Full text of Federal Reserve Bulletin : October 1993

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VOLUME 79 •

N U M B E R 10 •

OCTOBER 1 9 9 3

FEDERAL RESERVE

BULLETIN

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE

Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood • Donald L. Kohn
• J. Virgil Mattingly, Jr. • Michael J. Prell • Richard Spillenkothen • Edwin M. Truman

The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions
expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics
Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.




Table of Contents
913 U.S. BRANCHES AND AGENCIES OF
FOREIGN BANKS: A NEW LOOK
Branches and agencies of foreign banks have
been active in U.S. banking markets for the
past two decades. At year-end 1992, the total
assets of branches and agencies of non-U.S.
banks located in the United States exceeded
$700 billion. Data now available from a new
supplemental statistical report, used for the
first time in March 1993, indicate that
branches of non-U.S. banks located in offshore
banking centers had assets in excess of
$300 billion, including almost $80 billion in
business loans to U.S. borrowers. The new
data suggest that banks headquartered in countries other than Japan played a larger role in
U.S. markets than was previously estimated.
926 TREASURY AND FEDERAL RESERVE
FOREIGN EXCHANGE OPERATIONS

The dollar appreciated against most major currencies during the May-July period under
review, more than reversing its decline earlier
in the year. The one major exception was the
dollar's performance relative to the Japanese
yen: The dollar extended its earlier decline
against this currency by dropping 5.8 percent
and hitting successive new lows in June and
July.

motive—a need to use trade credit because
credit from other sources is limited—
apparently prompt small businesses to use
trade credit to pay for purchases, and that each
motive accounts for a sizable portion of trade
credit demand.
931 INDUSTRIAL PRODUCTION AND
CAPACITY UTILIZATION FOR JULY

1993

Industrial production, which edged down in
May and June, increased 0.4 percent in July.
Utilization of total industrial capacity rose to
81.5 percent, a level about equal to the average rate for the first half of the year.
934 STATEMENT TO THE CONGRESS

William L. Rutledge, Senior Vice President,
Federal Reserve Bank of New York, focuses
on the supervisory process the Federal
Reserve Bank of New York has followed in
implementing the Community Reinvestment
Act (CRA), including trends in the ways in
which banks have been satisfying their CRA
obligations, before the Subcommittee on Consumer Credit and Insurance and the Subcommittee on General Oversight, Investigations,
and the Resolution of Failed Financial Institutions of the House Committee on Banking,
Finance and Urban Affairs, August 10, 1993.

929 STAFF STUDIES
Trade credit is an important source of funds
for business customers, yet little is known
about the reasons for its use. The authors of
The Demand for Trade Credit: An Investigation of Motives for Trade Credit Use by Small
Businesses drew on data from the National
Survey of Small Business Finances to test two
theories. Their analysis indicates that both a
transaction motive—a desire to realize economies in cash management—and a financing




937 ANNOUNCEMENTS
Proposal to amend Regulation A to implement
section 142 of the Federal Deposit Insurance
Corporation Improvement Act of 1991 regarding limits on Federal Reserve Bank credit;
proposed amendments to Regulation S regarding enhanced recordkeeping requirements for
certain wire transfers by financial institutions.
Change in Board staff.

938 MINUTES OF THE FEDERAL OPEN
MARKET COMMITTEE MEETING
At its meeting on July 6-7,1993, the Committee voted to lower the ranges that it had established in February for growth of M2 and M3
to ranges of 1 to 5 percent and 0 to 4 percent
respectively, measured from the fourth quarter
of 1992 to the fourth quarter of 1993. The
Committee also voted to reduce the monitoring range for growth of total domestic nonfinancial debt for the year to 4 to 8 percent.
For the intermeeting period ahead, the
Committee adopted a directive that called for
maintaining the existing degree of pressure on
reserve positions and that retained a bias
toward possible firming of reserve conditions
during the intermeeting period. Accordingly,
in the context of the Committee's long-run
objectives for price stability and sustainable
economic growth, and giving careful consideration to economic, financial, and monetary
developments, the directive indicated that
slightly greater reserve restraint would be
acceptable or slightly lesser reserve restraint
might be acceptable during the intermeeting
period. The reserve conditