0
0
0
0
5,833
0
-3,155
1,894
8,531
0
-4,062
1,423
2,280
0
-4,427
0
63
0
0
0
80
0
-1,645
0
0
0
0
0
0
0
0
0
0
0
-2,030
0
0
0
0
0
0
0
0
0
43,670
0
28,301
68,513
0
26,897
54,242
0
0
8,336
0
0
3,665
0
0
2,087
0
0
0
0
0
250
0
0
653
0
0
0
0
0
4,415,905
4,397,835
4,722,667
4,724,743
4,981,624
4,958,437
513,400
511,902
495,729
497,031
449,250
449,986
429,029
425,399
378,381
377,535
195,565
175,820
0
0
?6
27
Matched transactions
Gross purchases
Gross sales
28
29
Repurchase agreements
Gross purchases
Gross sales
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30
31
Reverse repurchase agreements
Gross purchases
Gross sales
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
231,272
252,363
392,530
389,810
32
Net change in U.S. Treasury securities
33,439
39,540
77,430
9,834
2,363
1,351
3,630
1,096
-693
2,720
0
0
51
0
0
120
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-51
-120
0
0
0
0
0
0
0
0
1,497,713
1,490,838
1,143,126
1,153,876
68,750
81,250
84,000
80,500
93,500
94,750
72,000
77,250
113,501
101,501
112,750
101,750
135,749
150,499
FEDERAL AGENCY OBLIGATIONS
33
34
35
Outright transactions
Gross purchases
Gross sales
Redemptions
36
37
Repurchase agreements
Gross purchases
Gross sales
38
Net change in federal agency obligations
39
40
Repurchase agreements
Gross purchases
Gross sales
890,236
987,501
41
Net change in triparty obligations
-97,265
6,875
-10,750
-12,500
3,500
-1,250
-5,250
12,000
11,000
-14,750
42
Total net change in System Open Market Account . .
-63,877
46,295
66,680
-2,666
5,863
101
-1,620
13,096
10,307
-12,030
TRIPARTY OBLIGATIONS
1. Sales, redemptions, and negative figures reduce holdings of the System Open Market
Account; all other figures increase such holdings.
2. Transactions exclude changes in compensation for the effects of inflation on the
principal of inflation-indexed securities. Transactions include the rollover of inflation compensation into new securities.
A10
1.18
DomesticNonfinancialStatistics • May 2003
FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements1
Millions of dollars
Wednesday
Account
End of month
2003
Jan. 29
Feb. 5
Feb. 12
2002
Feb. 19
Feb. 26
2003
Dec.
Jan.
Feb.
Consolidated condition statement
ASSETS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Gold certificate account
Special drawing rights certificate account
Coin
Securities, repurchase agreements, and loans
Securities held outright
U.S. Treasury 2
Bills3
Notes and bonds, nominal 3
Notes and bonds, inflation-indexed 3
Inflation compensation 4
Federal agency 3
Repurchase agreements 5
Loans
Items in process of collection
Bank premises
Other assets
Denominated in foreign currencies 6
All other7
19 Total assets
11,039
2,200
1,111
649,927
629,416
629,406
226,682
389,219
12,242
1,263
10
20,500
11
9,250
1,543
38,747
17,299
21,448
11,039
2,200
1,134
657,177
629,411
629,401
226,682
389,219
12,242
1,257
10
27,750
15
8,959
1,539
38,611
17,178
21,432
11,039
2,200
1,142
651,707
630,957
630,947
227,238
390,217
12,242
1,250
10
20,746
4
7,829
1,541
38,833
16,977
21,856
11,039
2,200
1,123
665,786
631,273
631,263
227,561
390,217
12,242
1,242
10
34,496
17
14,167
1,557
35,548
17,180
18,368
11,039
2,200
1,100
661,761
636,006
635,996
230,606
391,913
12,242
1,235
10
25,750
6
9,197
1,557
36,130
17,330
18,800
11,039
2,200
988
668,956
629,416
629,406
226,682
389,219
12,242
1,263
10
39,500
40
10,291
1,543
37,031
16,913
20,118
11,039
2,200
1,148
654,173
629,416
629,406
226,682
389,219
12,242
1,263
10
24,750
7
9,038
1,540
38,225
17,075
21,151
11,039
2,200
1,104
663,826
636,921
636,911
230,843
392,593
12,242
1,233
10
26,900
5
6,051
1,554
35,745
17,246
18,499
713,818
720,659
714,292
731,420
722,984
732,048
717,363
721,519
642,604
18,466
25,671
18,327
7,030
100
214
7,503
2,242
644,880
17,986
29,814
23,756
5,664
148
246
8,704
2,231
648,083
17,604
21,565
17,707
3,527
103
228
7,775
2,277
651,036
17,850
32,828
28,006
4,407
134
281
10,040
2,249
649,670
17,421
28,898
23,556
4,950
154
238
7,296
2,276
654,272
21,091
28,249
22,541
4,420
136
1,152
9,459
2,217
641,644
18,370
31,982
26,147
5,509
102
223
5,890
2,267
648,366
18,018
29,446
24,761
4,268
224
193
5,950
2,277
696,486
703,616
697,304
714,004
705,561
715,288
700,152
704,057
8,399
8,380
552
8,404
8,380
260
8,404
8,357
227
8,434
8,380
603
8,440
8,380
603
8,380
8,380
0
8,400
8,380
431
8,456
8,380
626
17,332
17,043
16,988
17,416
17,423
16,760
17,211
17,462
858,621
687,352
171,269
868,037
697,891
170,145
872,033
698,215
173,818
878,685
706,434
172,250
880,187
702,807
177,380
855,053
690,003
165,050
863,815
694,983
168,832
888,946
710,187
178,759
LIABILITIES
20
21
22
23
24
25
26
27
28
Federal Reserve notes, net of F.R. Bank holdings
Reverse repurchase agreements 8
Deposits
Depository institutions
U.S. Treasury, general account
Foreign official
Other
Deferred availability cash items
Other liabilities and accrued dividends 9
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
33 Total capital
MEMO
34 Marketable securities held in custody for foreign official
and international accounts 310
35
U.S. Treasury
36
Federal agency
Federal Reserve note and collateral statement
37 Federal Reserve notes, net of F.R. Bank holdings
38 Collateral held against Federal Reserve notes
39
Gold certificate account
40
Special drawing rights certificate account
41
U.S. Treasury and agency securities pledged"
42
Other eligible assets
642,604
642,604
11,039
2,200
629,365
0
644,880
644,880
11,039
2,200
631,641
0
648,083
648,083
11,039
2,200
634,094
751
651,036
651,036
11,039
2,200
637,798
0
649,670
649,670
11,039
2,200
636,432
0
654,272
654,272
11,039
2,200
641,034
0
641,644
641,644
11,039
2,200
628,405
0
648,366
648,366
11,039
2,200
635,128
0
649,916
657,161
651,703
665,769
661,756
668,916
654,166
663,821
18,472r
631,445'
17,992
639,169
17,610
634,094
17,856
647,913
17,427
644,329
21,098
647,818
18,379
635,787
18,028
645,794
MEMO
43 Total U.S. Treasury and agency securities"
44
Less: face value of securities under reverse repurchase
agreements 12
45 U.S. Treasury and agency securities eligible to be pledged
....
1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly statistical
release. For ordering address, see inside front cover.
2. Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury
securities.
3. Face value of the securities.
4. Compensation that adjusts for the effect of inflation on the original face value of
inflation-indexed securities.
5. Cash value of agreements, which are fully collateralized by U.S. Treasury and federal
agency securities.
6. Valued daily at market exchange rates.
7. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury
bills maturing within ninety days.
8. Cash value of agreements, which are fully collateralized by U.S. Treasury securities.
The Federal Reserve Banks began using these agreements on December 13, 2002.
9. Includes exchange-translation account reflecting the daily revaluation at market
exchange rates of foreign exchange commitments.
10. Includes U.S. Treasury STRIPS and other zero coupon bonds at face value.
11. Includes face value of U.S. Treasury and agency securities held outright, compensation
to adjust for the effect of inflation on the original face value of inflation-indexed securities,
and cash value of repurchase agreements.
12. Face value of agreements, which are fully collateralized by U.S. Treasury securities.
The Federal Reserve Banks began using these agreements on December 13, 2002.
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
End of month
2003
Jan. 29
Feb. 5
2002
Feb. 12
Feb. 19
Feb. 26
Dec.
2003
Jan.
Feb.
1 Total loans
11
15
4
17
6
40
7
5
2 Within fifteen days'
3 Sixteen days to ninety days
4 91 days to 1 year
11
0
0
13
2
0
0
4
0
17
0
0
6
0
0
35
5
0
6
1
0
5
0
0
629,406
629,401
630,947
631,263
635,996
629,406
629,406
636,911
49,592
130,709
143,207
174,818
51,240
79,840
45,981
134,667
142,243
175,434
51,239
79,837
44,507
136,637
142,780
175,832
51,356
79,834
46,317
131,154
145,010
177,990
50,961
79,831
45,075
133,699
146,752
178,982
51,659
79,828
27,444
154,225
141,840
172,758
53,300
79,840
32,974
147,674
142,243
175,436
51,240
79,840
23,882
146,519
147,029
187,927
51,727
79,827
12 Total federal agency obligations
10
10
10
10
10
10
10
10
13
14
15
16
17
18
0
0
10
0
0
0
0
0
10
0
0
0
0
0
10
0
0
0
0
0
10
0
0
0
0
0
10
0
0
0
0
0
10
0
0
0
0
0
10
0
0
0
0
0
10
0
0
0
5 Total U.S. Treasury securities2
6
7
8
9
10
11
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
1. Holdings under repurchase agreements are classified as maturing within fifteen days in
accordance with maximum maturity of the agreements.
2. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities.
A12
1.20
DomesticNonfinancialStatistics • May 2003
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1
Billions of dollars, averages of daily figures
2002
Item
1999
Dec.
2000
Dec.
2001
Dec.
2003
2002
Dec.
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
39.18
39.04
37.63
674.30
39.69
39.41
38.07
677.52
40.12
40.04
38.12
681.77
40.61
40.58
38.95
685.59'
40.76
40.73
38.85
691.28
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
1
2
3
4
Total reserves 3
Nonborrowed reserves 4
Required reserves
Monetary base 5
41.81
41.49
40.51
593.14
38.54
38.33
37.11
584.72
41.24
41.18
39.60
635.56
40.12
40.04
38.12
681.77
39.67
39.48
38.30
666.91
39.98
39.64
38.34
669.93
39.25
39.02
37.78
671.45
Not seasonally adjusted
5
6
7
8
Total reserves 6
Nonborrowed reserves
Required reserves7
Monetary base 8
41.89
41.57
40.59
600.72
38.53
38.32
37.10
590.06
41.20
41.13
39.55
639.91
40.03
39.95
38.03
686.17
39.32
39.13
37.94
668.75
39.74
39.41
38.10
669.31
38.78
38.55
37.31
669.71
38.54
38.40
36.99
671.48
38.98
38.71
37.37
676.66
40.03
39.95
38.03
686.17
42.73
42.70
41.07
688.27'
41.87
41.85
39.96
690.17
41.65
41.33
40.36
608.02
1.30
.32
38.47
38.26
37.05
596.98
1.43
.21
41.08
41.01
39.43
648.74
1.65
.07
40.17
40.09
38.18
697.09
2.00
.08
39.41
39.22
38.04
678.98
1.37
.19
39.85
39.52
38.22
679.55
1.64
.33
38.91
38.68
37.43
679.96
1.48
.23
38.69
38.54
37.13
681.83
1.55
.14
39.14
38.87
37.53
687.23
1.62
.27
40.17
40.09
38.18
697.09
2.00
.08
42.74
42.72
41.08
699.18'
1.66
.03
41.87
41.85
39.97
700.96
1.91
.03
NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 9
9
10
11
12
13
14
Total reserves 10
Nonborrowed reserves
Required reserves
Monetary base"
Excess reserves12
Borrowings from the Federal Reserve
1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly
statistical release. Historical data starting in 1959 and estimates of the effect on required
reserves of changes in reserve requirements are available from the Money and Reserves
Projections Section, Division of Monetary Affairs, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory
changes in reserve requirements. (See also table 1.10.)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, breakadjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted,
break-adjusted total reserves (line 1) less total borrowings of depository institutions from the
Federal Reserve (line 17).
5. 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.
6. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess
reserves (line 16).
7. 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).
8. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), plus
(2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
9. 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.
10. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve
requirements.
11. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total
reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float
at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for
all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current reserve
requirements. Since February 1984, currency and vault cash figures have been measured over
the computation periods ending on Mondays.
12. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
Monetary and Credit Aggregates
1.21
A13
MONEY STOCK MEASURES1
Billions of dollars, averages of daily
figures
2002
Item
1999
Dec.
2000
Dec.
2001
Dec.
2003
2002
Dec.
Nov.
Dec.
Jan.
Feb.
Seasonally adjusted
Measures2
1 Ml
2 M2
3 M3
1,121.9
4,648.0
6,528.6
1,084.9
4,926.9
7,090.5
1,173.4
5,440.6
7,993.5
1,210.5
5,796.5
8,511.1'
1,202.7
5,781.3
8,458.3
1,210.5
5,796.5
8,511.1'
1,212.2'
5,825.7'
8,506.0'
1,231.7
5,880.0
8,560.7
517.5
8.3
352.2
244.0
531.0
8.0
306.7
239.2
581.4
7.8
325.6
258.8
626.7
7.5
296.4
279.9
623.0
7.5
294.0
278.3
626.7
7.5
296.4
279.9
630.2
7.6
295.4
279.1
635.3
7.6
305.2
283.6
3,526.0
1,880.6
3,842.0
2,163.6
4,267.1
2,552.9
4,586.0
2,714.6r
4,578.6
2,677.0
4,586.0
2,714.6'
4,613.5
2,680.2'
4,648.3
2,680.7
Commercial banks
10 Savings deposits, including MMDAs
11 Small tii
12 Large ti
1,288.8
634.7
650.2
1,422.3
698.8
717.4
1,734.5
634.2
670.8
2,047.4
583.6
683.2
2,041.3
588.0
702.3
2,047.4
583.6
683.2
2,079.1
579.7
691.5'
2,106.4
575.6
702.1
Thrift i,
13 Savings deposits, including MMDAs
14 Small tii
15 Large tii
449.6
320.3
91.0
451.7
344.4
102.9
569.0
338.7
114.9
710.3
300.3'
116.7
697.7
301.0
115.2
710.3
300.3'
116.7
722.9
299.0'
118.0
739.1
297.3
118.2
Money
16 Retail
17 Instituti
832.7
634.4
924.8
788.2
990.7
1,189.7
944.3
1,233.0
950.6
1,207.8
944.3
1,233.0
932.8
1,196.7
929.9
1,176.7
Repurchase agreements and eurodollars
18 Repurchase agreements12
19 Eurodollars12
335.7
169.2
363.5
191.5
375.0
202.5
468.6
213.0'
440.1
211.6
468.6
213.0'
459.3
214.8'
472.3
211.4
4
5
6
7
Ml cot
Currency3
Travelers checks4
Demand deposits5
Other cl
Nontrai
8 In M27
9 In M3 only8
Not seasonally adjusted
Measures2
20 Ml
?1 M2
22 M3
1,148.3
4,675.0
6,571.1
1,112.3
4,962.3
7,145.0
1,203.5
5,483.5
8,065.2
1,240.4
5,845.8
8,588.6r
1,201.4
5,795.8
8,474.1'
1,240.4
5,845.8
8,588.6'
1,219.3
5,834.8
8,549.9'
1,217.6
5,862.3
8,590.4
521.5
8.4
371.8
246.6
535.2
8.1
326.5
242.5
584.9
7.9
347.6
263.2
629.9
7.7
316.8
286.0
622.6
7.6
296.1
275.0'
629.9
7.7
316.8
286.0
628.01
7.7
300.1
283.4
634.4
7.7
296.7
278.8
Nontransaction components
7
27 In M2
28 In M3 only8
3,526.7
1,896.2
3,849.9
2,182.8
4,280.0
2,581.7
4,605.4
2,742.8'
4,594.4
2,678.3
4,605.4
2,742.8'
4,615.4'
2,715.2'
4,644.8
2,728.0
Commercial banks
29 Savings deposits, including MMDAs
30 Small time deposits9
31 Large time deposits 1011
1,288.8
635.7
651.7
1,426.9
700.0
717.6
1,742.3
635.2
669.7
2,060.0'
584.3
681.6
2,054.5
589.4
704.5
2,060.^
584.3
681.6
2,074.5'
579.8
685.8'
2,095.5
575.4
698.2
Thrift institutions
32 Savings deposits, including MMDAs
33 Small time deposits9
34 Large time deposits10
449.6
320.8
91.2
453.1
345.0
103.0
571.5
339.2
114.7
714.7
300.7
116.4
702.2
301.7
115.5
714.7
300.7
116.4
721.3
299.1
117.0
735.3
297.2
117.5
Money market mutual funds
35 Retail
36 Institution-only
832.0
648.2
925.0
805.6
991.8
1,217.7
945.8
1,260.8
946.6
1,211.8
945.8
1,260.8
940.8
1,234.0
941.3
1,214.1
Repurchase agreements and eurodollars
37 Repurchase agreements12
38 Eurodollars12
334.7
170.4
364.2
192.4
376.5
203.0
470.4
213.6'
435.5
211.0
470.4
213.6'
462.8
215.6'
483.4
214.7
23
24
25
26
Ml components
Currency3
Travelers checks4
Demand deposits5
Other checkable deposits6
Footnotes appear on following page.
A14
DomesticNonfinancialStatistics • May 2003
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 is as follows:
M l : (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of
depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all
commercial banks other than those owed to depository institutions, the U.S. government, and
foreign banks and official institutions, less cash items in the process of collection and Federal
Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of
withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions,
credit union share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted 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. Excludes individual retirement accounts
(IRAs) and Keogh balances at depository institutions and money market funds. Seasonally
adjusted M2 is calculated by summing savings deposits, small-denomination time deposits,
and retail money fund balances, each seasonally adjusted separately, and adding this result to
seasonally adjusted M1.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more)
issued by all depository institutions, (2) balances in institutional money funds, (3) RP
liabilities (overnight and term) issued by all depository institutions, and (4) eurodollars
(overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and
at all banking offices in the United Kingdom and Canada. Excludes amounts held by deposit-
ory 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.
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 at thrift institutions.
7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances.
8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) eurodollars (overnight and
term) of U.S. addressees.
9. Small time deposits—including retail RPs—are those issued in amounts of less than
$100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are
subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more, excluding those
booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market funds,
depository institutions, the U.S. government, and foreign banks and official institutions.
12. Includes both overnight and term.
Commercial Banking Institutions—Assets and Liabilities
1.26
C O M M E R C I A L B A N K S IN T H E U N I T E D STATES
A15
Assets and Liabilities1
A. All commercial banks
Billions of dollars
Wednesday figures
Monthly averages
Account
Feb.
Aug.
Sept.'
Oct.'
2003
2003
2002
2002
Nov.'
Dec.'
Jan.'
Feb.
Feb. 5
Feb. 12
Feb. 19
Feb. 26
Seasonally adjusted
Assets
1 Bank credit
Securities in bank credit
7
3
U.S. government securities
Other securities
4
Loans and leases in bank credit2 . . . .
Commercial and industrial
6
7
Real estate
Revolving home equity
8
9
Other
Consumer
in
Security3
n
i?
Other loans and leases
n Interbank loans
14 Cash assets4
15 Other assets5
5438.9
1488.5
832.6'
655.9r
3,950.4
1,028.8
1,789.2
162.2
1,627.0
564.4
153.4
414.6
278.3
297.6
489.3'
5,672.8
1,632.9
946.1'
686.8'
4,039.9
981.3'
1,902.0'
197.7
1,704.3'
574.7
176.7
405.2'
305.6
318.1
499.8'
5,730.1
1,643.5
962.8
680.8
4,086.5
974.6
1,936.4
200.9
1,735.5
582.7
181.4
411.5
318.3
317.2
499.0
5,759.9
1,643.8
972.4
671.4
4,116.1
968.2
1,968.3
204.9
1,763.4
584.5
183.1
412.0
326.8
318.4
512.4
5,837.8
1,688.6
1,001.6
687.0
4,149.2
966.1
2,000.3
207.8
1,792.6
585.0
186.6
411.1
328.4
314.8
518.4
5,886.6
1,715.1
1,012.6
702.5
4,171.5
964.1
2,021.0
212.4
1,808.5
586.1
191.6
408.7
331.5
317.7
518.1
5,892.3
1,722.4
1,013.3
709.1
4,169.9
958.9
2,039.0
216.9
1,822.1
591.7
176.8
403.5
309.4
314.4
517.3
5,970.8
1,768.8
1,037.9
730.9
4,202.0
952.3
2,069.4
222.1
1,847.3
593.9
184.0
402.4
306.3
315.0
539.9
5,936.8
1,745.6
1,028.1
717.5
4,191.1
952.6
2,062.3
220.3
1,842.0
592.7
177.6
405.8
312.1
322.9
539.3
5,958.2
1,756.3
1,029.1
727.2
4,201.9
952.0
2,074.4
220.6
1,853.8
592.2
182.0
401.3
291.7
310.1
548.1
5,971.3
1,770.4
1,038.8
731.5
4,200.9
954.1
2,065.2
222.2
1,843.0
596.6
183.7
401.4
308.7
320.0
544.7
5,992.1
1,784.0
1,047.4
736.6
4,208.1
951.5
2,070.1
223.9
1,846.2
594.7
189.1
402.7
311.9
306.8
529.7
16 Total assets6
6,428.6r
6,721.3r
6,789.6
6,842.1
6,923.7
6,978.2
6,956.6
7,054.9
7,034.3
7,031.4
7,067.3
7,063.1
4,268.1
624.9
3,643.2
1,011.5
2,631.7
1,231.7
393.9r
837.7'
109.5
338.9
4,460.5
599.1
3,861.4
1,049.2
2,812.2
1,292.7
404.9'
887.8'
94.1
430.4
4,473.5
584.0
3,889.5
1,043.3
2,846.2
1,322.3
416.0
906.2
100.3
435.4
4,483.0
611.3
3,871.8
1,020.0
2,851.7
1,332.9
414.9
918.0
119.4
440.0
4,500.2
606.1
3,894.1
1,002.3
2,891.8
1,365.2
420.6
944.5
122.3
444.4
4,484.2
613.8
3,870.4
977.9
2,892.5
1,397.3
415.8
981.6
150.3
453.7
4,503.2
606.1
3,897.1
988.0
2,909.1
1,335.3
378.5
956.8
151.4
460.1
4,534.2
607.0
3,927.2
1,002.4
2,924.8
1,370.5
383.4
987.1
142.5
476.6
4,547.6
588.1
3,959.5
1,007.5
2,952.0
1,365.8
391.3
974.5
142.2
454.0
4,522.9
587.9
3,934.9
999.3
2,935.6
1,349.2
371.5
977.6
153.0
475.6
4,534.8
621.7
3,913.1
1,001.0
2,912.1
1,361.9
380.0
981.8
150.6
485.8
4,521.9
627.4
3,894.6
1,001.4
2,893.2
1,398.1
390.5
1,007.5
129.8
477.7
5,948.2
6,277.7
6,331.4
6,375.3
6,432.1
6,485.5
6,450.0
6,523.8
6,509.6
6,500.6
6,533.1
6,527.5
480.4'
443.6'
458.2
466.8
491.6
492.7
506.5
531.2
524.7
530.7
534.3
535.6
17
18
19
20
21
22
?3
74
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
Not seasonally adjusted
29
30
31
3?
33
34
35
36
37
38
39
40
41
42
43
44
45
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Credit cards and related plans . .
Other
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
46 Total assets6
47
48
49
50
51
52
53
54
55
56
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
57 Total liabilities
58 Residual (assets less liabilities)7
Footnotes appear on p. A21.
5,444.1
1,496.0
839.6'
656.4'
3,948.1
1,027.7
1,784.0
162.2
1,621.9
566.7
223.6
343.2
155.1
414.5
277.0
298.9
488.3'
5,650.4
1,624.3
939.8'
684.5'
4,026.1
975.8'
1,903.1'
197.8
1,705.3'
571.2
224.4
346.8
172.2
403.8'
299.2
303.8
497.2'
5,723.2
1,639.8
959.3
680.5
4,083.4
972.4
1,938.5
201.9
1,736.6
582.2
231.2
351.0
179.6
410.7
310.5
314.1
501.5
5,763.9
1,643.1
968.6
674.5
4,120.8
969.4
1,970.5
205.5
1,765.0
585.1
232.1
353.0
185.5
410.3
321.5
320.7
511.1
5,854.4
1,692.8
1,002.5
690.4
4,161.6
967.4
2,005.4
208.5
1,796.9
587.5
231.5
356.0
190.3
410.9
332.3
324.7
519.6
5,923.5
1,724.1
1,018.3
705.8
4,199.3
963.9
2,025.8
212.6
1,813.2
596.1
238.5
357.7
200.5
413.0
338.4
338.4
521.5
5,912.0
1,732.4
1,019.6
712.7
4,179.6
954.8
2,038.1
216.6
1,821.5
600.1
235.4
364.7
182.5
404.3
307.2
328.0
519.3
5,977.3
1,778.4
1,046.9
731.5
4,198.9
951.1
2,063.5
222.0
1,841.4
596.7
228.6
368.1
186.9
400.7
305.2
316.0
539.1
5,951.9
1,756.7
1,037.5
719.1
4,195.3
950.1
2,059.0
220.3
1,838.7
597.5
226.0
371.6
183.5
405.1
312.7
317.3
541.8
5,967.9
1,765.0
1,037.7
727.3
4,202.9
950.2
2,071.9
221.0
1,850.9
595.8
224.8
371.0
185.9
399.1
291.7
302.5
548.5
5,971.6
1,779.9
1,047.6
732.3
4,191.7
952.8
2,057.7
222.3
1,835.4
599.3
232.0
367.3
182.3
399.5
305.2
336.1
541.1
5,993.7
1,792.3
1,055.6
736.7
4,201.4
950.8
2,061.1
223.5
1,837.6
596.5
231.5
365.0
192.9
400.1
306.9
308.4
526.7
6,432.5r
6,675.4r
6,774.1
6,842.1
6,955.1
7,045.9
6,989.9
7,060.2
7,046.7
7,033.6
7,076.4
7,058.2
4,284.0
619.7
3,664.3
1,018.7
2,645.7
1,234.6
398.9'
835.7'
116.2
344.0
4,413.7
583.8
3,829.9
1,033.5
2,796.4
1,272.6
399.7'
872.9'
91.1
427.6
4,441.4
577.8
3,863.6
1,028.7
2,834.9
1,319.7
409.2
910.5
100.9
435.5
4,467.9
606.1
3,861.8
1,013.9
2,847.9
1,334.9
413.1
921.7
118.7
440.1
4,520.0
611.7
3,908.3
1,009.3
2,899.0
1,368.3
417.8
950.5
125.9
450.1
4,533.9
641.3
3,892.6
991.8
2,900.7
1,397.0
417.2
979.7
156.7
460.8
4,527.6
618.4
3,909.2
1,000.1
2,909.1
1,348.4
383.2
965.2
158.8
468.4
4,551.8
602.0
3,949.8
1,009.3
2,940.5
1,373.2
388.3
984.9
149.3
484.3
4,570.6
583.0
3,987.6
1,017.3
2,970.4
1,374.5
396.4
978.1
147.4
460.3
4,542.4
577.2
3,965.2
1,008.7
2,956.5
1,350.9
376.0
974.9
159.3
482.6
4,554.8
623.5
3,931.3
1,005.6
2,925.8
1,367.5
385.9
981.6
157.6
494.0
4,528.8
620.6
3,908.2
1,007.0
2,901.2
1,394.3
394.4
999.9
139.2
488.2
5,978.8
6,205.0
6,297.5
6,361.6
6,464.3
6,548.4
6,503.3
6,558.5
6,552.7
6,535.2
6,573.9
6,550.5
453.7'
470.4'
476.6
480.5
490.8
497.5
486.6
501.7
494.0
498.4
502.5
507.7
A16
1.26
Domestic Financial Statistics • May 2003
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities '—Continued
B. Domestically chartered commercial banks
Billions of dollars
Monthly averages
Account
2002
Feb.
Wednesday figures
2002
Aug.
Sept.
Oct.'
2003
Nov.'
Dec.'
Jan.'
2003
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
Security3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5
16 Total assets6
17
18
19
20
21
22
23
24
25
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
27 Total liabilities
28 Residual (assets less liabilities)7
4,846.7
1,255.0
763.2 r
491.8'
3,591.8
830.6
1,771.8
162.2
1,609.6
564.4
78.5
346.5
258.1
255.3
459.7'
5,051.9
1,383.0
864.3'
518.7'
3,668.9
791.4'
1,883.2'
197.7
1,685.5'
574.7
86.2
333.5'
287.1
271.6
470.8'
5,111.3
1,396.0
876.1'
520.0'
3,715.3
789.1'
1,917.4'
200.9
1,716.5'
582.7
86.7
339.5'
296.7'
271.2
470.5'
5,145.6
1,398.3
883.5
514.7
3,747.3
787.0
1,948.8
204.9
1,743.9
584.5
86.0
341.0
301.9
273.3
477.3
5,216.8
1,439.3
908.7
530.7
3,777.5
787.1
1,980.5
207.8
1,772.7
585.0
81.5
343.3
301.8
274.1
480.4
5,251.9
1,451.2
911.6
539.6
3,800.7
786.0
2,001.6
212.4
1,789.1
586.1
81.4
345.6
299.7
275.2
476.9
5,267.4
1,456.9
911.9
545.0
3,810.5
784.0
2,020.2
216.9
1,803.3
591.7
71.4
343.2
278.5
276.5
470.6
5,334.0
1,492.8
931.7
561.1
3,841.2
780.9
2,051.5
222.1
1,829.4
593.9
72.9
342.0
275.4
279.2
492.2
5,304.1
1,471.2
923.1
548.1
3,832.9
780.4
2,044.4
220.3
1,824.2
592.7
70.5
344.9
283.0
286.7
489.5
5,324.5
1,480.2
923.1
557.1
3,844.3
780.5
2,056.5
220.6
1,835.9
592.2
73.7
341.3
260.9
274.8
499.8
5,337.0
1,495.6
933.5
562.1
3,841.4
782.4
2,047.4
222.2
1,825.2
596.6
73.8
341.2
278.3
284.1
498.1
5,351.9
1,508.5
940.3
568.1
3,843.5
780.5
2,052.1
223.9
1,828.2
594.7
73.7
342.5
279.6
270.9
482.5
5,744.8 r
6,006.8 r
6,075. l r
6,123.1
6,197.8
6,228.4
6,216.6
6,304.2
6,287.0
6,283.8
6,320.6
6,307.9
3,797.8
614.7
3,183.1
553.7
2,629.5
1,043.0
371.9'
671.1'
170.0
259.3
3,965.5
589.1
3,376.4
569.9
2,806.5
1,078.9
383.2'
695.7'
179.7
333.6
3,987.4
573.9
3,413.5
573.3
2,840.2
1,098.2
393.3'
704.9'
184.1
342.7
4,016.7
601.5
3,415.1
571.3
2,843.8
1,099.0
391.7
707.3
191.9
340.3
4,051.7
596.6
3,455.0
571.6
2,883.5
1,110.6
395.1
715.5
196.8
345.3
4,060.2
604.3
3,455.9
570.3
2,885.5
1,114.4
385.9
728.5
211.4
353.8
4,071.2
596.3
3,474.9
580.4
2,894.5
1,057.4
347.3
710.1
223.2
363.2
4,087.3
597.2
3,490.1
586.2
2,903.9
1,087.2
351.9
735.3
224.1
377.8
4,096.9
578.7
3,518.3
588.8
2,929.5
1,089.8
361.5
728.2
218.7
356.7
4,077.8
578.5
3,499.3
584.5
2,914.8
1,070.0
347.4
722.6
227.4
380.1
4,093.6
612.2
3,481.4
588.1
2,893.3
1,088.3
348.3
740.0
227.3
381.9
4,072.6
617.4
3,455.2
583.7
2,871.5
1,100.8
352.3
748.5
225.2
380.4
5,270.1
5,557.7
5,612.4
5,647.9
5,704.4
5,739.7
5,715.0
5,776.4
5,762.1
5,755.2
5,791.1
5,779.0
474.7'
449.2'
462.7'
475.2
493.4
488.7
501.6
527.7
524.9
528.6
529.5
528.9
Not seasonally adjusted
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit 2 . . . .
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Credit cards and related plans . .
Other
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
46 Total assets 6
47
48
49
50
51
52
53
54
55
56
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
57 Total liabilities
58 Residual (assets less liabilities)7
Footnotes appear on p. A21.
4,847.9
1,262.5
770.2'
492.2'
3,585.4
827.9
1,766.7
162.2
1,604.5
566.7
223.6
343.2
77.8
346.3
256.8
255.6
458.2'
5,035.6
1,374.3
858.01
516.3'
3,661.3
787.5'
1,884.3'
197.8
1,686.5'
571.2
224.4
346.8
85.0
333.4'
280.7
258.7
468.6'
5,107.8
1,392.3
872.6'
519.7'
3,715.5
787.1'
1,919.5'
201.9
l,7I7.6 r
582.2
231.2
351.0
87.7
339.1'
288.8
268.0
472.5'
5,149.6
1,397.6
879.7
517.9
3,752.0
787.6
1,950.9
205.5
1,745.5
585.1
232.1
353.0
88.3
340.1
296.5
274.7
476.6
5,230.7
1,443.6
909.5
534.1
3,787.1
786.9
1,985.6
208.5
1,777.1
587.5
231.5
356.0
83.9
343.1
305.7
281.6
481.8
5,279.7
1,460.2
917.3
542.9
3,819.5
784.3
2,006.4
212.6
1,793.8
596.1
238.5
357.7
84.4
348.2
306.6
293.3
479.2
5,279.9
1,466.9
918.2
548.7
3,813.0
779.2
2,019.3
216.6
1,802.7
600.1
235.4
364.7
71.2
343.3
276.3
288.0
471.4
5,335.4
1,502.4
940.7
561.6
3,833.1
778.3
2,045.6
222.0
1,823.5
596.7
228.6
368.1
72.3
340.2
274.3
279.4
490.5
5,311.7
1,482.2
932.5
549.7
3,829.5
777.5
2,041.1
220.3
1,820.8
597.5
226.0
371.6
69.6
343.7
283.6
279.9
490.6
5,327.1
1,489.0
931.7
557.3
3,838.1
777.3
2,054.0
221.0
1,832.9
595.8
224.8
371.0
72.2
338.9
260.9
266.1
499.1
5,335.7
1,505.1
942.2
562.9
3,830.6
779.5
2,039.9
222.3
1,817.6
599.3
232.0
367.3
72.3
339.6
274.9
299.4
494.3
5,348.4
1,516.8
948.6
568.2
3,831.6
778.4
2,043.1
223.5
1,819.6
596.5
231.5
365.0
73.6
340.0
274.7
272.1
478.8
5,743.2'
5,968.9 r
6,062.3 r
6,122.8
6,224.3
6,283.3
6,239.5
6,302.7
6,289.1
6,276.6
6,327.1
6,296.9
3,808.3
609.3
3,199.0
555.6
2,643.4
1,045.9
376.9'
669.0'
173.8
263.2
3,933.0
574.0
3,359.1
568.3
2,790.8
1,058.8
378.1'
680.8'
178.7
332.0
3,967.4
567.6
3,399.9'
570.7
2,829.1
1,095.6
386.5'
709.1'
183.6
342.2
4,009.0
596.2
3,412.7
572.5
2,840.2
1,101.0
390.0
711.0
192.5
341.2
4,067.9
602.1
3,465.8
575.1
2,890.7
1,113.7
392.3
721.4
201.5
351.7
4,098.2
631.2
3,467.0
573.4
2,893.6
1,114.0
387.3
726.7
215.6
359.4
4,085.7
608.4
3,477.3
583.1
2,894.2
1,070.6
352.1
718.5
228.1
369.8
4,099.8
592.1
3,507.7
588.3
2,919.3
1,089.9
356.8
733.1
228.8
384.0
4,112.4
573.4
3,539.0
591.5
2,947.4
1,098.5
366.6
731.9
223.1
362.5
4,090.8
567.6
3,523.2
587.8
2,935.4
1,071.7
351.8
719.9
231.5
385.5
4,110.6
613.6
3,497.0
590.1
2,906.9
1,093.9
354.1
739.8
232.5
388.9
4,074.1
610.5
3,463.5
584.3
2,879.2
1,097.0
356.1
740.9
231.1
388.4
5,291.2'
5,502.6
5,588.8
5,643.7
5,734.8
5,787.2
5,754.3
5,802.4
5,796.5
5,779.5
5,825.9
5,790.6
452.0'
466.3'
473.5'
479.1
489.5
496.1
485.3
500.3
492.6
497.1
501.1
506.3
Commercial Banking Institutions—Assets and Liabilities
1.26
C O M M E R C I A L B A N K S IN T H E UNITED STATES
A17
Assets and Liabilities1—Continued
C. Large domestically chartered commercial banks
Billions of dollars
Wednesday figures
Monthly averages
Account
Feb.
Aug.
Sept.
Oct.
2003
2003
2002
2002
Nov.
Dec.
Jan.
Feb.
Feb. 5
Feb. 12
Feb. 19
Feb. 26
Seasonally adjusted
Assets
1 Bank credit
Securities in bank credit
?
3
U.S. government securities
4
Trading account
Investment account
6
Other securities
Trading account
7
Investment account
8
9
State and local government . .
in
Other
Loans and leases in bank credit2 . . . .
II
1?
Commercial and industrial
Bankers acceptances
n
Other
14
Real estate
is
Revolving home equity
16
Other
17
Consumer
18
19
Security3
Federal funds sold to and
20
repurchase agreements
with broker-dealers
71
Other
27
State and local government
Agricultural
23
Federal funds sold to and
24
repurchase agreements with
others
All other loans
75
26
Lease-financing receivables
27 Interbank loans
Federal funds sold to and
28
repurchase agreements with
commercial banks
?9
Other
30 Cash assets4
5
31 Other assets
32 Total assets6
33
34
35
36
37
38
39
40
41
42
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
43 Total liabilities
44 Residual (assets less liabilities)7
Footnotes appear on p. A21.
2,628.1'
631.0
360.9r
33.6
3213'
270.1'
130.0
140.2'
27.8
112.4'
1,997.0'
528.7
.0
528.7
855.2
101.9
753.4
293.8'
70.7
2,724.9'
736.9
427.5'
48.0
379.5'
309.4'
174.5
m c
28.0
106.9'
1.988.01,
487.7
.0
487.7
902.2'
124.6
777.7'
289.7'
78.2
2,763.0'
745.8
432.0'
42.6
389.3'
313.9'
172.7
141.1'
28.4
112.8'
2,017.2'
484.2
.0
484.2
923.1'
126.8
796.3'
296.5'
78.5
2,775.9'
743.7
435.2'
37.8
397.5'
308.4'
161.5
146.9'
28.7
118.2'
2,032.3'
481.1'
.0
481.1'
942.0'
129.5
812.5'
296.9'
77.6
2,828.6'
780.1
455.4'
48.1
407.4'
324.7'
171.8
152.9'
29.1
123.8'
2,048.4
479.3'
.0
479.3'
965.0
131.7
833.2
295.2
73.2
2,855.2'
787.9
455.4'
44.5
410.9'
332.5'
176.2
156.4'
29.4
127.0'
2,067.2'
477.1'
.0
477.1'
983.9
135.7
848.3
294.7'
73.0
2,863.8'
794.1
456.6'
41.3
415.2'
337.5'
183.2
154.3'
29.6
124.7'
2,069.7'
474.4'
.0
474.4'
1,000.0
138.9
861.1
296.2'
62.9
2,914.4
829.7
475.9
54.7
421.2
353.9
199.7
154.2
29.8
124.4
2,084.7
469.0
.0
469.0
1,021.5
141.8
879.8
294.4
64.3
2,888.1
805.3
463.7
48.5
415.2
341.6
187.5
154.1
29.8
124.3
2,082.8
469.0
n.a.
469.0
1,018.0
140.7
877.4
295.6
61.9
2,908.8
816.6
467.4
54.6
412.8
349.2
194.9
154.3
29.9
124.5
2,092.2
469.1
n.a.
469.1
1,027.0
140.9
886.2
295.7
65.3
2,915.2
833.8
479.3
53.9
425.3
354.5
199.9
154.6
29.7
124.9
2,081.4
469.9
n.a.
469.9
1,017.6
141.5
876.1
294.2
65.1
2,929.5
848.3
486.7
60.3
426.4
361.5
207.9
153.6
29.8
123.7
2,081.2
468.6
n.a.
468.6
1,019.4
142.8
876.6
293.1
64.8
57.6
13.1
13.8
9.6
66.3
11.9
12.9
8.2
67.9
10.5
13.0
8.2
66.8
10.8
12.9
8.1
62.0
11.3
12.1
8.1
62.0
11.0
11.8
8.1
51.9
11.0
11.9
8.1
53.2
11.1
12.2
7.8
51.2
10.6
11.9
7.9
53.8
11.5
12.2
7.8
53.2
12.0
12.1
7.8
54.4
10.4
12.3
7.7
23.3
70.5
131.3
158.8
16.6
66.4'
126.1
176.5
19.8
68.1'
125.9
182.0
19.2
70.2'
124.2
181.7
18.5
74.0'
123.0
180.3
22.4
74.4'
121.8
178.7
22.9
73.6'
119.9
156.1
23.2
72.5
119.8
149.3
25.0
73.5
119.9
158.9
23.0
72.2
119.8
140.9
22 2
72.8
119.7
151.7
23.6
72.1
119.7
146.5
85.2
73.5
143.4
318.5'
86.8
89.7
146.9
325.6'
89.2
92.9
144.4
323.4'
84.0
97.7
144.1
332.3'
87.3
93.0
145.0
332.4'
85.3
93.4
146.6
327.1'
86.7
69.4
145.8
320.7'
80.1
69.1
146.3
337.7
89.1
69.8
151.2
334.2
72.0
68.9
142.1
342.8
82.6
69.1
150.6
344.1
77.4
69.1
140.6
331.2
3,204.0r
3,330.7r
3,369.9r
3,391.1r
3,443.2r
3,464.8r
3,442.6r
3,503.5
3,488.5
3,490.7
3,517.2
3,503.6
1,804.2
311.1
1,493.1
252.0
1,241.1
711.0
251.3
459.7
159.1
199.3
1,872.9
282.4
1,590.5
268.3
1,322.1
720.6
251.3
469.3
171.2
267.3
1,883.6
268.4
1,615.2
270.8
1,344.4
724.0
258.0
466.0
175.4
274.5
1,899.9
286.9
1,612.9
266.4
1,346.6
721.7
257.8
463.9
179.5
271.3
1,924.4
282.6
1,641.8
265.2'
1,376.6'
733.5
264.2
469.3
185.5
274.4
1,936.4
288.5
1,647.9
261.4'
1,386.5'
724.9
246.3
478.7
199.0
283.2
1,946.8'
283.1
1,663.7'
272.1'
1,391.6'
652.9
192.9
460.0
208.0'
286.1'
1,946.1
283.2
1,662.9
275.0
1,388.0
679.5
194.3
485.2
211.1
298.0
1,961.4
270.5
1,690.9
278.8
1,412.1
681.2
204.3
476.9
203.6
277.6
1,946.7
271.6
1,675.1
274.8
1,400.3
659.5
188.4
471.1
214.9
300.9
1,949.7
295.1
1,654.7
277.2
1,377.5
677.8
190.1
487.7
214.6
302.4
1,924.9
293.6
1,631.3
270.6
1,360.7
696.7
195.4
501.3
212.4
299.7
2,873.6
3,032.0
3,057.5
3,072.3
3,117.8
3,143.6
3,093.8
3,134.7
3,123.8
3,121.9
3,144.6
3,133.7
330.5'
298.6'
312.5'
318.8'
325.4'
321.2'
348.8'
368.8
364.6
368.8
372.6
369.9
A18
1.26
DomesticNonfinancialStatistics • May 2003
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities1—Continued
C. Large domestically chartered commercial banks—Continued
Billions of dollars
Monthly averages
Account
2002
Feb.
Wednesday figures
2002
Aug.
Sept.
Oct.
2003
Nov.
Dec.
Jan.
2003
Feb.
Feb. 5
Feb. 12
Feb. 19
Feb. 26
2,919.6
837.3
482.9
55.5
427.4
329.4
98.0
22.7
56.9
18.4
354.4
200.0
154.4
29.8
124.6
2,082.3
467.9
.0
467.9
1,017.8
141.9
559.3
316.6
297.3
109.7
187.6
63.7
2,897.1
814.7
471.5
49.3
422.2
324.2
97.9
20.0
59.3
18.6
343.2
188.4
154.9
29.9
124.9
2,082.4
467.5
n.a.
467.5
1,016.1
140.7
559.2
316.2
299.3
109.5
189.8
61.0
2,913.3
822.7
473.3
55.3
418.0
322.5
95.6
22.6
56.8
16.2
349.4
195.0
154.4
29.9
124.5
2,090.6
467.5
n.a.
467.5
1,025.7
141.3
568.2
316.2
298.9
109.3
189.6
63.7
2,920.0
841.9
486.6
54.8
431.8
333.7
98.1
22.9
56.8
18.5
355.3
200.4
154.9
29.7
125.2
2,078.1
468.8
n.a.
468.8
1,012.9
141.9
554.6
316.4
297.2
110.1
187.1
63.8
2,931.1
854.6
493.0
61.1
431.9
332.7
99.2
23.9
56.0
19.4
361.6
208.0
153.6
29.8
123.7
2,076.5
467.8
n.a.
467.8
1,012.9
142.8
552.9
317.2
295.6
110.0
185.5
64.9
Not seasonally adjusted
Assets
45 Bank credit
46
Securities in bank credit
U.S. government securities
47
48
Trading account
49
Investment account
50
Mortgage-backed securities .
51
Other
52
One year or less
53
One to five years
54
More than five years . . . .
Other securities
55
56
Trading account
57
Investment account
58
State and local government .
59
Other
60
Loans and leases in bank credit 2 . . .
61
Commercial and industrial
62
Bankers acceptances
63
Other
64
Real estate
65
Revolving home equity
66
Other
67
Commercial
68
Consumer
69
Credit cards and related plans .
70
Other
71
Security3
72
Federal funds sold to and
repurchase agreements
with broker-dealers
73
Other
74
State and local government
75
Agricultural
76
Federal funds sold to and
repurchase agreements
with others
All other loans
II
78
Lease-financing receivables
79 Interbank loans
80
Federal funds sold to and
repurchase agreements
with commercial banks
81
Other
82 Cash assets4
83 Other assets5
84 Total assets 6
85
86
87
88
89
90
91
92
93
94
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign offices
Other liabilities
95 Total liabilities
96 Residual (assets less liabilities)7
Footnotes appear on p. A21.
2,632.9'
636.8
366.2'
34.1
332.1'
258.3
73.7'
17.1'
44.5
12.1
270.6'
130.2
140.4'
27.8
112.6'
1,996.1'
527.6
.0
527.6
852.0
102.0
438.5'
311.5'
296.2'
122.2'
174.1
70.0
2,711.6'
730.6
423.5'
47.6
375.9'
304.7
71.3'
17.2'
42.2
11.8
307.1'
173.1
133.9'
27.8
106.1'
1,981.0'
485.3
.0
485.3
902.7'
124.9
465.2'
312.6'
287.5'
114.7'
172.8
77.1
2,757.5'
743.1
429.5'
42.4
387.1'
308.2
79.0'
19.8'
46.3
12.9
313.6'
172.6
141.0'
28.4
112.7'
2,014.3'
483.8
.0
483.8
923.5'
127.3
482.9'
313.4'
294.0'
118.4'
175.6
79.7
2,774.6'
744.2
432.6'
37.6
395.1'
313.1
82.0'
21.7'
49.9
10.4
311.6'
163.2
148.4'
29.0
119.4'
2,030.4'
481.9'
.0
481.9'
940.9'
129.5
495.3
316.1'
293.9'
116.8'
177.2
80.0
2,836.7'
784.5
456.5'
48.2
408.3'
324.6
83.7'
23.0'
47.1
13.5
328.1'
173.6
154.5'
29.4
125.0'
2,052.1
480.1'
.0
480.1'
966.9
131.9
518.7
316.4
294.0'
114.0
180.0
75.3
2,869.6'
794.1
458.2'
44.8
413.5'
317.0
96.5'
24.0'
56.2
16.3
335.8'
177.9
157.9'
29.7
128.3'
2,075.5'
475.3'
.0
475.3'
985.8
135.2
534.5'
316.0'
297.8'
116.5'
181.3
75.9
2,874.6'
802.8
461.7'
41.8
419.9'
323.1
96.7'
21.2'
58.2
17.4
341.1'
185.1
156.0'
30.0
126.0'
2,071.8'
470.5'
.0
470.5'
999.4
138.3
544.7'
316.4'
301.0'
115.2'
185.7
62.9
57.0
13.0
13.8
9.5
65.3
11.7
12.9
8.2
69.0
10.7
13.0
8.2
68.8
11.1
12.9
8.0
63.7
11.6
12.1
8.0
64.5
11.4
11.8
8.1
51.9
11.0
11.9
8.1
52.7
11.0
12.2
7.7
50.5
10.5
11.9
7.8
52.5
11.2
12.2
7.8
52.1
11.7
12.1
7.7
54.5
10.4
12.3
7.6
24.7
69.5
132.8
157.0
16.6
65.9'
124.8
172.0
19.8
68.3'
124.0
177.0
19.2
70.1'
123.6
177.3
18.5
74.5'
122.7
182.1
22.4
76.2'
122.3
182.9
22.9
73.3'
121.9
155.7
23.2
71.5
121.1
147.6
25.0
72.3
121.5
157.0
23.0
70.5
121.2
139.6
22.2
72.3
121.0
149.7
23.6
71.0
120.9
143.8
84.3
72.7
144.1
316.9'
84.6
87.4
137.9
323.4'
86.8
90.2
141.6
325.4'
82.0
95.3
145.1
331.6'
88.2
93.9
148.0
333.9'
87.3
95.5
157.5
329.4'
86.5
69.2
154.4
321.5'
79.2
68.3
147.0
335.9
88.1
69.0
147.2
335.3
71.3
68.2
137.9
342.1
81.5
68.2
161.2
340.3
76.0
67.8
141.1
327.6
3,206.Or
3,301.4 r
3,358.4 r
3 r 386.0 r
3,457.3 r
3,496.4 r
3,462.5 r
3,505.7
3,492.5
3,488.6
3,526.6
3,499.3
1,810.7
307.7
1,502.9
253.9
1,249.0
714.0
256.2
457.7
162.8
203.3
1,856.4
271.0
1,585.5
266.7
1,318.8
700.6
246.1
454.4
170.2
265.7
1,874.8
264.0
1,610.9
268.3
1,342.6
721.4
251.1
470.3
175.0
274.0
1,896.8
283.0
1,613.9
267.6
1,346.3
723.6
256.0
467.6
180.2
272.2
1,933.4
285.5
1,647.9
268.7'
1,379.2'
736.6
261.3
475.3
190.2
280.8
1,952.6
305.0
1,647.6
264.5'
1,383.2'
724.5
247.7
476.8
203.2
288.9
1,950.5'
291.0
1,659.5'
274.8
1,384.7'
666.1
197.7
468.4
212.9'
292.7'
1,954.2
280.1
1,674.1
277.1
1,396.9
682.2
199.2
483.0
215.8
304.2
1,966.8
265.6
1,701.3
281.6
1,419.7
690.0
209.4
480.6
208.0
283.4
1,955.0
264.9
1,690.1
278.1
1,412.0
661.3
192.9
468.3
218.9
306.3
1,962.8
297.3
1,665.5
279.2
1,386.3
683.4
196.0
487.5
219.9
309.4
1,927.5
289.9
1,637.6
271.2
1,366.4
692.9
199.2
493.7
218.3
307.7
2,890.7
2,992.9
3,045.2
3,072.8
3,141.1
3,169.3
3,122.2
3,156.4
3,148.2
3,141.5
3,175.5
3,146.4
308.4'
313.2'
313.2'
316.3'
327.1'
340.3'
349.4
344.2
347.0
351.1
352.8
315.3'
Commercial Banking Institutions—Assets and Liabilities
1.26
C O M M E R C I A L B A N K S IN T H E UNITED STATES
A19
Assets and Liabilities1—Continued
D. Small domestically chartered commercial banks
Billions of dollars
Wednesday figures
Monthly averages
Account
2002
2002
Feb.
Aug.
Sept.
Oct.'
2003
2003
Nov.'
Dec.'
Jan.'
Feb.
Feb. 5
Feb. 12
Feb. 19
Feb. 26
Seasonally adjusted
Assets
1 Bank credit
Securities in bank credit
7
U.S. government securities
Other securities
4
5
Loans and leases in bank credit2 . . . .
6
Commercial and industrial
Real estate
7
Revolving home equity
8
9
Other
10
Consumer
11
Security3
Other loans and leases
17
n Interbank loans
14 Cash assets4
15 Other assets5
2,218.7'
624.0
402.3
221.6
1,594.7'
301.8'
916.5
60.3
856.2
270.6'
7.8
97.9
99.3
111.9
141.2
2,326.9'
646.0
436.8
209.2
1,680.9'
303.7'
980.9'
73.1
907.8'
285.0'
8.0
103.3
110.6
124.7
145.2
2,348.4'
650.2
444.1
206.1
1,698.1'
305.0'
994.2'
74.1
920.1'
286.1'
8.2
104.6
114.6
126.8'
147.1
2,369.7
654.6
448.3
206.3
1,715.0
305.9
1,006.7
75.4
931.4
287.7
8.4
106.4
120.2
129.1
145.0
2,388.3
659.2
453.2
206.0
1,729.1
307.9
1,015.6
76.1
939.5
289.7
8.3
107.6
121.5
129.1
147.9
2,396.7
663.3
456.3
207.0
1,733.5
308.9
1,017.7
76.8
940.9
291.4
8.4
107.0
121.0
128.6
149.7
2,403.6
662.9
455.3
207.5
1,740.7
309.6
1,020.3
78.0
942.2
295.5
8.5
106.8
122.4
130.7
149.8
2,419.6
663.1
455.9
207.2
1,756.5
311.9
1,029.9
80.3
949.6
299.5
8.6
106.6
126.1
132.9
154.6
2,416.0
665.9
459.4
206.5
1,750.2
311.4
1,026.4
79.6
946.8
297.1
8.6
106.7
124.1
135.5
155.3
2,415.6
663.6
455.7
207.9
1,752.1
311.4
1,029.4
79.7
949.7
296.5
8.5
106.2
120.0
132.8
157.0
2,421.7
661.8
454.2
207.6
1,760.0
312.5
1,029.9
80.7
949.1
302.4
8.7
106.6
126.7
133.6
154.0
2,422.4
660.2
453.6
206.6
1,762.2
311.9
1,032.7
81.0
951.7
301.6
8.9
107.1
133.1
130.3
151.2
16 Total assets6
2,540.7r
2,676.2r
2,705.2r
2,732.0
2,754.6
2,763.6
2,774.1
2,800.7
2,798.5
2,793.1
2,803.3
2,804.3
1,993.6
303.6
1,690.0
301.7
1,388.4
332.0
120.6'
211.3'
10.9
60.0
2,092.6
306.7
1,785.9
301.6
1,484.3
358.3
131.9'
226.3'
8.5
66.3
2,103.9'
305.5
1,798.4'
302.5
1,495.9
374.2
135.3'
238.8'
8.6
68.2
2,116.8
314.6
1,802.2
304.9
1,497.3
377.4
133.9
243.4
12.3
69.0
2,127.3
314.1
1,813.2
306.4
1,506.8
377.1
131.0
246.1
11.3
70.9
2,123.8
315.8
1,807.9
308.9
1,499.0
389.5
139.6
249.9
12.4
70.5
2,124.4
313.3
1,811.2
308.3
1,502.9
404.5
154.4
250.1
15.2
77.1
2,141.2
314.1
1,827.2
311.2
1,515.9
407.7
157.5
250.2
13.0
79.8
2,135.5
308.2
1,827.3
310.0
1,517.3
408.6
157.2
251.4
15.1
79.1
2,131.1
306.9
1,824.2
309.7
1,514.5
410.4
158.9
251.5
12.6
79.2
2,143.8
317.1
1,826.7
310.9
1,515.8
410.5
158.1
252.3
12.6
79.5
2,147.8
323.8
1,823.9
313.1
1,510.9
404.1
156.9
247.2
12.8
80.7
2,396.5
2,525.6r
2,554.9
2,575.5
2,586.6
2,596.2
2,621.2
2,641.7
2,638.3
2,633.3
2,646.5
2,645.4
144.2'
150.5'
150.3'
156.5
168.0
167.5
152.8
159.0
160.2
159.8
156.9
158.9
17
18
19
70
71
77
73
74
75
26
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
27 Total liabilities
28 Residual (assets less liabilities)7
Not seasonally adjusted
79
30
31
37
33
34
35
36
37
38
39
40
41
47
43
44
45
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
Credit cards and related plans . .
Other
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
46 Total assets6
47
48
49
50
51
57
53
54
55
56
Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
57 Total liabilities
58 Residual (assets less liabilities)7
Footnotes appear on p. A21.
2,215.0'
625.7
404.0
221.6
1,589.3'
300.4
914.6
60.2
854.5
270.5'
101.4'
169.1
7.8
96.0
99.8
111.5
141.2
2,324.0'
643.7
434.4
209.2
1,680.3'
302.2'
981.6'
72.9
908.7'
283.7'
109.7'
174.1
7.9
104.9
108.7
120.9
145.2
2,350.4'
649.2
443.0'
206.1
1,701.2'
303.3'
995.9'
74.6
921.3'
288.2'
112.8'
175.4
8.0
105.8
111.8
126.4
147.1
2,375.0
653.4
447.1
206.3
1,721.6
305.8
1,010.0
75.9
934.1
291.2
115.3
175.9
8.3
106.4
119.2
129.6
145.0
2,394.0
659.0
453.1
206.0
1,735.0
306.8
1,018.7
76.6
942.0
293.6
117.5
176.0
8.6
107.3
123.6
133.6
147.9
2,410.1
666.1
459.1
207.0
1,744.0
309.0
1,020.6
77.4
943.2
298.3
122.0
176.4
8.6
107.5
123.8
135.8
149.7
2,405.3
664.1
456.6
207.5
1,741.2
308.6
1,019.9
78.3
941.6
299.1
120.2
178.9
8.3
105.3
120.6
133.7
149.8
2,415.8
665.0
457.8
207.2
1,750.8
310.3
1,027.8
80.1
947.7
299.4
118.9
180.5
8.6
104.6
126.7
132.4
154.6
2,414.6
667.5
461.1
206.5
1,747.1
310.0
1,025.0
79.6
945.4
298.3
116.5
181.8
8.6
105.1
126.5
132.7
155.3
2,413.8
666.3
458.4
207.9
1,747.5
309.8
1,028.2
79.7
948.5
296.9
115.5
181.4
8.4
104.2
121.4
128.2
157.0
2,415.8
663.3
455.7
207.6
1,752.5
310.7
1,027.0
80.4
946.6
302.1
121.9
180.2
8.5
104.3
125.2
138.1
154.0
2,417.3
662.2
455.6
206.6
1,755.1
310.5
1,030.2
80.6
949.5
300.9
121.4
179.5
8.7
104.7
130.9
131.0
151.2
2,537.2r
2,667.5r
2,704.0r
2,736.8
2,766.9
2,786.9
2,777.0
2,797.0
2,796.7
2,788.0
2,800.5
2,797.6
1,997.7
301.6
1,696.1
301.7
1,394.4
332.0
120.6'
211.3'
10.9
60.0
2,076.6
303.0
1,773.6
301.6
1,472.0
358.3
131.9'
226.3'
8.5
66.3
2,092.6
303.6
1,789.0
302.5
1,486.5
374.2
135.3'
238.8'
8.6
68.2
2,112.1
313.3
1,798.8
304.9
1,493.9
377.4
133.9
243.4
12.3
69.0
2,134.5
316.5
1,817.9
306.4
1,511.5
377.1
131.0
246.1
11.3
70.9
2,145.5
326.2
1,819.4
308.9
1,510.4
389.5
139.6
249.9
12.4
70.5
2,135.3
317.5
1,817.8
308.3
1,509.5
404.5
154.4
250.1
15.2
77.1
2,145.6
312.0
1,833.6
311.2
1,522.4
407.7
157.5
250.2
13.0
79.8
2,145.5
307.8
1,837.7
310.0
1,527.7
408.6
157.2
251.4
15.1
79.1
2,135.8
302.7
1,833.1
309.7
1,523.4
410.4
158.9
251.5
12.6
79.2
2,147.9
316.3
1,831.5
310.9
1,520.6
410.5
158.1
252.3
12.6
79.5
2,146.5
320.6
1,825.9
313.1
1,512.9
404.1
156.9
247.2
12.8
80.7
2,400.5
2,509.6
2,543.6
2,570.8
2,593.8
2,618.0
2,632.1
2,646.1
2,648.2
2,638.0
2,650.5
2,644.1
136.6'
157.9'
160.3'
166.0
173.2
169.0
144.9
150.9
148.4
150.0
150.0
153.5
A20
1.26
DomesticNonfinancialStatistics • May 2003
COMMERCIAL BANKS IN THE UNITED STATES
Assets and Liabilities '—Continued
E. Foreign-related institutions
Billions of dollars
Monthly averages
Account
2002
Feb.
Wednesday figures
2002
Aug.
Sept.
Oct.
2003
Nov.
Dec.
Jan.
2003
Feb.
Feb. 5
Feb. 12
Feb. 19
Feb. 26
Seasonally adjusted
1
2
3
4
5
6
7
8
y
10
li
12
Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2 . . . .
Commercial and industrial
Real estate
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5
13 Total assets6
14
15
16
17
18
19
20
21
Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
22 Totalliabilities
23 Residual (assets less liabilities)7
592.2
233.5
69.4
164.2
358.6
198.2
17.4
74.9
68.1
20.2
42.3
29.5
620.9
250.0
81.8
168.1
370.9
189.9
18.8
90.5
71.7
18.5
46.5
29.0
618.7
247.5'
86.7
160.8
371.2'
185.4'
19.0
94.8
72.0
21.7
46.0
28.4'
614.3'
245.5'
88.9'
156.6'
368.8'
181.2'
19.5
97.1
71.0
24.9
45.1'
35.1
621.0'
249.3'
92.9'
156.3'
371.7'
m.(y
19.8
105.1
67.8
26.6
40.7'
38.0
634.7
263.9
101.0'
162.9'
370.8
178.1'
19.4
110.2
63.1
31.8
42.5
41.2
624.9
265.5
101.4'
164.1'
359.4
174.9'
18.7
105.4
60.3
30.9
37.9
46.7
636.8
276.0
106.2
169.8
360.8
171.4
17.9
111.1
60.4
30.9
35.8
47.7
632.6
274.4
105.0
169.5
358.2
172.2
17.9
107.1
61.0
29.1
36.1
49.8
633.7
276.1
106.0
170.1
357.6
171.4
17.9
108.3
60.0
30.8
35.3
48.2
634.4
274.8
105.4
169.4
359.6
171.7
17.8
109.9
60.2
30.4
35.9
46.6
640.2
275.6
107.1
168.5
364.6
171.0
18.0
115.4
60.2
32.2
35.9
47.2
683.8
714.5
714.5
719.0 r
725.9
749.8
739.9 r
750.8
747.3
747.6
746.8
755.2
470.3
10.2
460.0
188.7
22.0
166.7
-60.5
79.6
495.1
10.1
485.0
213.8
21.6
192.1
-85.6
96.8
486.0
10.1
475.9
224.1'
22.7
201.4'
-83.7'
92.7
466.4
9.7'
456.6
233.9
23.1
210.7
-72.5'
99.7
448.5
9.5
439.1
254.6
25.5
229.1
-74.5'
99.1
424.0
9.5
414.5
282.9
29.9
253.0
-61.1'
99.9
432.0
9.7
422.2
277.9
31.2
246.7
-71.8'
97.0
446.9
9.7
437.1
283.3
31.5
251.8
-81.6
98.8
450.7
9.4
441.3
276.0
29.8
246.2
-76.4
97.2
445.1
9.5
435.6
279.2
24.2
255.0
-74.4
95.5
441.2
9.6
431.6
273.6
31.8
241.8
-76.6
103.9
449.3
10.0
439.3
297.3
38.2
259.1
-95.3
97.2
678.1
720.0
719.1
121.4'
121.1'
745.8
735.0 r
747.4
747.5
745.4
742.0
748.5
5.7
-5.5
-4.6
-8.4
-1.8
4.0
3.4
-.1
2.2
4.8
6.7
4.9
Not seasonally adjusted
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Assets
Bank credit
Securities in bank credit
U.S. government securities
Trading account
Investment account
Other securities
Trading account
Investment account
Loans and leases in bank credit2 . . . .
Commercial and industrial
Real estate
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5
40 Total assets6
41
42
43
44
45
46
47
48
Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities
49 Totalliabilities
50 Residual (assets less liabilities)
Footnotes appear on p. A21.
7
596.2
233.5
69.4
10.5'
58.9'
164.2
101.4
62.7
362.6
199.8
17.4
77.3
68.2
20.2
43.2
30.1
614.7
250.0
81.8
13.0
68.8
168.1
109.8
58.4
364.8
188.3
18.8
87.2
70.4
18.5
45.1
28.6
615.4
247.5'
86.7
15.2
71.5
160.8
103.9
56.9
367.9
185.4
19.0
91.9
71.6
21.7
46.1
29.0
614.3'
245.5'
88.9'
18.6
70.3'
156.6'
100.5
56.2'
368.8'
181.8'
19.5
97.2
70.2
24.9
46.0'
34.5
623.8'
249.3'
92.9'
20.2
72.8'
156.3'
99.3
57.1'
374.5'
180.5'
19.8
106.4
67.8
26.6
43.1'
37.8
643.8
263.9
101.0'
30.3
70.7'
162.9'
99.7
63.3
379.8'
179.6'
19.4
116.0
64.8
31.8
45.1
42.3
632.1'
265.5
101.4'
31.6
69.8'
164.1'
98.9
65.2'
366.6
175.6
18.7
111.2
61.0
30.9
39.9
47.9
641.8
276.0
106.2
34.4
71.8
169.8
97.9
72.0
365.8
172.8
17.9
114.7
60.5
30.9
36.5
48.6
640.3
274.4
105.0
33.1
71.9
169.5
99.5
70.0
365.8
172.6
17.9
113.9
61.4
29.1
37.4
51.2
640.9
276.1
106.0
33.7
72.2
170.1
97.2
72.9
364.8
173.0
17.9
113.8
60.2
30.8
36.4
49.4
635.9
274.8
105.4
33.5
71.8
169.4
96.5
73.0
361.1
173.3
17.8
110.0
59.9
30.4
36.7
46.8
645.3
275.6
107.1
36.5
70.6
168.5
97.4
71.1
369.8
172.4
18.0
119.2
60.1
32.2
36.2
47.9
689.3
706.5
711.7
719.3 r
730.9
762.6
750.4 r
757.5
757.6
757.1
749.4
761.3
475.7
10.4
465.3
188.7
22.0
166.7
-57.6
80.8
480.6
9.8
470.8
213.8
21.6
192.1
-87.6
95.6
474.0
10.3
463.8'
224.1'
22.7
201.4'
-82.7
93.3
458.9
9.9
449.1'
233.9
23.1
210.7
-73.8'
98.9
452.2'
9.6
442.5
254.6
25.5
229.1
-75.6'
98.3
435.7
10.2
425.5
282.9
29.9
253.0
-58.9'
101.4
441.8
10.0
431.9
277.9
31.2
246.7
-69.3
98.6'
452.0
9.9
442.1
283.3
31.5
251.8
-79.5
100.3
458.2
9.6
448.6
276.0
29.8
246.2
-75.7
97.7
451.6
9.6
442.0
279.2
24.2
255.0
-72.2
97.1
444.2
9.9
434.3
273.6
31.8
241.8
-74.9
105.2
454.7
10.0
444.7
297.3
38.2
259.1
-91.9
99.8
687.6
702.4
708.7 r
717.9 r
729.5 r
761.2
749.0 r
756.1
756.2
755.7
748.0
759.9
1.8'
4.1
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.4
3.1
Commercial Banking Institutions—Assets and Liabilities
1.26
C O M M E R C I A L B A N K S IN T H E UNITED STATES
A21
Assets and Liabilities1—Continued
F. M e m o i t e m s
Billions of dollars
Monthly averages
Account
2002
Feb.
Wednesday figures
2002
Aug.
Sept.
Oct.
2003
Nov.
Dec.
Jan.
2003
Feb.
Feb. 5
Feb. 12
Feb. 19
Feb. 26
Not seasonally adjusted
MEMO
7
8
9
10
11
Large domestically chartered banks,
adjusted for mergers
Revaluation gains on off-balance-sheet
items8
Revaluation losses on off-balancesheet items8
Mortgage-backed securities9
Pass-through
CMO, REMIC, and other
Net unrealized gains (losses) on
available-for-sale securities10
Off-shore credit to U.S. residents11 . . . .
Securitized consumer loans12
Credit cards and related plans
Other
Securitized business loans12
12
13
14
15
Small domestically chartered
commercial banks, adjusted for
mergers
Mortgage-backed securities9
Securitized consumer loans12
Credit cards and related plans
Other
1
2
3
4
5
6
Foreign-related institutions
16 Revaluation gains on off-balancesheet items8
17 Revaluation losses on off-balancesheet items8
18 Securitized business loans12
81.7
112.3
119.1
110.9
117.1
124.4
130.5
143.3
131.7
139.6
142.5
150.3
59.7
296.8
200.2
96.7
94.2
338.5
253.7
84.8
100.5
343.9
255.0
88.9
94.2
355.2
261.7
93.5
100.8
370.4
274.6
95.8
105.6
363.1
265.6
97.4
108.8
368.8
271.2
97.6
121.2
374.8
276.5
98.3
110.9
369.9
269.9
99.9
117.9
368.0
268.2
99.8
119.8
379.1
282.1
97.0
127.5
377.3
281.4
95.9
3.5
19.8
132.2'
120.7
11.6r
19.4
9.1
19.0
142.8r
125.5
17.3'
17.8
11.5
19.0
141.9'
125.0
16.9'
17.8'
12.5
18.4
144.3'
127.5
16.9'
17.8'
11.8
18.5
148.5'
131.4
n.(y
17.4'
11.0
18.7
150.1'
133.2
16.9'
17.2'
12.2
18.3
149.7'
132.2
17.5'
16.9'
12.1
18.2
150.6
134.8
15.8
17.2
11.6
18.2
150.8
134.9
15.9
17.1
11.6
18.4
150.5
134.6
15.9
17.3
11.9
18.1
150.0
134.2
15.8
17.2
12.4
18.4
151.1
135.3
15.8
17.1
276.3'
207.6
200.0
7.6
295.1r
202.1
199.0
3.1
300.4'
199.9
195.9
3.9
303.3'
198.3
189.3
8.9
305.3'
198.7
189.8
8.9
307.2'
201.2
192.5
8.7
306.7
205.6
197.1
8.5
312.5
204.5
196.0
8.4
312.4
206.2
197.7
8.5
312.0
206.0
197.6
8.5
312.3
204.1
195.6
8.5
311.0
202.5
194.1
8.4
53.0
65.1
62.5
61.9
63.2
64.0
66.5
66.5
67.8
65.9
65.5
66.6
48.0
13.0
64.8
9.1
61.5
8.1
60.2
7.6
60.4
7.3
60.1
6.9
63.0
5.8
65.1
4.8
65.5
4.8
63.6
4.8
64.6
4.9
65.8
4.8
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.
1. Covers the following types of institutions in the fifty states and the District of Columbia:
domestically chartered commercial banks that submit a weekly report of condition (large
domestic); other domestically chartered commercial banks (small domestic); branches and
agencies of foreign banks, and Edge Act and agreement corporations (foreign-related institutions). Excludes International Banking Facilities. Data are Wednesday values or pro rata
averages of Wednesday values. Large domestic banks constitute a universe; data for small
domestic banks and foreign-related institutions are estimates based on weekly samples and on
quarter-end condition reports. Data are adjusted for breaks caused by reclassifications of
assets and liabilities.
The data for large and small domestic banks presented on pp. A17-19 are adjusted to
remove the estimated effects of mergers between these two groups. The adjustment for
mergers changes past levels to make them comparable with current levels. Estimated
quantities of balance sheet items acquired in mergers are removed from past data for the bank
group that contained the acquired bank and put into past data for the group containing the
acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a
ratio procedure is used to adjust past levels.
2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks
in the United States, all of which are included in "Interbank loans."
3. Consists 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
institutions, and balances due from Federal Reserve Banks.
5. Excludes the due-from position with related foreign offices, which is included in "Net
due to related foreign offices."
6. Excludes unearned income, reserves for losses on loans and leases, and reserves for
transfer risk. Loans are reported gross of these items.
7. This balancing item is not intended as a measure of equity capital for use in capital
adequacy analysis. On a seasonally adjusted basis, this item reflects any differences in the
seasonal patterns estimated for total assets and total liabilities.
8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity
and equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39.
9. Includes mortgage-backed securities issued by U.S. government agencies, U.S.
government-sponsored enterprises, and private entities.
10. Difference between fair value and historical cost for securities classified as availablefor-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are
restated to include an estimate of these tax effects.
11. Mainly commercial and industrial loans but also includes an unknown amount of credit
extended to other than nonfinancial businesses.
12. Total amount outstanding.
A22
1.32
DomesticNonfinancialStatistics • May 2003
COMMERCIAL PAPER OUTSTANDING
Millions of dollars, seasonally adjusted, end of period
Year ending December
2002
2003
Item
1 All issuers
2
3
Financial companies1
Dealer-placed paper, total2
Directly placed paper, total3
4 Nonfinancial companies 4
1998
1999
2000
2001
2002
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
1,163,303
1,403,023
1,615,341
1,438,764
1,321,517
1,375,414
1,338,119
1,350,182
1,351,428
1,321,517
1,345,460
614,142
322,030
786,643
337,240
973,060
298,848
989,364
224,553
949,683
217,787
863,215
343,733
856,037
322,729
973,150
219,581
982,239
211,574
949,683
217,787
955,386
236,820
227,132
279,140
343,433
224,847
154,047
168,466
159,353
157,451
157,615
154,047
153,254
1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales,
personal and mortgage financing; factoring, finance leasing, and other business lending;
insurance underwriting; and other investment activities.
2. Includes all financial-company paper sold by dealers in the open market.
1.33
PRIME RATE CHARGED BY BANKS
3. As reported by financial companies that place their paper directly with investors.
4. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and
services.
Short-Term Business Loans1
Percent per year
Date of change
Period
Rate
2000—Jan. 1
Feb. 3
Mar. 22
May 17
8.50
8.75
9.00
9.50
2001—Jan.
Feb.
Mar.
Apr.
May
June
Aug.
Sept.
Oct.
Nov.
Dec.
4
1
21
19
16
28
22
18
3
7
12
9.00
8.50
8.00
7.50
7.00
6.75
6.50
6.00
5.50
5.00
4.75
2002—Nov.
7
4.25
Average
rate
2000
2001
2002
9.23
6.91
4.67
2000—Jan
Feb
Mar
Apr.
May
June
July
Aug
Sept
Oct
Nov
Dec
8.50
8.73
8.83
9.00
9.24
9.50
9.50
9.50
9.50
9.50
9.50
9.50
1. The prime rate is one of several base rates that banks use to price short-term business
loans. The table shows the date on which a new rate came to be the predominant one quoted
by a majority of the twenty-five largest banks by asset size, based on the most recent Call
Average
rate
2001—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
9.05
8.50
8.32
7.80
7.24
6.98
6.75
6.67
6.28
5.53
5.10
4.84
Average
rate
2002—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.35
4.25
2003—Jan.
Feb.
Mar.
4.25
4.25
4.25
Report. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415)
monthly statistical releases. For ordering address, see inside front cover.
Financial Markets
1.35
INTEREST RATES
A23
M o n e y and Capital Markets
Percent per year; figures are averages of business day data unless otherwise noted
2002
Item
2000
2001
2003
2003, week ending
2002
Nov.
Dec.
Jan.
Feb.
Jan. 31
Feb. 7
Feb. 14
Feb. 21
Feb. 28
MONEY MARKET INSTRUMENTS
1 Federal funds l 2-3
2 Discount window primary credit2'4
6.24
n.a.
3.88
n.a.
1.67
n.a.
1.34
n.a.
1.24
n.a.
1.24
n.a.
1.26
2.25
1.24
2.25
1.29
2.25
1.22
2.25
1.30
2.25
1.24
2.25
Commercial paper3-5-6
Nonfinancial
1-month
3
2-month
4
3-month
5
6.27
6.29
6.31
3.78
3.68
3.65
1.67
1.67
1.69
1.34
1.35
1.36
1.31
1.32
1.31
1.25
1.26
1.26
1.24
1.25
1.26
1.24
1.24
1.24
1.23
1.26
1.24
1.24
1.23
1.26
1.25
1.25
1.27
1.25
1.25
1.25
Financial
1-month
2-month
3-month
6.28
6.30
6.33
3.80
3.71
3.65
1.68
1.69
1.70
1.34
1.37
1.37
1.31
1.32
1.32
1.26
1.27
1.27
1.25
1.25
1.25
1.25
1.25
1.25
1.25
1.25
1.25
1.24
1.26
1.25
1.25
1.24
1.25
1.25
1.25
1.25
Certificates of deposit, secondary market3,7
1-month
3-month
6-month
6.35
6.46
6.59
3.84
3.71
3.66
1.72
1.73
1.81
1.39
1.39
1.40
1.37
1.34
1.36
1.29
1.29
1.30
1.27
1.27
1.27
1.27
1.27
1.27
1.27
1.27
1.27
1.27
1.26
1.26
1.27
1.27
1.27
1.27
1.27
1.27
12 Eurodollar deposits, 3-month3'8
6.45
3.70
1.73
1.39
1.35
1.29
1.26
1.26
1.26
1.26
1.27
1.26
U.S. Treasury bills
Secondary market3'5
4-week
13
14
3-month
6-month
15
n.a.
5.82
5.90
2.43
3.40
3.34
1.60
1.61
1.68
1.24
1.23
1.27
1.18
1.19
1.24
1.15
1.17
1.20
1.18
1.17
1.18
1.15
1.16
1.17
1.15
1.15
1.17
1.16
1.16
1.17
1.17
1.17
1.18
1.21
1.19
1.18
16
17
18
19
20
21
22
Constant maturities9
1-year
2-year
3-year
5-year
7-year
10-year
20-year
6.11
6.26
6.22
6.16
6.20
6.03
6.23
3.49
3.83
4.09
4.56
4.88
5.02
5.63
2.00
2.64
3.10
3.82
4.30
4.61
5.43
1.49
1.92
2.32
3.05
3.64
4.05
5.04
1.45
1.84
2.23
3.03
3.63
4.03
5.01
1.36
1.74
2.18
3.05
3.60
4.05
5.02
1.30
1.63
2.05
2.90
3.45
3.90
4.87
1.32
1.72
2.16
3.01
3.56
4.01
4.96
1.32
1.69
2.14
3.02
3.55
3.98
4.92
1.30
1.63
2.06
2.94
3.50
3.95
4.91
1.30
1.62
2.04
2.87
3.42
3.89
4.88
1.27
1.57
1.96
2.76
3.31
3.78
4.78
23
Treasury long-term average10-1'
25 years and above
n.a.
n.a.
5.41
5.10
5.06
5.07
4.93
5.00
4.95
4.97
4.95
4.86
5.58
6.19
5.71
5.01
5.75
5.15
4.87
5.64
5.04
4.77
5.62
4.95
4.70
5.57
4.85
4.72
5.61
4.90
4.57
5.48
4.81
4.72
5.59
4.90
4.68
5.58
4.88
4.59
5.50
4.83
4.52
5.44
4.79
4.48
5.38
4.74
7.98
7.49
7.10
6.88
6.77
6.72
6.50
6.63
6.53
6.52
6.50
6.43
7.62
7.83
8.11
8.37
7.08
7.26
7.67
7.95
6.49
6.93
7.18
7.80
6.31
6.71
6.89
7.62
6.21
6.63
6.80
7.45
6.17
6.59
6.77
7.35
5.95
6.34
6.63
7.06
6.09
6.48
6.73
7.21
5.99
6.37
6.65
7.10
5.97
6.37
6.66
7.09
5.96
6.35
6.65
7.06
5.89
6.28
6.57
6.97
1.15
1.32
1.61
1.73
1.77
1.81
1.91
1.86
1.93
1.93
1.89
1.89
6
7
8
9
10
11
U.S. TREASURY NOTES AND BONDS
STATE AND LOCAL NOTES AND BONDS
Moody's series12
24 Aaa
25 Baa
26 Bond Buyer series"
CORPORATE BONDS
27 Seasoned issues, all industries14
28
29
30
31
Rating group
Aaa15
Aa
A
Baa
MEMO
Dividend-price ratio16
32 Common stocks
NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly
statistical release. For ordering address, see inside front cover.
1. The daily effective federal funds rate is a weighted average of rates on trades through
New York brokers.
2. Weekly figures are averages of seven calendar days, ending on Wednesday of the
current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. The rate charged for primary credit under an amendment to the Board's Regulation A,
which became effective January 9, 2003. This rate replaces that for adjustment credit, which
was discontinued after January 8, 2003. For further information, see: http://
www.federalreserve.gov/boarddocs/press/bcreg/2002/200210312/default.htm. The rate is that
reported for the Federal Reserve Bank of New York. Historical series for the rate on
adjustment credit is available at: http://www.federalreserve.gov/releases.gov/releases/hl5/
data.htm.
5. Quoted on a discount basis.
6. Interest rates interpolated from data on certain commercial paper trades settled by the
Depository Trust Company. The trades represent sales of commercial paper by dealers or
direct issuers to investors (that is, the offer side). See the Board's Commercial Paper web
pages (http://www.federalreserve.gov/releases/cp) for more information.
7. An average of dealer offering rates on nationally traded certificates of deposit.
8. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for
indication purposes only.
9. Yields on actively traded issues adjusted to constant maturities.
10. Based on the unweighted average of the bid yields for all Treasury fixed-coupon
securities with remaining terms to maturity of 25 years and over.
11. A factor for adjusting the daily long-term average in order to estimate a 30-year rate
can be found at http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/
ltcompositeindex.html.
12. General obligation bonds based on Thursday figures; Moody's Investors Service.
13. 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 Moody's
A1 rating. Based on Thursday figures.
14. Daily figures are averages of Aaa, Aa, A, and Baa yields from Moody's Investors
Service. Based on yields to maturity on selected long-term bonds.
15. Effective December 7, 2001, the Moody's Aaa yield includes yields only for industrial
firms. Prior to December 7, 2001, the Aaa yield represented both utilities and industrial.
16. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in
the price index.
SOURCE: U.S. Department of the Treasury.
A24
1.36
DomesticNonfinancialStatistics • May 2003
STOCK MARKET
Selected Statistics
2003
2002
Indicator
2000
2001
2002
July
June
Aug.
Sept.
Nov.
Oct.
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
6,806.46
809.40
414.73
478.99
552.48
6,407.95
749.46
444.45
377.72
596.61
5,571.46
656.44
430.63
260.50
554.88
5,755.89
677.58
449.42
265.21
577.05
5,139.94
603.04
416.07
230.21
524.01
5,200.62
611.34
409.96
225.52
533.60
4,980.65
589.14
388.19
210.76
506.05
4,862.70
574.45
383.41
207.83
494.06
5,104.89
597.75
405.03
229.41
523.50
5,075.76
593.15
401.39
236.71
519.72
5,055.78
587.78
394.60
236.42
522.51
4,738.56
553.90
367.55
214.64
485.72
6 Standard & Poor's Corporation
( 1 9 4 1 ^ 3 - 10)'
1,427.22
1,194.18
993.94
1,014.05
903.59
912.55
867.81
854.63
909.93
899.18
895.84
837.62
922.22
879.08
860.11
911.59
840.76
843.89
852.03
807.38
820.62
823.77
824.64
818.84
1,026,867
51,437
1,216,529
68,074
1,411,689
n.a.
1,539,282
n.a.
1,848,962
n.a.
1,317,105
n.a.
1,370,143 1,619,896
n.a.
n.a.
1,427,254
n.a.
1,210,332
n.a.
1,441,846
n.a.
1,302,011
n.a.
7 American Stock Exchange
(Aug. 31, 1973 - 50)2
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-dealers 3
198,790
150,450
134,380
146,270
136,160
132,800
130,210
130,570
133,060
134,380
134,910
134,030
Free credit balances at brokers4
11 Margin accounts 5
12 Cash accounts
100,680
84,400
101,640
78,040
95,690
73,340
95,830
68,280
98,080
68,860
95,400
63,700
98,630
67,550
96,620
66,780
91,240
67,380
95,690
73,340
96,430
66,200
95,400
67,260
Margin requirements (percent of market value and effective date) 6
13 Margin stocks
14 Convertible bonds
15 Short sales
Mar. 11, 1968
June 8, 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. In July 1976 a financial group, composed of banks and insurance companies, was added
to the group of stocks on which the index is based. The index is now based on 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and
40 financial.
2. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting
previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has
included credit extended against stocks, convertible bonds, stocks acquired through the
exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds, and subscription issues was discontinued in
April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to
brokers and are subject to withdrawal by customers on demand.
5. Series initiated in June 1984.
6. Margin requirements, stated in regulations adopted by the Board of Governors pursuant
to the Securities Exchange Act of 1934, limit the amount of credit that can be used to
purchase and carry "margin securities" (as defined in the regulations) when such credit is
collateralized by securities. Margin requirements on securities are the difference between the
market value (100 percent) and the maximum loan value of collateral as prescribed by the
Board. Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1,
1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T the
initial margin required for writing options on securities, setting it at 30 percent of the current
market value of the stock underlying the option. On Sept. 30, 1985, the Board changed the
required initial margin, allowing it to be the same as the option maintenance margin required
by the appropriate exchange or self-regulatory organization; such maintenance margin rules
must be approved by the Securities and Exchange Commission.
Federal Finance
1.40
FEDERAL DEBT SUBJECT TO STATUTORY
A25
LIMITATION
Billions of dollars, end of month
2001
2000
2002
Item
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
1 Federal debt outstanding
5,803.5
5,800.6
5,753.9
5,834.5
5,970.3
6,032.4
2 Public debt securities
3
Held by public
4
Held by agencies
5,662.2
3,527.4
2,248.7
5,773.7
3,434.4
2,339.4
5,726.8
3,274.2
2,452.6
5,807.5
3,338.7
2,468.8
5,943.4
3,393.8
2,549.7
6,006.0
3,443.7
2,562.4
27.4
27.3
.1
26.8
26.8
.1
27.1
27.1
.0
27.0
27.0
.0
26.8
26.8
.0
5,580.5
5,692.5
5,645.0
5,732.6
5,580.2
.2
5,692.3
.2
5,644.8
.2
5,950.0
5,950.0
5,950.0
5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit
9 Public debt securities
10 Other debt1
Sept. 30
Dec. 31
6,153.3
6,255.4
6,433.0
6,126.5
3,463.5
2,662.9
6,228.2
3,552.6
2,675.6
6,405.7
3,647.4
2,758.3
26.4
26.4
.0
26.8
26.8
.0
27.2
27.2
.0
27.3
27.3
.0
5,871.4
5,935.1
6,058.3
6,161.4
6,359.4
5,732.4
.2
5,871.2
.3
5,935.0
.2
6,058.1
.2
6,161.1
.3
6,359.1
.3
5,950.0
5,950.0
5,950.0
6,400.0
6,400.0
6,400.0
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 Monthly Treasury Statement.
Types and Ownership
Billions of dollars, end of period
2002
Type and holder
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
1.3
14
15
By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Inflation-indexed notes and bonds'
Nonmarketable2
State and local government series
Foreign issues3
Government
Public
Savings bonds and notes
Government account series4
Non-interest-bearing
By holder5
16 U.S. Treasury and other federal agencies and trust funds
17 Federal Reserve Banks6
18 Private investors
19
Depository institutions
20
Mutual funds
21
Insurance companies
22
State and local treasuries7
Individuals
Savings bonds
23
24
Pension funds
25
Private
26
State and Local
Foreign and international8
27
28
Other miscellaneous investors7-9
1999
2001
2002
Ql
Q2
Q3
Q4
5,776.1
5,662.2
5,943.4
6,405.7
6,006.0
6,126.5
6,228.2
6,405.7
5,766.1
3,281.0
737.1
1,784.5
643.7
100.7
2,485.1
165.7
31.3
31.3
.0
179.4
2,078.7
10.0
5,618.1
2,966.9
646.9
1,557.3
626.5
121.2
2,651.2
151.0
27.2
27.2
.0
176.9
2,266.1
44.2
5,930.8
2,982.9
811.3
1,413.9
602.7
140.1
2,947.9
146.3
15.4
15.4
.0
181.5
2,574.8
12.7
6,391.4
3,205.1
888.8
1,580.8
588.7
146.9
3,186.3
153.4
11.2
11.2
.0
184.8
2,806.9
14.3
5,962.2
3,003.3
834.4
1,411.7
596.7
145.6
2,958.9
141.1
14.6
14.6
.0
183.6
2,589.7
43.8
6,087.0
3,024.8
822.5
1,446.9
592.9
147.5
3,062.2
142.8
13.3
13.3
.0
184.8
2,691.4
39.5
6,216.3
3,136.6
868.3
1,521.5
592.9
138.9
3,079.6
144.3
12.5
12.5
.0
185.6
2,707.3
12.0
6,391.4
3,205.1
888.8
1,580.8
588.7
146.9
3,186.3
153.4
11.2
11.2
.0
184.8
2,806.9
14.3
2,064.2
478.0
3,233.9
248.7
228.6
123.4
266.8
2,270.1
511.7
2,880.4
201.5
220.8
110.2
236.2
2,572.2
551.7
2,819.5
181.5
257.5
105.7
256.5
2,757.8
629.4
3,018.5
223.2
278.1
117.4
274.2
2,581.4
575.4
2,849.2
187.6
264.9
108.4
261.2
2,686.0
590.7
2,849.8
204.4
250.0
110.3
271.7
2,701.3
604.2
2,924.8
210.4
253.6
116.0
269.4
2,757.8
629.4
3,018.5
223.2
278.1
117.4
274.2
186.4
321.0
109.8
211.2
1,268.7
590.3
184.8
304.1
108.4
195.7
1,034.2
588.7
190.3
281.6
104.2
177.4
1,053.1
493.3
194.9
284.2
111.4
172.8
1,174.2
n.a.
191.9
293.3
106.3
187.0
1,056.5
485.4
192.7
286.0
108.8
177.2
1,068.1
466.5
193.3
284.9
110.9
174.1
1,128.6
471.1
194.9
284.2
111.4
172.8
1,174.2
n.a.
1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of
1997.
2. Includes (not shown separately) securities issued to the Rural Electrification Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
3. Nonmarketable series denominated in dollars, and series denominated in foreign currency held by foreigners.
4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual
holdings; data for other groups are Treasury estimates.
6. U.S. Treasury securities bought outright by Federal Reserve Banks, see Bulletin table
1.18.
7. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable
federal securities was removed from "Other miscellaneous investors" and added to "State
and local treasuries." The data shown here have been revised accordingly.
2000
8. Includes nonmarketable foreign series Treasury securities and Treasury deposit funds.
Excludes Treasury securities held under repurchase agreements in custody accounts at the
Federal Reserve Bank of New York.
9. Includes individuals, government-sponsored enterprises, brokers and dealers, bank
personal trusts and estates, corporate and noncorporate businesses, and other investors.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly Statement of the
Public Debt of the United States', data by holder, Federal Reserve Board of Governors, Flow
of Funds Accounts of the United States and U.S. Treasury Department, Treasury Bulletin,
unless otherwise noted.
A26
1.42
DomesticNonfinancialStatistics • May 2003
U.S. GOVERNMENT SECURITIES DEALERS
Transactions1
Millions of dollars, daily averages
2002
Nov.
By type of security
1 U.S. Treasury bills
Treasury coupon securities by maturity
2
Three years or less
More than three but less than or
3
equal to six years
4
More than six but less than or equal
to eleven years
More than eleven
5
6
Inflation-indexed 2
7
8
9
10
11
12
Federal agency and governmentsponsored enterprises
Discount notes
Coupon securities by maturity
Three years or less
More than three years but less than
or equal to six years
More than six years but less than
or equal to eleven years . . . .
More than eleven years
Mortgage-backed
Corporate securities
One year or less
13
14
More than one year
15
16
17
18
19
20
21
22
By type of counterparty
With interdealer broker
U.S. Treasury
Federal agency and governmentsponsored enterprises
Mortgage-backed
Corporate
With other
U.S. Treasury
Federal agency and governmentsponsored enterprises
Mortgage-backed
Corporate
2003
Dec.
2003, week ending
Jan.
Jan. 1
Jan. 15
Jan. 22
Jan. 29
Feb. 5
Feb. 12
Feb. 19
Feb. 26
48,070
44,252
39,484
44,452
40,845
37,031
40,224
38,052
44,310
37,510
38,707
44,677
141,467
98,091
122,814
50,663
116,047
139,902
108,177
124,329
122,494
114,312
95,291
126,063
118,430
78,534
119,127
36,370
141,958
132,622
104,298
98,307
110,023
128,243
97,747
104,503
98,012
20,833
2,603
61,252
15,748
2,380
75,346
16,002
3,969
28,264
10,331
1,532
69,120
14,469
7,402
88,242
16,369
3,292
70,103
16,861
2,746
73,479
16,642
2,451
73,820
15,594
3,316
88,227
22,002
3,248
90,878
17,694
2,185
83,004
23,597
3,477
51,785
54,947
56,755
57,667
62,335
54,697
58,095
51,741
57,810
54,206
61,150
51,402
12,727
8,787
12,752
5,492
12,515
13,891
10,728
11,844
16,818
10,336
8,791
10,657
8,893
6,270
10,444
2,588
11,226
9,346
11,343
9,738
11,206
11,438
7,708
10,259
7,383
1,219
5,976
897
6,839
988
2,243
813
5,839
821
8,773
1,527
6,408
694
6,852
941
5,337
761
4,550
585
7,782
2,009
5,445
936
194,006
153,693
201,113'
77,533
276,025
241,250
135,934
152,512
165,350
254,910
181,176
177,764
111,148
22,421
101,904
15,482
109,068'
22,404
83,300
4,126
105,664
18,492
112,043
24,116
118,518
19,841
103,376
26,287
105,468
23,318
104,604
24,000
118,895
18,873
115,302
20,942
205,144
137,745
170,999
70,851
171,563
182,096
158,681
164,015
183,940
189,323
156,672
170,636
10,018
49,075
431
7,381
36,156
433
10,127
54,576'
616
4,273
16,842
64
9,649
69,875
543
10,618
58,790
677
10,771
35,992
524
10,233
50,663
661
8,541
52,743
714
8,885
75,820
553
7,844
54,089
368
7,883
52,611
466
224,271
162,512
205,741
100,760
218,277
235,361
183,729
189,245
185,617
204,218
185,828
214,685
71,989
144,931
133,138
69,496
117,537
116,953
77,652
146,537'
130,855'
64,530
60,692
87,362
83,086
206,150
123,613
77,615
182,460
135,481
76,497
99,943
137,835
70,884
101,849
129,002
83,390
112,607
128,072
72,229
179,089
128,051
79,595
127,088
137,400
70,814
125,153
135,779
NOTE. Major changes in the report form filed by primary dealers induced a break in the
dealer data series as of the week ending July 4, 2001. Current weekly data may be found at the
Federal Reserve Bank of New York web site (http:www.newyorkfed.org/pihome/statistics)
under the Primary Dealer heading.
1. The figures represent purchases and sales in the market by the primary U.S. government
securities dealers reporting to the Federal Reserve Bank of New York. Outright transactions
include all U.S. government, federal agency, government-sponsored enterprise, mortgage-
Jan. 8
backed, and corporate securities scheduled for immediate and forward delivery, as well as all
U.S. government securities traded on a when-issued basis between the announcement and
issue date. Data do not include transactions under repurchase and reverse repurchase (resale)
agreements. Averages are based on the number of trading days in the week.
2. Outright Treasury inflation-indexed securities (TIIS) transactions are reported at principal value, excluding accrued interest, where principal value reflects the original issuance par
amount (unadjusted for inflation) times the price times the index ratio.
Federal Finance
1.43
U.S. G O V E R N M E N T S E C U R I T I E S D E A L E R S
All
Positions and Financing1
Millions of dollars
2003
2002
2003, week ending
item, by type ot security
Nov.
Dec.
Jan.
Jan. 1
Jan. 8
Jan. 15
Jan. 22
Net outright positions
1 U.S. Treasury bills
Treasury coupon securities by maturity
Three years or less
More than three years but less than
or equal to six years
More than six but less than
4
or equal to eleven years
More than eleven
5
Inflation-indexed
6
2
3
7
8
9
10
11
Federal agency and governmentsponsored enterprises
Discount notes
Coupon securities, by maturity
Three years or less
More than three years but less than
or equal to six years
More than six but less than
or equal to eleven years
More than eleven
12 Mortgage-backed
Corporate securities
One year or less
13
14
More than one year
Jan. 29
Feb. 5
Feb. 12
Feb. 19
2
21,827
27,911
23,749
22,849
30,612
27,776
20,672
15,946
24,171
31,778
40,149
-25,283
-22,860
-19,950
-26,020
-24,014
-25,729
-20,489
-9,703
-16,436
-18,025
-15,372
-30,766
-33,784
-33,546
-32,883
-25,657
-31,449
-38,417
-38,614
-34,042
-27,510
-29,391
-15,248
1,106
1,402
-19,587
1,813
4,312
-18,697
4.522
1,268
-19,408
3,706
3,195
-18,584
4,264
708
-18,828
4,833
740
-17,603
5,075
1,387
-19,813
4,250
2,028
-18,197
3,759
1,038
-13,268
3,220
2,222
-13,100
5,155
2,071
51,259
51,664
55,562
41,205
53,082
58,959
48,878
61,236
63,066
57,514
54,573
16,344
18,834
15,969
19,754
18,118
13,441
16,572
15,243
15,827
19,734
16,576
-407
587
4,501
100
3,059
4,289
4,879
5,459
7,812
9,268
6,025
1,556
2,994
2,333
2,757
1,521
2,200
2,197
2,453
1,410
2,571
2,399
2,239
1,155
2,043
1,107
1,982
1,236
1,958
207
2,095
822
2,203
8,176
12,650
23,387
20,316
12,043
20,425
25,035
33,740
32,996
28,681
21,290
21,645
50,912
25,588
55,865
25,810
53,119
22,714
59,712
23,602
54,642
25,656
54,930
26,446
52,358
26,498
50,787
30,987
48,978
25,718
48,276
30,300
53,681
Financing3
Securities in, U.S. Treasury
15 Overnight and continuing
16 Term
Federal agency and governmentsponsored enterprises
17 Overnight and continuing
18 Term
Mortgage-backed securities
19 Overnight and continuing
20 Term
Corporate securities
21 Overnight and continuing
22 Term
614,961
937,618
605,390
918,379
629,534
716,731
628,260
606,042
632,534
670,679
642,916
702,996
623,757
722,327
618,617
770,564
631,268
773,324
641,428
798,446
673,773
622,685
145,420
315,176
143,451
294,633
153,105
228,176
156,702
211,024
159,469
227,203
147,538
224,307
149,462
230,440
154,502
232,573
156,371
230,380
159,292
231,468
162,395
216,628
48,995
277,966
35,872
274,185
37,003
250,974
42,826
227,205
47,571
253,088
35,239
251,774
36,140
247,109
29,138
257,452
33,821
243,508
37,946
248,270
51,364
242,632
49,184
26,247
49,163
24,654
58,162
24,045
55,493
24,697
57,743
23,962
57,928
23,881
58,051
24,357
58,759
23,645
60,079
24,887
60,680
24,964
61,367
24,702
456,710
1,404,106
440,006
1,352,627
425,659
1,058,223
478,500
896,060
446,333
1,016,245
423,856
1,043,024
408,808
1,063,055
415,652
1,119,107
427,199
1,109,413
446,710
1,140,885
492,350
943,789
573,787
875,065
585,423
842,700
586,166
656,962
617,379
523,487
579,704
621,245
597,525
647,239
582,890
659,977
582,617
702,113
577,312
714,152
593,721
742,013
633,936
564,162
276,128
245,811
271,376
232,535
293,172
153,444
266,398
147,595
297,118
156,350
283,500
152,494
281,190
154,818
308,888
150,466
313,538
155,138
310,052
160,989
301,736
149,215
316,240
170,818
300,834
170,735
334,095
153,932
291,863
140,737
286,744
166,052
329,449
154,005
363,297
150,152
367,868
149,285
316,794
147,341
307,924
152,537
363,780
146,900
133,692
20,946
135,776
17,694
135,890
19,581
133,477
16,264
137,182
17,394
136,059
19,070
133,222
21,393
135,480
20,537
142,755
21,002
137,209
22,395
143,942
22,240
1,139,287
1,279,914
1,127,804
1,233,261
1,159,110
951,521
1,124,399
799,181
1,119,989
931,963
1,154,848
940,780
1,166,601
953,180
1,200,763
986,973
1,156,305
1,003,848
1,149,294
1,043,656
1,238,659
846,904
MEMO
Reverse repurchase agreements
23 Overnight and continuing
24 Term
Securities out, U.S. Treasury
25 Overnight and continuing
26 Term
Federal agency and governmentsponsored enterprises
27 Overnight and continuing
28 Term
Mortgage-backed securities
29 Overnight and continuing
30 Term
Corporate securities
31 Overnight and continuing
32 Term
MEMO
Repurchase agreements
33 Overnight and continuing
34 Term
NOTE. Major changes in the report form filed by primary dealers included a break in many
series as of the week ending July 4, 2001. Current weekly data may be found at the Federal
Reserve Bank of New York web site (http://www.newyorkfed.org/pihome/statistics) under the
Primary Dealer heading.
1. Data for positions and financing are obtained from reports submitted to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar
days of the report week are assumed to be constant. Monthly averages are based on the
number of calendar days in the month.
2. Net outright positions include all U.S. government, federal agency, governmentsponsored enterprise, mortgage-backed, and corporate securities scheduled for immediate and
forward delivery, as well as U.S. government securities traded on a when-issued basis
between the announcement and issue date.
3. Figures cover financing U.S. government, federal agency, government-sponsored enterprise, mortgage-backed, and corporate securities. Financing transactions for Treasury
inflation-indexed securities (TIIS) are reported in actual funds paid or received, except for
pledged securities. TIIS that are issued as pledged securities are reported at par value, which
is the value of the security at original issuance (unadjusted for inflation).
A28
1.44
DomesticNonfinancialStatistics • May 2003
FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
Debt Outstanding
Millions of dollars, end of period
2002
Agency
1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department 1
4
Export-Import Bank2-3
Federal Housing Administration 4
5
Government National Mortgage Association certificates of
6
participation5
Postal Service 6
7
8
Tennessee Valley Authority
9
United States Railway Association 6
10 Federally sponsored agencies 7
11
Federal Home Loan Banks
12
Federal Home Loan Mortgage Corporation
13
Federal National Mortgage Association
14
Farm Credit Banks 8
15
Student Loan Marketing Association 9
Financing Corporation 1 "
16
17
Farm Credit Financial Assistance Corporation"
Resolution Funding Corporation 12
18
1999
2000
2001
2002
Aug.
Sept.
Oct.
Nov.
Dec.
1,616,492
1,851,632
2,121,057
n.a.
2,226,713
2,269,256
2,289,622
2,305,945
n.a.
26,376
6
n.a.
126
25,666
6
n.a.
255
276
6
n.a.
26,828
n.a.
n.a.
n.a.
n.a.
164
6
n.a.
26,274
304
6
n.a.
27,170
318
6
n.a.
26,725
342
6
n.a.
26,863
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
26,370
n.a.
n.a.
n.a.
25,660
n.a.
n.a.
n.a.
270
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
158
n.a.
n.a.
n.a.
298
n.a.
n.a.
n.a.
312
n.a.
n.a.
n.a.
336
n.a.
n.a.
n.a.
n.a.
n.a.
1,590,116
529,005
360,711
547,619
68,883
41,988
8,170
1,261
29,996
1,825,966
594,404
426,899
642,700
74,181
45,375
8,170
1,261
29,996
2,120,781
623,740
565,071
763,500
76,673
48,350
8,170
1,261
29,996
2,226,549
659,258
603,135
789,900
81,658
49,500
8,170
1,261
29,996
2,268,952
668,703
623,267
800,300
82,741
50,800
8,170
1,261
29,996
2,289,304
679,209
625,328
804,800
83,145
54,200
8,170
1,261
29,996
2,305,607
674,847
643,201
811,700
83,884
48,700
8,170
1,261
29,996
42,152
40,575
39,096
n.a.
42,825
39,604
37,084
37,418
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
6,665
14,085
21,402
5,275
13,126
22,174
n.a.
13,876
25,220
n.a.
n.a.
n.a.
n.a.
13,599
29,226
n.a.
14,029
25,575
n.a.
14,058
23,026
n.a.
14,209
23,209
n.a.
n.a.
n.a.
2,351,037
674,841
648,894
851,000
85,088
47,900
8,170
1,261
29,996
2,351,037
674,841
648,894
851,000
85,088
47,900
8,170
1,261
29,996
MEMO
19 Federal Financing Bank debt 13
20
21
22
23
24
Lending to federal and federally sponsored agencies
Export-Import Bank 3
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6
Other lending14
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 reclassified as debt beginning Oct. 1, 1976.
3. On-budget since Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration insurance
claims. Once issued, these securities may be sold privately on the securities market.
5. Certificates of participation issued before fiscal year 1969 by the Government National
Mortgage Association acting as trustee for the Farmers Home Administration; the Department
of Health, Education, and Welfare; the Department of Housing and Urban Development; the
Small Business Administration; and the Veterans Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Includes
Federal Agriculture Mortgage Corporation; therefore, details do not sum to total. Some data
are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is
shown on line 17.
9. Before late 1982, the association obtained financing through the Federal Financing Bank
(FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22.
10. The Financing Corporation, established in August 1987 to recapitalize the Federal
Savings and Loan Insurance Corporation, undertook its first borrowing in October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January 1988 to
provide assistance to the Farm Credit System, undertook its first borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989, undertook its first borrowing in October
1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations
issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the
purpose of lending to other agencies, its debt is not included in the main portion of the table to
avoid double counting.
14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans
guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally
being small. The Farmers Home Administration entry consists exclusively of agency assets,
whereas the Rural Electrification Administration entry consists of both agency assets and
guaranteed loans.
Securities Markets and Corporate Finance
1.45
N E W SECURITY ISSUES
A29
State and Local G o v e r n m e n t s
Millions of dollars
2002
Type of issue or issuer,
or use
2000
2001
2003
2002
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
1 All issues, new and refunding1
180,403
291,937
364,030
28,113
31,691
27,422
44,574
37,188
27,549
26,731
29,928
By type of issue
2 General obligation
3 Revenue
64,475
115,928
118,554
170,047
145,323
214,788
12,352
15,642
13,187
18,692
9,628
17,751
18,595
24,074
11,023
24,942
8,431
18,961
8,112
17,049
12,723
17,206
By type of issuer
4 State
5 Special district or statutory authority2
6 Municipality, county, or township
19,944
121,185
39,273
30,099
197,462
61,040
33,931
259,070
67,121
3,404
18,229
6,361
3,472
23,104
5,302
2,442
19,171
5,767
4,199
31,793
6,678
2,109
28,296
5,570
1,670
20,151
5,570
1,927
17,979
5,290
3,404
20,892
5,632
7 Issues for new capital
154,257
200,322
243,431
19,872
20,632
15,140
30,230
26,563
19,888
18,645
20,196
38,665
19,730
11,917
n.a.
7,122
47,309
50,054
21,411
21,917
n.a.
6,607
55,733
57,894
22,093
33,404
n.a.
7,227
73,033
4,205
3,251
1,660
n.a.
760
5,893
3,968
4,413
2,806
n.a.
283
6,537
3,529
1,398
2,038
n.a.
574
5,597
5,209
1,476
6,922
n.a.
1,225
6,996
3,743
1,250
8,379
n.a.
821
7,189
5,292
1,060
2,031
n.a.
796
4,992
4,823
1,417
2,196
n.a.
422
7,400
5,908
1,618
173
n.a.
1,022
8,340
8
9
10
11
12
13
By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
SOURCE. Securities Data Company beginning January 1990; Investment Dealer's Digest
before then.
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.
1.46
NEW SECURITY ISSUES
U.S. Corporations
Millions of dollars
2003
2002
Type of issue, offering,
or issuer
1
2000
2001
2002
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
1,079,727
1,541,821
1,429,298
149,753
68,426
97,665
135,176
93,439
119,659
127,061
123,736
2 Bonds2
944,810
1,413,267
1,318,863
133,217
63,912
93,659
127,881
85,606
109,726
120,183
116,609
By type of offering
3 Sold in the United States
4 Sold abroad
822,012
122,798
1,356,879
56,389
1,232,618
86,246
121,491
11,725
60,549
3,362
90,215
3,444
123,449
4,432
81,409
4,197
104,112
5,614
114,332
5,851
110,383
6,226
3,068
0
0
65
0
3,525
5,060r
4,700
1 All issues
MEMO
18,370
8,734
By industry group
6 Nonfinancial
7 Financial
258,804
686,006
459,560
953,707
282,484
1,036,379
27,693
105,524
7,624
56,288
14,960
78,699
19,988
107,893
14,906
70,700
22,029
87,697
20,751
99,433
28,461
88,148
8 Stocks3
5 Private placements, domestic
n.a.
311,941
230,632
170,673
16,536
4,514
4,006
7,295
7,833
9,933
6,878
7,127
By type of offering
9 Public
10 Private placement4
134,917
177,024
128,554
102,078
110,435
60,238
16,536
n.a.
4,514
n.a.
4,006
n.a.
7,295
n.a.
7,833
n.a.
9,933
n.a.
6,878
n.a.
7,127
n.a.
By industry group
11 Nonfinancial
12 Financial
118,369
16,548
77,577
50,977
62,115
48,320
11,608
4,928
1,833
2,681
539
3,467
2,754
4,541
3,731
4,102
4,533
5,400
4,154
2,724
3,793
3,334
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 olferings, employee stock plans, investment companies other than closedend, intracorporate transactions, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.
2. Monthly data include 144(a) offerings.
3. Monthly data cover only public offerings.
4. Data for private placements are not available at a monthly frequency.
SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve
System.
A30
1.47
DomesticNonfinancialStatistics • May 2003
Net Sales and Assets1
OPEN-END INVESTMENT COMPANIES
Millions of dollars
2002
Item
2003
2002
2001
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan. r
Feb.
1 Sales of own shares2
1,806,474
1,826,045
170,946
151,136
125,408
164,959
137,914
134,383
152,647
121,632
2 Redemptions of own shares
3 Net sales3
1,677,266
129,208
1,702,671
123,374
200,148
-29,202
136,210
14,926
126,760
-1,352
167,039
-2,080
122,125
15,789
135,213
-830
138,951
13,696
113,018
8,614
4 Assets 4
4,689,624
4,119,322
4,124,186
4,170,641
3,899,858
4,059,765
4,249,351
4,119,322
4,060,568
4,032,773
5 Cash 5
6 Other
219,620
4,470,004
208,479
3,910,843
199,586
3,924,600
220,425
3,950,216
199,778
3,700,080
204,019
3,855,746
219,213
4,030,138
208,479
3,910,843
212,792
3,847,776
200,060
3,832,713
4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership, which
comprises substantially all open-end investment companies registered with the Securities and
Exchange Commission. Data reflect underwritings of newly formed companies after their
initial offering of securities.
1. Data include stock, hybrid, and bond mutual funds and exclude money market mutual
funds.
2. Excludes reinvestment of net income dividends and capital gains distributions and share
issue of conversions from one fund to another in the same group.
3. Excludes sales and redemptions resulting from transfers of shares into or out of money
market mutual funds within the same fund family.
1.51
DOMESTIC FINANCE COMPANIES
Assets and Liabilities1
Billions of dollars, end of period; not seasonally adjusted
2001
Account
2000
2002
2002
2001
Q2
Q3
Q4
Ql
Q2
Q3
Q4
ASSETS
1 Accounts receivable, gross2
2
Consumer
3
Business
4
Real estate
5 LESS:
6
Reserves for unearned income
Reserves for losses
7 Accounts receivable, net
8 All other
9 Total assets
959.4
328.7
458.4
172.3
948.5
340.2
447.0
161.3
945.5
315.7
455.3
174.5
988.9
324.7
481.9
182.3
967.9
329.4
451.1
187.4
948.5
340.2
447.0
161.3
930.1
329.9
443.0
157.2
942.1
332.1
449.4
160.5
945.8
334.7
445.5
165.5
945.5
315.7
455.3
174.5
69.8
16.7
60.6
21.0
57.7
24.0
61.6
17.4
60.8
18.0
60.6
21.0
59.5
21.5
58.5
21.6
58.0
22.1
57.7
24.0
872.9
461.2
866.8
523.4
863.8
588.5
909.9
458.9
889.1
478.7
866.8
523.4
849.1
515.2
862.0
530.5
865.7
558.0
863.8
588.5
1,334.1
1,390.2
1,452.3
1,368.8
1,367.8
1,390.2
1,364.3
1,392.5
1,423.7
1,452.3
35.9
238.8
50.8
158.6
57.6
141.5
45.3
181.6
44.5
171.0
50.8
158.6
49.4
137.0
56.9
130.8
74.9
143.1
57.6
141.5
102.6
502.3
301.9
152.5
99.2
567.4
325.6
188.7
87.5
621.3
336.6
207.9
93.4
542.2
336.4
170.0
91.7
555.8
327.6
177.2
99.2
567.4
325.6
188.7
82.6
574.5
329.2
191.7
83.3
597.2
331.5
192.9
82.9
584.9
343.4
194.5
87.5
621.3
336.6
207.9
1,334.1
1,390.2
1,452.3
1,368.8
1,367.8
1,390.2
1,364.3
1,392.5
1,423.7
1,452.3
LIABILITIES AND CAPITAL
10 Bank loans
11 Commercial paper
12
13
14
15
Debt
Owed to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits
16 Total liabilities and capital
1. Includes finance company subsidiaries of bank holding companies but not of retailers
and banks. Data are amounts carried on the balance sheets of finance companies; securitized
pools are not shown, as they are not on the books.
2. Before deduction for unearned income and losses. Excludes pools of securitized assets,
Securities Markets and Corporate Finance
1.52
DOMESTIC FINANCE COMPANIES
A31
O w n e d and Managed Receivables1
Billions of dollars, amounts outstanding
2002
2003
Type of credit
Aug.'
Sept.'
Oct.'
Nov.'
Dec.'
Jan.
Seasonally adjusted
1 Total
?,
3
4
Consumer
Real estate
Business
l,186.3 r
l,246.7 r
1,270.3
1,269.9
1,267.2
1,266.4
1,270.3
1,270.3
1,276.0
465. r
198.9
522.3r
513.4r
207.7
525.6r
513.3
216.5
540.6
524.7
209.6
535.5
523.0
207.9
536.2
517.7
211.7
537.0
513.8
214.2
542.3
513.3
216.5
540.6
518.2
217.0
540.8
Not seasonally adjusted
5 Total
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
??.
23
24
25
26
27
28
79
30
31
32
33
34
35
36
Consumer
Motor vehicle loans
Motor vehicle leases
Revolving2
Other3
Securitized assets4
Motor vehicle loans
Motor vehicle leases
Revolving
Other
Real estate
One- to four-family
Other
Securitized real estate assets4
One- to four-family
Other
Business
Motor vehicles
Retail loans
Wholesale loans5
Leases
Equipment
Loans
Leases
Other business receivables6
Securitized assets4
Motor vehicles
Retail loans
Wholesale loans
Leases
Equipment
Loans
Leases
Other business receivables6
l,192.9 r
l,253.9 r
1,277.7
1,261.2
1,260.9
1,263.6
1,268.0
1,277.7
1,278.6
469.0r
141.6
108.2
38.3'
40.7
518.3'
173.9
103.5
31.7'
31.1
518.5
160.2
83.3
39.1
33.1
525.2
170.3
90.5
36.7
33.0
523.0
176.5
88.5
37.4
32.3
519.0
169.9
86.7
37.5
31.3
517.7
159.8
85.2
37.2
31.4
518.5
160.2
83.3
39.1
33.1
519.5
160.1
81.9
39.6
33.3
97.1
6.6
19.6
17.1
198.9
130.6
41.7
131.9
6.8
25.0
14.3
207.7
120.1
41.2
151.9
5.7
31.1
14.0
216.5
135.0
39.5
144.4
6.0
29.9
14.4
209.6
128.7
38.8
138.9
6.0
29.1
14.4
207.9
126.5
39.0
144.1
5.9
29.2
14.4
211.7
130.5
39.0
153.9
5.8
30.2
14.2
214.2
132.8
39.3
151.9
5.7
31.1
14.0
216.5
135.0
39.5
154.3
5.7
30.4
14.2
217.0
135.9
39.4
24.7
1.9
525.0
75.5
18.3
39.7
17.6
283.5
70.2
213.3
99.4
40.7
5.7
527.9
54.0
16.1
20.3
17.6
289.4
77.8
211.6
103.5
39.7
2.2
542.7
60.7
15.4
29.3
16.0
292.1
83.3
208.8
102.5
40.4
1.7
526.4
56.0
17.2
22.2
16.6
287.5
81.4
206.1
99.8
40.1
2.2
530.0
56.9
17.6
23.3
15.9
289.2
82.8
206.4
99.4
40.1
2.2
532.9
57.3
18.0
23.5
15.9
288.4
81.9
206.5
97.0
39.9
2.2
536.1
58.2
15.7
26.7
15.8
288.4
82.2
206.2
95.7
39.7
2.2
542.7
60.7
15.4
29.3
16.0
292.1
83.3
208.8
102.5
39.4
2.2
542.1
58.6
15.2
27.5
15.9
291.3
83.8
207.5
104.7
37.8
3.2
32.5
2.2
23.1
15.5
7.6
5.6
50.1
5.1
42.5
2.5
23.2
16.4
6.8
7.7
50.2
2.4
45.9
1.9
20.2
13.0
7.2
17.1
41.0
2.2
36.5
2.3
22.0
15.4
6.6
20.1
43.8
2.2
39.3
2.3
21.6
14.8
6.7
19.1
47.0
1.9
42.8
2.3
23.9
17.2
6.7
19.2
50.4
2.5
45.6
2.3
24.3
17.6
6.7
19.2
50.2
2.4
45.9
1.9
20.2
13.0
7.2
17.1
50.3
2.4
46.1
1.8
20.1
12.9
7.2
17.1
NOTE. This table has been revised to incorporate several changes resulting from the
benchmarking of finance company receivables to the June 1996 Survey of Finance Companies. In that benchmark survey, and in the monthly surveys that have followed, more detailed
breakdowns have been obtained for some components. In addition, previously unavailable
data on securitized real estate loans are now included in this table. The new information has
resulted in some reclassification of receivables among the three major categories (consumer,
real estate, and business) and in discontinuities in some component series between May and
June 1996.
Includes finance company subsidiaries of bank holding companies but not of retailers and
banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For
ordering address, see inside front cover.
I. Owned receivables are those carried on the balance sheet of the institution. Managed
receivables are outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator. Data are shown
before deductions for unearned income and losses. Components may not sum to totals
because of rounding.
2. Excludes revolving credit reported as held by depository institutions that are subsidiaries of finance companies.
3. Includes personal cash loans, mobile home loans, and loans to purchase other types of
consumer goods, such as appliances, apparel, boats, and recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
5. Credit arising from transactions between manufacturers and dealers, that is, floor plan
financing.
6. Includes loans on commercial accounts receivable, factored commercial accounts, and
receivable dealer capital; small loans used primarily for business or farm purposes; and
wholesale and lease paper for mobile homes, campers, and travel trailers.
A32
1.53
DomesticNonfinancialStatistics • May 2003
MORTGAGE MARKETS
Mortgages on New Homes
Millions of dollars except as noted
2002
Aug.
Sept.
Oct.
2003
Nov.
Dec.
Jan.
Feb.
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan-to-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount) 2
Yield (percent per year)
6 Contract rate1
7 Effective rate1-3
8 Contract rate (HUD series)4
234.5
177.0
77.4
29.2
.70
245.0
184.2
77.3
28.8
.67
261.1
197.0
77.8
28.9
.62
267.5
199.1
77.3
29.0
.59
266.7
201.1
77.6
29.1
.60
258.7
195.0
77.7
28.8
.63
256.7
193.3
77.4
28.4
.61
266.9
205.1
79.0
28.7
.64
278.9
214.0
79.3
28.9
.79
235.1
179.3
78.0
28.3
.37
7.41
7.52
n.a.
6.90
7.00
n.a.
6.35
6.44
n.a.
6.17
6.26
n.a.
6.09
6.17
n.a.
6.00
6.09
n.a.
5.99
6.08
n.a.
5.95
6.04
n.a.
6.00
6.12
n.a.
5.76
5.82
n.a.
n.a.
7.57
n.a.
6.36
n.a.
5.81
n.a.
5.53
n.a.
5.15
n.a.
5.31
n.a.
5.29
n.a.
5.17
n.a.
5.18
n.a.
5.03
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (section 203) 5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12
FHA/VA insured
13
Conventional
610,122
61,539
548,583
707,015
n.a.
n.a.
790,800
n.a.
n.a.
746,101
n.a.
n.a.
751,423
n.a.
n.a.
751,347
n.a.
n.a.
760,759
n.a.
n.a.
790,800
n.a.
n.a.
810,609
n.a.
n.a.
816,747
n.a.
n.a.
14 Mortgage transactions purchased (during period)
154,231
270,384
370,641
23,123
33,518
32,853
47,807
67,891
57,281
40,420
Mortgage commitments (during period)
15 Issued 7
16 To sell8
163,689
11,786
304,084
7,586
400,327
12,268
42,555
1,292
58,055
1,016
68,463
1,121
53,286
520
30,769
1,555
n.a.
n.a.
n.a.
n.a.
Mortgage holdings (end of period f
17 Total
18
FHA/VA insured
19
Conventional
385,693
3,332
382,361
491,719
3,506
488,213
568,173
4,573
563,600
525,795
4,195
521,600
530,694
4,634
526,060
536,389
4,724
531,665
549,380
4,019
545,361
568,173
4,573
563,600
568,494
n.a.
n.a.
561,534
n.a.
n.a.
Mortgage transactions (during period)
20 Purchases
21 Sales
174,043
166,901
n.a.
389,611
n.a.
547,046
n.a.
34,937
n.a.
46,369
n.a.
60,516
n.a.
62,354
n.a.
73,184
n.a.
48,169
n.a.
41,831
22 Mortgage commitments contracted (during period) 9
169,231
417,434
615,981
44,401
57,793
73,639
74,340
91,223
n.a.
n.a.
FEDERAL HOME LOAN MORTGAGE CORPORATION
1. Weighted averages based on sample surveys of mortgages originated by major institutional lender groups for purchase of newly built homes; compiled by the Federal Housing
Finance Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the
seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built homes,
assuming prepayment at the end of ten years.
4. Average contract rate on new commitments for conventional first mortgages; from U.S.
Department of Housing and Urban Development (HUD). Based on transactions on the first
day of the subsequent month.
5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured by
the Federal Housing Administration (FHA) for immediate delivery in the private secondary
market. Based on transactions on first day of subsequent month.
6. Average net yields to investors on fully modified pass-through securities backed by
mortgages and guaranteed by the Government National Mortgage Association (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 the Federal
National Mortgage Association exclude swap activity.
Real Estate
1.54
MORTGAGE DEBT
A3 3
OUTSTANDING1
Millions of dollars, end of period
2002
2001
Type of holder and property
1 All holders
2
3
4
5
By type of property
One- to four-family residences
Multifamily residences
Nonfarm, nonresidential
Farm
By type of holder
6 Major financial institutions
7
Commercial banks2
8
One- to four-family
9
Multifamily
10
Nonfarm, nonresidential
11
Farm
Savings institutions3
12
13
One- to four-family
14
Multifamily
15
Nonfarm, nonresidential
16
Farm
17
Life insurance companies
18
One- to four-family
19
Multifamily
20
Nonfarm, nonresidential
21
Farm
22 Federal and related agencies
23
Government National Mortgage Association
24
One- to four-family
25
Multifamily
26
Farmers Home Administration4
27
One- to four-family
28
Multifamily
29
Nonfarm, nonresidential
30
Farm
31
Federal Housing Admin, and Dept. of Veterans Affairs
32
One- to four-family
33
Multifamily
34
Resolution Trust Corporation
35
One- to four-family
36
Multifamily
37
Nonfarm, nonresidential
Farm
38
39
Federal Deposit Insurance Corporation
40
One- to four-family
41
Multifamily
42
Nonfarm, nonresidential
43
Farm
44
Federal National Mortgage Association
One- to four-family
45
46
Multifamily
47
Federal Land Banks
48
One- to four-family
Farm
49
50
Federal Home Loan Mortgage Corporation
51
One- to four-family
52
Multifamily
53 Mortgage pools or trusts5
54
Government National Mortgage Association
55
One- to four-family
56
Multifamily
57
Federal Home Loan Mortgage Corporation
58
One- to four-family
59
Multifamily
60
Federal National Mortgage Association
61
One- to four-family
62
Multifamily
Farmers Home Administration4
63
64
One- to four-family
65
Multifamily
66
Nonfarm, nonresidential
67
Farm
68
Private mortgage conduits
69
One- to four-family6
70
Multifamily
Nonfarm, nonresidential
71
72
Farm
73 Individuals and others7
74
One- to four-family
75
Multifamily
76
Nonfarm, nonresidential
77
Farm
1999
Q4
Ql
Q2
Q3
Q4P
6,320,135
6,894,097
7,597,732
7,597,732
7,763,084
7,978,272
8,209,225
8,476,304
4,790,601
369,003
1,057,568
102,964
5,208,604
405,430
1,171,205
108,858
5,738,228
453,100
1,290,069
116,336
5,738,228
453,100
1,290,069
116,336
5,876,695
461,198
1,307,076
118,116
6,048,445
472,262
1,337,136
120,428
6,245,941
479,919
1,359,812
123,553
6,459,659
496,733
1,394,692
125,220
2,394,271
1,495,420
879,576
67,665
516,333
31,846
668,064
548,222
59,309
60,063
470
230,787
5,934
32,818
179,048
12,987
2,618,969
1,660,054
965,635
77,803
582,577
34,039
722,974
594,221
61,258
66,965
529
235,941
4,903
33,681
183,757
13,600
2,791,076
1,789,819
1,023,851
84,851
645,619
35,498
758,236
620,579
64,592
72,534
531
243,021
4,931
35,631
188,376
14,083
2,791,076
1,789,819
1,023,851
84,851
645,619
35,498
758,236
620,579
64,592
72,534
531
243,021
4,931
35,631
188,376
14,083
2,789,654
1,800,362
1,018,478
86,719
659,187
35,978
745,998
605,171
65,199
75,077
551
243,293
4,938
35,671
188,599
14,085
2,860,853
1,873,203
1,070,522
90,743
674,972
36,966
742,732
599,402
66,009
76,768
552
244,918
5,162
35,818
189,850
14,088
2,981,236
1,961,908
1,143,938
90,929
689,288
37,753
773,689
625,424
68,668
79,036
560
245,639
5,176
35,921
190,398
14,144
3,087,646
2,059,079
1,222,461
94,169
704,454
37,995
781,255
631,399
67,840
81,435
581
247,312
5,210
36,161
191,666
14,275
320,054
7
7
0
73,871
16,506
11,741
41,355
4,268
3,712
1,851
1,861
0
0
0
0
0
152
25
29
98
0
149,422
141,195
8,227
34,187
2,012
32,175
56,676
44,321
12,355
344,225
6
6
0
73,323
16,372
11,733
41,070
4,148
3,507
1,308
2,199
0
0
0
0
0
45
7
9
29
0
155,626
144,150
11,476
36,326
2,137
34,189
59,240
42,871
16,369
376,999
8
8
0
72,452
15,824
11,712
40,965
3,952
3,290
1,260
2,031
0
0
0
0
0
13
2
3
8
0
169,908
155,060
14,848
40,885
2,406
38,479
62,792
40,309
22,483
376,999
8
8
0
72,452
15,824
11,712
40,965
3,952
3,290
1,260
2,031
0
0
0
0
0
13
2
3
8
0
169,908
155,060
14,848
40,885
2,406
38,479
62,792
40,309
22,483
385,027
8
8
0
72,362
15,665
11,707
41,134
3,855
3,361
1,255
2,105
0
0
0
0
0
7
4
0
176,051
160,300
15,751
41,981
2,470
39,511
59,624
35,955
23,669
396,091
8
8
0
71,970
15,273
11,692
41,188
3,817
3,473
1,254
2,218
0
0
0
0
0
22
4
4
14
0
180,491
164,038
16,453
42,951
2,527
40,424
58,872
34,062
24,810
412,014
8
8
0
72,030
15,139
11,686
41,439
3,766
2,973
1,252
1,721
0
0
0
0
0
13
2
2
8
0
184,191
167,006
17,185
44,782
2,635
42,147
60,934
34,616
26,318
437,100
5
5
0
72,377
14,908
11,669
42,101
3,700
3,854
1,262
2,592
0
0
0
0
0
46
7
9
30
0
190,501
171,490
19,011
45,863
2,699
43,164
63,887
35,851
28,036
2,947,690
582,263
565,189
17,074
749,081
744,619
4,462
960,883
924,941
35,942
0
0
0
0
0
655,463
455,021
42,045
158,398
0
3,231,401
611,553
592,624
18,929
822,310
816,602
5,708
1,057,750
1,016,398
41,352
0
0
0
0
0
739,788
499,834
48,894
191,060
0
3,714,706
591,368
569,460
21,908
948,409
940,933
7,476
1,290,351
1,238,125
52,226
0
0
0
0
0
884,578
591,200
56,591
236,787
0
3,714,706
591,368
569,460
21,908
948,409
940,933
7,476
1,290,351
1,238,125
52,226
0
0
0
0
0
884,578
591,200
56,591
236,787
0
3,869,374
587,204
564,108
23,096
1,012,478
1,005,136
7,342
1,355,404
1,301,374
54,030
0
0
0
0
0
914,288
616,300
57,339
240,649
0
3,986,827
583,745
559,549
24,196
1,053,261
1,045,981
7,280
1,404,594
1,349,442
55,152
0
0
0
0
0
945,227
638,300
58,783
248,144
0
4,065,965
567,428
542,250
25,178
1,058,176
1,050,899
7,277
1,458,945
1,402,929
56,016
0
0
0
0
0
981,416
669,300
59,446
252,669
0
4,182,833
537,927
512,137
25,790
1,082,062
1,072,990
9,072
1,538,287
1,478,610
59,677
0
0
0
0
0
1,024,557
694,800
62,987
266,770
0
658,120
459,385
75,244
102,274
21,217
699,503
495,605
75,799
105,747
22,352
714,950
506,786
78,593
105,780
23,792
714,950
506,786
78,593
105,780
23,792
719,029
514,043
78,426
102,425
24,135
734,502
524,741
78,979
106,201
24,581
750,010
538,393
79,462
106,973
25,183
768,724
555,356
79,627
108,237
25,504
1. Multifamily debt refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by bank trust
departments.
3. Includes savings banks and savings and loan associations.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from
FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of accounting
changes by the Farmers Home Administration.
5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by
the agency indicated.
2001
2000
1
1
6. Includes securitized home equity loans.
7. Other holders include mortgage companies, real estate investment trusts, state and local
credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and
finance companies.
SOURCE. Based on data from various institutional and government sources. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and interpolations and
extrapolations, when required for some quarters, are estimated in part by the Federal Reserve.
Line 69 from Inside Mortgage Securities and other sources.
A34
1.55
DomesticNonfinancialStatistics • May 2003
CONSUMER CREDIT1
Millions of dollars, amounts outstanding, end of period
2002
Holder and type of credit
2000
2001
2003
2002 r
Aug.'
Sept.'
Oct.'
Nov.'
Dec.'
Jan.
Seasonally adjusted
1 Total
2 Revolving
3 Nonrevolving 2
l,559,469 r
l,666,816 r
1,726,401
1,725,418
1,726,912
1,727,992
1,725,125
1,726,401
1,738,729
667,332'
892,137'
701,285'
965,531'
712,398
1,014,002
720,651
1,004,766
717,653
1,009,260
717,279
1,010,713
716,376
1,008,749
712,398
1,014,002
715,661
1,023,068
Not seasonally adjusted
l,593,051 r
1,701,856
1,762,262
1,724,225
1,721,809
1,727,420
1,735,697
1,762,262
1,753,711
By major holder
Commercial banks
Finance companies
Credit unions
Savings institutions
Nonfinancial business
Pools of securitized assets 3
541,470
219,783'
184,434
64,557
82,662
500,145
558,421
236,559
189,570
69,070
67,955
580,281
587,355
232,269
195,744
68,591
56,912
621,391
572,443
239,857
195,488
70,055
52,101
594,281
575,730
246,072
195,884
65,094
49,170
589,859
577,428
238,571
197,072
66,272
49,075
599,003
580,385
228,241
196,807
67,413
49,812
613,040
587,355
232,269
195,744
68,591
56,912
621,391
582,635
230,111
195,164
67,635
52,892
625,274
By major type of credit4
11 Revolving
12
Commercial banks
Finance companies
13
14
Credit unions
13
Savings institutions
16
Nonfinancial business
17
Pools of securitized assets3
692,955'
218,063
37,561'
22,226
16,560
42,430
356,114
727,297
224,878
31,538
22,265
17,767
29,790
401,059
738,404
231,449
38,948
22,228
16,193
19,221
410,365
718,353
224,695
36,528
21,449
17,869
16,747
401,064
711,670
226,193
37,280
21,304
14,758
14,129
398,005
710,701
224,897
37,351
21,119
15,242
14,100
397,992
717,668
226,237
37,014
21,260
15,710
14,315
403,132
738,404
231,449
38,948
22,228
16,193
19,221
410,365
727,120
221,818
38,388
21,645
15,811
16,547
412,911
18 Nonrevolving
19
Commercial banks
20
Finance companies
21
Credit unions
22
Savings institutions
23
Nonfinancial business
24
Pools of securitized assets3
900,095
323,407
182,221
162,208
47,997
40,232
144,031
974,559
333,543
205,021
167,305
51,303
38,165
179,222
1,023,858
355,906
193,321
173,516
52,398
37,691
211,026
1,005,872
347,748
203,329
174,039
52,186
35,354
193,217
1,010,139
349,537
208,792
174,580
50,335
35,041
191,854
1,016,719
352,531
201,219
175,953
51,031
34,975
201,011
1,018,029
354,148
191,226
175,547
51,703
35,497
209,908
1,023,858
355,906
193,321
173,516
52,398
37,691
211,026
1,026,591
360,817
191,723
173,519
51,824
36,346
212,363
4 Total
6
/
8
9
10
1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals, excluding loans secured by real estate. Data in this table also appear
in the Board's G.19 (421) monthly statistical release. For ordering address, see inside front
cover.
2. Comprises motor vehicle loans, mobile home loans, and all other loans that are not
included in revolving credit, such as loans for education, boats, trailers, or vacations. These
loans may be secured or unsecured.
1.56
3. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
4. Totals include estimates for certain holders for which only consumer credit totals are
available.
TERMS OF CONSUMER CREDIT1
Percent per year except as noted
2002
Item
2000
2001
2003
2002
July
Aug.
Sept.
Oct.'
Nov.
Dec.
Jan.
INTEREST RATES
Commercial banks2
1 48-month new car
2 24-month personal
9.34
13.90
8.50
13.22
6.71
11.59
n.a.
n.a.
5.95
11.28
n.a.
n.a.
n.a.
n.a.
5.67
10.78
n.a.
n.a.
n.a.
n.a.
Credit card plan
3 All accounts
4 Accounts assessed interest
15.71
14.91
14.89
14.44
13.42
13.09
n.a.
n.a.
13.37
13.26
n.a.
n.a.
n.a.
n.a.
13.13
12.78
n.a.
n.a.
n.a.
n.a.
Auto finance
5 New car
6 Used car
6.61
13.55
5.65
12.18
4.29
10.74'
3.58
10.59
2.17
10.46
2.29
10.44
2.62
10.59
3.41'
10.70'
3.50
10.48
3.13
10.37
54.9
57.0
55.1
57.5
56.8
57.5'
58.9
57.8
59.2
57.6
58.4
57.5
57.4
57.4
57.2
56.9
57.5
56.7
58.5
57.5
92
99
91
100
94'
100
95
100
97
100
97
100
96
101
95
100
96
100
96
100
20,923
14,058
22,822
14,416
24,747 r
14,532'
25,092
14,701
26,455
14,679
26,331
14,801
26,099
14,702
26,104'
14,610'
26,647
14,639
26,443
14,499
companies
OTHER TERMS 3
Maturity (months)
7 New car
8 Used car
Loan-to-value
9 New car
10 Used car
ratio
Amount financed
11 New car
12 Used car
(dollars)
1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly
statistical release. For ordering address, see inside front cover.
2. Data are available for only the second month of each quarter,
3. At auto finance companies,
Flow of Funds
1.57
A35
F U N D S R A I S E D I N U.S. C R E D I T M A R K E T S 1
Billions of dollars; quarterly data at seasonally adjusted annual rates
2002
2001
Transaction category or sector
1997
2000
1998
Q2
Q3
Q4
Ql
Q2
Q3
Q4
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors ..
By sector and instrument
? Federal government
Treasury securities
Budget agency securities and mortgages
4
789.9
1,046.2
1,031.6
840.9
1,125.9
1,082.6
1,285.8
1,193.0
966.2
1,627.6
1,298.0
1,563.2
23.1
23.2
-.1
-52.6
-54.6
2.0
-71.2
-71.0
-.2
-295.9
-294.9
-1.0
-5.6
-5.0
-.5
-215.8
-216.9
1.1
209.3
209.7
-.4
43.4
44.2
-.7
39.8
41.6
-1.8
526.0
524.2
1.8
265.7
264.2
1.6
198.5
198.1
.4
766.8
1,098.8
1,102.8
1,136.8
1,131.5
1,298.4
1,076.4
1,149.5
926.4
1,101.6
1,032.3
1,364.7
6
7
8
9
in
11
1?
n
14
15
16
By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit
13.7
56.9
150.5
106.4
59.5
322.3
258.3
7.3
53.5
3.1
57.5
24.4
84.2
235.2
108.2
82.1
489.8
387.7
23.4
72.2
6.5
75.0
37.4
54.4
217.8
82.8
46.0
564.9
424.6
35.7
98.8
5.8
99.5
48.1
23.6
161.3
101.7
95.0
568.2
418.4
34.0
109.2
6.5
139.0
-88.3
119.2
340.5
-82.7
29.3
704.7
530.9
47.9
118.4
7.5
108.8
-133.4
132.4
444.5
-125.1
132.3
767.5
608.3
40.8
106.5
11.9
80.2
-66.1
80.4
191.4
-24.3
59.4
770.2
560.0
56.5
146.7
7.0
65.4
45.5
170.0
325.0
-166.0
-107.3
733.0
531.1
56.5
138.6
6.8
149.4
-144.4
74.6
253.7
-17.2
-19.2
696.6
601.3
29.3
59.2
6.9
82.3
-81.7
195.4
191.4
-192.8
77.2
831.3
657.3
44.4
120.6
9.1
80.8
-17.4
156.9
-29.1
-125.0
77.6
911.3
778.7
29.5
90.1
13.1
57.9
-13.2
224.9
116.8
-33.6
4.0
1,064.8
854.7
63.3
140.2
6.5
1.0
17
18
19
70
?1
22
By borrowing sector
Household
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government
332.7
392.5
291.6
94.7
6.2
41.5
454.8
576.3
408.6
159.7
8.0
67.7
498.0
566.3
378.5
182.4
5.5
38.5
546.0
575.4
380.4
184.1
10.9
15.5
611.8
417.6
253.3
156.8
7.5
102.2
661.4
520.6
339.1
170.1
11.5
116.5
656.9
352.6
194.4
153.8
4.4
67.0
621.7
390.2
240.8
141.1
8.3
137.6
704.9
154.9
39.3
110.3
5.3
66.6
684.1
234.8
93.6
132.7
8.5
182.7
755.7
132.6
-10.5
128.8
14.2
144.0
883.1
285.0
125.8
155.2
4.0
196.5
71.8
3.7
61.4
8.5
-1.8
43.2
7.8
34.9
6.6
-6.0
25.2
16.3
14.1
.5
-5.7
65.7
31.7
23.9
11.4
-1.3
-37.4
-14.2
-12.1
-7.3
-3.7
-50.5
-3.8
-15.8
-31.4
.5
-106.7
-25.2
-83.9
4.2
-1.8
16.0
5.9
29.7
-16.3
-3.3
77.3
66.8
-2.3
13.9
-1.2
15.1
36.5
-11.0
22.0
-2.4
-32.1
3.9
-22.5
-11.7
-1.8
29.6
37.3
-1.0
-2.8
-3.9
861.7
1,089.4
1,056.7
906.6
1,088.5
1,032.2
1,179.1
1,208.9
1,043.4
1,642.7
1,265.9
1,592.8
5 Nonfederal
23 Foreign net borrowing in United States
Commercial paper
24
75
Bonds
Bank loans n.e.c
26
Other loans and advances
27
28 Total domestic plus foreign
Financial sectors
29 Total net borrowing by financial sectors
30
31
32
33
By instrument
Federal government-related
Government-sponsored enterprise securities
Mortgage pool securities
Loans from U.S. government
34 Private
35
Open market paper
Corporate bonds
36
Bank loans n.e.c
37
Other loans and advances
38
Mortgages
39
40
41
47
43
44
45
46
47
48
49
50
51
By borrowing sector
Commercial banking
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations
662.2
1,087.2
1,073.3
809.0
958.5
828.2
1,113.5
976.5
869.8
870.0
852.1
1,097.7
212.9
98.4
114.6
.0
470.9
278.3
192.6
.0
592.0
318.2
273.8
.0
433.5
234.1
199.4
.0
629.3
290.8
338.5
.0
674.6
268.3
406.2
.0
818.4
326.2
492.2
.0
591.8
306.5
285.3
.0
691.1
191.3
499.8
.0
487.8
141.7
346.1
.0
420.9
249.1
171.8
.0
642.5
347.6
294.9
.0
449.3
166.7
218.9
13.3
35.6
14.9
616.3
161.0
310.2
30.1
90.2
24.8
481.3
176.2
207.1
-14.2
107.1
5.1
375.5
127.7
199.3
-.2
42.5
6.2
329.2
-61.9
341.1
13.8
34.9
1.3
153.7
-77.9
223.2
10.8
-18.7
16.2
295.1
-72.2
308.8
1.6
58.8
-1.9
384.7
-13.6
372.7
18.3
8.9
-1.6
178.7
-178.3
354.1
.2
-3.9
6.6
382.2
-109.1
435.8
31.9
16.7
7.0
431.2
84.3
188.6
82.3
71.9
4.1
455.2
-76.5
617.6
-70.6
-17.2
1.9
46.1
19.7
.1
.2
98.4
114.6
202.2
57.8
-4.6
39.6
8.1
79.9
72.9
52.2
.6
.7
278.3
192.6
321.4
57.1
1.6
62.7
7.2
40.0
67.2
48.0
2.2
.7
318.2
273.8
212.3
70.3
.2
6.3
-17.2
91.5
60.0
27.3
.0
-.7
234.1
199.4
189.7
81.2
.1
2.7
15.6
-.4
52.9
7.4
1.5
.6
290.8
338.5
317.6
-.2
.7
2.5
1.4
-55.2
-10.5
3.4
.8
.1
268.3
406.2
205.9
36.8
.6
10.5
35.6
-129.6
39.7
39.4
1.5
3.5
326.2
492.2
313.9
41.8
.8
-2.4
12.6
-155.7
44.1
-68.6
4.4
1.4
306.5
285.3
430.0
-25.3
.6
7.8
-18.9
9.1
24.3
-33.1
2.4
2.4
191.3
499.8
263.6
-31.2
.8
7.4
-15.7
^12.2
13.3
-12.1
2.0
1.2
141.7
346.1
241.6
80.2
.7
25.3
17.5
12.4
62.2
37.1
3.1
2.0
249.1
171.8
194.1
106.4
.7
26.6
15.2
-16.4
93.5
-47.1
.4
2.5
347.6
294.9
356.3
19.2
.7
15.1
-24.1
38.7
A36
1.57
DomesticNonfinancialStatistics • May 2003
FUNDS RAISED IN U.S. CREDIT MARKETS '—Continued
B i l l i o n s of dollars; quarterly d a t a at seasonally a d j u s t e d a n n u a l rates
2002
2001
Transaction category or sector
1997
1998
1999
2000
2001
Q2
Q3
Q4
Ql
Q2
Q3
Q4
All sectors
52 Total net borrowing, all sectors
53
54
55
56
57
58
59
60
Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit
1,523.9
2,176.7
2,130.0
1,715.6
2,047.1
1,860.4
2,292.6
2,185.4
1,913.3
2,512.7
2,118.0
2,690.5
184.1
236.0
56.9
430.8
128.2
93.2
337.2
57.5
193.1
418.3
84.2
580.2
145.0
166.3
514.6
75.0
229.9
520.7
54.4
439.1
69.0
147.4
570.0
99.5
207.6
137.6
23.6
384.4
112.8
136.2
574.4
139.0
-164.4
623.8
119.2
669.5
-76.2
60.4
706.0
108.8
-215.1
458.8
132.4
651.9
-145.7
114.2
783.8
80.2
-163.5
1,027.8
80.4
416.3
-18.5
116.5
768.2
65.4
37.8
635.2
170.0
727.4
-164.0
-101.8
731.4
149.4
-255.9
730.9
74.6
605.5
-3.0
-24.2
703.1
82.3
-154.3
1,013.8
195.4
586.2
-139.0
91.5
838.3
80.8
70.8
686.7
156.9
136.9
-54.3
147.6
915.4
57.9
-52.4
841.0
224.9
733.4
-107.0
-17.2
1,066.7
1.0
Funds raised through mutual funds and corporate equities
61 Total net issues
218.7
165.9
191.2
236.1
301.9
419.9
151.8
397.9
437.6
282.4
-77.1
271.6
62 Corporate equities
63
Nonfinancial corporations
64
Foreign shares purchased by U.S. residents
65
Financial corporations
66 Mutual fund shares
-46.4
-77.4
57.6
-26.6
265.1
-113.7
-215.5
101.3
.6
279.5
.0
-110.4
114.3
^t.O
191.2
1.1
-118.2
103.6
15.7
235.0
100.5
-47.4
106.8
41.1
201.4
146.4
-57.9
222.9
-18.6
273.5
-8.6
-108.6
43.5
56.5
160.4
142.0
-4.2
74.7
71.5
255.9
50.7
-8.0
-5.9
64.6
386.9
182.4
17.9
79.7
84.8
100.0
-114.2
-130.8
-50.6
67.3
37.1
66.7
-39.9
52.7
54.0
204.9
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
F.2 through F4. For ordering address, see inside front cover.
Flow of Funds
1.58
SUMMARY OF FINANCIAL
A3 7
TRANSACTIONS1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
2002
2001
Transaction category or sector
1997
1998
1999
2000
2001
Q2
Q3
Q4
Ql
Q2
Q3
Q4
N E T LENDING IN CREDIT MARKETS 2
1 Total net lending in credit markets
2 Domestic nonfederal nonfinancial sectors
Household
4
Nonfinancial corporate business
Nonfarm noncorporate business
5
6
State and local governments
7 Federal government
8 Rest of the world
9 Financial sectors
10
Monetary authority
11
Commercial banking
U.S.-chartered banks
12
Foreign banking offices in United States
13
14
Bank holding companies
15
Banks in U.S.-affiliated areas
16
Savings institutions
17
Credit unions
18
Bank personal trusts and estates
19
Life insurance companies
Other insurance companies
20
21
Private pension funds
22
State and local government retirement funds
23
Money market mutual funds
74
Mutual funds
25
Closed-end funds
2.6
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 (REITs)
32
Brokers and dealers
33
Funding corporations
1,523.9
2,176.7
2,130.0
1,715.6
2,047.1
1,860.4
2,292.6
2,185.4
1,913.3
2,512.7
2,118.0
2,690.5
15.4
25.3
-12.7
2.6
.1
5.1
259.6
1,243.9
38.3
324.3
274.9
40.2
5.4
3.7
—4.7
16.8
-25.0
104.8
25.2
47.6
67.1
87.5
80.9
-2.9
106.3
114.6
163.8
23.1
-9.1
20.2
14.9
50.4
259.1
127.3
-16.0
13.3
134.5
13.5
172.5
1,731.6
21.1
305.6
312.1
-11.6
-.9
6.0
36.2
18.9
-12.8
76.9
5.8
-23.4
72.1
244.0
127.3
5.2
314.0
192.6
281.7
77.3
3.2
-5.1
6.8
-15.8
227.3
217.3
-15.6
-2.9
28.4
5.8
139.7
1,757.2
25.7
312.2
318.6
-17.0
6.2
4.4
67.7
27.5
27.8
53.5
-3.0
17.0
46.9
182.0
48.4
8.2
291.3
273.8
194.1
97.0
.3
-2.6
-34.7
124.0
-116.6
-140.6
23.4
1.3
-.8
7.3
225.9
1,599.0
33.7
357.9
339.5
23.9
-12.2
6.7
56.2
28.0
.8
57.9
-8.7
33.4
54.6
143.0
21.0
-6.3
256.4
199.4
159.9
108.0
.2
-6.3
68.9
41.0
-24.1
-52.7
-11.5
2.0
38.1
6.0
320.6
1.744.6
39.9
205.2
191.6
-.6
4.2
10.0
42.8
41.5
-28.1
130.9
9.0
20.3
-17.7
246.0
126.0
7.1
309.0
338.5
291.4
-5.7
1.4
6.7
92.4
-112.2
-117.2
-101.1
-29.5
.3
13.1
9.4
254.9
1,713.4
26.9
107.8
156.5
-50.1
-2.8
4.2
55.8
9.6
-28.1
143.6
.1
44.7
77.0
245.3
169.1
-4.9
297.2
406.2
177.6
112.1
1.1
1.1
53.4
-182.3
70.5
53.8
-44.5
3.3
57.9
3.3
269.2
1,949.6
8.4
267.9
242.5
21.1
-1.4
5.7
-4.7
61.1
-28.0
186.9
5.1
10.4
-74.2
311.8
102.7
23.9
274.3
492.2
288.3
-43.3
1.7
7.8
184.5
-127.4
92.5
18.2
29.9
2.0
42.4
7.0
432.5
1,653.4
85.1
314.6
275.0
-7.8
13.6
33.9
73.1
60.5
-28.1
81.3
28.5
5.3
-2.7
49.1
139.3
16.6
335.3
285.3
407.3
-100.5
1.2
14.0
-110.5
-1.2
155.9
101.3
52.3
3.3
-1.1
4.7
171.8
1,580.9
81.6
188.9
168.2
2.1
12.0
6.6
12.3
58.3
1.0
260.6
36.7
27.4
70.5
-241.3
243.3
21.6
236.7
499.8
239.4
-28.2
1.6
26.3
-219.5
63.7
272.5
223.4
3.2
3.3
42.5
8.8
542.6
1,688.8
43.4
384.3
343.8
33.7
1.9
4.9
-23.5
41.1
.9
175.1
35.4
46.2
-54.5
-86.7
41.9
-.4
129.0
346.1
219.4
39.6
1.4
31.8
402.8
-84.5
-240.2
-250.4
-5.5
-2.2
17.8
6.8
450.0
1,901.4
67.3
624.0
599.9
21.8
-1.6
4.0
79.7
39.9
.8
267.6
21.7
35.9
-10.4
-74.4
162.7
-3.3
204.4
171.8
171.5
80.0
1.5
27.6
-208.6
226.6
150.2
148.6
-41.3
-1.0
43.8
10.3
503.0
2,027.0
118.7
442.6
462.8
-31.3
.2
10.9
73.4
37.3
.8
156.1
28.2
14.4
9.4
301.2
128.9
-1.8
319.5
294.9
334.5
-21.2
1.5
8.1
147.5
-366.9
1,523.9
2,176.7
2,130.0
1,715.6
2,047.1
1,860.4
2,292.6
2,185.4
1,913.3
2,512.7
2,118.0
2,690.5
.7
-.5
.5
107.7
-19.7
41.2
97.1
122.5
155.9
120.9
-46.4
265.1
139.8
59.3
201.4
22.3
-53.0
-40.7
456.7
6.6
.0
.6
6.5
-31.8
47.3
152.4
91.8
287.2
91.3
-113.7
279.5
106.4
103.2
48.0
217.4
19.6
-46.1
-57.8
889.0
-8.7
-3.0
1.0
61.0
15.0
151.2
45.1
131.1
249.1
169.8
.0
191.2
268.6
104.4
50.8
181.8
30.7
-8.1
-62.4
1,036.3
-.4
-4.0
2.4
135.1
15.1
-71.4
188.8
116.2
233.3
113.2
1.1
235.0
425.4
146.1
50.2
209.0
32.8
56.6
-11.5
1,413.5
4.3
.0
1.3
28.0
-31.7
204.3
267.2
68.6
428.6
22.3
100.5
201.4
-67.3
3.1
77.2
208.4
17.5
-59.9
-18.6
774.6
4.7
.0
1.3
-175.9
-25.4
151.4
242.1
43.0
370.0
117.8
146.4
273.5
-69.6
-73.9
52.2
209.1
14.8
-62.2
-26.4
974.1
13.7
.0
2.2
41.5
-1.1
215.0
230.3
19.5
386.1
212.7
-8.6
160.4
-185.8
561.3
74.7
180.3
104.9
-57.3
-34.3
935.6
.2
.0
.0
17.9
41.5
278.1
329.7
77.8
379.8
-138.3
142.0
255.9
-160.9
-383.7
119.6
148.2
-54.8
-57.7
8.4
317.6
-3.0
.0
.9
-59.1
12.9
-171.9
259.7
270.0
-315.7
119.4
50.7
386.9
182.1
-190.7
93.9
137.0
3.6
-3.7
1.5
207.1
12.9
.0
.6
53.3
-164.6
178.0
249.0
34.9
103.4
362.4
182.4
100.0
27.2
-131.9
92.2
145.5
40.4
-2.4
-32.9
640.1
24.6
.0
2.4
68.7
59.0
211.5
327.6
27.8
-192.6
-91.1
-114.2
37.1
160.2
-69.6
119.7
317.2
48.5
-2.1
-86.2
942.1
4.9
.0
.0
122.1
118.2
-36.1
272.9
-110.1
337.6
-17.1
66.7
204.9
89.8
-13.1
97.5
236.7
23.4
-1.3
-33.7
528.1
3,265.9
4,274.0
4,734.9
5,002.2
4,277.0
4,027.4
5,143.8
3,506.7
2,895.0
4,403.2
3,908.4
4,582.1
-.2
106.2
-19.9
63.2
28.0
-285.4
-.1
-8.5
3.8
57.7
19.7
-226.9
-.7
42.6
.1
35.7
11.7
-291.4
-1.2
55.9
20.4
122.6
26.2
-370.5
-.1
11.1
17.2
-53.9
22.1
-252.3
-.3
-166.8
17.0
129.8
3.1
-480.5
.9
55.3
7.4
106.3
25.4
37.0
.0
-27.5
22.6
-166.2
35.0
-314.4
-1.5
-33.6
39.8
157.9
14.3
-300.9
-.9
94.8
-9.5
224.3
-52.3
33.8
1.1
50.8
13.2
-285.7
16.2
98.3
-1.1
115.0
-17.0
-24.7
-47.6
53.1
-2.7
-3.9
-25.5
2.6
-3.1
-43.3
-7.4
-.8
6.8
9.0
1.7
32.4
5.7
4.5
12.5
60.9
3.9
6.3
-20.1
5.0
-28.3
-91.8
5.7
50.5
15.1
6.1
-36.3
77.1
7.1
-92.8
-10.3
7.6
-27.0
-51.7
8.4
-39.5
3,406.0
4,472.0
4,938.4
5,105.8
4,510.2
4,453.8
4,955.0
3,992.9
3,033.9
4,121.7
4,074.1
4,587.3
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
34 Net flows through credit markets
35
36
37
38
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 payables
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 (-)
62 Federal government checkable deposits
63 Other checkable deposits
64 Trade credit
65 Total identified to sectors as assets
111.0
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
F.l and F.5. For ordering address, see inside front cover.
2. Excludes corporate equities and mutual fund shares.
A93
1.59
DomesticNonfinancialStatistics • May 2003
SUMMARY OF CREDIT MARKET DEBT OUTSTANDING'
Billions of dollars, end of period
2001
Q2
2002
Q3
Q4
Qi
Q2
Q3
Q4
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
By sector and instrument
2 Federal government
3
Treasury securities
4
Budget agency securities and mortgages
5 Nonfederal
16,240.5
17,306.8
18,166.8
19,293.3
18,600.5
18,918.3
19,293.3
19,533.3
19,848.3
20,179.3
20,657.1
3,752.2
3,723.7
28.5
3,681.0
3,652.7
28.3
3,385.1
3,357.8
27.3
3,379.5
3,352.7
26.8
3,251.4
3,224.3
27.0
3,320.0
3,293.0
27.0
3,379.5
3,352.7
26.8
3,430.3
3,404.0
26.3
3,451.4
3,424.6
26.8
3,540.8
3,513.6
27.2
3,637.0
3,609.8
27.3
12,488.4
13,625.8
14,781.7
15,913.8
15,349.1
15,598.3
15,913.8
16,103.0
16,396.9
16,638.5
17,020.0
6
7
8
9
10
11
12
13
14
15
16
By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit
193.0
1,402.9
1,846.0
1,148.6
907.2
5,644.1
4,366.0
308.0
873.6
96.6
1,346.6
230.3
1,457.2
2,063.9
1,231.4
953.5
6,243.4
4,790.6
343.9
1,006.5
102.3
1,446.1
278.4
1,480.9
2,225.1
1,333.1
1,059.6
6,811.6
5,209.0
378.0
1,115.8
108.9
1,593.1
190.1
1,600.1
2,565.6
1,251.0
1,088.8
7,516.3
5,739.9
425.8
1,234.2
116.3
1,701.9
223.3
1,547.0
2,436.5
1,293.6
1,103.6
7,136.9
5,463.4
397.6
1,162.9
113.0
1,608.2
201.3
1,555.1
2,484.4
1,285.1
1,110.1
7,333.1
5,607.3
411.7
1,199.6
114.6
1,629.3
190.1
1,600.1
2,565.6
1,251.0
1,088.8
7,516.3
5,739.9
425.8
1,234.2
116.3
1,701.9
167.5
1,623.3
2,629.0
1,237.3
1,089.6
7,679.1
5,878.8
433.2
1,249.0
118.1
1,677.2
148.4
1,677.6
2,676.9
1,192.1
1,106.0
7,894.6
6,050.8
444.3
1,279.1
120.4
1,701.3
142.2
1,704.2
2,669.6
1,159.1
1,116.9
8,125.5
6,248.7
451.6
1,301.6
123.6
1,720.9
126.0
1,763.1
2,698.8
1,158.8
1,123.7
8,392.3
6,462.9
467.5
1,336.7
125.2
1,757.4
IV
18
19
20
21
22
By borrowing sector
Households
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government
6,011.8
5,338.2
3,790.6
1,383.7
163.9
1,138.3
6,510.0
5,938.9
4,203.5
1,566.1
169.4
1,176.9
7,075.1
6,514.3
4,583.9
1,750.2
180.2
1,192.3
7,686.8
6,932.5
4,837.8
1,907.0
187.7
1,294.5
7,322.8
6,774.1
4,755.4
1,833.5
185.2
1,252.2
7,493.5
6,847.3
4,790.5
1,870.8
185.9
1,257.6
7,686.8
6,932.5
4,837.8
1,907.0
187.7
1,294.5
7,802.1
6,985.1
4,863.2
1,934.7
187.1
1,315.8
7,987.8
7,042.8
4,883.0
1,968.0
191.8
1,366.2
8,183.3
7,064.9
4,871.0
1,999.0
194.9
1,390.3
8,443.8
7,134.3
4,899.8
2,038.7
195.7
1,442.0
23 Foreign credit market debt held in
United States
651.3
676.7
742.3
704.9
726.1
701.7
704.9
724.2
725.6
720.2
727.4
24 Commercial paper
25
26 Bank loans n.e.c
27 Other loans and advances
72.9
462.6
58.7
57.1
89.2
476.7
59.2
51.6
120.9
500.6
70.5
50.3
106.7
488.4
63.2
46.6
110.1
502.0
66.2
47.7
106.3
481.0
67.3
47.0
106.7
488.4
63.2
46.6
123.6
487.9
66.7
46.0
130.2
477.6
72.2
45.5
134.0
472.0
69.3
44.9
142.8
471.7
68.6
44.2
16,891.8
17,983.5
18,909.1
19,998.2
19,326.6
19,620.0
19,998.2
20,257.5
20,573.8
20,899.5
21,384.4
28 Total credit market debt owed by nonfinancial
sectors, domestic and foreign
Financial sectors
29 Total credit market debt owed by
financial sectors
6,545.2
7,618.5
8,439.5
9,395.3
8,851.0
9,120.1
9,395.3
9,591.8
9,804.7
10,007.6
10,317.7
30
31
32
33
34
35
36
37
38
39
By instrument
Federal government-related
Government-sponsored enterprise securities . . .
Mortgage pool securities
Loans from U.S. government
Private
Open market paper
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
3,292.0
1,273.6
2,018.4
.0
3,253.2
906.7
1,878.7
107.5
288.7
71.6
3,884.0
1,591.7
2,292.2
.0
3,734.6
1,082.9
2,085.9
93.2
395.8
76.7
4,317.4
1,825.8
2,491.6
.0
4,122.0
1,210.7
2,297.2
93.0
438.3
82.9
4,944.1
2,114.0
2,830.1
.0
4,451.2
1,148.8
2,638.3
106.8
473.2
84.2
4,591.6
1,955.8
2,635.7
.0
4,259.4
1,144.5
2,478.8
100.4
450.7
85.1
4,796.2
2,037.4
2,758.8
.0
4,323.9
1,110.2
2,561.6
100.2
467.2
84.6
4,944.1
2,114.0
2,830.1
.0
4,451.2
1,148.8
2,638.3
106.8
473.2
84.2
5,116.9
2,161.8
2,955.1
.0
4,474.9
1,090.9
2,730.6
105.1
462.4
85.9
5,238.8
2,197.2
3,041.6
.0
4,565.9
1,046.9
2,847.1
113.5
470.8
87.6
5,344.1
2,259.5
3,084.5
.0
4,663.6
1,049.5
2,901.0
133.3
491.2
88.6
5,504.7
2,346.4
3,158.3
.0
4,813.1
1,078.9
3,037.3
117.7
490.0
89.1
40
41
42
43
44
45
46
47
48
49
50
51
52
By borrowing sector
Commercial banks
Bank holding companies
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Brokers and dealers
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Funding corporations
188.6
193.5
212.4
1.1
2.5
1,273.6
2,018.4
1,398.0
42.5
625.5
17.7
158.8
412.6
230.0
219.3
260.4
3.4
3.2
1,591.7
2,292.2
1,610.3
25.3
695.7
17.8
165.1
504.0
266.7
242.5
287.7
3.4
2.5
1,825.8
2,491.6
1,812.0
40.9
776.9
17.9
167.8
503.7
296.0
266.1
295.1
4.9
3.1
2,114.0
2,830.1
2,129.5
42.3
776.7
18.6
170.2
448.4
274.7
269.0
294.4
3.5
1.9
1,955.8
2,635.7
1,937.3
43.9
769.0
18.2
168.9
478.6
281.4
272.7
305.6
3.8
2.8
2,037.4
2,758.8
2,019.1
47.1
771.2
18.5
168.3
433.6
296.0
266.1
295.1
4.9
3.1
2,114.0
2,830.1
2,129.5
42.3
776.7
18.6
170.2
448.4
295.8
269.0
280.5
5.5
3.7
2,161.8
2,955.1
2,187.7
38.4
760.8
18.8
172.1
442.6
310.4
264.2
275.3
6.0
4.0
2,197.2
3,041.6
2,249.6
42.8
784.9
19.0
178.4
431.3
318.9
271.8
286.4
6.8
4.5
2,259.5
3,084.5
2,301.5
46.6
802.9
19.2
185.1
420.0
326.1
284.3
281.3
6.9
5.1
2,346.4
3,158.3
2,393.5
40.6
820.4
19.3
188.8
446.6
All sectors
53 Total credit market debt, domestic and foreign .
54
55
56
57
58
59
60
61
Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit
23,437.1
25,602.0
27,348.6
29,393.6
28,177.5
28,740.1
29,393.6
29,849.3
30,378.5
30,907.1
31,702.2
1,172.6
7,044.2
1,402.9
4,187.4
1,314.8
1,253.0
5,715.7
1,346.6
1,402.4
7,564.9
1,457.2
4,626.4
1,383.8
1,400.9
6,320.1
1,446.1
1,610.0
7,702.5
1,480.9
5,022.9
1,496.6
1,548.2
6,894.5
1,593.1
1,445.6
8,323.6
1,600.1
5,692.3
1,421.0
1,608.6
7,600.5
1,701.9
1,477.9
7,842.9
1,547.0
5,417.3
1,460.2
1,602.0
7,222.0
1,608.2
1,417.8
8,116.2
1,555.1
5,527.0
1,452.6
1,624.4
7,417.8
1,629.3
1,445.6
8,323.6
1,600.1
5,692.3
1,421.0
1,608.6
7,600.5
1,701.9
1,382.0
8,547.2
1,623.3
5,847.5
1,409.1
1,598.0
7,764.9
1,677.2
1,325.5
8,690.2
1,677.6
6,001.6
1,377.8
1,622.3
7,982.2
1,701.3
1,325.7
8,884.9
1,704.2
6,042.6
1,361.7
1,653.0
8,214.2
1,720.9
1,347.7
9,141.7
1,763.1
6,207.8
1,345.1
1,658.0
8,481.4
1,757.4
1. Data in this table appear in the Board's Z.l (780) quarterly statistical release, tables L.2
through L.4. For ordering address, see inside front cover.
Flow of Funds
1.60
A39
S U M M A R Y OF FINANCIAL ASSETS A N D LIABILITIES1
Billions of dollars except as noted, end of period
2002
2001
Transaction category or sector
2000
1998
Q2
Q3
Q4
Q1
Q2
Q3
Q4
CREDIT MARKET DEBT OUTSTANDING 2
1
Domestic nonfederal nonfinancial sectors
Household
4
Nonfinancial corporate business
<5 Nonfarm noncorporate business
6
State and local governments
7 Federal government
8 Rest of the world
9 Financial sectors
Monetary authority
10
Commercial banking
11
U.S.-chartered banks
17
Foreign banking offices in United States
N
14
Bank holding companies
Banks in U.S.-affiliated areas
15
Savings institutions
16
Credit unions
17
Bank personal trusts and estates
18
Life insurance companies
19
70
Other insurance companies
Private pension funds
71
State and local government retirement funds
77
Money market mutual funds
73
Mutual funds
74
Closed-end funds
75
Government-sponsored enterprises
76
Federally related mortgage pools
77
Asset-backed securities (ABSs) issuers
78
Finance companies
79
Mortgage companies
30
31
Real estate investment trusts (REITs)
37
Brokers and dealers
Funding corporations
33
2
23,437.1
25,602.0
27,348.6
29,393.6
28,177.5
28,740.1
29,393.6
29,849.3
30,378.5
30,907.1
31,702.2
3,312.6
2,264.1
241.5
67.5
739.4
219.0
2,278.2
17,627.3
452.5
4,336.1
3,761.4
504.5
26.5
43.8
964.7
324.2
194.1
1,828.0
521.1
651.2
704.6
965.9
1,028.4
98.4
1,252.3
2,018.4
1,219.4
645.5
35.3
45.5
189.4
152.3
3,600.8
2,542.4
226.0
64.6
767.8
258.0
2,354.6
19,388.7
478.1
4,648.3
4,080.0
487.4
32.7
48.3
1,032.4
351.7
222.0
1,886.0
518.2
668.2
751.4
1,147.8
1,076.8
106.6
1,543.5
2,292.2
1,413.6
742.5
35.6
42.9
154.7
276.0
3,455.5
2,373.1
249.4
65.9
767.0
265.3
2,621.1
21,006.7
511.8
5,006.3
4,419.5
511.3
20.5
55.0
1,088.6
379.7
222.8
1,943.9
509.4
701.6
806.0
1,290.9
1,097.8
100.3
1,807.1
2,491.6
1,585.4
850.5
35.9
36.6
223.6
317.0
3,417.8
2,306.9
237.9
67.9
805.1
271.3
2,954.4
22,750.1
551.7
5,210.5
4,610.1
510.7
24.7
65.0
1,131.4
421.2
194.7
2,074.8
518.4
721.9
788.4
1,536.9
1,223.8
107.4
2,114.3
2,830.1
1,876.8
844.8
37.2
43.3
316.0
206.3
3,366.5
2,290.6
225.4
66.6
784.0
268.7
2,766.8
21,775.4
535.1
5,041.5
4,463.5
501.3
21.6
55.1
1,116.1
392.4
208.8
2,004.8
510.0
718.0
807.6
1,414.3
1,160.3
97.3
1,956.1
2,635.7
1,696.6
878.5
36.5
37.9
288.4
239.5
3,359.6
2,282.7
214.8
67.4
794.6
269.6
2,837.5
22,273.4
534.1
5,100.6
4,513.5
509.3
21.3
56.5
1,118.1
408.4
201.8
2,054.8
511.3
720.6
789.0
1,494.9
1,188.2
103.3
2,026.1
2,758.8
1,772.1
859.5
36.9
39.8
366.4
188.8
3,417.8
2,306.9
237.9
67.9
805.1
271.3
2,954.4
22,750.1
551.7
5,210.5
4,610.1
510.7
24.7
65.0
1,131.4
421.2
194.7
2,074.8
518.4
721.9
788.4
1,536.9
1,223.8
107.4
2,114.3
2,830.1
1,876.8
844.8
37.2
43.3
316.0
206.3
3,442.6
2,337.9
230.4
68.7
805.6
272.5
3,000.6
23,133.5
575.4
5,231.3
4,629.3
507.7
27.7
66.6
1,134.7
434.3
195.0
2,136.9
527.6
728.7
806.0
1,496.4
1,276.8
112.8
2,163.8
2,955.1
1,928.9
832.4
37.6
49.9
299.6
210.3
3,498.9
2,374.6
235.0
69.6
819.7
274.7
3,133.2
23,471.8
590.7
5,328.3
4,719.7
512.6
28.1
67.9
1,130.9
447.7
195.2
2,180.1
536.4
740.3
792.4
1,419.3
1,291.6
112.8
2,199.9
3,041.6
1,985.3
845.6
38.0
57.9
352.6
185.4
3,417.2
2,292.7
235.4
69.0
820.1
276.4
3,249.5
23,964.0
604.2
5,476.2
4,858.4
521.2
27.7
68.8
1,153.7
458.5
195.4
2,250.7
541.9
749.3
789.8
1,405.7
1,334.5
111.9
2,252.9
3,084.5
2,031.5
857.1
38.3
64.8
335.2
224.1
3,502.3
2,362.6
240.1
68.8
830.9
279.0
3,371.3
24,549.6
629.4
5,620.5
5,003.8
517.3
27.8
71.6
1,166.9
465.3
195.6
2,289.6
548.9
752.9
792.1
1,511.6
1,368.0
111.5
2,336.7
3,158.3
2,118.1
862.4
38.7
66.8
346.6
166.1
23,437.1
25,602.0
27,348.6
29,393.6
28,177.5
28,740.1
29,393.6
29,849.3
30,378.5
30,907.1
31,702.2
60.1
9.2
19.9
642.3
189.4
1,333.3
2,626.5
805.3
1,329.7
913.8
3,613.1
572.2
718.3
8,208.4
2,073.8
170.7
1,001.0
7,617.2
50.1
6.2
20.9
703.6
202.4
1,484.5
2,671.6
936.4
1,578.8
1,083.6
4,538.5
676.6
783.9
9,065.3
2,342.4
201.4
1,130.4
8,499.5
46.1
2.2
23.2
824.5
221.2
1,413.1
2,860.4
1,052.6
1,812.1
1,196.8
4,434.6
822.7
819.1
9,069.0
2,767.9
234.2
1,095.8
9,717.2
46.8
2.2
24.5
908.9
187.7
1,603.2
3,127.6
1,121.1
2,240.7
1,231.8
4,135.5
825.9
880.0
8,693.4
2,700.6
251.7
960.7
10,505.4
43.4
2.2
23.9
837.6
158.7
1,449.6
2,992.4
1,087.3
2,014.7
1,205.4
4,259.5
781.5
840.3
8,862.6
2,756.4
241.2
1,024.6
10,491.8
49.0
2.2
24.5
848.0
166.5
1,487.1
3,047.6
1,094.2
2,115.4
1,251.9
3,753.1
919.9
844.0
8,281.0
2,725.7
270.1
916.5
10,919.8
46.8
2.2
24.5
908.9
187.7
1,603.2
3,127.6
1,121.1
2,240.7
1,231.8
4,135.5
825.9
880.0
8,693.4
2,700.6
251.7
960.7
10,505.4
45.7
2.2
24.7
894.1
161.1
1,525.2
3,229.6
1,178.9
2,202.6
1,262.4
4,247.0
778.0
904.2
8,822.2
2,724.3
258.9
963.2
10,539.1
47.2
2.2
24.8
907.4
130.6
1,571.0
3,257.6
1,188.7
2,150.3
1,343.1
3,926.6
745.6
915.2
8,328.1
2,721.6
265.0
893.5
10,829.7
53.1
2.2
25.5
924.6
149.0
1,610.7
3,339.0
1,197.7
2,105.9
1,313.7
3,452.3
726.3
927.9
7,732.4
2,779.2
279.6
811.6
11,304.4
55.8
2.2
25.5
955.2
191.3
1,648.6
3,404.9
1,176.8
2,223.9
1,325.2
3,634.6
724.5
958.4
8,053.3
2,815.4
280.7
840.9
11,394.1
RELATION OF LIABILITIES
TO FINANCIAL ASSETS
34
35
36
37
38
39
40
41
47
43
44
45
46
47
48
49
50
51
52
Other liabilities
Official foreign exchange
Special drawing rights certificates
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 payables
Taxes payable
Investment in bank personal trusts
Miscellaneous
53
Total liabilities
55,341.1
61,578.0
65,761.2
68,841.3
67,250.6
67,456.6
68,841.3
69,612.6
69,626.9
69,642.2
71,413.3
54
55
56
Financial assets not included in liabilities (+)
Gold and special drawing rights
Corporate equities
Household equity in noncorporate business
21.6
15,577.3
4,285.7
21.4
19,581.2
4,523.1
21.6
17,611.9
4,753.2
21.8
15,245.5
4,837.2
21.5
16,281.6
4,817.0
22.0
13,673.4
4,865.2
21.8
15,245.5
4,837.2
21.9
15,264.1
4,864.4
22.3
13,363.0
4,933.7
22.8
10,960.1
4,983.6
23.2
11,734.5
5,021.8
57
58
59
60
61
62
Liabilities not identified as assets (—)
Treasury currency
Foreign deposits
Net interbank transactions
Security repurchase agreements
Taxes payable
Miscellaneous
-6.4
542.8
-26.5
230.6
121.2
-1,972.7
-7.1
585.7
-28.5
266.4
129.4
-2,427.9
-8.5
627.4
-4.3
388.9
146.3
-2,902.8
-8.6
694.9
11.1
348.5
121.8
-3,147.0
-8.8
631.6
3.8
379.4
150.5
-2,806.3
-8.6
645.4
4.5
398.7
167.3
-2,643.0
-8.6
694.9
11.1
348.5
121.8
-3,147.0
-8.9
686.5
21.9
401.6
109.9
-3,105.7
-9.1
710.2
18.4
463.3
162.8
-3,140.6
-8.9
722.9
16.5
381.6
152.8
-3,033.6
-9.1
751.7
14.9
366.5
156.8
-3,036.1
63
64
65
Floats not included in assets (—)
Federal government checkable deposits
Other checkable deposits
Trade credit
-3.9
23.1
84.8
-9.8
22.3
95.6
-2.3
24.0
128.0
-12.3
28.6
140.5
-3.6
25.5
61.8
-4.0
19.2
52.0
-12.3
28.6
140.5
-9.6
26.3
85.7
-9.3
31.4
33.0
-14.8
25.8
25.5
-11.7
35.9
91.6
66
Totals identified to sectors as assets
76,232.7
87,077.5
89,751.1
90,768.3
89,936.9
87,385.5
90,768.3
91,555.1
89,685.8
87,340.6
89,832.3
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
L.l and L.5. For ordering address, see inside front cover.
2. Excludes corporate equities and mutual fund shares.
A40
2.12
Domestic Nonfinancial Statistics • May 2003
OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
2002
Q1
Q2
2002
Q3
Q4 r
Ql
Q2
2002
Q3
Q4
Capacity (percent of 1997 output)
Output (1997=100)
Ql
Q2
Q3
Q4 r
Capacity utilization rate (percent)2
1 Total industry
109.3
110.5
111.4
110.5
145.4
145.9
146.2
146.6
75.1
75.7
76.2
75.4
2 Manufacturing
3
Manufacturing (NAICS)
110.5
110.8
111.4
111.8
112.3
112.6
111.3
111.6
150.5
151.8
150.9
152.2
151.1
152.5
151.4
152.8
73.4
73.0
73.9
73.5
74.3
73.8
73.5
73.0
4
5
Durable manufacturing
Primary metal
119.7
84.9
121.2
85.6
122.3
85.9
121.5
86.0
171.5
112.7
172.5
112.0
173.4
111.4
174.2
110.8
69.8
75.3
70.2
76.4
70.5
77.1
69.8
77.6
6
7
8
9
Fabricated metal products
Machinery
Computer and electronic products
Electrical equipment, appliances.
and components
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
Nondurable manufacturing
Food, beverage, and tobacco products . . . .
Textile and product mills
98.0
87.5
216.2
99.1
88.6
219.6
99.5
88.7
222.6
99.1
86.7
224.3
139.0
129.9
344.0
139.3
129.9
350.1
139.4
129.9
355.4
139.6
129.9
360.3
70.5
67.3
62.9
71.2
68.2
62.7
71.3
68.3
62.6
71.0
66.7
62.3
97.6
112.8
98.3
116.8
97.7
121.7
97.2
120.0
129.6
144.9
129.1
145.9
128.6
147.1
128.2
148.4
75.3
77.9
76.1
80.0
75.9
82.7
75.8
80.9
90.8
99.1
100.8
82.1
87.6
99.7
100.8
83.3
85.9
100.1
100.1
82.9
85.1
98.9
98.8
81.3
145.7
127.9
125.9
112.8
145.5
127.7
125.8
112.3
145.3
127.5
125.7
111.7
145.1
127.3
125.6
111.1
62.3
77.5
80.1
72.8
60.2
78.1
80.2
74.2
59.1
78.5
79.7
74.2
58.6
77.7
78.7
73.2
91.7
103.3
104.9
103.6
105.2
94.2
103.3
105.3
106.6
104.6
95.7
102.3
106.4
107.3
106.0
96.7
102.8
104.1
105.6
105.9
114.5
114.7
141.0
134.8
131.1
114.2
114.9
141.2
134.2
130.3
114.0
115.2
141.2
133.6
129.5
113.8
115.7
141.3
132.9
128.7
80.1
90.1
74.4
76.9
80.3
82.5
89.9
74.6
79.4
80.3
84.0
88.7
75.3
80.4
81.8
85.0
88.9
73.7
79.4
82.3
20 Mining
21 Electric and gas utilities
94.0
105.6
93.4
110.2
93.5
112.5
93.8
111.5
110.3
123.5
110.2
125.5
110.1
127.6
110.2
129.7
85.2
85.5
84.8
87.8
84.9
88.2
85.1
86.0
MEMOS
22 Computers, communications equipment, and
semiconductors
282.2
290.3
295.5
300.3
456.8
466.7
475.3
483.3
61.8
62.2
62.2
62.1
23 Total excluding computers, communications
equipment, and semiconductors
99.6
100.6
101.3
100.4
130.3
130.4
130.5
130.6
76.5
77.1
77.6
76.8
24 Manufacturing excluding computers,
communications equipment, and
semiconductors
99.2
99.9
100.5
99.5
132.7
132.6
132.6
132.6
74.8
75.3
75.8
75.1
10
11
12
13
14
15
16
17
18
19
Paper
Petroleum and coal products
Chemical
Plastics and rubber products
Other manufacturing (non-NAICS)
Selected Measures
2.12
OUTPUT, CAPACITY, A N D CAPACITY
A41
UTILIZATION1—Continued
Seasonally adjusted
1973
1975
Latest cycle4
Previous cycle3
2003
2002
2002
Series
High
Low
High
Low
High
Low
Feb.
Sept.
Oct.
r
Nov.
Dec.'
Jan.'
Feb.?
Capacity utilization rate (percent)2
1 Total industry
88.8
74.0
86.6
70.8
85.1
78.6
75.1
76.0
75.5
75.6
75.1
75.6
75.6
2 Manufacturing
3
Manufacturing (NAICS)
88.0
88.1
71.6
71.4
86.3
86.3
68.6
67.9
85.5
85.5
77.2
77.0
73.4
73.0
74.1
73.6
73.7
73.1
73.7
73.3
73.2
72.7
73.6
73.0
73.4
72.9
88.9
100.9
69.6
68.9
87.0
91.3
63.1
47.2
84.5
95.3
73.4
75.2
69.8
75.7
70.2
76.5
69.9
78.9
70.2
77.8
69.2
76.1
70.0
77.1
69.6
76.0
4
5
Durable manufacturing
Primary metal
6
7
8
91.8
94.2
69.6
74.2
83.1
92.8
61.7
58.3
80.1
84.7
71.0
72.9
70.6
67.2
71.2
67.9
71.5
66.8
70.7
67.3
70.8
66.1
70.9
66.7
70.3
67.0
87.0
66.9
89.8
77.3
81.5
76.4
62.6
62.5
62.5
62.3
61.9
62.5
62.9
99.3
95.3
68.5
55.3
91.9
96.2
64.4
45.2
87.5
90.0
75.0
56.6
75.4
78.3
75.1
82.1
75.3
80.0
75.6
83.5
76.5
79.1
75.9
82.4
76.5
80.1
75.0
87.5
66.3
72.5
84.6
85.7
69.8
75.6
88.9
86.9
81.9
81.8
62.4
77.4
59.0
78.4
58.9
77.8
58.4
77.7
58.5
77.5
58.9
77.4
58.6
77.5
14
Fabricated metal products . . . .
Machinery
Computer and electronic
products
Electrical equipment,
appliances, and
components
Motor vehicles and parts
Aerospace and
miscellaneous
transportation equipment.
Nondurable manufacturing
Food, beverage, and tobacco
products
Textile and product mills . . . .
85.9
89.8
78.0
62.8
84.3
90.1
80.2
72.3
85.5
91.1
81.3
77.1
80.1
72.5
79.5
73.8
79.2
73.0
78.5
73.5
78.3
73.0
78.6
72.0
78.2
72.5
15
16
17
18
19
Paper
Petroleum and coal products . .
Chemical
Plastics and rubber products . .
Other manufacturing (non-NAICS).
97.4
93.2
85.0
96.3
85.7
74.7
81.0
68.9
61.6
75.7
95.6
92.3
83.0
90.5
88.1
81.3
71.1
67.9
70.5
85.7
94.0
88.9
85.6
91.2
90.2
85.4
82.5
80.8
77.1
79.1
80.2
90.7
74.1
76.6
80.0
84.4
87.6
75.1
80.4
82.8
84.1
86.1
74.1
79.9
82.7
85.1
89.8
73.8
79.6
81.9
85.7
90.7
73.3
78.8
82.3
83.0
88.1
73.3
79.2
82.6
84.0
88.4
73.7
79.4
83.2
20 Mining
21 Electric and gas utilities
93.6
96.2
87.6
82.7
94.2
87.9
78.6
77.2
85.6
92.6
83.3
84.2
85.4
85.2
83.8
88.4
83.9
86.9
85.0
86.4
86.6
84.8
85.0
87.8
85.8
88.5
MEMOS
22 Computers, communications
equipment, and semiconductors .
84.5
63.1
89.9
75.6
80.4
74.6
61.6
62.0
62.3
62.4
61.6
62.3
63.1
23 Total excluding computers,
communications equipment,
and semiconductors
89.1
74.3
86.6
70.5
85.5
78.8
76.4
77.5
76.9
77.0
76.5
77.0
77.0
24 Manufacturing excluding computers
communications
equipment, and semiconductors .
88.3
71.9
86.3
68.1
86.1
77.3
74.8
75.7
75.2
75.3
74.7
75.1
74.9
9
10
11
12
13
Note. The statistics in the G.17 release cover output, capacity, and capacity utilization in the
industrial sector, which the Federal Reserve defines are manufacturing, mining, and electric
and gas utilities. Manufacturing consists of those industries included in the North American
Industry Classification System, or NAICS, manufacturing plus those industries—logging and
newspaper, periodical, book, and directory publishing—that have traditionally been considered manufacturing and included in the industrial sector.
1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. The
data are also available on the Board's web site http://www.federalreserve.gov/releases/gl7.
The latest historical revision of the industrial production index and the capacity utilization
rates was released in December 2002. The recent annual revision is described in the April
2003 issue of the Bulletin.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally
adjusted index of industrial production to the corresponding index of capacity.
3. Monthly highs, 1978-80; monthly lows, 1982.
4. Monthly highs, 1988-89; monthly lows, 1990-91.
A42
2.13
Domestic Nonfinancial Statistics • May 2003
INDUSTRIAL PRODUCTION
Indexes and Gross Value1
Monthly data seasonally adjusted
_
Group
1992
proportion
2002
2003
2002
avg.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.r
Dec.'
Jan.'
Feb.f
Index(1997= 100)
MAJOR MARKETS
1 Total IP
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Market groups
Final products and nonindustrial supplies
Consumer goods
Durable
Automotive products
Home electronics
Appliances, furniture, carpeting
Miscellaneous goods
Nondurable
Non-energy
Foods and tobacco
Clothing
Chemical products
Paper products
Energy
100.0
110.5
109.2
109.6
110.1
110.4
110.8
111.6
111.3
111.2
110.6
110.8
110.1
111.0
111.1
60.8
29.0
5.8
2.5
0.4
1.3
1.6
23.2
20.2
10.4
2.4
4.6
2.9
3.0
109.3
107.5
117.3
125.4
142.9
106.9
98.5
104.1
102.6
99.5
72.4
119.1
108.1
112.0
108.5
106.7
115.3
121.3
153.1
107.9
97.1
103.6
103.0
100.2
72.7
119.9
106.6
107.1
108.9
107.4
115.7
121.7
150.2
108.1
98.2
104.4
103.5
100.8
74.4
120.1
107.2
109.4
109.1
107.5
116.5
123.8
139.9
108.2
98.1
104.4
102.8
100.4
72.7
118.5
106.0
112.8
109.3
107.3
117.2
124.2
143.8
109.1
98.9
103.9
102.2
100.0
72.9
116.8
106.2
112.5
109.6
107.8
118.6
127.4
135.3
107.5
100.2
104.1
102.8
100.2
72.9
118.3
107.2
110.9
110.1
108.5
120.0
130.6
137.0
106.9
99.2
104.6
102.8
99.8
73.2
119.5
107.1
114.0
109.8
107.8
119.3
130.6
135.4
104.5
98.3
103.8
102.4
99.2
71.3
119.0
108.4
111.6
109.8
107.9
118.7
129.3
142.6
104.6
97.8
104.2
102.6
99.1
72.1
119.5
109.8
112.8
109.1
107.0
117.0
125.9
140.1
104.9
98.2
103.6
102.0
98.7
70.2
118.3
110.0
111.8
109.3
107.8
121.0
132.4
142.1
107.1
98.3
103.3
101.3
97.9
70.6
118.0
108.8
114.0
108.3
106.7
117.8
125.9
145.3
107.8
98.7
102.9
100.9
97.4
70.0
117.1
109.1
113.3
109.3
107.8
120.5
131.3
144.1
105.9
99.3
103.5
101.2
97.9
70.0
117.0
109.8
115.6
109.3
107.5
118.7
128.4
143.2
106.4
98.2
103.6
101.1
97.2
69.7
117.6
110.8
116.9
13.2
2.5
5.4
5.3
3.4
107.3
81.2
153.8
91.5
101.2
108.1
86.9
154.3
90.5
99.7
107.8
84.8
155.5
90.3
99.8
107.7
83.2
154.7
91.1
99.9
108.0
82.0
154.9
91.9
100.6
108.0
81.1
154.9
92.2
101.2
107.3
80.2
153.5
92.0
101.2
108.1
81.1
153.7
92.9
101.9
106.9
79.7
152.1
92.0
102.0
106.0
77.3
153.1
91.2
102.5
106.1
77.9
152.8
91.1
101.7
104.7
75.0
152.6
90.0
102.3
105.6
75.2
155.9
90.3
104.0
105.6
74.1
156.2
90.6
104.2
16
17
18
19
20
Business equipment
Transit
Information processing
Industrial and other
Defense and space equipment
21
22
Construction supplies
Business supplies
5.4
9.1
104.0
121.9
103.1
119.4
104.0
119.7
104.0
120.7
104.6
121.5
104.5
121.8
104.4
123.2
104.8
122.6
104.5
123.6
104.2
123.1
103.8
122.5
102.8
122.0
103.0
123.5
102.8
124.4
23 Materials
24
Non-energy
Durable
25
26
Consumer parts
27
Equipment parts
Other
28
29
Nondurable
Textile
30
Paper
31
32
Chemical
33
Energy
39.2
29.6
20.7
4.0
7.5
9.2
8.9
1.1
1.8
4.0
9.6
112.2
115.8
128.1
110.9
182.7
97.1
97.0
77.6
95.0
99.1
98.7
110.2
113.7
125.6
109.2
177.6
95.9
95.4
76.3
92.6
97.2
97.1
110.7
114.0
125.8
109.2
177.6
96.0
95.9
77.7
91.9
98.8
97.9
111.6
115.0
127.1
110.8
179.8
96.7
96.5
77.8
93.3
99.6
98.6
112.2
115.8
127.8
110.1
182.3
97.2
97.3
78.2
94.8
100.4
98.5
112.6
116.4
128.6
110.4
183.6
97.9
97.6
78.5
93.6
100.6
98.6
113.8
117.2
129.4
113.4
184.2
97.7
98.4
79.6
95.8
101.3
101.0
113.6
117.4
130.0
112.3
186.3
98.3
98.2
77.8
96.1
100.7
99.3
113.4
117.2
129.5
112.4
185.7
97.7
98.3
78.4
96.7
100.2
99.1
112.8
116.7
129.5
111.7
185.7
98.0
97.1
77.2
96.8
98.2
98.4
113.1
116.7
129.7
114.6
185.3
97.2
97.0
77.0
96.9
97.9
99.4
112.8
116.2
128.5
111.5
184.6
96.9
97.3
75.6
98.7
97.4
99.7
113.4
116.8
130.2
115.0
186.6
97.4
96.4
75.8
96.1
97.2
100.5
113.8
116.8
130.1
113.0
189.1
97.1
96.8
75.8
96.8
97.7
101.8
94.7
94.3
100.5
110.0
99.6
108.9
99.9
109.4
100.3
109.7
100.5
110.1
100.8
110.3
101.5
110.8
101.2
110.5
101.2
110.5
100.5
110.0
100.6
109.8
100.0
109.6
100.7
110.1
100.7
110.4
SPECIAL AGGREGATES
34 Total excluding computers, communication
equipment, and semiconductors
35 Total excluding motor vehicles and parts
Gross value (billions of 1996 dollars, annual rates)
36 Final products and nonindustrial
supplies
100.0
2,793.3 2,774.9 2,787.1 2,796.7 2,802.2 2,809.9 2,828.0 2,821.5 2,817.8 2,793.6 2,817.8 2,785.7 2,812.0 2,808.1
37 Final products
Consumer goods
38
39
Equipment total
77.2
51.9
25.3
2,018.6 2,006.4 2,013.9 2,020.7 2,021.4 2,028.7 2,042.2 2,038.1 2,031.4 2,010.8 2,037.3 2,011.2 2,031.1 2,024.2
1,384.7 1,371.5 1,380.1 1,386.3 1,384.8 1,390.2 1,404.1 1,395.9 1,394.3 1,379.1 1,402.0 1,384.5 1,399.1 1,392.6
627.5
625.4
624.9
625.3
628.1
629.9
627.7
627.9
633.6
622.6
615.9
620.7
624.4
621.0
40 Nonindustrial supplies
22.8
774.6
768.5
773.2
776.1
780.9
781.3
785.9
783.5
786.6
783.2
780.5
774.6
781.0
784.1
Selected Measures
2.13
INDUSTRIAL PRODUCTION
A43
Indexes and Gross Value1—Continued
Monthly data seasonally adjusted
Group
NAICS
code2
1992
proportion
2003
2002
2002
avg.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.1"
Dec.r
Jan.r
Feb/
Index(1997= 100)
INDUSTRY GROUPS
85.4
79.1
111.4
111.7
110.4
110.8
110.7
111.0
111.0
111.4
111.4
111.9
111.9
112.2
112.3
112.7
112.4
112.8
112.1
112.4
111.4
111.7
111.6
112.0
110.8
111.1
111.5
111.8
111.4
111.7
' ' 321
43.0
1.5
121.1
100.5
119.8
99.9
119.8
101.7
120.5
100.8
121.2
101.0
121.8
102.2
122.2
101.9
122.7
102.5
122.0
100.7
121.5
99.2
122.2
98.3
120.7
96.7
122.3
99.4
121.9
98.2
327
331
332
333
2.0
2.7
5.3
5.7
108.0
85.6
99.0
87.9
106.4
85.3
98.2
87.3
106.6
85.1
98.2
88.0
107.4
84.6
98.4
88.3
107.7
85.9
99.7
88.5
106.6
86.2
99.3
88.9
107.7
85.0
99.7
88.4
108.5
87.6
99.3
89.4
109.8
85.0
99.4
88.2
109.3
87.6
99.8
86.8
110.2
86.2
98.7
87.4
109.2
84.2
98.9
85.8
109.3
85.2
99.1
86.6
109.7
84.1
98.3
87.0
334
8.8
220.4
215.5
216.9
217.9
220.0
220.8
221.5
223.0
223.2
224.2
224.5
224.1
227.5
230.4
335
3361-3
2.5
5.7
97.8
117.3
97.7
113.4
96.8
113.3
97.2
115.9
98.9
115.8
98.7
118.6
98.4
122.1
98.0
122.0
96.5
121.1
96.6
118.3
97.0
123.9
98.0
117.8
97.2
123.1
98.0
120.2
3364-9
4.5
87.6
90.9
89.5
88.3
87.6
86.9
85.7
86.3
85.7
85.5
84.8
84.9
85.5
85.0
337
339
1.5
2.8
101.3
109.6
102.6
107.8
101.7
107.4
101.8
109.6
101.5
110.2
101.6
110.7
101.4
110.6
100.5
110.2
101.4
109.1
100.7
109.3
100.6
108.6
99.3
110.1
99.0
109.2
99.3
109.0
41 Manufacturing
Manufacturing (NAICS)
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Durable manufacturing
Wood products
Nonmetallic mineral
products
Primary metal
Fabricated metal products .
Machinery
Computer and electronic
products
Electrical equipment,
appliances, and
components
Motor vehicles and parts . .
Aerospace and
miscellaneous
transportation
equipment
Furniture and related
products
Miscellaneous
Nondurable manufacturing . .
Food, beverage, and
tobacco products . . . .
Textile and product mills . .
Apparel and leather
Paper
Printing and support
Petroleum and coal
products
Chemical
Plastics and rubber
products
Other manufacturing
(non-NAICS)
65 Mining
66 Utilities
67
Electric
Natural gas
68
69 Manufacturing excluding
computers, communications
equipment, and
semiconductors
70 Manufacturing excluding motor
vehicles and parts
36.1
99.5
99.0
99.5
99.5
99.7
99.9
100.4
100.0
100.0
99.1
98.9
98.7
98.5
98.6
311,2
313,4
315,6
322
323
10.9
1.8
2.2
3.3
2.8
100.2
82.5
72.2
94.6
97.8
100.8
81.8
72.5
91.8
96.9
101.4
83.0
74.1
91.6
95.2
101.0
82.9
72.5
93.0
95.5
100.6
83.6
72.7
95.0
96.2
100.9
83.4
72.6
94.7
95.5
100.5
83.9
73.0
95.2
98.4
100.0
82.5
71.2
95.8
98.6
99.9
82.3
71.8
96.1
99.9
99.5
81.3
70.2
95.7
99.5
98.6
81.7
70.5
96.8
98.4
98.3
81.0
69.8
97.5
99.6
98.7
79.7
69.9
94.4
101.1
98.1
80.2
69.6
95.5
101.1
324
325
1.4
10.3
102.9
105.1
104.0
104.6
103.5
105.2
104.2
105.1
103.4
105.0
102.4
105.7
103.0
106.9
102.7
106.2
101.0
106.1
99.4
104.6
103.9
104.2
105.0
103.6
102.1
103.6
102.7
104.3
326
3.4
106.0
103.3
105.1
105.7
106.7
107.4
107.5
107.3
107.2
106.4
105.8
104.6
105.1
105.2
1133,5111
4.3
105.5
104.9
105.0
104.1
104.2
105.5
105.0
105.8
107.1
106.7
105.4
105.7
106.1
106.8
21
2211,2
2211
2212
6.6
10.1
8.6
1.6
93.8
110.2
111.8
97.5
94.2
105.2
107.1
95.0
93.6
108.0
110.1
96.9
93.4
110.6
112.5
100.2
93.4
110.1
111.2
104.4
93.5
110.1
111.4
103.2
94.4
113.7
115.7
102.7
93.9
110.4
112.2
100.8
92.2
113.3
115.8
99.9
92.3
112.1
113.7
103.6
93.6
112.1
113.3
105.8
95.4
110.5
112.2
101.6
93.7
114.9
116.8
105.1
94.6
116.4
118.1
107.4
78.0
99.8
99.2
99.4
99.5
99.9
100.2
100.6
100.6
100.4
99.7
99.8
99.1
99.6
99.4
77.6
110.9
110.2
110.5
110.5
111.0
111.3
111.4
111.5
111.3
110.8
110.5
110.2
110.5
110.6
Note. The statistics in the G. 17 release cover output, capacity, and capacity utilization in the
industrial sector, which the Federal Reserve defines are manufacturing, mining, and electric
and gas utilities. Manufacturing consists of those industries included in the North American
Industry Classification System, or NAICS, manufacturing plus those industries—logging and
newspaper, periodical, book, and directory publishing—that have traditionally been considered manufacturing and included in the industrial sector.
1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in December 2002. The recent annual revision is described in the April 2003
issue of the Bulletin.
2. North American Industry Classification System.
A44
3.10
International Statistics • May 2003
U.S. I N T E R N A T I O N A L T R A N S A C T I O N S
Summary
Millions of dollars; quarterly data seasonally adjusted except as noted 1
2002
2001
Item credits or debits
1 Balance on current account
2
3
4
5
6
7
8
9
10
Balance on goods and services
Exports
Imports
Income, net
Investment, net
Direct
Portfolio
Compensation of employees
Unilateral current transfers, net
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )
2001
2000
^110,341
-378,681
1,064,239
-1,442,920
21,782
27,651
88,862
-61,211
-5,869
-53,442
2002
-393,371
-358,290
998,022
-1,356,312
14,382
20,539
102,595
-82,056
-6,157
-49,463
-503,427
^135,542
971,864
-1,407,406
-11,862
-5,424
77,947
-83,371
-6,438
-56,023
Q4
Ql
Q2
Q3
Q4P
-95,086
-88,028
232,930
-320,958
6,521
8,102
28,602
-20,500
-1,581
-13,579
-112,542
-95,629
232,959
-328,588
-982
636
22,023
-21,387
-1,618
-15,931
-127,697
-109,446
244,251
-353,697
-5,324
-3,675
18,749
-22,424
-1,649
-12,927
-126,337
-110,257
248,917
-359,174
-3,007
-1,462
18,626
-20,088
-1,545
-13,073
-136,854
-120,213
245,740
-365,953
-2,553
-927
18,548
-19,475
-1,626
-14,088
-941
^t86
379
143
133
42
-27
231
-290
0
-722
2,308
-1,876
-4,911
0
-630
-3,600
-681
-3,681
0
-475
-2,632
-574
-199
0
-140
83
-142
390
0
-109
652
-153
-1,843
0
-107
-1,607
-129
-1,416
0
-132
-1,136
-148
-812
0
-127
-541
-144
-605,258
-148,657
-150,805
-127,502
-178,294
-365,565
-128,705
-14,358
-94,662
-127,840
-152,867
-3,072
-28,489
2,222
-123,528
-100,032
-83,682
37,210
-26,090
-27,470
-26,707
727
65
2,047
-29,546
-129,544
-68,655
-16,693
-9,675
-34,521
41,714
53,815
-4,226
18,543
-26,418
-38,334
11,041
-7,635
-8,693
-33,047
22 Change in foreign official assets in United States (increase, +)
23
U.S. Treasury securities
24
Other U.S. government obligations
25
Other U.S. government liabilities2
26
Other U.S. liabilities reported by U.S. banks2
27
Other foreign official assets3
37,640
-10,233
40,909
-1,909
5,746
3,127
5,224
10,745
20,920
-1,882
-30,278
5,719
96,630
43,656
30,357
158
18,831
3,628
5,086
16,760
7,630
-504
-20,507
1,707
7,641
-582
7,296
-790
991
726
47,252
15,193
6,548
54
24,531
926
9,534
1,415
10,885
1,001
^1,602
835
32,203
27,630
5,628
-107
-2,089
1,141
28 Change in foreign private assets in United States (increase, +)
29
U.S. bank-reported liabilities4
30
U.S. nonbank-reported liabilities
Foreign private purchases of U.S. Treasury securities, net
31
32
U.S. currency flows
Foreign purchases of other U.S. securities, net
33
34
Foreign direct investments in United States, net
978,346
116,971
174,251
-76,965
1,129
455,213
307,747
747,582
110,667
82,353
-7,670
23,783
407,653
130,796
533,734
94,605
49,736
53,155
21,513
284,611
30,114
245,711
85,598
1,170
27,229
10,497
99,320
21,897
105,959
-11,051
32,345
-7,282
4,525
71,095
16,327
157,159
32,240
21,056
-5,124
7,183
104,404
-2,600
119,786
18,793
-3,804
52,856
2,556
46,494
2,891
150,827
54,623
139
12,705
7,249
62,618
13,493
837
7
826
10,701
708
28,524
7
10,701
28,524
205
-55,828
1,721
-57,549
208
24,918
10,269
14,649
200
54,431
1,504
52,927
156
-43,410
-13,991
-29,419
144
-7,405
2,228
-9,633
12 Change in U.S. official reserve assets (increase, - )
13
Gold
14
Special drawing rights (SDRs)
15
Reserve position in International Monetary Fund
Foreign currencies
16
17 Change in U.S. private assets abroad (increase, - )
Bank-reported claims2
18
19
Nonbank-reported claims
20
U.S. purchase of foreign securities, net
21
U.S. direct investments abroad, net
35 Capital account transactions, net5
36 Discrepancy
37
Due to seasonal adjustment
Before seasonal adjustment
38
MEMO
Changes in official assets
39 U.S. official reserve assets (increase, - )
40 Foreign official assets in United States, excluding line 25
(increase, +)
-290
-4,911
-3,681
-199
390
-1,843
-1,416
-812
39,549
7,106
96,472
5,590
8,431
47,198
8,533
32,310
41 Change in Organization of Petroleum Exporting Countries official
assets in United States (part of line 22)
12,000
-1,725
-8,132
3,382
-8,532
838
-1,289
851
1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38^41.
2. Associated primarily with military sales contracts and other transactions arranged with
or through foreign official agencies.
3. Consists of investments in U.S. corporate stocks and in debt securities of private
corporations and state and local governments.
4. Reporting banks included all types of depository institutions as well as some brokers
and dealers.
5. Consists of capital transfers (such as those of accompanying migrants entering or
leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced
nonfinancial assets.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current
Business.
Summary Statistics
3.12
A45
U.S. R E S E R V E A S S E T S
Millions of dollars, end of period
2002
Asset
1999
2000
2003
2001
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.P
1 Total
71,516
67,647
68,654
75,307
75,860
75,499
75,690
79,006
78,434
78,579
80,049
2 Gold stock1
3 Special drawing rights 23
4 Reserve position in International Monetary
Fund2
5 Foreign currencies4
11,048
10,336
11,046
10,539
11,045
10,774
11,042
11,752
11,042
11,710
11,042
11,700
11,043
11,855
11,043
12,166
11,043
11,298
11,043
11,368
11,043
11,392
17,950
32,182
14,824
31,238
17,854
28,981
20,043
32,470
20,857
32,251
20,586
32,171
20,480
32,312
21,979
33,818
21,953
34,140
21,686
34,482
22,858
34,756
1. Gold held "under earmark" at Federal Reserve Banks for foreign and international
accounts is not included in the gold stock of the United States; see table 3.13, line 3. Gold
stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted by the
International Monetary Fund (IMF) in July 1974. Values are based on a weighted average of
exchange rates for the currencies of member countries. From July 1974 through December
1980, sixteen currencies were used; since January 1981, five currencies have been used. U.S.
3.13
SDR holdings and reserve positions in the IMF also have been valued on this basis since July
1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1 of the year
indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—$710 million; 1979—
$1,139 million; 1980—$1,152 million; 1981—$1,093 million; plus net transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1
Millions of dollars, end of period
2002
Asset
1999
2000
Aug.
1 Deposits
Held in custody
2 U.S. Treasury securities2
3 Earmarked gold3
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.p
71
215
61
86
150
89
78
136
102
224
254
632,482
9,933
594,094
9,451
592,630
9,099
638,003
9,064
644,381
9,057
647,165
9,050
669,092
9,045
678,106
9,045
683,837
9,045
700,341
9,045
710,955
9,045
1. Excludes deposits and U.S. Treasury securities held for international and regional
organizations
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury
securities, in each case measured at face (not market) value.
2003
2001
3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; not
included in the gold stock of the United States.
A46
3.15
International Statistics • May 2003
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
2003
2002
Item
1 Total1
2
3
4
5
6
7
8
9
10
11
12
By type
Liabilities reported by banks in the United States2
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities5
By area
Europe1
Canada
Latin America and Caribbean
Asia
Africa
Other countries
2000 r
2001r
Aug. r
Sept.
Oct.
Nov.
Dec.
Jan.?
975,304
987,568
1,046,327
1,048,990
1,050,056
1,048,005
1,069,610
1,082,363
1,087,200
144,593
153,010
123,425
161,719
141,870
187,997
138,281
188,805
143,028
185,187
136,637
188,474
138,414
190,111
140,935
190,375
136,962
194,762
450,832
5,348
221,521
454,306
3,411
244,707
449,736
3,020
263,704
450,371
3,040
268,493
446,860
3,058
271,923
446,307
3,078
273,509
462,884
3,097
275,104
469,592
2,769
278,692
468,956
2,786
283,734
240,325
13,727
70,442
626,017
14,690
10,101
243,448
13,440
71,103
635,180
15,167
9,228
256,529
10,682
62,863
690,405
15,233
10,613
255,235
10,886
62,026
693,752
15,257
11,832
260,423
10,097
62,227
690,902
14,514
11,891
254,343
10,300
64,289
692,351
15,524
11,196
265,751
10,975
63,002
701,172
15,602
13,106
273,052
11,079
63,244
706,287
15,338
13,361
270,065
10,455
62,016
718,275
14,589
11,798
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper,
negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of
zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning
March 1990, 30-year maturity issue; Venezuela, beginning December 1990, 30-year maturity
issue; Argentina, beginning April 1993, 30-year maturity issue.
3.16
Julyr
LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
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
Treasury by banks (including Federal Reserve Banks) and securities dealers in the United
States, and in periodic benchmark surveys of foreign portfolio investment in the United
States.
Reported by Banks in the United States1
Payable in Foreign Currencies
Millions of dollars, end of period
2002
Item
1 Banks' liabilities
2 Banks' claims
3
Deposits
4
Other claims
5 Claims of banks' domestic customers 2
1999
88,537
67,365
34,426
32,939
20,826
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
2000
77,779
56,912
23,315
33,597
24,411
2001
79,363
74,840
44,094
30,746
17,631
Mar.
June'
Sept.r
Dec.
74,955
77,746
46,778
30,968
16,642
89,823
90,622
51,860
38,762
15,848
81,719
85,165
44,511
40,654
20,475
80,541
76,618
33,085
43,533
33,632
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
A47
3.20BANKS'OWNCLAIMSONUNAFFILIATEDF O R E I G N E R SR e p o r t e d b y B a n k s i n t h e U n i t e d S t a t e s 1
P a y a b l e in U.S. d o l l a r s
Millions of dollars, end of period
2002
Item
2001
2000
2003
2002
July
Aug.
Sept.
Oct.
Nov.
Jan.p
Dec.
BY HOLDER AND TYPE OF LIABILITY
1 Total, all foreigners
1,511,410
1,636,538
1,818,537' 1,705,426
1,763,311
1,748,201
1,834,787
1,776,379
l,818,537 r 1,764,072
7 Banks' own liabilities
3
Demand deposits
Time deposits2
4
Other3
Own foreign offices4
6
1,077,636
33,365
187,883
171,401
684,987
1,181,097 1,274,247' 1,179,129
32,558
33,603
35,273'
134,716'
128,215
158,139r
197,064'
253,602
251,787'
764,754
792,291
852,471'
1,225,442
31,428
128,345
259,415
806,254
1,218,213
32,027
123,330
274,658
788,198
1,305,746 1,242,296
31,607
35,051
131,119'
128,414'
265,120'
258,584'
877,900
820,247
1.274,247' 1,221,152
35,273'
32,499
134,716'
130,468
251,787'
272,384
852,471'
785,801
7 Banks' custodial liabilities5
U.S. Treasury bills and certificates6
8
Short-term agency securities7
9
Other negotiable and readily transferable
10
instruments8
Other
11
9
12 Nonmonetary international and regional organizations
13
Banks' own liabilities
Demand deposits
14
Time deposits2
11
Other3
16
17
18
19
20
21
Banks' custodial liabilities5
US. Treasury bills and certificates6
Short-term agency securities7
Other negotiable and readily transferable
instruments8
Other
10
77 Official institutions
73
Banks' own liabilities
Demand deposits
74
Time deposits2
Other3
26
71
28
2.9
30
31
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Short-term agency securities7
Other negotiable and readily transferable
instruments8
Other
3? Banks"
33
Banks' own liabilities
Unaffiliated foreign banks
34
35
Demand deposits
Time deposits2
36
Other3
37
Own foreign offices4
38
39
40
41
42
43
44
45
46
47
48
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Short-term agency securities7
Other negotiable and readily transferable
instruments8
Other
Other foreigners
Banks' own liabilities
Demand deposits
Time deposits2
Other3
5
49 Banks' custodial liabilities
U.S. Treasury bills and certificates6
50
Short-term agency securities7
51
Other negotiable and readily transferable
52
instruments8
Other
53
433,774
177,846
n.a.
455,441
186,115
59,781
544,290
229,511
73,475
526,297
224,429
70,872
537,869
227,338
72,848
529,988
224,733
71,048
529,041
223,569
69,223
534,083
226,302
66,579
544,290
229,511
73,475
542,920
231,363
68,323
145,840
110,088
80,026
129,519
90,673
150,631
88,061
142,935
90,697
146,986
90,986
143,221
91,288
144,961
90,332
150,870
90,673
150,631
92,892
150,342
12,542
12,140
41
6,246
5,853
10,830
10,169
35
3,756
6,378
13,503
12,396
44
5,759'
6,593'
11,495
10,993
15
7,394
3,584
10,540
9,986
34
6,294
3,658
11,796
11,008
52
5,702
5,254
13,153
12,538
61
6,201'
6,276'
12,253
11,475
42
5,235'
6,198'
13,503
12,396
44
5,759'
6,593'
14,578
13,874
37
5,214
8,623
402
252
n.a.
661
600
40
1,107
1,089
0
502
481
0
554
532
0
788
764
0
615
597
0
778
760
0
1,107
1,089
0
704
687
0
149
21
0
18
0
21
0
22
0
18
6
18
0
18
0
18
0
17
0
1
297,603
96,989
3,952
35,573
57,464
285,144'
83,824'
2,988
19,68CF
61,156'
331,310'
90,738'
2,535
17,583'
70,620'
329,867
93,571
2,146
13,879
77,546
327,086
89,340
1,946
14,733
72,661
328,215
96,513
1,900
13,588
81,025
325,111
91,466
2,915
14,400'
74,151'
328,525
93,476
3,658
13,521'
76,297'
331,310'
90,738'
2,535
17,583'
70,620'
331,724
90,681
1,978
14,653
74,050
200,614
153,010
n.a.
201,320
161,719
36,351
240,572
190,375
48,469
236,296
187,997
45,184
237,746
188,805
45,131
231,702
185,187
44,082
233,645
188,474
42,767
235,049
190,111
42,479
240,572
190,375
48,469
241,043
194,762
43,712
47,366
238
2,180
1,070
1,664
64
2,281
834
2,615
1,195
1,489
944
1,624
780
1,658
801
1,664
64
1,573
996
1,053,084' 1,168,124' 1,059,823
914,492'
875,066
973,235'
110,312
122,201'
120,764'
13,091
12,790
14,168
40,424'
55,565'
34,871
53,545'
66,172
62,651
764,754
792,291
852,471'
1,100,445
911,686
105,432
11,804
36,120
57,508
806,254
1,086,278
901,654
113,456
11,391
33,605
68,460
788,198
1,186,464
998,919
121,019
10,989
38,333
71,697
877,900
1,129,198
936,035
115,788
12,214
39,190
64,384
820,247
972,932
821,306
136,319
15,522
66,904
53,893
684,987
1,168,124' 1,106,675
973,235'
911,924
120,764'
126,123
14,168
11,746
40,424'
39,425
66,172
74,952
852,471'
785,801
151,626
16,023
n.a.
138,592
11,541
2,078
194,889
21,308
6,448
184,757
20,087
4,837
188,759
20,463
5,256
184,624
20,079
5,620
187,545
19,253
7,206
193,163
18,887
6,775
194,889
21,308
6,448
194,751
20,240
6,884
36,036
99,567
21,981
102,992
40,722
126,411
41,468
118,365
41,954
121,086
41,694
117,231
41,433
119,653
41,414
126,087
40,722
126,411
42,124
125,503
228,333
147,201
13,850
79,160
54,191
287,480
172,612
17,489
79,138
75,985
305,600'
197,878'
18,526'
70,950'
108,402
304,241
199,499
17,607
72,071
109,821
325,240
214,430
17,644
71,198
125,588
321,912
209,038
18,684
70,435
119,919
310,059
202,823
17,642
72,185
112,996
306,403
201,310
19,137
70,468
111,705
305,600'
197,878'
18,526'
70,950'
108,402
311,095
204,673
18,738
71,176
114,759
81,132
8,561
n.a.
114,868
107,722
104,742
110,810
12,255
21,312
16,739
18,558
15,864
20,851
17,538
22,461
112,874
18,703
21,346
107,236
15,245
19,250
105,093
16,544
17,325
107,722
16,739
18,558
106,422
15,674
62,289
10,282
55,844
25,457
48,269
24,156
44,291
23,736
46,106
24,705
47,785
25,040
48,213
24,528
47,242
23,982
48,269
24,156
49,178
23,843
34,217
n.a.
20,440
151,143'
26,084
190,134'
29,399
190,092'
29,847
200,141'
29,700
213,172'
29,198
200,313'
26,435
190,283'
26,084
190,134'
25,596
207,282
17,727
MEMO
54 Negotiable time certificates of deposits in custody for
foreigners
7
55 Repurchase agreements
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers. Excludes bonds and notes of maturities longer than one year.
2. Excludes negotiable time certificates deposit, which are included in "Other negotiable
and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
principally of amounts owed to the head office or parent foreign bank, and to foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term securities, held
by or through reporting banks for foreign customers.
6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
7. Data available beginning January 2001.
8. Principally bankers acceptances, commercial paper, and negotiable time certificates of
deposit.
9. Principally the International Bank for Reconstruction and Development, the InterAmerican Development Bank, and the Asian Development Bank. Excludes "holdings of
dollars" of the International Monetary Fund.
10. Foreign central banks, foreign central governments, and the Bank for International
Settlements.
11. Excludes central banks, which are included in "Official institutions."
A48
3.17
International Statistics • May 2003
LIABILITIES TO FOREIGNERS
Reported by Banks in the United States1—Continued
Payable in US. dollars
Millions of dollars, end of period
2002
Item
2000
2001
2003
2002
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan."
AREA OR COUNTRY
56 Total, all foreigners
1,511,410
1,636,538
l,818,537 r 1,705,426
1,763,311
1,748,201
1,834,787
1,776,379
l,818,537 r 1,764,072
57 Foreign countries
1,498,867
1,625,708
l,805,034 r 1,693,931
1,752,769
1,736,404
1,821,634
1,764,126
l,805,034 r 1,749,494
446,788
2,692
33,399
3,000
1,411
37,833
35,519
2,011
5,072
n.a.
7,047
2,305
2,403
19,018
7,787
6,497
74,635
7,548
167,757
n.a.
276
30,578
521,331
2,922
6,557
3,626
1,446
49,056
22,375
2,307
6,354
16,894
12,411
3,727
4,033
20,800
8,811
3,375
66,403
7,474
204,396
36,059
309
41,996
533,768
2,862
6,462
3,478
3,503
39,809
27,832
2,816
3.900
24,294
6,012
14,540
3,496
24,189
10,400
4,815
85,614
10,701
176,397
39,432
279
42,937
557,099
3,537
6,270
4,061
1,498
35,447
27,081
2,677
3,426
25,436
8,208
10,049
3,055
24,196
12,429
5,709
102,088
12,393
184,152
38,215
276
46,896
577,947
3,081
8,389
3,112
1,259
37,915
31,334
2,612
3,439
25,750
7,650
17,747
3,695
25,252
12,596
4,137
105,386
12,790
183,756
38,982
280
48,785
658,663
3,053
7,420
3,004
5,170
38,515
31,558
3,358
5,029
25,680
7,974
18,895
3,220
24,407
12,825
4,857
182,152
11,226
184,483
40,070
316
45,451
615,393
2,442
8,032
3,339
2,646
40,752
32,025
3,348
5,564
27,747
7,922
14,677
3,092
25,444
15,576
3,859
141,208
11,749
182,109
38,935
332
44,595
58 Europe
Austria
59
Belgium 12
60
Denmark
61
62
Finland
France
63
64
Germany
Greece
65
66
Italy
Luxembourg 12
67
Netherlands
68
69
Norway
Portugal
70
71
Russia
72
Spain
73
Sweden
74
Switzerland
75
Turkey
United Kingdom
76
77
Channel Islands and Isle of Man 13
Yugoslavia 14
78
Other Europe and other former U.S.S.R.15
79
80 Canada
627,556'
2,473
8,611
4,880
1,693
39,640
34,398
2,975
4,744
28,626
10,722
18,867
3,575
23,147
14,031
4,656
131,506
12,131
181,890
45,728
301
52,962'
627,556'
2,473
8,611
4,880
1,693
39,640
34,398
2,975
4,744
28,626
10,722
18,867
3,575
23,147
14,031
4,656
131,506
12,131
181,890
45,728
301
52,962'
564,559
2,186
8,812
6,497
2,583
36,731
31,940
3,205
4,240
30,538
10,560
17,723
3,448
24,378
14,851
3,767
105,352
12,754
168,423
26,327
353
49,891
30,982
27,251
24,959'
26,629
24,887
24,946
26,570
24,278
24,959'
27,831
120,041
19,451
10,852
5,892
4,542
2,112
1,601
32,166
4,240
1,427
3,003
24,730
10,025
118,025
10,704
14,169
4,939
4,695
2,390
1,882
39,871
3,610
1,359
3,172
24,974
6,260
107,139'
11,218
10,037
6,065
4,158
2,305
1,381
36,152
3,924'
1,363'
2,807'
21,887'
5,842'
106,225
11,574
12,556
6,427
3,874
2,324
1,330
33,401
3,155
1,515
1,919
21,796
6,354
106,960
11,686
12,070
5,830
3,719
2,266
1,384
35,071
3,161
1,366
2,648
21,571
6,188
104,151
11,223
11,586
5,494
4,509
2,374
1,535
32,486
3,210
1,369
2,613
21,355
6,397
106,894
12,091
11,587
5,827
3,847
2,155
1,500
34,665
3,564
1,300
2,583
21,661
6,114
104,000
11,644
10,275
5,361
4,644
2,258
1,386
32,615
3,668
1,360
2,604
22,313
5,872
107,139'
11,218
10,037
6,065
4,158
2,305
1,381
36,152
3,924'
1,363'
2,807'
21,887'
5,842'
106,100
11,252
10,586
5,592
4,147
2,403
1,436
36,878
3,969
1,364
2,681
19,952
5,840
94 Caribbean
Bahamas
95
Bermuda
96
British West Indies 17
97
Cayman Islands17
98
99
Cuba
Jamaica
100
Netherlands Antilles
101
102
Trinidad and Tobago
Other Caribbean 16
103
573,337
189,298
9,636
367,197
n.a.
90
794
5,428
894
n.a.
646,987
178,472
10,539
n.a.
440,038
88
1,182
3,264
1,269
12,135
703,670'
162,196
23,827
n.a.
498,960
91
829
5,019
1,405
11,343'
675,898
160,425
20,436
n.a.
472,200
92
931
3,940
1,691
16,183
714,660
172,518
24,968
n.a.
488,770
99
948
10,538
1,803
15,016
682,464
166,477
24,692
n.a.
472,969
92
932
4,381
1,562
11,359
693,544
159,867
23,158
n.a.
491,972
92
856
5,293
1,471
10,835
680,223
145,993
25,765
n.a.
488,997
94
828
5,476
1,580
11,490
703,670'
162,196
23,827
n.a.
498,960
91
829
5,019
1,405
11,343'
711,120
168,679
27,015
n.a.
495,704
93
883
6,329
1,359
11,058
104 Asia
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries 18
Other
305,554
294,496
318,081
330,208
326,731
325,748
314,770
316,539
318,081
318,878
16,531
17,352
26,462
4,530
8,514
8,053
150,415
7,955
2,316
3,117
23,763
36,546
10,498
17,633
26,494
3,708
12,383
7,870
155,314
9,019
1,772
4,743
20,035
25,027
15,504
18,678'
33,048
7,953
14,110
7,185
161,331
8,932
1,793
7,605
16,364
25,578'
18,108
19,077
34,508
7,379
13,589
9,765
178,001
7,039
2,081
4,591
14,234
21,836
18,810
20,111
31,034
7,253
13,805
7,960
175,993
6,846
1,573
5,113
15,435
22,798
14,623
21,727
31,701
7,502
13,098
11,619
171,821
6,563
2,064
5,044
15,993
23,993
15,854
23,270
30,118
7,196
12,316
9,105
162,043
6,288
1,589
7,022
14,352
25,617
14,489
23,602
31,348
7,507
12,916
8,882
163,981
6,548
1,462
8,698
11,633
25,473
15,504
18,678'
33,048
7,953
14,110
7,185
161,331
8,932
1,793
7,605
16,364
25,578'
13,544
22,200
36,781
8,074
12,858
9,593
162,110
7,410
1,364
6,666
15,176
23,102
10,824
2,621
139
1,010
4
4,052
2,998
11,365
2,778
274
839
4
4,377
3,093
12,240'
2,652
306
1,114
2
4,370
3,796'
12,110
3,411
302
694
1
3,757
3,945
12,103
3,179
312
747
n.a.
3,940
3,925
11,115
2,538
329
747
86
3,670
3,745
11,905
2,545
335
662
n.a.
4,635
3,728
11,989
2,493
254
701
2
4,983
3,556
12,240'
2,652
306
1,114
2
4,370
3,796'
11,177
2,494
259
725
3
4,126
3,570
124 Other countries
Australia
125
New Zealand 20
126
All other
127
11,341
10,070
n.a.
1,271
6,253
5,599
242
412
11,389'
9,333
1,796
26(f
9,093
7,506
1,230
357
10,329
8,593
1,321
415
10,033
7,917
1,592
524
9,288
7,547
1,257
484
11,704
9,338
2,120
246
11,389'
9,333
1,796
260'
9,829
8,235
1,320
274
128 Nonmonetary international and regional organizations
129
International21
Latin American regional22
130
Other regional 23
131
12,543
11,270
740
533
10,830
9,331
480
935
13,503
11,720
508
1,208
11,495
10,097
386
894
10,542
9,422
402
643
11,797
9,567
394
1,766
13,153
11,725
561
789
12,253
10,582
478
1,120
13,503
11,720
508
1,208
14,578
13,175
373
936
81 Latin America
Argentina
82
83
Brazil
84
Chile
Colombia
85
86
Ecuador
Guatemala
87
Mexico
88
89
Panama
Peru
90
91
Uruguay
Venezuela
92
93
Other Latin America 16
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
Egypt
Morocco
South Africa
Congo (formerly Zaire)
Oil-exporting countries19
Other
12. Before January 2001, data for Belgium-Luxembourg were combined.
13. Before January 2001, these data were included in data reported for the United
Kingdom.
14. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
15. Includes the Bank for International Settlements and the European Central Bank. Since
December 1992, has included all parts of the former U.S.S.R. (except Russia), and Bosnia,
Croatia, and Slovenia.
16. Before January 2001, data for "Other Latin America" and "Other Caribbean" were
combined in "Other Latin America and Caribbean."
17. Beginning January 2001, data for the Cayman Islands replaced data for the British
West Indies.
18. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
19. Comprises Algeria, Gabon, Libya, and Nigeria.
20. Before January 2001, these data were included in "All other."
21. Principally the International Bank for Reconstruction and Development. Excludes
"holdings of dollars" of the International Monetary Fund.
22. Principally the Inter-American Development Bank.
23. Asian, African, Middle Eastern, and European regional organizations, except the Bank
for International Settlements, which is included in "Other Europe."
Bank-Reported Data
3.18
BANKS' OWN CLAIMS ON FOREIGNERS
A49
R e p o r t e d b y B a n k s in the U n i t e d States1
P a y a b l e in U.S. dollars
Millions of dollars, end of period
2003
2002
Area or country
2000
2002
2001
July
Aug.
Sept.
Oct.
Nov.'
Dec.'
Jan.p
1 Total, all foreigners
904,642
1,055,069
l,081,939 r
1,049,279'
1,086,492'
1,065,276'
1,152,959'
1,096,437
1,081,939
1,074,533
2 Foreign countries
899,956
1,050,123
1,078,262'
l,044,643 r
1,082,245'
1,062,638'
1,150,287'
1,093,119
1,078,262
1,071,374
378,115
2,926
5,399
3,272
7,382
40,035
36,834
646
7,629
n.a.
17,043
5,012
1,382
517
2,603
9,226
82,085
3,059
144,938
n.a.
50
8,077
461,176
4,981
6,391
1,105
10,350
60,620
29,902
330
4,205
1,267
15,908
6,236
1,603
594
3,260
12,544
87,333
2,124
201,183
4,478
n.a.
6,762
484,398'
3,603'
6,044'
1,109
8,518
47,705'
22,481'
477'
3,753'
3,407
23,133'
13,885
2,226
877'
5,395
15,326
127,133'
2,112
174,711
17,457'
n.a.
5,046
465,040'
4,216'
7,126
856
13,718
59,052
26,156
393
5,568
3,526
13,660
9,420
1,995
867
3,336
15,172'
87,969
2,410
198,313'
4,962
n.a.
6,325
483,246'
4,467'
5,140
1,546
16,230
51,798
26,072
438
4,442
3,067
18,232
10,578
1,823
842
3,589
14,618
106,281
2,515
202,178
5,076
n.a.
4,314
470,920'
4,336
4,814'
1,633'
15,812
51,083
23,344
408
5,092'
2,847
17,691
11,036
2,006
801
4,675
13,970
103,920
2,474
194,937'
5,926
n.a.
4,115
543,269'
3,876
5,590
1,534
14,821
47,065
21,101
388
3,984
2,818
13,284
11,848
2,000
858
3,183
15,366
184,039
2,622
195,936'
7,281
n.a.
5,675
490,644
4,224
5,784
940
9,028
54,089
22,103
331
3,945
3,224
15,572
11,464
2,134
787
4,776
15,239
134,425
2,532
183,482
11,304
n.a.
5,261
484,398
3,603
6,044
1,109
8,518
47,705
22,481
477
3,753
3,407
23,133
13,885
2,226
877
5,395
15,326
127,133
2,112
174,711
17,457
n.a.
5,046
446,749
4,334
6,251
1,563
9,832
45,914
23,395
296
3,171
3,901
19,188
18,606
2,356
1,025
4,154
15,329
87,562
2,021
168,492
24,393
n.a.
4,966
39,837
54,421
61,665'
63,235
60,310
62,838'
57,522
59,896
61,665
65,867
62,214
8,090
17,945
4,960
3,158
479
861
16,015
2,433
1,649
527
3,291
2,806
60,377
7,663
17,266
5,118
3,078
467
925
15,805
1,959
1,599
345
3,301
2,851
59,261
7,608
16,863
5,142
2,834
451
907
15,367
2,021
1,504
319
3,389
2,856
58,257
7,253
15,871
5,358
2,758
451
889
15,828
1,961
1,484
292
3,231
2,881
56,642
6,783
15,419
5,250
2,614
457
892
15,658
1,915
1,411
255
3,254
2,734
54,482
6,663
14,520
5,077
2,406
439
896
15,268
1,730
1,403
255
3,202
2,623
3 Europe
Austria
4
Belgium2
Denmark
6
Finland
7
8
France
9
Germany
10
Greece
Italy
11
Luxembourg2
1?
13
Netherlands
Norway
14
Portugal
15
Russia
16
17
Spain
Sweden
18
19
Switzerland
Turkey
70
United Kingdom
21
Channel Islands and Isle of Man3
22
73
Yugoslavia4
24
Other Europe and other former U.S.S.R.5
25 Canada
76 Latin America
71
Argentina
28
Brazil
?9
Chile
30
Colombia
31
Ecuador
3?
Guatemala
33
Mexico
Panama
34
35
Peru
36
Uruguay
37
Venezuela
38
Other Latin America6
76,561
11,519
20,567
5,815
4,370
635
1,244
17,415
2,933
2,807
673
3,518
5,065
69,762
10,763
19,434
5,317
3,602
495
1,495
16,522
3,061
2,185
447
3,077
3,364
56,642'
6,783
15,419
5,250
2,614
457
892
15,658'
1,915
1,411
255
3,254'
2,734
63,194
8,202
18,512
4,949
3,216
462
871
16,349
2,466
1,748
314
3,306
2,799
39 Caribbean
40
Bahamas
Bermuda
41
British West Indies7
4?
Cayman Islands7
4.3
44
Cuba
45
Jamaica
46
Netherlands Antilles
Trinidad and Tobago
47
Other Caribbean6
48
319,403
114,090
9,260
189,289
n.a.
0
355
5,801
608
n.a.
370,945
101,034
7,900
n.a.
250,376
n.a.
418
6,729
931
3,557
373,712'
95,584'
9,902
n.a.
257,075'
n.a.
321
6,690
889
3,251'
345,965'
96,911'
11,723
n.a.
226,041'
n.a.
350
6,387
881
3,672
367,940'
95,729'
11,847
n.a.
248,107
n.a.
353
7,334
877
3,693
347,780'
91,171'
11,304
n.a.
234,435
n.a.
463
6,194
916
3,297
373,472'
96,151'
12,196
n.a.
252,908'
n.a.
429
7,427
920
3,441
372,683
93,839
9,902
n.a.
257,645
n.a.
393
6,744
912
3,248
373,712
95,584
9,902
n.a.
257,075
n.a.
321
6,690
889
3,251
392,193
97,278
10,987
n.a.
273,082
n.a.
304
6,445
865
3,232
77,829
85,882
93,691'
99,551
100,484
112,441'
109,359
104,181
93,691
103,074
1,606
2,247
6,669
2,178
1,914
2,729
34,974
7,776
1,784
1,381
9,346
5,225
2,073
4,407
9,995
1,348
1,752
4,396
34,125
10,622
2,587
2,499
7,882
4,196
1,057
3,772
7,263'
1,235
1,238
4,660
47,608'
11,326
2,137
1,167
7,952'
4,276'
7,832
6,954
6,614
1,083
1,553
4,647
35,947
18,065
1,857
1,160
8,960
4,879
5,904
7,443
6,531
1,293
1,457
4,952
37,559
18,961
1,593
1,175
8,975
4,641
7,256
8,656
8,481
1,258
1,426
5,067
45,058
17,404
2,134
1,841
8,619
5,241'
8,515
8,599
5,778
999
1,390
4,710
42,252
19,439
1,843
1,205
9,253
5,376
6,575
7,034
6,849
921
1,360
3,836
47,071
14,293
1,555
756
8,251
5,680
1,057
3,772
7,263
1,235
1,238
4,660
47,608
11,326
2,137
1,167
7,952
4,276
4,799
6,573
6,490
1,128
1,191
5,186
48,814
14,473
2,424
830
8,004
3,162
62 Africa
63
Egypt
64
Morocco
South Africa
65
66
Congo (formerly Zaire)
67
Oil-exporting countries9
68
Other
2,094
201
204
309
0
471
909
2,095
416
106
710
n.a.
167
696
1,977'
487
53
617
n.a.
222
598'
1,914
405
77
545
n.a.
227
660
1,887
324
72
601
n.a.
247
643
1,891
332
58
576
n.a.
303
622
1,818
326
50
554
n.a.
261
627
1,693
428
52
435
n.a.
225
553
1,977
487
53
617
n.a.
222
598
1,945
511
53
545
n.a.
240
596
69 Other countries
70
Australia
New Zealand10
71
All other
72
6,117
5,868
n.a.
249
5,842
5,455
349
38
6,177
5,566
569
42
5,744
5,345
392
7
6,164
5,616
541
7
6,391
5,589
789
13
5,586
5,088
485
13
5,765
5,303
439
23
6,177
5,566
569
42
7,064
6,212
833
19
73 Nonmonetary international and regional organizations" . .
4,686
4,946
3,677
4,636
4,247
2,638
2,700
3,318
3,677
3,159
49
50
51
52
53
54
55
56
57
58
59
60
61
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries8
Other
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2. Before January 2001, combined data reported for Belgium-Luxembourg.
3. Before January 2001, data included in United Kingdom.
4. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
5. Includes the Bank for International Settlements and European Central Bank. Since
December 1992, has included all parts of the former U.S.S.R. (except Russia) and Bosnia,
Croatia, and Slovenia.
6. Before January 2001, "Other Latin America" and "Other Caribbean" were reported as
combined "Other Latin America and Caribbean."
7. Beginning 2001, Cayman Islands replaced British West Indies in the data series.
8. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
9. Comprises Algeria, Gabon, Libya, and Nigeria.
10. Before January 2001, included in "All other."
11. Excludes the Bank for International Settlements, which is included in "Other Europe."
A50
3.19
International Statistics • May 2003
BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
R e p o r t e d b y B a n k s in the United States1
P a y a b l e in U.S. dollars
Millions of dollars, end of period
2002
July
Aug.'
1,049,279'
61,067
720,222'
92,921'
24,449
68,472'
175,069'
1,086,492
61,541
758,142
86,420
19,051
67,369
180,389
Sept.'
2003
Oct.'
Nov.'
1,152,959
63,404
823,669
94,875
26,742
68,133
171,011
1,096,437
56,300
777,040
98,942
28,210
70,732
164,155
Dec.'
1
Total
1,095,869
1,254,863
1,291,900
2
3
4
5
6
7
8
Banks' claims
Foreign public borrowers
Own foreign offices2
Unaffiliated foreign banks
Deposits
Other
All other foreigners
904,642
37,907
630,137
95,243
23,886
71,357
141,355
1,055,069
49,404
749,124
100,367
26,387'
73,980R
156,174
1,081,939
48,750
788,477
81,159
20,680
60,479
163,553
Claims of banks' domestic customers3
Deposits
Negotiable and readily transferable
instruments4
Outstanding collections and other
claims
191,227
100,352
199,794
93,565
209,961
79,512
190,114
86,862
209,961
79,512
78,147
90,412
124,159
90,919
124,159
12,728
15,817
6,290
12,333
6,290
4,257
2,588
137,979'
2,450
161,585
170,823'
60,745
44,316
57,572
9
10
11
12
1,255,390
1,065,276
61,299
734,022
94,905
24,213
70,692
175,050
Jan.P
1,291,900
1,081,939
48,750
788,477
81,159
20,680
60,479
163,553
1,074,533
58,167
762,482
88,568
22,372
66,196
165,316
MEMO
13
14
Customer liability on acceptances
Banks' loans under resale agreements5
n.a.
15
Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
United States6
53,153
1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are
for quarter ending with month indicated.
Reporting banks include all types of depository institution as well as some brokers and
dealers.
2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
172,949
2,353
166,568
166,176
156,299
2,450
161,585
183,013
53,100
52,530
55,284
46,840
44,316
45,559
principally of amounts due from the head office or parent foreign bank, and from foreign
branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances, and commercial paper.
5. Data available beginning January 2001.
6. Includes demand and time deposits and negotiable and nonnegotiable certificates of
deposit denominated in U.S. dollars issued by banks abroad.
Bank-Reported Data
3.20
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
A51
R e p o r t e d b y B a n k s in the U n i t e d States1
P a y a b l e in U.S. dollars
Millions of dollars, end of period
2002
Maturity, by borrower and area2
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of one year or less
Foreign public borrowers
All other foreigners
Maturity of more than one year
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other3
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa
Allother 3
1999
2000
Mar.r
Juner
Sept.r
Dec."
267,082
274,009
305,326
308,286
317,207
330,807
293,096
187,894
22,811
165,083
79,188
12,013
67,175
186,103
21,399
164,704
87,906
15,838
72,068
200,240
27,501
172,739
105,086
21,324
83,762
214,373
31,875
182,498
93,913
22,945
70,968
236,219
33,061
203,158
80,988
17,576
63,412
250,076
42,665
207,411
80,731
18,192
62,539
212,972
31,569
181,403
80,124
16,948
63,176
80,842
7,859
69,498
21,802
1,122
6,771
142,464
8,323
151,840
43,371
2,263
11,717
83,233
10,072
70,648
29,693
1,104
5,490
85,848
8,227
82,258
30,543
1,124
6,373
88,641
8,928
98,152
34,710
918
4,870
92,111
7,731
96,796
48,210
896
4,332
83,172
6,933
87,143
30,323
726
4,675
22,951
3,192
39,051
11,257
1,065
1,672
57,770
3,174
82,684
19,536
1,567
5,954
34,230
3,633
47,382
15,190
769
3,882
37,372
3,129
35,537
13,563
720
3,592
33,159
2,619
32,142
8,688
907
3,473
33,587
2,772
31,376
9,128
812
3,056
33,543
2,990
32,172
6,920
845
3,654
Note. Owing to changes in reporting requirements, this table will be discontinued in the
third quarter of 2003 after publication of the end-December 2003 data.
1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2001
2. Maturity is time remaining until maturity,
3. Includes nonmonetary international and regional organizations.
A52
3.22
International Statistics • May 2003
LIABILITIES TO UNAFFILIATED FOREIGNERS
the United States
R e p o r t e d by N o n b a n k i n g B u s i n e s s E n t e r p r i s e s in
Millions of dollars, end of period
2001
Type of liability, and area or country
1998
1999
2002
2000
June
Sept.
Dec.
Mar.
June
r
Sept.
r
68,644
47,062r
27,805'
48,103
22,535'
44,815
23,829
41,034
18,763
22,271
46,408r
20,367
26,041'
42,826'
21,892
20,934'
41,311
18,775
22,536
26,024
11,740
14,284
25,684
11,820
13,864
28,459'
14,872
13,587'
27,812'
13,959
13,853'
27,333
13,558
13,775
1 Total
46,570
53,044
73,904
68,028
53,526
66,718
74,867
2 Payable in dollars
3 Payable in foreign currencies
36,668
9,902
37,605
15,415
48,931
24,973
41,734
26,294
35,347
18,179
42,957
23,761
By type
4 Financial liabilities
Payable in dollars
6
Payable in foreign currencies
19,255
10,371
8,884
27,980
13,883
14,097
47,419
25,246
22,173
41,908
17,655
24,253
27,502
11,415
16,087
7 Commercial liabilities
8
Trade payables
y
Advance receipts and other liabilities
27,315
10,978
16,337
25,064
12,857
12,207
26,485
14,293
12,192
26,120
13,127
12,993
70,638
10
n
Payable in dollars
Payable in foreign currencies
26,297
1,018
23,722
1,318
23,685
2,800
24,079
2,041
23,932
2,092
24,194
1,490
26,695'
1,764
26,211
1,601'
26,040
1,293
12
13
14
15
16
17
18
By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
12,589
79
1,097
2,063
1,406
155
5,980
23,241
31
1,659
1,974
1,996
147
16,521
34,172
147
1,480
2,168
2,016
104
26,362
32,785
98
1,222
2,463
1,763
93
25,363
22,083
76
1,538
1,994
1,998
92
14,819
31,806
154
2,841
2,344
1,954
94
22,852
39,392'
119
3,531
2,982
1,951
84
28,630'
35,011'
120
4,071
2,622
1,939
61
24,188'
34,817
232
3,517
2,865
1,918
61
24,175
19
Canada
693
284
411
628
436
955
1,067'
1,078'
583
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,495
7
101
152
957
59
2
892
1
5
126
492
25
0
4,125
6
1,739
148
406
26
2
2,100
40
461
21
1,508
20
1
414
5
47
22
243
24
3
2,858
157
960
35
1,627
36
2
1,547
5
836
35
612
27
1
1,832
5
626
38
1,000
25
5
1,088
0
588
65
377
26
1
27
28
2y
Asia
Japan
Middle Eastern oil-exporting countries'
3,785
3,612
0
3,437
3,142
4
7,965
6,216
11
5,639
3,297
8
3,869
3,442
9
5,042
3,269
10
4,010
3,299
15
4,491
2,387
14
4,458
2,447
16
30
31
Africa
Oil-exporting countries2
28
0
28
0
52
0
61
0
59
5
53
5
122
91
120
91
128
91
32
All other3
665
98
694
695
672
320
270
294
253
10,030
278
920
1,392
429
499
3,697
9,262
140
672
1,131
507
626
3,071
9,629
293
979
1,047
300
502
2,847
8,723
297
665
1,017
343
697
2,706
8,855
160
892
966
343
683
2,296
9,230
99
735
908
1,163
790
2,280
8,384'
105
713'
584
463
637
2,747
8,468
94
827
570
765
749
2,551
8,745
134
718
855
1,186
592
2,317
33
34
3b
36
37
38
39
Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
40
Canada
1,390
1,775
1,933
1,957
1,569
1,633
1,798
2,027
1,570
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,618
14
198
152
10
347
202
2,310
22
152
145
48
887
305
2,381
31
281
114
76
841
284
2,293
31
367
279
21
762
218
2,879
44
570
312
28
884
242
2,729
52
591
290
45
901
166
3,454
23
433
277
67
1,457
281
2,744'
12
422
320
46
958
204
2,850
14
468
290
47
997
327
48
49
50
Asia
Japan
Middle Eastern oil-exporting countries1
12,342
3,827
2,852
9,886
2,609
2,551
10,983
2,757
2,832
11,384
2,377
3,087
11,114
2,421
3,053
10,532
2,592
2,642
12,969
4,281
3,142
12,693
4,143
3,259
12,274
4,031
3,669
51
52
Africa
Oil-exporting countries2
794
393
950
499
948
483
1,115
539
938
471
836
436
976
454
916
349
876
445
53
Other3
1,141
881
614
648
669
724
878
964
1,018
1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.
Nonbank-Reported Data
3.23
CLAIMS ON UNAFFILIATED FOREIGNERS
the United States
A53
R e p o r t e d b y N o n b a n k i n g B u s i n e s s E n t e r p r i s e s in
Millions of dollars, end of period
2002
2001
Type of claim, and area or country
1998
1999
2000
June
Sept.
Dec.
Mar.
June
r
Sept.
r
112,099r
1 Total
77,462
76,669
90,157
97,470
94,076
113,155
115,764
2 Payable in dollars
3 Payable in foreign currencies
72,171
5,291
69,170
7,472
79,558
10,599
87,690
9,780
83,292
10,784
103,937
9,218
106,192'
9,572
107,106'
9,042
103,877'
8,222
By type
4 Financial claims
Deposits
Payable in dollars
6
Payable in foreign currencies
7
Other financial claims
8
Payable in dollars
9
Payable in foreign currencies
10
46,260
30,199
28,549
1,650
16,061
14,049
2,012
40,231
18,566
16,373
2,193
21,665
18,593
3,072
53,031
23,374
21,015
2,359
29,657
25,142
4,515
61,891
25,381
23,174
2,207
36,510
32,038
4,472
60,015
22,391
19,888
2,503
37,624
32,076
5,548
81,287
29,801
27,850
1,951
51,486
46,621
4,865
85,381
41,813
40,002
1,811
43,568
39,553
4,015
87,324
42,136
40,323
1,813
45,188
41,875
3,313
84,033
38,074
36,382
1,692
45,959
42,734
3,225
11 Commercial claims
Trade receivables
17
Advance payments and other claims
13
31,202
27,202
4,000
36,438
32,629
3,809
37,126
33,104
4,022
35,579
30,631
4,948
34,061
29,328
4,733
31,868
27,586
4,282
30,383'
25,618'
4,765
28,824'
24,263'
4,561
28,066'
23,491'
4,575
14
15
Payable in dollars
Payable in foreign currencies
29,573
1,629
34,204
2,207
33,401
3,725
32,478
3,101
31,328
2,733
29,466
2,402
26,637'
3,746
24,908'
3,916
24,761'
3,305
16
17
18
19
70
71
22
By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
12,294
661
864
304
875
414
7,766
13,023
529
967
504
1,229
643
7,561
23,136
296
1,206
848
1,396
699
15,900
23,975
262
1,376
1,163
1,072
653
15,913
23,069
372
1,682
1,112
954
665
15,670
26,118
625
1,450
1,068
2,138
589
16,510
35,933
751
3,489
4,114
3,253
308
17,910
36,863
797
3,921
3,972
3,995
1,010
16,037
32,007'
656
3,854
4,292
4,024
1,135
11,351'
23
Canada
116,148
2,503
2,553
4,576
4,787
4,254
6,193
5,471
5,537
5,485
27,714
403
39
835
24,388
1,245
55
18,206
1,593
11
1,476
12,099
1,798
48
19,317
1,353
19
1,827
12,596
2,448
87
24,403
818
426
1,877
17,505
2,633
66
26,099
649
80
2,065
19,234
2,910
80
41,201
976
918
2,127
32,965
3,075
83
35,001
1,197
611
1,892
27,350
2,777
79
37,511
1,332
704
2,036
29,591
2,823
60
38,822
715
1,157
2,226
30,859
2,871
71
3,027
1,194
9
5,457
3,262
23
4,697
1,631
80
6,829
1,698
76
5,274
1,761
100
6,430
1,604
135
6,489
2,009
79
5,826
1,093
78
6,121
1,421'
88
74
75
76
77
78
79
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
31
32
33
Asia
Japan
Middle Eastern oil-exporting countries1
34
35
Africa
Oil-exporting countries2
159
16
286
15
411
57
476
35
456
83
414
49
390
51
431
64
379
29
36
All other1
563
706
894
1,421
891
931
2,097
1,156
1,259
13,246
238
2,171
1,822
467
483
4,769
16,389
316
2,236
1,960
1,429
610
5,827
15,938
452
3,095
1,982
1,729
763
4,502
14,469
403
3,190
1,993
863
473
3,724
14,381
354
3,062
1,977
844
514
3,571
14,036
268
2,922
1,662
529
611
3,839
12,708
272
2,883
1,198
415
436
3,579
11,861
207
2,828
1,163
379
472
3,387
12,000'
254'
2,972
1,158
409
404'
3,236'
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
2,617
2,757
3,502
3,470
3,116
2,855
2,760
2,752
2,623'
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
6,296
24
536
1,024
104
1,545
401
5,959
20
390
905
181
1,678
439
5,851
37
376
957
137
1,507
328
6,033
39
650
1,363
135
1,375
321
5,590
35
526
1,183
124
1,442
301
4,874
42
369
958
95
1,401
288
4,912'
42
422
837
73
1,225
312
4,530r
28
214
829
26
1,283
316
4,324'
35'
270
862'
12
1,184'
340'
57
53
54
Asia
Japan
Middle Eastern oil-exporting countries'
7,192
1,681
1,135
9,165
2,074
1,625
9,630
2,796
1,024
9,499
3,148
1,040
8,704
2,438
919
7,855
2,007
851
7,513
1,975
657
7,309
2,064
889
6,778'
2,083
819
55
56
Africa
Oil-exporting countries2
711
165
631
171
672
180
601
102
838
170
645
88
630
109
605'
94'
637
107
57
Other3
1,140
1,537
1,572
1,507
1,432
1,603
1,860
1,767
1,704'
44
1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.
A54
3.24
International Statistics • May 2003
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
2003
Transaction, and area or country
2001
2002
2003
2002
Jan.Jan.
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.P
297,181
293,565
264,359
257,879
216,659
214,243
212,558
216,056
U.S. corporate securities
STOCKS
1 Foreign purchases
1 Foreign sales
3,051,332
2,934,942
3,158,811
3,109,280
212,558
216,056
318,210
308,557
257,265
252,651
206,729
213,195
3 Net purchases, or sales ( - )
116,390
49,531
-3,498
9,653
4,614
-6,466
3,616
6,480
2,416
-3,498
4 Foreign countries
116,187
49,585
-3,475
9,580
4,603
-6,451
3,610
6,473
2,400
-3,475
88,099
5,914
8,415
10,919
3,456
38,493
-698
10,984
-5,154
1,789
20,726
6,788
-366
109
33,143
2,128
-122
4,544
2,678
15,322
-255
7,453
-15,477
-1,295
22,667
12,337
-80
3,174
-1,887
206
-64
671
-721
-2,758
-2
19
-3,088
-52
1,313
561
38
182
3,204
38
-595
1,440
-341
1,828
73
1,939
-1,319
43
4,755
3,660
3
955
3,830
942
-328
900
-306
2,801
-41
1,336
-3,849
-58
3,231
2,249
-34
147
-5,154
-936
-1,175
4
-949
-1,232
-772
-2,903
46
2,012
238
36
284
2,187
982
276
760
-176
1,403
94
342
-2,874
-90
3,985
-7
-22
82
4,407
-323
31
629
1,581
2,062
23
47
2,692
-232
-775
-961
-16
350
4,883
676
518
792
909
784
-22
746
-2,348
71
-894
-1,131
-20
-38
-1,887
206
-64
671
-721
-2,758
-2
19
-3,088
-52
1,313
561
38
182
203
-53
-23
73
11
-15
6
7
16
-23
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Channel Islands and Isle of Man 1
Canada
Latin America and Caribbean
Middle East2
Other Asia
Japan
Africa
Other countries
19 Nonmonetary international and
regional organizations
-21
BONDS 3
20 Foreign purchases
21 Foreign sales
1,942,690
1,556,745
2,545,007
2,171,357 r
224,521
180,746
221,130
205,389
220,918
189,016
208,602
183,671
217,402
185,366
259,305
218,351
207,380
178,510r
224,521
180,746
22 Net purchases, or sales ( - )
385,945
373,650 r
43,775
15,741
31,902
24,931
32,036
40,954
28,870 r
43,775
23 Foreign countries
385,380
373,371 r
43,919
16,072
31,871
25,022
31,632
40,914
28,684 r
43,919
24
25
26
27
28
29
30
31
32
33
34
35
36
37
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Channel Islands and Isle of Man 1
Canada
Latin America and Caribbean
Middle East2
Other Asia
Japan
Africa
Other countries
195,412
5,028
12,362
1,538
5,721
152,772
2,000
4,595
77,019
2,338
106,400
33,687
760
-1,144
163,516'
3,744
5,155
-431
8,521
105,810r
11,173
-1,047
82,833
2,274
121,439
48,451
860
3,496
24,301
1,044
545
206
1,154
12,279
5,420
-1,172
6,564
591
13,593
4,025
53
-11
3,253
183
693
393
1,406
-233
-20
-610
1.840
125
10,336
4,754
112
1,016
10,891
483
366
55
1,825
3,690
1,203
166
9,706
578
9,026
1,975
77
1,427
11,758
252
-390
-35
356
7,374
1,342
-383
3,464
40
9,602
6,135
171
370
16,532
1,089
-71
149
355
9,852
2,239
540
4,339
196
10,126
5,505
-18
-83
17,116
383
558
-61
743
8,812
4,917
-757
5,471
387
18,374
10,456
56
267
10.526r
-434
1,249
-19
304
6,768 r
959
-2,180
7,379
-120
12,944
4,863
28
107
24,301
1,044
545
206
1,154
12,279
5,420
-1,172
6,564
591
13,593
4,025
53
-11
38 Nonmonetary international and
regional organizations
566
279
-144
-331
31
-91
404
40
186
-144
-5,532
89,817
95,349
-1,811
140,390
142,201
Foreign securities
39 Stocks, net purchases, or sales (-)
Foreign purchases
40
Foreign sales
41
42 Bonds, net purchases, or sales (-)
Foreign purchases
43
Foreign sales
44
-50,113
1,397,664
1,447,777
30,502
1,160,102
1,129,600
-2,287
1,257,735
1,260,022
28,406'
1,377,017
1,348,61 l r
-5,532
89,817
95,349
-1,811
140,390
142,201
13,299
139,307
126,008
7,722
120,870
113,148
3,061
92,731
89,670
-1,749
112,167
113,916
790
87,080
86,290
1,064
126,078
125,014
-6,196
100,708
106,904
6,920
123,139
116,219
-1,004
101,780
102,784
2,269
137,931
135,662
-2,713
81,804
84,517
-5,157 r
117,917
123,074'
45 Net purchases, or sales (-), of stocks and bonds
-19,611
26,119r
-7,343
21,021
1,312
1,854
724
1,265
-7,870 r
-7,343
46 Foreign countries
-19,023
26,153 r
-7,394
21,111
1,287
1,876
671
1,277
-7,884 r
-7,394
47
48
49
50
51
52
53
-12,108
2,943
4,315
-11,869
-20,116
-557
-1,747
14,909r
4,698
4,564
1,584
-9,119
-383
783
-4,564
4,086
-7,843
370
-617
-48
605
11,479
1,917
1,897
4,990
3,453
205
623
568
4
-755
1,028
379
393
49
1,420
-585
-521
1,018
-862
-39
583
679
-1,326
-32
1,694
13
104
-448
6,119
-204
518
-5,256
-6,617
100
0
-9,057'
712
1,045
-987
-2,039
40
363
-4,564
4,086
-7,843
370
-617
^18
605
51
-90
25
-22
53
-12
14
51
Europe
Canada
Latin America and Caribbean
Asia
Japan
Africa
Other countries
54 Nonmonetary international and
regional organizations
-587
-37
1. Before January 2001, data included in United Kingdom.
2. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar,
Saudi Arabia, and United Arab Emirates (Trucial States).
3. Includes state and local government securities and securities of U.S. government
agencies and corporations. Also includes issues of new debt securities sold abroad by U.S.
corporations organized to finance direct investments abroad.
Securities Holdings and Transactions
3.25
M A R K E T A B L E U.S. T R E A S U R Y B O N D S A N D N O T E S
A55
Foreign Transactions1
Millions of dollars; net purchases, or sales (-) during period
2001
2003
2002
2003
Area or country
2002
Jan.Jan.
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.P
1 Total estimated
18,514
83,202
1,783
18,097
-3,226
31,141
6,742
21,097
14,290
1,783
2 Foreign countries
19,200
81,245
1,400
18,331
-3,639
31,106
5,994
21,177
13,961
1,400
3
4
5
6
7
8
9
10
11
12
13
Europe
Belgium2
Germany
Luxembourg2
Netherlands
Sweden
Switzerland
United Kingdom
Channel Islands and Isle of Man3
Other Europe and former U.S.S.R
Canada
-20,604
-598
-1,668
462
-6,728
-1,190
1,412
-7,279
-179
-4,836
-1,634
1,627
1,741
-6,709
-1,609
-15,929
2,924
-508
21,924
714
-921
-2,392
891
3,371
-1,183
75
-4,084
422
-86
1,313
-11
1,074
-666
608
252
-3,725
-84
171
-169
246
6,515
177
-2,775
-1,327
-6,859
1,349
-2,599
-14
-700
471
-705
-4,878
444
-227
-1,558
11,087
-138
-1,096
-265
1,436
234
1,150
12,703
-43
-2,894
2,236
838
-210
-469
61
-2,856
-203
-1,727
5,071
-116
1,287
-2,449
8,847
513
1,658
-139
1,427
1,652
2,389
-45
-299
1,691
3,165
3,186
-193
1,610
-201
3,261
902
-2,543
-2,739
-84
3,173
1,028
891
3,371
-1,183
75
^1,084
422
-86
1,313
-11
1,074
-666
14
15
16
17
18
19
20
21
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Other
4,272
290
14,726
-10,744
36,332
16,114
-880
1,714
22,027
-59
22,866
-780
55,403
29,731
841
3,739
-1,892
20
2,675
-4,587
2,630
3,512
84
353
4,745
-58
3,879
924
13,230
7,691
112
963
-11,841
-15
-7,444
-4,382
16,024
6,676
495
100
7,753
-79
5,516
2,316
9,987
13,096
-93
136
7,219
5
4,485
2,729
-54
-1,313
12
428
-1,758
-1
319
-2,076
10,607
2,120
-17
333
6,074
-73
1,652
4,495
3,626
2,731
90
-43
-1,892
20
2,675
-4,587
2,630
3,512
84
353
-686
-290
41
1,957
1,642
-3
383
170
-15
-234
-64
11
413
418
35
-45
29
748
329
4
-80
314
-19
329
164
0
383
170
-15
19,200
3,474
15,726
81,245
15,286
65,959
1,400
-636
2,036
18,331
-5,268
23,599
-3,639
635
^t,274
31,106
-3,511
34,617
5,994
-553
6,547
21,177
16,577
4,600
13,961
6,708
7,253
1,400
-636
2,036
865
-2
^1,062
29
509
0
-1,133
0
-808
-2
—412
—1
913
0
-139
1
-3,815
55
509
0
22 Nonmonetary international and regional organizations
23
International
24
Latin American Caribbean regional
MEMO
25 Foreign countries
26
Official institutions
27
Other foreign
Oil-exporting countries
28 Middle East4
29 Africa5
1. Official and private transactions in marketable U.S. Treasury securities having an
original maturity of more than one year. Data are based on monthly transactions reports.
Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign
countries.
2. Before January 2001, combined data reported for Belgium and Luxembourg.
3. Before January 2001, these data were included in the data reported for the United
Kingdom.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
A56
3.28
International Statistics • May 2003
FOREIGN EXCHANGE RATES AND INDEXES OF THE FOREIGN EXCHANGE VALUE OF THE US. DOLLAR1
Currency units per U.S. dollar except as noted
2002
Oct.
Nov.
2003
Dec.
Jan.
Feb.
Mar.
Exchange rates
COUNTRY/CURRENCY U N I T
1
2
3
4
5
6
7
8
y
10
N
12
Australia/dollar2
Brazil/real
Canada/dollar
China, P.R./yuan
Denmark/krone
European Monetary Union/euro3
Greece/drachma
Hong Kong/dollar
India/rupee
Japan/yen
Malaysia/ringgit
Mexico/peso
13 New Zealand/dollar2
14 Norway/krone
15 Singapore/dollar
16 South Africa/rand
17 South Korea/won
18 Sri Lanka/rupee
iy Sweden/krona
20 Switzerland/franc
21 Taiwan/dollar
21 Thailand/baht
23 United Kingdom/pound2
24 Venezuela/bolivar
58.15
1.8301
1.4855
8.2784
8.0953
0.9232
365.92
7.7924
45.00
107.80
3.8000
9.459
51.69
2.3527
1.5487
8.2770
8.3323
0.8952
n.a.
7.7997
47.22
121.57
3.8000
9.337
54.37
2.9213
1.5704
8.2770
7.8862
0.9454
n.a.
7.7997
48.63
125.22
3.8000
9.663
55.02
3.7966
1.5780
8.2772
7.5732
0.9812
n.a.
7.7995
48.39
123.91
3.8000
10.094
56.13
3.5924
1.5715
8.2772
7.4201
1.0013
n.a.
7.7994
48.29
121.61
3.8000
10.195
56.24
3.6268
1.5592
8.2777
7.2874
1.0194
n.a.
7.7988
48.15
121.89
3.8000
10.225
58.29
3.4375
1.5414
8.2775
6.9980
1.0622
n.a.
7.7994
47.96
118.81
3.8000
10.622
59.56
3.5955
1.5121
8.2780
6.8920
1.0785
n.a.
7.7995
47.75
119.34
3.8000
10.945
60.15
3.4567
1.4761
8.2773
6.8807
1.0797
n.a.
7.7991
47.68
118.69
3.8000
10.905
45.68
8.8131
1.7250
6.9468
1,130.90
76.964
9.1735
1.6904
31.260
40.210
151.56
680.52
42.02
8.9964
1.7930
8.6093
1,292.01
89.602
10.3425
1.6891
33.824
44.532
143.96
724.10
46.45
7.9839
1.7908
10.5176
1,250.31
95.773
9.7233
1.5567
34.536
43.019
150.25
1,161.19
48.18
7.4873
1.7843
10.3058
1,240.19
96.402
9.2846
1.4932
34.947
43.641
155.75
1,440.50
49.73
7.3157
1.7653
9.6509
1,210.20
96.426
9.0652
1.4658
34.673
43.353
157.11
1,358.61
51.08
7.1557
1.7532
8.9479
1,206.61
96.705
8.9303
1.4388
34.799
43.318
158.63
1,328.29
53.98
6.9138
1.7363
8.6949
1,176.45
96.813
8.6368
1.3765
34.571
42.773
161.75
55.39
7.0004
1.7451
8.2858
1,190.37
96.880
8.4837
1.3602
34.734
42.897
160.79
1,736.21
55.37
7.2760
1.7551
8.0506
1,237.20
96.943
8.5440
1.3614
34.721
42.783
158.25
1,600.00
1,714.45
Indexes4
NOMINAL
25 Broad (January 1997=100)5
26 Major currencies (March 1973=100)6
27 Other important trading partners (January
1997-11X1)
119.68
98.31
126.08
104.28
127.19
102.85
127.63
100.93
126.33
99.53
125.70
98.62
124.21
96.03
124.12
95.02
123.56
94.28
130.34
136.36
141.42
145.69
144.85
144.87
145.72
147.35
147.26
104.58r
103.62r
110.60r
111.06r
110.99r
109.68r
111.35r
107.75r
109.85r
106.16r
109.00r
104.91r
107.84r
102.43'
107.98'
101.82r
107.76
101.02
114.54
119.19
122.00r
125.46r
123.96r
123.60r
124.25r
125.50r
126.15
REAL
28 Broad (March 1973-100)5
29 Major currencies (March 1973=100)6
30 Other important trading partners (March
1973-1001
1. Averages of certified noon buying rates in New York for cable transfers. Data in this
table also appear in the Board's G.5 (405) monthly statistical release. For ordering address,
see inside front cover.
2. U.S. cents per currency unit.
3. The euro is reported in place of the individual euro area currencies. By convention, the
rate is reported in U.S. dollars per euro. The bilateral currency rates can be derived from the
euro rate by using the fixed conversion rates (in currencies per euro) as shown below:
Euro equals
13.7603
40.3399
5.94573
6.55957
1.95583
.787564
Austrian schillings
Belgian francs
Finnish markkas
French francs
German marks
Irish pounds
1,936.27
40.3399
2.20371
200.482
166.386
340.750
Italian lire
Luxembourg francs
Netherlands guilders
Portuguese escudos
Spanish pesetas
Greek drachmas
4. Starting with the March 2003 Bulletin, revised index values resulting from the periodic
revision of data that underlie the calculated trade weights are reported. For more information
on the indexes of the foreign exchange value of the dollar, see Federal Reserve Bulletin, vol.
84 (October 1998), pp. 811-818.
5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies
of a broad group of U.S. trading partners. The weight for each currency is computed as an
average of U.S. bilateral import shares from and export shares to the issuing country and of a
measure of the importance to U.S. exporters of that country's trade in third country markets.
6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that circulate widely outside the country of issue. The weight for each
currency is its broad index weight scaled so that the weights of the subset of currencies in the
index sum to one.
7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that do not circulate widely outside the country of issue. The weight
for each currency is its broad index weight scaled so that the weights of the subset of
currencies in the index sum to one.
A57
Guide to Special Tables and Statistical Releases
SPECIAL TABLES—Data
Published Irregularly, with Latest Bulletin Reference
Title and Date
Issue
Page
August
November
February
May
2002
2002
2003
2003
A58
A58
A58
A58
August
November
February
May
2002
2002
2003
2003
A60
A60
A60
A60
August
November
February
May
2002
2002
2003
2003
A66
A66
A66
A66
August 2001
October 2001
January 2002
A76
A64
A64
Residential lending reported under the Home Mortgage Disclosure Act
1988-2000
1989-2001
September 2001
September 2002
A64
A58
Disposition of applications for private mortgage
1997-2000
1998-2001
September 2001
September 2002
A73
A67
September 2001
September 2002
A76
A70
September 2001
September 2002
A79
A73
Issue
December 2002
Page
A66
Assets and liabilities of commercial
March 31, 2002
June 30, 2002
September 30, 2002
December 31, 2002
Terms of lending at commercial
May 2002
August 2002
November 2002
February 2003
banks
banks
Assets and liabilities of U.S. branches and agencies of foreign
March 31, 2002
June 30, 2002
September 30, 2002
December 31, 2002
Pro forma financial statements for Federal Reserve priced
March 31,2001
June 30, 2001
September 30, 2001
banks
services
insurance
Small loans to businesses and farms
1996-2000
1996-2001
Community development
2000
2001
lending reported under the Community Reinvestment
Act
List of Statistical Releases Published by the Federal Reserve
is Printed Semiannually in the Bulletin
STATISTICAL RELEASES—A
Schedule of anticipated release dates for periodic releases
A58
4.20
Special Tables • May 2003
D O M E S T I C A N D F O R E I G N O F F I C E S Insured C o m m e r c i a l B a n k Assets and Liabilities
Consolidated R e p o r t of Condition, D e c e m b e r 31, 2 0 0 2
Millions of dollars except as noted
Banks with foreign offices'
Item
1 Total assets
2 Cash and balances due from depository institutions
3
Cash items in process of collection, unposted debits, and currency and coin
4
Cash items in process of collection and unposted debits
5
Currency and coin
6
Balances due from depository institutions in the United States
7
Balances due from banks in foreign countries and foreign central banks
8
Balances due from Federal Reserve Banks
9 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value)
10
U.S. Treasury securities
11
U.S. government agency and corporation obligations (excludes mortgage-backed
securities)
12
Issued by U.S. government agencies
13
Issued by U.S. government-sponsored agencies
14
Securities issued by states and political subdivisions in the United States
15
Mortgage-backed securities (MBS)
16
Pass-through securities
17
Guaranteed by GNMA
18
Issued by FNMA and FHLMC
19
Other pass-through securities
20
Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS)
21
Issued or guaranteed by FNMA, FHLMC or GNMA
22
Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA
23
All other mortgage-backed securities
24
Asset-backed securities
25
Credit card receivables
26
Home equity lines
27
Automobile loans
28
Other consumer loans
29
Commercial and industrial loans
30
Other
31
Other debt securities
32
Other domestic debt securities
33
Foreign debt securities
34
Investments in mutual funds and other equity securities with readily determinable
fair value
Total
Domestic
total
Banks with
domestic
offices only2
Total
Domestic
Total
6,949,219
6,213,963
4,663,640
3,928,385
2,285,579
377,188
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
283,998
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
270,062
135,145
n.a.
n.a.
28,674
94,283
11,959
176,872
132,863
104,136
28,728
23,620
8,510
11,878
107,126
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1,306,931
62,988
n.a.
n.a.
758,489
39,333
n.a.
n.a.
548,442
23,655
220,598
6,924
213,674
102,231
690,990
451,724
89,872
352,379
9,473
239,266
158,915
12,770
67,580
104,281
39,923
34,026
12,910
1,373
6,402
9,648
103,335
38,987
64,348
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
85,982
3,962
82,020
35,851
453,050
316,906
61,130
247,362
8,414
136,145
85,600
11,416
39,128
56,264
22,919
20,547
4,536
916
3,208
4,137
73,647
14,029
59,618
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
134,615
2,962
131,654
66,380
237,939
134,818
28,742
105,017
1,059
103,121
73,315
1,354
28,452
48,017
17,003
13,479
8,373
457
3,194
5,511
29,688
24,958
4,730
22,508
n.a.
14,361
n.a.
8,147
311,011
169,549
141,462
262,718
169,549
93,169
224,673
88,747
135,926
176,380
88,747
87,633
86,338
80,802
5,536
4,079,650
3,370
238,325
3,837,955
74,430
3,763,525
3,800,525
2,328
n.a.
n.a.
n.a.
n.a.
2,644,964
2,303
194,256
2,448,405
51,496
2,396,909
2,365,840
1,261
n.a.
n.a.
n.a.
n.a.
1,434,686
1,067
44,069
1,389,550
22,934
1,366,616
2,049,257
n.a.
n.a.
n.a.
n.a.
2,018,448
205,239
37,995
1,151,957
214,598
1,175,435
n.a.
n.a.
n.a.
n.a.
1,144,626
100,932
6,921
752,607
152,284
873,822
104,307
31,074
399,350
62,315
n.a.
n.a.
n.a.
n.a.
133,469
n.a.
n.a.
n.a.
46,523
903,886
n.a.
n.a.
848,666
88,692
71,709
551,549
110,478
n.a.
n.a.
n.a.
45,956
773,325
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
123,821
91,915
13,125
18,781
10,611
668,146
542,361
125,785
546,389
53,934
37,220
246,946
100,830
83,047
13,114
4,669
10,043
537,585
528,245
9,339
302,277
34,758
34,489
304,603
9,648
n.a.
n.a.
n.a.
35,913
235,741
n.a.
n.a.
649,139
226,143
38,272
384,724
587,357
205,825
25,624
355,909
401,726
146,044
31,793
223,889
339,944
125,726
19,144
195,073
247,414
80,099
6,480
160,836
69
Loans for purchasing and carrying securities
70
All other loans (excludes consumer loans)
71 Lease-financing receivables
21,352
114,907
5,847
109,060
n.a.
n.a.
161,116
21,306
90,515
2,143
88,372
n.a.
n.a.
153,140
12,798
103,607
5,837
97,771
n.a.
n.a.
148,821
12,752
79,215
2,133
77,082
11,781
65,301
140,845
8,554
11,300
10
11,290
n.a.
n.a.
12,295
73
74
75
76
77
78
79
80
81
396,487
78,335
4,382
8,763
5,736
n.a.
121,594
84,365
37,230
336,943
391,465
45,946
1,853
8,289
5,514
n.a.
100,006
68,613
31,393
266,181
n.a.
n.a.
n.a.
n.a.
n.a.
17,240
n.a.
n.a.
n.a.
n.a.
5,023
32,389
2,529
474
222
n.a.
21,588
15,752
5,836
70,762
35 Federal funds sold and securities purchased under agreements to resell
36.
Federal funds sold in domestic offices
37
Securities purchased under agreements to resell
38 Total loans and leases (gross) and lease-financing receivables (net)
39
LESS: Unearned income on loans
40
LESS: Loans and leases held for sale
41 Total loans and leases (net of unearned income)
42
LESS: Allowance for loan and lease losses
43 Loans and leases, net of unearned income and allowance
Total loans and leases, gross, by category
44 Loans secured by real estate
45
Construction and land development
47
48
One- to four-family residential properties
Revolving, open-end loans, extended under lines of credit
Closed-end loans secured by one- to four-family residential properties
49
Secured by first liens
50
Secured by junior liens
51
Multifamily (five or more) residential properties
52
Nonfarm nonresidential properties
53 Loans to depository institutions and acceptances of other banks
54
Commercial banks in the United States
55
Other depository institutions in the United States
57 Loans to finance agricultural production and other loans to farmers
58 Commercial and industrial loans
59
U.S. addressees (domicile)
60
Non-U.S. addressees (domicile)
61 Loans to individuals for household, family, and other personal expenditures (includes
63
Other revolving credit plans
64 Other consumer loans (including single-payment, installment, and all student loans)
65 Obligations (other than securities) of states and political subdivisions in the United States
(includes nonrated industrial development obligations)
67
Loans to foreign governments and official institutions
Premises and fixed assets (including capitalized leases)
Other real estate owned
Investments in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs
Intangible assets
Goodwill
Other intangible assets
All other assets
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
A59
4.20
D O M E S T I C A N D F O R E I G N O F F I C E S Insured Commercial Bank Assets and Liabilities—Continued
Consolidated Report of Condition, December 31, 2002
Millions of dollars except as noted
Banks with foreign offices1
Item
Total
Domestic
total
Total
Domestic
Banks with
domestic
offices only2
Total
82 Total liabilities, minority interest, and equity capital
6,949,219
n.a.
4,663,640
n.a.
2,285,579
83 Total liabilities
6,305,772
5,570,516
4,243,594
3,508,338
2,062,179
84 Total deposits
Individuals, partnerships, and corporations (include all certified and official checks)
85
86
U.S. government
States and political subdivisions in the United States
87
Commercial banks and other depository institutions in the United States
88
Banks in foreign countries
89
Foreign governments and official institutions (including
90
foreign central banks)
4,649,751
4,185,655
n.a.
n.a.
100,179
113,122
3,992,179
3,701,964
30,074
196,795
53,024
9,625
2,968,116
2,634,532
n.a.
n.a.
78,452
112,636
2,310,544
2,150,842
28,569
90,014
31,297
9,139
1,681,635
1,551,122
1,505
106,781
21,727
486
697
23,259
23,273
14
322,247
280,396
1,039
31,419
9,103
278
12
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
525,432
n.a.
326,122
199,310
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3,290,979
3,106,326
27,595
136,984
17,560
2,267
247
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1,931,591
1,835,600
27,129
61,622
4,936
2,060
245
1,359,389
1,270,726
466
75,362
12,624
208
2
Total transaction accounts
Individuals, partnerships, and corporations (include all certified and official checks)
U.S. government
States and political subdivisions in the United States
Commercial banks and other depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions (including foreign central banks)
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
98
Total demand deposits
Total nontransaction accounts
Individuals, partnerships, and corporations (include all certified and official checks)
U.S. government
States and political subdivisions in the United States
Commercial banks and other depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions (including foreign central banks)
99
100
101
102
103
104
105
683
378,953
315,242
1,441
28,392
26,361
7,080
438
701,200
595,638
2,480
59,812
35,464
7,358
449
91
92
93
94
95
96
97
106 Federal funds purchased and securities sold under agreements to repurchase
Federal funds purchased in domestic offices
107
Securities sold under agreements to repurchase
108
109 Trading liabilities
110 Other borrowed money (includes mortgage indebtedness and obligations under capitalized
leases)
111 Banks' liability on acceptances executed and outstanding
112 Subordinated notes and debentures to deposits
113 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs
114 All other liabilities
115 Minority interest in consolidated subsidiaries
554,168
213,919
340,249
243,966
510,029
213,919
296,110
n.a.
427,300
156,904
270,396
243,281
383,161
156,904
226,257
n.a.
126,868
57,015
69,853
685
550,582
5,754
94,097
n.a.
207,454
12,259
519,868
3,949
n.a.
n.a.
n.a.
n.a.
340,479
5,532
85,741
n.a.
173,145
10,388
309,765
3,727
n.a.
141,260
n.a.
n.a.
210,104
222
8,357
n.a.
34,309
1,871
116 Total equity capital
631,187
n.a.
409,659
n.a.
221,529
MEMO
117 Trading assets at large banks2
U.S. Treasury securities (domestic offices)
118
U.S. government agency obligations (excluding MBS)
119
120
Securities issued by states and political subdivisions in the United States
Mortgage-backed securities
121
Other debt securities
122
Other trading assets
123
Trading assets in foreign offices
124
Revaluation gains on interest rate, foreign exchange rate, and other
125
commodity and equity contracts
126 Total individual retirement (IRA) and Keogh plan accounts
127 Total brokered deposits
Fully insured brokered deposits
128
129
Issued in denominations of less than $100,000
130
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
131 Money market deposit accounts (MMDAs)
132 Other savings deposits (excluding MMDAs)
133 Total time deposits of less than $100,000
134 Total time deposits of $ 100,000 or more
135 Number of banks
NOTE. The notation "n.a." indicates the lesser detail available from banks that do not 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 intra-office 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.
396,263
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
104,970
211,562
25,833
13,219
1,507
11,322
33,257
19,947
0
391,280
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
104,970
206,579
24,739
12,502
1,153
9,558
33,003
19,640
0
4,983
1,094
717
354
1,764
254
306
0
186,209
n.a.
n.a.
n.a.
n.a.
106,478
165,562
241,327
167,213
91,534
185,716
n.a.
n.a.
n.a.
n.a.
105,985
76,320
108,420
66,599
31,672
493
89,242
132,907
100,614
59,862
34,926
970,515
341,551
300,656
318,868
40,752
481,437
227,841
398,424
251,686
n.a.
n.a.
n.a.
n.a.
n.a.
7,867
75,678
1,451,953
569,392
699,080
570,554
7,867
n.a.
n.a.
n.a.
n.a.
n.a.
128
n.a.
7,739
Foreign offices include branches in foreign countries, Puerto Rico, and US.-affiliated
insular areas; subsidiaries in foreign countries; all offices of Edge Act and agreement
corporations wherever located; and international banking facility (IBF).
2. Components of "Trading Assets at Large Banks" are reported only by banks that
reported trading assets of $2 million or more any quarter of the preceding calendar year.
A60
4.23
Special Tables • May 2003
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of L o a n s M a d e , F e b r u a r y 3 - 7 , 2 0 0 3
A . C o m m e r c i a l a n d industrial loans m a d e b y all c o m m e r c i a l b a n k s '
Weightedaverage
effective
loan rate
(percent)2
Amount of
loans
(millions
of dollars)
Average loan
size
(thousands of
dollars)
Amount of loans (percent)
Weightedaverage
maturity3
Secured by
collateral
Callable
Subject to
prepayment
penalty
Made under
commitment
Days
LOAN RISK 5
1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other
3.20
2.14
2.50
3.36
3.38
66,047
2,394
9,435
18,363
26,034
412
384
798
359
491
377
295
508
548
258
41.9
44.6
19.0
50.8
46.7
10.1
6.3
6.2
20.3
5.0
25.5
38.6
30.8
16.1
28.3
71.7
80.7
64.0
83.4
70.3
By maturity/repricing interval6
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10
Other
3.92
1.64
2.56
4.25
5.20
12,186
871
3,178
4,467
3,325
216
714
692
194
167
452
315
294
505
580
56.3
66.6
19.1
70.3
67.1
18.0
5.6
4.0
29.7
16.3
8.1
63.2
4.0
5.1
2.3
73.5
87.9
28.0
91.2
88.4
11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other
2.81
1.81
2.02
3.01
2.62
22,643
362
2,479
4,232
10,408
540
1,398
1,911
452
802
234
24
101
736
70
29.6
6.5
7.5
39.0
30.5
12.0
12.0
4.4
41.0
3.1
27.9
80.4
3.2
23.6
62.7
96.5
77.1
65.0
58.6
16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other
2.95
2.64
2.56
2.79
3.25
18,785
582
2,396
5,393
7,873
624
348
886
730
586
383
183
1213
446
173
37.1
27.0
9.5
36.1
49.1
5.4
7.0
6.0
8.0
2.5
35.3
21.3
17.6
29.6
48.3
77.0
81.7
88.1
89.4
69.7
21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other
3.28
2.40
2.93
3.23
3.78
9,313
511
1,051
3,116
3,152
485
208
458
461
962
345
461
374
343
388
50.9
51.7
54.4
58.5
55.4
4.7
2.3
14.6
3.4
4.0
29.7
44.4
34.0
31.4
31.0
76.1
60.5
78.8
86.7
83.5
78.7
59.3
81.7
68.6
89.6
5.7
.1
28.2
5.1
2.4
4.3
34.0
4.2
2.0
4.2
82.5
45.6
81.7
83.6
89.5
*
Months
26 More than 365 days
27
Minimal risk
28
Low risk
28
Moderate risk . .
30
Other
4.70
4.08
4.85
4.42
4.75
2,783
62
182
1,068
1,202
245
103
212
245
421
41
39
51
36
43
Weightedaverage risk
rating5
Weightedaverage
maturity/
repricing
interval6
Days
SIZE OF LOAN
(thousands of dollars)
31
32
33
34
1-99
100-999
1,000-9,999
10,000 or more
35
36
37
38
39
Prime7
Fed funds
Other domestic
Foreign
Other
5.33
4.47
3.32
2.58
2,853
9,683
19,801
33,710
3.4
3.4
3.4
3.3
132
114
81
47
82.7
70.3
38.5
32.2
27.6
17.9
8.9
7.1
2.2
6.9
23.3
34.1
84.8
88.1
78.3
61.9
4.72
1.98
2.51
2.90
3.34
16,572
14,465
5,266
17,926
11,818
3.4
3.4
3.0
3.4
3.3
64
16
23
93
135
70.6
2.4
16.9
47.4
52.6
21.0
2.0
32.7
3.6
4.8
1.7
35.9
47.5
46.8
3.8
89.6
60.1
23.2
79.3
70.7
BASE RATE OF LOAN 4
Footnotes appear at end of table.
Financial Markets
4.23
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of L o a n s M a d e , F e b r u a r y 3 - 7 , 2 0 0 3 — C o n t i n u e d
B . C o m m e r c i a l a n d industrial l o a n s m a d e b y all d o m e s t i c b a n k s 1
Weightedaverage
effective
loan rate
(percent)2
Amount of
loans
(millions
of dollars)
Average loan
size
(thousands of
dollars)
Amount of loans (percent)
Weightedaverage
maturity3
Subject to
prepayment
penalty
Secured by
collateral
Days
Made under
commitment
LOAN RISK 5
3.68
2.15
2.69
3.59
4.65
39,831
1,531
6,188
14,504
10,477
258
250
559
291
210
579
343
669
664
581
55.0
63.5
22.8
59.9
72.4
16.6
9.8
9.5
25.3
12.3
4.0
37.6
5.1
2.4
2.0
3.89
1.63
2.39
4.27
5.30
11,162
869
2,871
4,202
2,875
202
717
649
184
148
444
316
242
496
621
58.1
66.5
15.6
72.4
73.4
19.7
5.7
4.4
31.6
18.9
8.7
63.4
4.1
5.4
2.7
71.1
87.8
20.3
90.6
11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other
3.66
9,874
77
490
3,620
2,227
243
329
420
393
183
557
173
191
871
360
50.5
30.3
38.2
45.6
65.2
27.4
55.9
22.2
47.9
14.6
1.0
3.03
3.20
4.34
76.0
83.4
79.3
60.1
81.6
16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other
3.28
2.76
2.77
2.89
4.47
9,898
323
1,848
3,385
2,533
356
199
759
506
206
679
314
1,531
678
433
44.1
48.6
9.7
47.1
67.7
9.5
12.5
7.8
10.7
7.6
1.0
.1
.1
.3
.3
86.3
90.1
92.8
88.2
82.1
21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other
3.54
2.93
2.93
3.64
4.22
5,942
193
796
2,151
1,573
326
79
365
327
577
369
256
355
403
468
63.4
88.4
56.3
76.3
74.1
7.3
6.1
19.3
4.9
8.1
5.3
1.4
23.1
2.2
4.9
77.4
44.0
75.4
87.3
91.8
26 More than 365 days
27
Minimal risk
28
Low risk
28
Moderate risk . . .
30
Other
4.69
4.08
4.85
4.42
4.75
2,781
62
182
1,068
1,200
245
103
212
245
421
78.7
59.3
81.7
68.6
89.5
5.8
28.2
5.1
2.4
4.3
34.0
4.2
82.5
45.6
81.7
83.6
89.5
83.2
75.2
51.8
41.0
27.9
19.7
13.8
15.2
72.1
1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other
By maturity/repricing interval6
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10
Other
1.88
Weightedaverage risk
rating5
.1
1.3
1.3
.1
2.0
4.2
55.5
81.5
85.7
Weightedaverage
maturity/
repricing
interval®
Days
SIZE OF LOAN
(thousands of dollars)
31
32
33
34
1-99
100-999
1,000-9,999
10,000 or more
5.34
4.56
3.61
2.94
2,823
8,762
12,794
15,453
3.4
3.4
3.2
2.8
134
122
113
85
4.69
1.89
2.41
3.13
3.50
15,817
3,284
2,771
8,928
9,031
3.4
2.4
2.9
3.2
2.9
66
44
35
154
173
1.9
2.3
2.6
6.6
88.3
83.5
66.2
BASE RATE OF LOAN 4
35
36
37
38
39
7
Prime
Fed funds
Other domestic
Foreign
Other
Footnotes appear at end of table.
8.1
32.0
51.8
52.3
62.2
7.2
6.3
1.4
.7
.1
10.7
4.3
89.3
29.5
42.2
79.7
84.9
A61
A62
4.23
Special Tables • May 2003
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of L o a n s M a d e , February 3 - 7 , 2 0 0 3 — C o n t i n u e d
C. C o m m e r c i a l and industrial loans m a d e by large domestic banks'
Weightedeffective
loan rate
(percent)2
Amount of
loans
(millions
of dollars)
Average loan
size
(thousands of
dollars)
Amount of loans (percent)
Weightedaverage
maturity3
Subject to
prepayment
penalty
Secured by
collateral
Days
Made under
commitment
LOAN RISK 5
1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other
3.49
1.72
2.32
3.37
4.55
34,391
1,127
5,378
12,892
9,150
417
538
2,139
555
286
3.64
1.19
4.11
5.35
8,649
589
2,423
3,389
2,232
11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other
3.63
1.71
2.76
3.03
4.26
9,119
74
431
3,330
2,108
16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other
3.23
2.73
2.66
2.78
4.43
21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other
3.24
26 More than 365 days
27
Minimal risk
28
Low risk
28
Moderate risk . .
30
Other
6
7
8
9
10
By maturity/repricing interval6
Zero interval
Minimal risk
Low risk
Moderate risk
Other
548
230
625
15.4
9.0
7.1
24.8
10.2
3.5
39.8
5.4
1.9
567
51.5
62.9
14.1
56.6
69.8
1.0
79.4
81.7
55.2
81.5
86.9
440
1,530
4,691
336
261
399
148
107
496
679
51.1
66.3
5.3
69.4
69.3
16.5
.7
.5
32.1
14.0
9.0
75.9
4.2
5.3
2.3
69.5
85.6
17.1
91.6
88.6
252
554
49.7
27.4
30.2
42.0
63.7
28.2
58.2
20.8
49.4
15.0
1.4
455
189
529
178
153
773
356
.0
.0
77.8
84.9
81.0
57.0
83.6
9,139
301
1,796
3,206
2,307
444
212
1,751
812
230
684
323
1,562
631
401
42.9
48.8
7.7
44.9
65.5
8.5
13.4
7.1
8.4
7.1
.2
.0
87.4
89.5
93.0
87.7
80.8
3.43
4.07
5,188
130
644
2,023
1,415
1,994
1,282
3.304
2,292
1,552
378
255
362
393
500
60.2
94.4
47.2
76.0
71.7
6.3
23.7
4.3
3.8
4.09
2.43
2.60
3.92
4.38
2,126
26
83
868
1,020
895
639
1,443
2.00
1.66
2.20
611
612
75.1
84.7
66.9
62.9
1,081
1,180
Weightedaverage risk
rating5
6.0
4.5
1.4
28.3
2.3
.0
.0
78.1
41.0
71.2
88.9
92.1
94.1
97.5
92.6
94.6
96.1
4.0
1.6
1.7
3.4
2.4
5.6
90.8
93.7
87.8
66.0
10.0
3.1
92.0
28.8
41.1
79.8
93.5
Weightedaverage
maturity/
repricing
interval®
Days
SIZE OF LOAN
(thousands of dollars)
31
32
33
34
1-99
100-999
1,000-9,999
10,000 or more
35
36
37
38
39
Prime7
Fed funds
Other domestic
Foreign
Other
4.68
4.24
3.62
2.95
1,572
6,391
11,315
15,112
3.6
3.5
3.3
2.9
45
65
109
81.0
70.7
51.5
40.3
27.9
16.2
13.7
15.1
4.52
1.87
2.31
3.12
3.30
12,563
3,217
2,679
8,522
7,410
3.4
2.4
3.0
3.2
2.9
54
25
68.3
7.9
30.2
51.4
49.8
63.9
6.2
5.8
.7
1.1
BASE RATE OF LOAN 4
Footnotes appear at end of table.
12
159
119
18.8
8.2
Financial Markets
4.23
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of L o a n s M a d e , February 3 - 7 , 2 0 0 3 — C o n t i n u e d
D. C o m m e r c i a l and industrial loans m a d e by small domestic banks1
Amount of loans (percent)
Weightedaverage
maturity3
Weightedaverage
effective
loan rate
(percent)2
Amount of
loans
(millions
of dollars)
4.89
3.34
5.20
5.35
5.40
5,440
405
810
1,613
1,327
75
100
95
60
74
776
722
996
1,115
676
77.1
65.1
4.75
2.56
4.50
4.95
5.12
2,512
280
448
813
643
70
339
115
64
59
11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other
4.07
755
5.01
5.16
5.62
59
290
119
129
153
16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other
3.97
3.25
6.29
4.90
4.86
759
22
52
178
226
21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other
5.59
5.53
5.99
6.99
5.52
754
64
152
128
159
26 More than 365 days
27
Minimal risk
28
Low risk
28
Moderate risk . ..
30
Other
6.66
5.28
6.73
6.61
6.83
Average loan
size
(thousands of
dollars)
Subject to
prepayment
penalty
Made under
commitment
86.1
90.4
24.3
12.1
25.0
29.0
26.6
7.3
31.3
3.3
6.6
9.4
68.5
78.3
57.6
81.0
77.0
621
771
1,149
494
426
81.9
66.8
71.1
84.9
87.8
30.9
16.2
25.4
29.5
35.9
7.7
37.3
3.6
6.0
3.9
76.5
92.6
37.7
86.4
80.4
854
60.2
18.4
6.5
53.9
111
422
1,938
419
95.5
86.2
92.9
32.3
30.9
8.1
16.4
1.0
66.9
95.4
46.0
105
109
37
65
99
624
179
373
1,529
740
58.9
46.5
78.0
86.7
22.1
1.2
31.8
53.7
11.8
1.3
1.2
2.5
72.6
98.7
1.1
2.8
98.4
95.2
308
259
328
561
189
84.9
76.4
94.7
80.7
96.2
16.6
5.5
.8
15.1
46.5
10.7
1.4
.9
72.5
50.0
93.1
62.1
89.2
90.4
40.9
94.1
93.3
93.8
9.9
58.6
7.7
3.3
9.0
44.8
51.7
9.7
6.7
Secured by
collateral
Days
LOAN RISK 5
1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other
By maturity/repricing interval6
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10
Other
655
36
99
199
180
73
64
124
56
91
Weightedaverage risk
rating5
16.5
.2
1.1
47.9
86.1
8.2
72.7
35.4
51.9
Weightedaverage
maturity/
repricing
interval"
Days
SIZE OF LOAN
(thousands of dollars)
31
32
33
34
1-99
100-999
1,000-9,999
10,000 or more
35
36
37
38
39
Prime7
Fed funds
Other domestic
Foreign
Other
6.18
5.43
3.55
1,251
2,371
1,478
3.1
3.2
2.8
243
277
143
86.0
87.4
53.6
27.8
28.9
14.7
3.5
5.4
4.1
77.2
73.8
51.0
5.35
3.03
5.48
3.37
4.40
3,255
67
91
407
1,621
3.2
1.9
2.7
2.6
2.6
110
932
695
46
420
87.0
17.4
85.9
59.2
63.8
31.8
39.7
11.8
27.8
8.3
3.3
31.7
4.4
26.0
9.9
78.9
63.8
72.8
77.1
45.2
BASE RATE OF LOAN 4
Footnotes appear at end of table.
A63
A64
4.23
Special Tables • May 2003
TERMS OF LENDING AT COMMERCIAL BANKS
Survey of L o a n s M a d e , February 3 - 7 , 2 0 0 3 — C o n t i n u e d
E. C o m m e r c i a l and industrial loans m a d e b y U.S. b r a n c h e s and a g e n c i e s of f o r e i g n banks1
Amount of loans (percent)
Weightedaverage
maturity3
Weightedaverage
effective
loan rate
(percent)2
Amount of
loans
(millions
of dollars)
2.47
2.11
2.12
2.51
2.52
26,216
863
3,247
3,859
15,558
4,691
8,425
4,359
3,104
5,170
87
220
202
112
58
21.9
11.1
11.8
16.6
29.4
1.8
.0
4.27
1,024
1,095
551
37.0
.0
4.11
3.95
4.58
307
265
450
1,832
1,263
819
784
682
293
51.7
37.1
26.7
.1
11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other
2.16
12,769
9,819
14
13.5
1.77
1.90
2.15
1,989
612
8,181
15,256
4,150
10,544
81
1
1
16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other
2.59
8,886
3,836
1.86
2.60
2.67
548
2,008
5,339
2,031
2,888
4,733
2.81
3,371
3,526
303
29.0
2.94
2.31
3.34
255
965
1,578
2,194
5,181
2,890
431
211
310
48.7
18.8
36.7
Average loan
size
(thousands of
dollars)
Secured by
collateral
Callable
Days
Subject to
prepayment
penalty
Made under
commitment
58.1
40.3
79.8
67.6
46.0
62.1
80.6
80.1
90.9
60.0
Most
common
base pricing
LOAN RISK 5
1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other
By maturity/repricing interval6
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10
Other
21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other
.3
Fed funds
Fed funds
Fed funds
Foreign
Fed funds
1.2
99.4
Prime
3.3
.6
100.0
100.0
98.7
Foreign
Prime
Other
.0
48.8
52.4
Fed funds
21.0
:
99.9
14.0
30.0
76.6
93.8
52.4
Fed funds
Fed funds
Fed funds
66
29.2
.8
73.4
66.7
Foreign
218
41
56
9.0
17.5
40.3
3.5
.1
76.8
79.2
71.1
72.1
91.4
63.9
Foreign
Foreign
Foreign
72.7
73.8
Foreign
:
68.0
96.4
57.1
89.5
85.3
75.2
Foreign
Foreign
Foreign
*
Months
26 More than 365 days
27
Minimal risk . . .
28
Low risk
28
Moderate risk . .
30
Other
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Weightedaverage risk
rating5
Weightedaverage
maturity/
repricing
interval"
34.4
23.0
14.3
24.7
3.5
1.3
.1
.3
24.8
50.8
61.0
57.3
85.9
86.0
68.9
58.3
Prime
Foreign
Foreign
Fed funds
Days
SIZE OF LOAN
(thousands of dollars)
31
32
33
34
1-99
100-999
1,000-9,999
10,000 or more
4.46
3.55
2.80
2.29
31
921
7,007
18,257
3.9
3.5
3.6
3.8
28
31
22
15
Average size
(thousands
of dollars)
BASE RATE OF LOAN 4
35
36
37
38
39
Prime7
Fed funds
Other domestic
Foreign
Other
Footnotes appear at end of table.
5.28
2.00
2.62
2.67
2.82
755
11,181
2,495
8,998
2,788
3.6
3.6
4.1
3.6
4.5
23
8
10
33
9
38.0
.8
.1
43.1
53.5
10.1
.0
8.6
46.2
100.0
82.7
2.0
95.8
69.1
2.1
78.9
24.9
690
7,205
6,784
4,383
5,347
Financial Markets
A65
NOTES TO TABLE 4.23
NOTE. The Survey of Terms of Business Lending collects data on gross loan extensions
made during the first full business week in the mid-month of each quarter. The authorized
panel size for the survey is 348 domestically chartered commercial banks and 50 U.S.
branches and agencies of foreign banks. The sample data are used to estimate the terms of
loans extended during that week at all domestic commercial banks and all U.S. branches and
agencies of foreign banks. Note that the terms on loans extended during the survey week may
differ from those extended during other weeks of the quarter. The estimates reported here are
not intended to measure the average terms on all business loans in bank portfolios.
1. As of March 31, 2001, assets of the large banks were at least $4 billion. Median total
assets for all insured banks were roughly $80 million. Assets at all U.S. branches and agencies
averaged $2.7 billion.
2. Effective (compounded) annual interest rates are calculated from the stated rate and
other terms of the loans and weighted by loan amount. The standard error of the loan rate for
all commercial and industrial loans in the current survey (line 1, column 1) is 0.10 percentage
point. The chances are about two out of three that the average rate shown would differ by less
than this amount from the average rate that would be found by a complete survey of the
universe of all banks.
3. Average maturities are weighted by loan amount and exclude loans with no stated
maturities.
4. The most common base pricing rate is that used to price the largest dollar volume of
loans. Base pricing rates include the prime rate (sometimes referred to as a bank's "base" or
"reference" rate); the federal funds rate; domestic money market rates other than the prime
rate and the federal funds rate; foreign money market rates; and other base rates not included
in the foregoing classifications.
5. A complete description of these risk categories is available from the Banking Analysis
Section, Mail Stop 81, Board of Governors of the Federal Reserve System, Washington, DC
20551. The category "Moderate risk" includes the average loan, under average economic
conditions, at the typical lender. The category "Other" includes loans rated "acceptable" as
well as special mention or classified loans. The weighted-average risk rating published for
loans in rows 31-39 are calculated by assigning a value of " 1 " to minimal risk loans; " 2 " to
low risk loans; " 3 " to moderate risk loans, " 4 " to acceptable risk loans; and " 5 " to special
mention and classified loans. These values are weighted by loan amount and exclude loans
with no risk rating. Some of the loans in lines 1,6, 11, 16, 21, 26, and 31-39 are not rated for
risk.
6. The maturity/repricing interval measures the period from the date the loan is made until
it first may reprice or it matures. For floating-rate loans that are subject to repricing at any
time—such as many prime-based loans—the maturity/repricing interval is zero. For floatingrate loans that have a scheduled repricing interval, the maturity/repricing interval measures
the number of days between the date the loan is made and the date on which it is next
scheduled to reprice. For loans having rates that remain fixed until the loan matures
(fixed-rate loans), the matuirty/repricing interval measures the number of days between the
date the loan is made and the date on which it matures. Loans that reprice daily mature or
reprice on the business day after they are made. Owing to weekends and holidays, such loans
may have maturity/repricing intervals in excess of one day; such loans are not included in the
"2 to 30 day" category.
7. For the current survey, the average reported prime rate, weighted by the amount of loans
priced relative to a prime base rate, was 4.31 percent for all banks, 4.25 percent for large
domestic banks, 4.55 percent for small domestic banks, and 4.27 percent for U.S. branches
and agencies of foreign banks.
A66
4.30
Special Tables • May 2003
A S S E T S A N D L I A B I L I T I E S of U.S. B r a n c h e s a n d A g e n c i e s of F o r e i g n B a n k s , D e c e m b e r 31, 2 0 0 2 1
Millions of dollars except as noted
All states2
Item
California
New York
Total
including
IBFs3
IBFs
only3
Total
including
IBFs
Illinois
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
1,007,168
125,560
872,801
98,716
18,164
5,123
34,618
4,964
2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
4
Cash items in process of collection and unposted debits
5
Currency and coin (U.S. and foreign)
6
Balances with depository institutions in United States
7
U.S. branches and agencies of other foreign banks
(including their IBFs)
Other depository institutions in United States (including their
X
IBFs)
9
Balances with banks in foreign countries and with foreign central
banks
10
Foreign branches of U.S. banks
Banks in home country and home-country central banks
11
12
All other banks in foreign countries and foreign central banks
Balances with Federal Reserve Banks
13
771,347
59,688
2,266
12
40,712
49,208
18,416
0
n.a.
9,000
677,852
53,581
2,234
9
36,304
46,605
17,765
0
n.a.
8,624
16,102
1,060
1
1
798
1,308
476
0
n.a.
244
32,487
782
22
0
695
94
50
0
n.a.
50
33,936
8,463
29,911
8,151
613
194
655
50
6,775
537
6,392
474
185
50
40
0
15,645
393
4,218
11,034
1,055
9,416
322
1,964
7,129
n.a.
14,114
373
3,032
10,709
921
9,141
302
1,964
6,874
n.a.
236
20
0
216
25
232
20
0
212
n.a.
34
0
7
27
31
0
0
0
0
n.a.
14 Total securities and loans
424,554
23,642
356,180
21,716
14,611
813
25,561
43
15 Total securities, book value
16
U.S. Treasury
17
Obligations of U.S. government agencies and corporations
IX
Other bonds, notes, debentures, and corporate stock (including state
and local securities)
Securities of foreign governmental units
19
20
Mortgage-backed securities
21
Other asset-backed securities
22
All other
130,729
16,877
28,619
4,273
n.a.
n.a.
115,871
15,470
26,854
3,954
n.a.
n.a.
1,483
60
74
269
n.a.
n.a.
4,285
1,262
1,272
2
n.a.
n.a.
85,233
9,441
23,282
14,944
37,566
4,273
2,739
0
56
1,478
73,547
9,028
20,625
9,422
34,473
3,954
2,670
0
56
1,229
1,349
67
237
0
1,045
269
40
0
0
229
1,751
298
0
0
1,453
2
2
0
0
0
23 Federal funds sold and securities purchased under agreements to
resell
24
Depository institutions in the United States
25
Other
120,433
30,063
90,370
6,267
4,077
2,190
119,394
29,408
89,986
6,252
4,062
2,190
241
241
0
15
15
0
348
0
348
0
0
0
26 Total loans, gross
27
LESS: Unearned income on loans
EQUALS: Loans, net
28
294,159
334
293,825
19,381
12
19,369
240,579
270
240,309
17,771
10
17,762
13,154
26
13,128
545
21,284
8
21,276
42
0
42
19,028
68,772
4,531
3,008
1,523
29
11,694
267
11,426
52,518
64
6,575
977
947
30
0
5,312
229
5,083
286
15,047
56,024
3,537
2,050
1,487
29
9,632
267
9,364
42,826
64
5,550
563
533
30
0
4,701
229
4,472
286
3,132
2,165
686
682
5
0
221
0
221
1,258
0
439
268
268
0
0
171
0
0
60
6,176
5
0
5
0
862
0
862
5,309
0
41
0
0
0
0
41
0
41
0
11,036
80
10,956
152,144
120,618
31,526
10,512
80
10,432
7,458
6,957
501
85
0
85
14,062
12,475
1,587
1
0
4,533
10,143
3,973
1,596
0
109
3,830
9,807
3,421
1,547
0
98
216
0
184
22
0
0
280
150
101
0
0
0
763
710
53
0
0
0
307
307
0
0
0
0
0
0
0
0
0
456
403
53
0
0
0
0
1 Total assets4
Total loans, gross, by category
29 Real estate loans
30 Loans to depository institutions and acceptances of other banks
Commercial banks in United States (including their IBFs)
31
32
U.S. branches and agencies of other foreign banks
33
Other commercial banks in United States
34
Other depository institutions in United States (including their IBFs) . . .
35
Banks in foreign countries
36
Foreign branches of U.S. banks
Other banks in foreign countries
37
38 Loans to other financial institutions
39 Commercial and industrial loans
40
U.S. addressees (domicile)
41
Non-U.S. addressees (domicile)
42 Loans to foreign governments and official institutions (including
foreign central banks)
43 Loans for purchasing or carrying securities (secured and unsecured)
44 All other loans
45 Lease financing receivables (net of unearned income)
46
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
47
186,947
150,369
36,578
1
544
171
0
1
48 Trading assets
131,914
176
116,806
176
25
0
4,131
49 All other assets
Customers' liabilities on acceptances outstanding
50
51
U.S. addressees (domicile)
52
Non-U.S. addressees (domicile)
53
Other assets including other claims on nonrelated parties
54 Net due from related depository institutions5
55
Net due from head office and other related depository institutions5
56
Net due from establishing entity, head office, and other related
depository institutions5
34,757
843
386
457
33,914
235,822
235,822
708
n.a.
n.a.
n.a.
708
76,353
n.a.
31,891
401
312
89
31,490
194,949
194,949
696
n.a.
n.a.
n.a.
696
52,112
n.a.
165
45
44
5
n.a.
n.a.
n.a.
5
3,815
n.a.
1,666
374
30
344
1,292
2,131
2,131
4,871
n.a.
57 Total liabilities
4
58 Liabilities to nonrelated parties
Footnotes appear at end of table.
1
120
2,062
2,062
1
n.a.
n.a.
n.a.
1
n.a.
76,353
n.a.
52,112
n.a.
3,815
n.a.
4,871
1,007,168
125,560
872,801
98,716
18,164
5,123
34,618
4,964
888,732
112,308
777,460
85,885
10,493
5,008
30,954
4,922
U.S. Branches and Agencies
4.30
A67
A S S E T S A N D L I A B I L I T I E S of U.S. Branches and A g e n c i e s of Foreign Banks, D e c e m b e r 31, 2 0 0 2 ' — C o n t i n u e d
Millions of dollars except as noted
All states2
Item
Illinois
California
New York
Total
excluding
IBFs
IBFs
only
2,161
11,462
2,673
149
0
149
240
240
0
991
54
937
10,935
10,887
48
525
0
525
0
0
0
9
0
9
227
227
0
681
434
248
781
0
1
0
1,756
0
Total
excluding
IBFs3
IBFs
only3
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
59 Total deposits and credit balances
Individuals, partnerships, and corporations (including certified
60
and official checks)
61
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
6?
63
Commercial banks in United States (including their IBFs)
64
U.S. branches and agencies of other foreign banks
65
Other commercial banks in United States
66
Banks in foreign countries
Foreign branches of U.S. banks
67
Other banks in foreign countries
68
Foreign governments and official institutions
69
(including foreign central banks)
70
All other deposits and credit balances
413,366
74,253
354,840
57,243
4,485
327,458
311,869
15,589
50,406
16,155
34,251
8,357
1,054
7,303
8,379
256
8,122
8,113
7,101
1,012
30,893
3,914
26,979
274,723
264,607
10,116
47,184
15,650
31,534
7,963
1,054
6,909
4,418
256
4,162
7,378
6,403
975
24,422
2,918
21,505
3,944
2,574
1,370
495
35
460
24
0
24
6,851
20,293
26,868
0
6,509
18,462
21,025
0
6
16
71 Transaction accounts and credit balances (excluding IBFs)
72
Individuals, partnerships, and corporations (including certified
and official checks)
73
U.S. addressees (domicile)
74
Non-U.S. addressees (domicile)
Commercial banks in United States (including their IBFs)
75
76
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
77
78
Banks in foreign countries
79
Foreign branches of U.S. banks
Other banks in foreign countries
80
Foreign governments and official institutions
81
(including foreign central banks)
82
All other deposits and credit balances
9,587
n.a.
7,931
n.a.
275
n.a.
201
n.a.
7,677
4,907
2,770
82
15
67
1,366
1
1,365
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
6,170
4,554
1,617
82
15
67
1,279
1
1,279
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
239
85
155
0
0
0
24
0
24
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
199
194
5
0
0
0
0
0
0
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
353
109
n.a.
n.a.
302
97
n.a.
n.a.
3
9
n.a.
n.a.
1
0
n.a.
n.a.
83 Nontransaction accounts (including MMDAs, excluding IBFs)
84
Individuals, partnerships, and corporations (including certified
and official checks)
85
U.S. addressees (domicile)
86
Non-U.S. addressees (domicile)
Commercial banks in United States (including their IBFs)
87
88
U.S. branches and agencies of other foreign banks
89
Other commercial banks in United States
90
Banks in foreign countries
91
Foreign branches of U.S. banks
Other banks in foreign countries
92
Foreign governments and official institutions
93
(including foreign central banks)
94
All other deposits and credit balances
403,779
n.a.
346,909
n.a.
4,210
n.a.
11,261
n.a.
319,782
306,962
12,820
50,324
16,139
34,184
6,992
1,053
5,939
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
268,553
260,053
8,500
47,102
15,635
31,467
6,684
1,053
5,631
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3,705
2,490
1,216
495
35
460
0
0
0
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
10,736
10,693
43
525
0
525
0
0
0
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
6,498
20,184
n.a.
n.a.
6,206
18,364
n.a.
n.a.
2
7
n.a.
n.a.
0
0
n.a.
n.a.
95 IBF deposit liabilities
Individuals, partnerships, and corporations (including certified
96
and official checks)
97
US. addressees (domicile)
98
Non-U.S. addressees (domicile)
99
Commercial banks in United States (including their IBFs)
100
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
101
102
Banks in foreign countries
103
Foreign branches of U.S. banks
104
Other banks in foreign countries
Foreign governments and official institutions
105
(including foreign central banks)
106
All other deposits and credit balances
n.a.
74,253
Footnotes appear at end of table.
n.a.
57,243
n.a.
2,161
n.a.
2,673
9
0
9
227
227
0
681
434
248
1,756
0
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
8,379
256
8,122
8,113
7,101
1,012
30,893
3,914
26,979
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4,418
256
4,162
7,378
6,403
975
24,422
2,918
21,505
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
149
0
149
240
240
0
991
54
937
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
26,868
0
n.a.
n.a.
21,025
0
n.a.
n.a.
781
0
n.a.
n.a.
A68
4.30
Special Tables • May 2003
A S S E T S A N D L I A B I L I T I E S of U.S. B r a n c h e s a n d A g e n c i e s of F o r e i g n B a n k s , D e c e m b e r 31, 2 0 0 2 1 — C o n t i n u e d
Millions of dollars except as noted
All states2
Item
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
Federal funds purchased and securities sold under agreements to
repurchase
Depository institutions in the United States
Other
Other borrowed money
Owed to nonrelated commercial banks in United States (including
their IBFs)
Owed to U.S. offices of nonrelated U.S. banks
Owed to U.S. branches and agencies of nonrelated
foreign banks
Owed to nonrelated banks in foreign countries
Owed to foreign branches of nonrelated U.S. banks
Owed to foreign offices of nonrelated foreign banks
Owed to others
California
New York
Illinois
Total
including
IBFs3
IBFs
only3
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
211,984
32,043
179,941
79,191
20,375
3,867
16,508
16,880
195,675
24,117
171,558
68,341
14,434
2,839
11,595
13,462
914
602
311
2,755
254
239
15
2,580
7,374
3,671
3,704
4,967
1,488
520
968
759
13,355
7,337
3,797
917
12,052
6,915
3,206
832
509
198
376
85
489
189
170
0
6,017
11,916
957
10,959
53,921
2,880
10,378
802
9,576
2,705
5,137
9,610
782
8,828
46,679
2,374
8,220
690
7,530
2,037
311
1,566
132
1,434
679
291
1,536
112
1,424
668
300
591
0
591
3,888
170
589
0
589
0
800
101,361
747
179
13
4,478
All other liabilities
Branch or agency liability on acceptances executed and
outstanding
Trading liabilities
Other liabilities to nonrelated parties
109,937
780
78,117
31,041
n.a.
Net due to related depository institutions5
Net due to head office and other related depository institutions5
Net due to establishing entity, head office, and other related
depository institutions5
118,437
118,437
13,253
n.a.
448
72,344
28,569
n.a.
95,342
95,342
12,831
n.a.
n.a.
7,671
7,671
13,253
n.a.
12,831
n.a.
46
754
45
702
45
15
119
n.a.
0
13
115
n.a.
115
258
2,975
1,245
3,664
3,664
n.a.
3
n.a.
1
2
42
n.a.
42
MEMO
125
126
127
128
129
130
131
Holdings of own acceptances included in commercial and
industrial loans
Commercial and industrial loans with remaining maturity of one year
or less (excluding those in nonaccrual status)
Predetermined interest rates
Floating interest rates
Commercial and industrial loans with remaining maturity of more
than one year (excluding those in nonaccrual status)
Predetermined interest rates
Floating interest rates
Footnotes appear at end of table.
575
n.a.
353
n.a.
1
n.a.
134
n.a.
84,079
32,544
51,534
n.a.
n.a.
n.a.
61,891
19,752
42,139
n.a.
n.a.
n.a.
4,316
2,013
2,303
n.a.
n.a.
n.a.
9,619
6,859
2,760
n.a.
n.a.
n.a.
94,298
16,826
77,473
n.a.
n.a.
n.a.
82,897
15,309
67,588
n.a.
n.a.
n.a.
2,976
424
2,552
n.a.
n.a.
n.a.
3,990
425
3,565
n.a.
n.a.
n.a.
U.S. Branches and Agencies
4.30
A69
A S S E T S A N D L I A B I L I T I E S of U.S. B r a n c h e s a n d A g e n c i e s of F o r e i g n B a n k s , D e c e m b e r 31, 2 0 0 2 ' — C o n t i n u e d
Millions of dollars except as noted
All states2
Item
132 Components of total nontransaction accounts,
included in total deposits and credit balances
133
Time deposits of $ 100,000 or more
134
Time CDs in denominations of $100,000 or more
with remaining maturity of more than 12 months
New York
Total
excluding
IBFs3
IBFs
only3
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
413,231
396,718
n.a.
n.a.
356,113
341,029
n.a.
n.a.
4,063
4,054
n.a.
n.a.
11,276
11,226
n.a.
n.a.
16,513
n.a.
15,084
n.a.
9
n.a.
51
n.a.
All states2
Total
including
IBFs3
135 Immediately available funds with a maturity greater than one day
included in other borrowed money
136 Number of reports filed6
37,357
289
1. Data are aggregates of categories reported on the quarterly form FFIEC 002, "Report of
Assets and Liabilities of U.S. Branches and Agencies of Foreign 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 filed 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. 11 tables are 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 that no IBF data have been reported for that item,
Illinois
California
New York
IBFs
only3
n.a.
0
Illinois
California
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
34,359
154
n.a.
0
1,777
56
n.a.
0
Total
including
IBFs
345
18
IBFs
only
n.a.
0
either 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 any, due from or owed to related
banking institutions in the United States and in foreign countries (see note 5). On the former
monthly branch and agency report, available through the G. 11 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 G. 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 both directly and indirectly).
6. In some cases, two or more offices of a foreign bank within the same metropolitan area
file a consolidated report.
A70
Federal Reserve Bulletin • May 2003
Index to Statistical Tables
References are to pages A3-A69, although the prefix 'A" is omitted in this index.
ACCEPTANCES, bankers (See Bankers acceptances)
Assets and liabilities (See also Foreigners)
Commercial banks, 15-21, 58-59
Domestic finance companies, 30, 31
Federal Reserve Banks, 10
Foreign banks, U.S. branches and agencies, 66-9
Foreign-related institutions, 20
Automobiles
Consumer credit, 34
Production, 42, 43
BANKERS acceptances, 5, 10
Bankers balances, 15-21, 66-9 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 29
Rates, 23
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 40, 41
Capital accounts
Commercial banks, 15-21, 58-59
Federal Reserve Banks, 10
Certificates of deposit, 23
Commercial and industrial loans
Commercial banks, 15-21, 58-59, 66-9
Weekly reporting banks, 17, 18
Commercial banks
Assets and liabilities, 15-21, 58-59
Commercial and industrial loans, 15-21, 58-59, 60-5
Consumer loans held, by type and terms, 34, 60-5
Real estate mortgages held, by holder and property, 33
Terms of lending, 58-59
Time and savings deposits, 4
Commercial paper, 22, 23, 30
Condition statements (See Assets and liabilities)
Consumer credit, 34
Corporations
Security issues, 29, 55
Credit unions, 34
Currency in circulation, 5, 13
Customer credit, stock market, 24
DEBT (See specific types of debt or securities)
Demand deposits, 15-21
Depository institutions
Reserve requirements, 8
Reserves and related items, 4—6, 12, 58-59
Deposits (See also specific types)
Commercial banks, 4, 15-21, 58-59
Federal Reserve Banks, 5, 10
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Federal Land Banks, 33
Federal National Mortgage Association, 28, 32, 33
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 5, 10, 11, 25
Federal Reserve credit, 5, 6, 10, 12
Federal Reserve notes, 10
Federally sponsored credit agencies, 28
Finance companies
Assets and liabilities, 30
Business credit, 31
Loans, 34
Paper, 22, 23
Float, 5
Flow of funds, 35-9
Foreign banks, U.S. branches and agencies, 66-9
Foreign currency operations, 10
Foreign deposits in U.S. banks, 5
Foreign exchange rates, 56
Foreign-related institutions, 20
Foreigners
Claims on, 46, 49-51, 53
Liabilities to, 45-8, 52, 54, 55
GOLD
Certificate account, 10
Stock, 5, 45
Government National Mortgage Association, 28, 32, 33
INDUSTRIAL production, 42, 43
Insurance companies, 25, 33
Interest rates
Bonds, 23
Commercial banks, 60-5
Consumer credit, 34
Federal Reserve Banks, 7
Money and capital markets, 23
Mortgages, 32
Prime rate, 22, 60-5
International capital transactions of United States, 44-55
International organizations, 46, 47, 49, 52, 53
Investment companies, issues and assets, 30
Investments (See also specific types)
Commercial banks, 4, 15-21, 60-5
Federal Reserve Banks, 10, 11
Financial institutions, 33
EURO, 56
LIFE insurance companies (See Insurance companies)
Loans (See also specific types)
Commercial banks, 15-21, 58-59, 60-5
Federal Reserve Banks, 5-7, 10, 11
Financial institutions, 33
Foreign banks, U.S. branches and agencies, 66-9
Insured or guaranteed by United States, 32, 33
FARM mortgage loans, 33
Federal agency obligations, 5, 9-11, 26, 27
Federal credit agencies, 28
Federal finance
Debt subject to statutory limitation, and types and ownership of
gross debt, 25
Federal Financing Bank, 28
Federal funds, 23
Federal Home Loan Banks, 28
Federal Home Loan Mortgage Corporation, 28, 32, 33
Federal Housing Administration, 28, 32, 33
MANUFACTURING
Capacity utilization, 40, 41
Production, 42, 43
Margin requirements, 24
Member banks, reserve requirements, 8
Mining production, 43
Monetary and credit aggregates, 4, 12
Money and capital market rates, 23
Money stock measures and components, 4, 13
Mortgages (See Real estate loans)
Mutual funds, 13, 30
A71
Mutual savings banks (See Thrift institutions)
OPEN market transactions, 9
PRICES
Stock market, 24
Prime rate, 22, 60-5
Production, 42, 43
REAL estate loans
Banks, 15-21, 33
Terms, yields, and activity, 32
Type and holder and property mortgaged, 33
Reserve requirements, 8
Reserves
Commercial banks, 15-21
Depository institutions, 4-6
Federal Reserve Banks, 10
U.S. reserve assets, 45
Residential mortgage loans, 32, 33
Retail credit and retail sales, 34
SAVING
Flow of funds, 33, 34, 35-9
Saving deposits (See Time and savings deposits)
Savings institutions, 33, 34, 35-9
Securities (See also specific types)
Federal and federally sponsored credit agencies, 28
Foreign transactions, 54
New issues, 29
Prices, 24
Special drawing rights, 5, 10, 44, 45
State and local governments
Holdings of U.S. government securities, 25
New security issues, 29
Rates on securities, 23
Stock market, selected statistics, 24
Stocks (See also Securities)
New issues, 29
Prices, 24
Student Loan Marketing Association, 28
THRIFT Institutions, 4 (See also Credit unions and Savings
institutions)
Time and savings deposits, 4, 13, 15-21, 58-59
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 10
US. GOVERNMENT balances
Commercial bank holdings, 15-21
Treasury deposits at Reserve Banks, 5, 10
U.S. government securities
Bank holdings, 15-21, 25
Dealer transactions, positions, and financing, 27
Federal Reserve Bank holdings, 5, 10, 11, 25
Foreign and international holdings and transactions, 10, 25, 55
Open market transactions, 9
Outstanding, by type and holder, 25, 26
Rates, 23
U.S. international transactions, 44-55
Utilities, production, 43
VETERANS Affairs, Department of, 32, 33
WEEKLY reporting banks, 17, 18
YIELDS (See Interest rates)
A72
Federal Reserve Bulletin • May 2003
Federal Reserve Board of Governors
and Official Staff
A L A N GREENSPAN, Chairman
ROGER W . FERGUSON, JR., Vice
OFFICE OF BOARD
Chairman
MEMBERS
DIVISION
DONALD J. WINN, Assistant to the Board and Director
LYNN S. FOX, Assistant to the Board
MICHELLE A . SMITH, Assistant
EDWARD M . GRAMLICH
SUSAN SCHMIDT BIES
to the
Board
WINTHROP P. HAMBLEY, Deputy Congressional Liaison
JOHN LOPEZ, Special Assistant to the Board
ROSANNA PIANALTO-CAMERON, Special Assistant to the Board
DAVID W. SKIDMORE, Special Assistant to the Board
OF INTERNATIONAL
K A R E N H . JOHNSON,
DAVID H . HOWARD, Deputy
Director
THOMAS A . CONNORS, Associate
Director
DALE W. HENDERSON, Senior Adviser
RICHARD T. FREEMAN, Deputy Associate Director
STEVEN B. KAMIN, Deputy Associate Director
WILLIAM L. HELKIE, Senior
JON W. FAUST, Assistant
LEGAL
DIVISION
OFFICE
OF THE
JENNIFER J . JOHNSON,
Adviser
Director
JOSEPH E. GAGNON, Assistant
J. VIRGIL MATTINGLY, JR., General Counsel
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
STEPHANIE MARTIN, Associate General Counsel
KATHLEEN M. O'DAY, Associate General Counsel
ANN E. MISBACK, Assistant General Counsel
STEPHEN L. SICILIANO, Assistant General Counsel
KATHERINE H. WHEATLEY, Assistant General Counsel
CARY K. WILLIAMS, Assistant General Counsel
SECRETARY
Secretary
ROBERT DEV. FRIERSON, Deputy
MARGARET M . SHANKS, Assistant
Secretary
Secretary
FINANCE
Director
W I L L E N E A . JOHNSON,
Director
Adviser
MICHAEL P. LEAHY, Assistant
D . NATHAN SHEETS, Assistant
RALPH W. TRYON, Assistant
Director
Director
Director
DIVISION OF RESEARCH AND STATISTICS
DAVID J . STOCKTON,
Director
EDWARD C. ETTIN, Deputy
Director
DAVID W. WILCOX, Deputy
Director
MYRON L. KWAST, Associate
Director
STEPHEN D . OLINER, Associate
Director
PATRICK M . PARKINSON, Associate
Director
LAWRENCE SLIFMAN, Associate
Director
CHARLES S. STRUCKMEYER, Associate
Director
JOYCE K. ZICKLER, Deputy Associate
DIVISION OF BANKING
AND
SUPERVISION
REGULATION
RICHARD SPILLENKOTHEN,
Director
STEPHEN C. SCHEMERING, Deputy
Director
HERBERT A. BIERN, Senior Associate Director
ROGER T. COLE, Senior Associate Director
WILLIAM A. RYBACK, Senior Associate Director
GERALD A . EDWARDS, JR., Associate
Director
STEPHEN M . HOFFMAN, JR., Associate
Director
JAMES V. HOUPT, Associate
Director
JACK P. JENNINGS, Associate
Director
MICHAEL G. MARTINSON, Associate
Director
MOLLY S. WASSOM, Associate
Director
HOWARD A. AMER, Deputy Associate Director
NORAH M. BARGER, Deputy Associate Director
BETSY CROSS, Deputy Associate Director
DEBORAH P. BAILEY, Assistant
Director
BARBARA J. BOUCHARD, Assistant
Director
ANGELA DESMOND, Assistant
Director
JAMES A . EMBERSIT, Assistant
Director
CHARLES H. HOLM, Assistant
Director
WILLIAM G . SPANIEL, Assistant
Director
DAVID M . WRIGHT, Assistant
Director
WILLIAM C. SCHNEIDER, JR., Project Director,
National Information Center
Director
J. NELLIE LIANG, Assistant
Director
S. WAYNE PASSMORE, Assistant
Director
DAVID L. REIFSCHNEIDER, Assistant
Director
JANICE SHACK-MARQUEZ, Assistant
Director
WILLIAM L. WASCHER III, Assistant
Director
MARY M. WEST, Assistant
Director
A L I C E PATRICIA W H I T E , Assistant
Director
GLENN B. CANNER, Senior Adviser
DAVID S. JONES, Senior Adviser
THOMAS D . SIMPSON, Senior
DIVISION OF MONETARY
VINCENT R . REINHART,
DAVID E. LINDSEY, Deputy
BRIAN F. MADIGAN, Deputy
Adviser
AFFAIRS
Director
Director
Director
WILLIAM C. WHITESELL, Deputy Associate
Director
JAMES A . CLOUSE, Assistant
Director
WILLIAM B. ENGLISH, Assistant
Director
RICHARD D . PORTER, Senior
Adviser
NORMAND R.V. BERNARD, Special Assistant to the Board
A73
M A R K W . OLSON
B E N S . BERNANKE
DONALD L . KOHN
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
AND PAYMENT
DOLORES S . SMITH,
LOUISE L . ROSEMAN,
DIVISION
Director
GLENN E. LONEY, Deputy
Director
SANDRA F. BRAUNSTEIN, Senior Associate
ADRIENNE D . HURT, Associate
Director
Director
IRENE S H A W N M C N U L T Y , Associate
Director
JAMES A. MICHAELS, Assistant
Director
TONDA E. PRICE, Assistant
Director
OFFICE OF
STAFF
DIRECTOR
FOR
Director
SHEILA CLARK, EEO Programs
Director
DIVISION
WILLIAM R . JONES,
Director
H. FAY PETERS, Deputy
Director
STEPHEN J. CLARK, Associate
Director
DARRELL R. PAULEY, Associate
Director
DAVID L. WILLIAMS, Associate
Director
CHRISTINE M . FIELDS, Assistant
Director
BILLY J. SAULS, Assistant
Director
DONALD A . SPICER, Assistant
Director
DIVISION
OF INFORMATION
M A R I A N N E M . EMERSON,
TECHNOLOGY
Director
MAUREEN T. HANNAN, Deputy
Director
TILLENA G. CLARK, Assistant
Director
GEARY L. CUNNINGHAM, Assistant
Director
WAYNE A. EDMONDSON, Assistant
Director
Po KYUNG KIM, Assistant
Director
SUSAN F. MARYCZ, Assistant
SHARON L. MOWRY, Assistant
RAYMOND ROMERO, Assistant
ROBERT F. TAYLOR, Assistant
BANK
OPERATIONS
SYSTEMS
Director
PAUL W. BETTGE, Associate
Director
JEFFREY C. MARQUARDT, Associate
Director
KENNETH D. BUCKLEY, Assistant
Director
JOSEPH H . HAYES, JR., Assistant
Director
EDGAR A . MARTINDALE III, Assistant
Director
MARSHA W. REIDHILL, Assistant
Director
JEFF J. STEHM, Assistant
Director
JACK K. WALTON II, Assistant
Director
MANAGEMENT
STEPHEN R. MALPHRUS, Staff
MANAGEMENT
OF RESERVE
Director
Director
Director
Director
OFFICE OF THE INSPECTOR
GENERAL
BARRY R. SNYDER, Inspector General
DONALD L. ROBINSON, Deputy Inspector General
A74
Federal Reserve Bulletin • May 2003
Federal Open Market Committee
and Advisory Councils
FEDERAL
OPEN
MARKET
COMMITTEE
MEMBERS
A L A N GREENSPAN, Chairman
WILLIAM J. M C D O N O U G H , Vice
SUSAN SCHMIDT BIES
EDWARD M . GRAMLICH
B E N S. BERNANKE
JACK G U Y N N
M A R K W . OLSON
J. ALFRED BROADDUS, JR.
DONALD L . KOHN
ROBERT T . PARRY
Chairman
M I C H A E L H . MOSKOW
ROGER W . FERGUSON, JR.
ALTERNATE
THOMAS M . HOENIG
SANDRA PIANALTO
CATHY E . M I N E H A N
WILLIAM POOLE
MEMBERS
JAMIE B . STEWART, JR.
STAFF
VINCENT R. REINHART, Secretary
NORMAND R.V. BERNARD, Deputy
GARY P. GILLUM, Assistant
CHRISTINE M . CUMMING, Associate
and
Economist
Secretary
ROBERT A. EISENBEIS, Associate
Secretary
MICHELLE A. SMITH, Assistant
MARVIN S. GOODFRIEND, Associate
Economist
DAVID H. HOWARD, Associate
Economist
WILLIAM C. HUNTER, Associate
Economist
Secretary
J. VIRGIL MATTINGLY, JR., General Counsel
.THOMAS C. BAXTER, JR., Deputy General Counsel
KAREN H . JOHNSON,
Economist
DAVID J . STOCKTON,
Economist
THOMAS A . CONNORS, Associate
JOHN P. JUDD, Associate
ADVISORY
Economist
DAVID E. LINDSEY, Associate
Economist
CHARLES S. STRUCKMEYER, Associate
Economist
DAVID W. WILCOX, Associate
Economist
Economist
DINO KOS, Manager, System Open Market
FEDERAL
Economist
Economist
Account
COUNCIL
L . PHILLIP HUMANN,
President
ALAN G. MCNALLY, Vice President
ALAN G. MCNALLY, Seventh District
DAVID W. KEMPER, Eighth District
JERRY A. GRUNDHOFER, Ninth District
CAMDEN R. FINE, Tenth District
GAYLE M. EARLS, Eleventh District
MICHAEL E. O'NEILL, Twelfth District
DAVID A. SPINA, First District
DAVID A. COULTER, Second District
RUFUS A. FULTON, JR., Third District
MARTIN G. MCGUINN, Fourth District
FRED L. GREEN III, Fifth District
L. PHILLIP HUMANN, Sixth District
JAMES ANNABLE,
WILLIAM J. KORSVIK,
Co-Secretary
Co-Secretary
A75
CONSUMER
ADVISORY
COUNCIL
RONALD A. REITER, San Francisco, California, Chairman
AGNES BUNDY SCANLAN, Boston, Massachusetts, Vice Chairman
A N T H O N Y S . ABBATE, S a d d l e b r o o k , N e w J e r s e y
J. PATRICK LIDDY, C i n c i n n a t i , O h i o
JANIE BARRERA, S a n A n t o n i o , T e x a s
R U H I MAKER, R o c h e s t e r , N e w Y o r k
KENNETH P. BORDELON, Baton Rouge, Louisiana
SUSAN BREDEHOFT, Cherry Hill, New Jersey
OSCAR MARQUIS, Park Ridge, Illinois
ELSIE MEEKS, Kyle, South Dakota
M A N U E L CASANOVA, JR., B r o w n s v i l l e , T e x a s
PATRICIA M C C O Y , C a m b r i d g e , M a s s a c h u s e t t s
CONSTANCE K . CHAMBERLIN, R i c h m o n d , V i r g i n i a
MARK PINSKY, P h i l a d e l p h i a , P e n n s y l v a n i a
ROBIN COFFEY, C h i c a g o , I l l i n o i s
ELIZABETH RENUART, B o s t o n , M a s s a c h u s e t t s
DAN DIXON, Washington, District of Columbia
DEBRA S . REYES, T a m p a , F l o r i d a
THOMAS FITZGIBBON, C h i c a g o , I l l i n o i s
LARRY HAWKINS, H o u s t o n , T e x a s
BENSON ROBERTS, Washington, District of Columbia
BENJAMIN ROBINSON III, Charlotte, North Carolina
DIANE THOMPSON, East St. Louis, Illinois
HUBERT VAN TOL, Sparta, Wisconsin
W . JAMES K I N G , C i n c i n n a t i , O h i o
C L I N T WALKER, W i l m i n g t o n , D e l a w a r e
JAMES GARNER, B a l t i m o r e , M a r y l a n d
CHARLES GATSON, Kansas City, Missouri
EARL JAROLIMEK, Fargo, North Dakota
THRIFT INSTITUTIONS
ADVISORY
COUNCIL
KAREN L. MCCORMICK, Port Angeles, Washington, President
WILLIAM J. SMALL, Defiance, Ohio, Vice President
MICHAEL J. BROWN, SR., F t . P i e r c e , F l o r i d a
KIRK KORDELESKI, B e t h p a g e , N e w Y o r k
JOHN B . DICUS, T o p e k a , K a n s a s
D. TAD LOWREY, Brea, California
RICHARD J. DRISCOLL, A r l i n g t o n , T e x a s
GEORGE W . NISE, P h i l a d e l p h i a , P e n n s y l v a n i a
CURTIS L. HAGE, Sioux Falls, South Dakota
KEVIN E . PIETRINI, V i r g i n i a , M i n n e s o t a
O L A N O . JONES, JR., K i n g s p o r t , T e n n e s s e e
ROBERT F. STOICO, S w a n s e a , M a s s a c h u s e t t s
A76
Federal Reserve Bulletin • May 2003
Federal Reserve Board Publications
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1993
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REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
ANNUAL
PERCENTAGE
RATE
TABLES
(Truth
in
Lending—
Regulation Z) Vol I (Regular Transactions). 1969. 100 pp.
Vol. II (Irregular Transactions). 1969. 116 pp. Each volume
$5.00.
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AFFECTING THE FEDERAL RESERVE SYSTEM, a s a m e n d e d
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T H E U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A M U L T I -
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EDITION.
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FINANCIAL
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FINANCIAL SECTORS IN O P E N ECONOMIES: EMPIRICAL ANALY-
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EDUCATION
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Short pamphlets suitable for classroom
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use. Multiple
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are
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
A Guide to Business Credit for Women, Minorities, and Small
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Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancings
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
How to File a Consumer Complaint about a Bank (also available
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In Plain English: Making Sense of the Federal Reserve
Making Sense of Savings
Welcome to the Federal Reserve
When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit
Keys to Vehicle Leasing (also available in Spanish)
Looking for the Best Mortgage (also available in Spanish)
Privacy Choices for Your Personal Financial Information
When Is Your Check Not a Check?
All
STAFF STUDIES: Only Summaries Printed in the
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Studies and papers on economic and financial subjects that are of
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Publications.
1 6 7 . A SUMMARY OF MERGER PERFORMANCE STUDIES IN B A N K ING, 1 9 8 0 - 9 3 , AND AN ASSESSMENT OF THE " O P E R A T I N G
PERFORMANCE" AND " E V E N T S T U D Y " METHODOLOGIES,
by Stephen A. Rhoades. July 1994. 37 pp.
1 7 0 . T H E COST OF IMPLEMENTING CONSUMER FINANCIAL R E G U LATIONS: A N ANALYSIS OF EXPERIENCE WITH THE T R U T H
IN SAVINGS ACT, by Gregory Elliehausen and Barbara R.
Lowrey. December 1997. 17 pp.
1 7 1 . T H E COST OF B A N K REGULATION: A R E V I E W OF THE E V I -
DENCE, by Gregory Elliehausen. April 1998. 35 pp.
1 7 2 . USING SUBORDINATED D E B T AS AN INSTRUMENT OF M A R -
1 5 9 . N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, b y N e l l i e L i a n g a n d
Donald Savage. February 1990. 12 pp.
1 6 0 . BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND M E D I U M - S I Z E D BUSINESSES, b y
Gregory E. Elliehausen and John D. Wolken. September
1990. 35 pp.
1 6 2 . EVIDENCE ON THE S I Z E OF BANKING MARKETS FROM M O R T GAGE LOAN RATES IN T W E N T Y CITIES, b y S t e p h e n A .
Rhoades. February 1992. 11 pp.
164. THE
1989-92
CREDIT
CRUNCH
FOR R E A L
ESTATE,
by
James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.
KET DISCIPLINE, by Study Group on Subordinated Notes
and Debentures, Federal Reserve System. December 1999.
6 9 pp.
1 7 3 . IMPROVING PUBLIC DISCLOSURE IN BANKING,
by
Study
Group on Disclosure, Federal Reserve System. March 2000.
3 5 pp.
1 7 4 . B A N K MERGERS AND BANKING STRUCTURE IN THE U N I T E D
STATES, 1 9 8 0 - 9 8 , b y S t e p h e n R h o a d e s . A u g u s t 2 0 0 0 . 3 3 pp.
1 7 5 . T H E FUTURE OF RETAIL ELECTRONIC PAYMENTS SYSTEMS:
INDUSTRY INTERVIEWS AND ANALYSIS, F e d e r a l R e s e r v e
Staff, for the Payments System Development Committee,
Federal Reserve System. December 2002. 27 pp.
A78
Federal Reserve Bulletin • May 2003
Maps of the Federal Reserve System
a
—
f
t
l
B
M
^^^^^SmSSBmJSBSSmKm
1211m
l
l
W
i
l
M
—
f
c
t
k
.
BOSTON
MM**.
_
CHICAGO
Q ' f l f j E W YORK
•
t ^ J L s U
4
——
HHlMfeAV
•
S T . LOUIS
°
^DELPHIA
RICHMOND
lllillillllil
6 •
An
AM A
JBHP
Mm
Wmm
ALASKA
LEGEND
Both pages
• Federal Reserve Bank city
• Board of Governors of the Federal
Reserve System, Washington, D.C.
Facing page
• Federal Reserve Branch city
— Branch boundary
NOTE
The Federal Reserve officially identifies Districts by number and Reserve Bank city (shown on both pages) and by
letter (shown on the facing page).
In the 12th District, the Seattle Branch serves Alaska,
and the San Francisco Bank serves Hawaii.
The System serves commonwealths and territories as
follows: the New York Bank serves the Commonwealth
of Puerto Rico and the U.S. Virgin Islands; the San Francisco Bank serves American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. The Board of
Governors revised the branch boundaries of the System
most recently in February 1996.
A79
2-B
1-A
4-D
3-C
5-E
Pittsburgh
^
NH
/
Buffalo
MA
^
^
Baltimo»i MD
PA
/
* Cincinnati
Wk
/
KY
^
^ R I
BOSTON
N E W YORK
PHILADELPHIA
7-G
ATLANTA
RICHMOND
CLEVELAND
S-H
- i
lsville
ST. LOUIS
CHICAGO
9-1
MM
MI
•m
MINNEAPOLIS
10-J
12-L
CO
Omaha®
MO
Den
KM
Oklahoma
Cit\
OK
KANSAS CITY
11-K
NM
El Paso
San Antonio
' '"'AZ
DALLAS
S A N FRANCISCO
A80
Federal Reserve Bulletin • May 2003
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON*
02106
James J. Norton
Samuel O. Thier
Cathy E. Minehan
Paul M. Connolly
NEW YORK*
10045
Peter G. Peterson
John E. Sexton
Marguerite D. Hambleton
William J. McDonough
Jamie B. Stewart, Jr.
Buffalo
14240
PHILADELPHIA
19105
Glenn A. Schaeffer
Ronald J. Naples
Anthony M. Santomero
William H. Stone, Jr.
CLEVELAND*
44101
Sandra Pianalto
Robert Christy Moore
Cincinnati
Pittsburgh
45201
15230
Robert W. Mahoney
Charles E. Bunch
Dennis C. Cuneo
Roy W. Haley
RICHMOND*
23219
J. Alfred Broaddus, Jr.
Walter A. Varvel
Baltimore
Charlotte
21203
28230
Wesley S. Williams, Jr.
Vacancy
Owen E. Herrnstadt
Michael A. Almond
Paula Lovell
David M. Ratcliffe
W. Miller Welborn
William E. Flaherty
Brian E. Keeley
Whitney Johns Martin
Dave Dennis
Jack Guynn
Patrick K. Barron
Robert J. Darnall
W. James Farrell
Timothy D. Leuliette
Michael H. Moskow
Gordon R. G. Werkema
Charles W. Mueller
Walter L. Metcalfe, Jr.
Vick M. Crawley
Norman Pfau, Jr.
Gregory M. Duckett
William Poole
W. LeGrande Rives
Ronald N. Zwieg
Linda Hall Whitman
Thomas O. Markle
Gary H. Stern
James M. Lyon
Richard H. Bard
Vacancy
Robert M. Murphy
Patricia B. Fennell
A.F. Raimondo
Thomas M. Hoenig
Richard K. Rasdall
Ray L. Hunt
Patricia M. Patterson
Gail Darling
Lupe Fraga
Ron R. Harris
Robert D. McTeer, Jr.
Helen E. Holcomb
George M. Scalise
Sheila D. Harris
William D. Jones
Karla S. Chambers
H. Roger Boyer
Mic R. Dinsmore
Robert T. Parry
John F. Moore
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35242
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75201
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Vice President
in charge of branch
Barbara L. Walter1
Barbara B. Henshaw
Robert B. Schaub
William J. Tignanelli1
Dan M. Bechter1
James M. McKee 1
Lee C. Jones
Christopher L. Oakley
James T. Curry III
Melvyn K. Purcell 1
Robert J. Musso 1
Glenn Hansen 1
Robert A. Hopkins
Thomas A. Boone
Martha Perine Beard
Samuel H. Gane
Maryann Hunter 1
Dwayne E. Boggs
Steven D. Evans
Robert W. Gilmer 3
Robert Smith III 1
James L. Stull 1
Mark L. Mullinix 2
Richard B. Hornsby
Andrea P. Wolcott
D.Kerry Webb1
*Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424;
Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee,
Wisconsin 53202; and Peoria, Illinois 61607.
1. Senior Vice President.
2. Executive Vice President
3. Acting
@FedFRASER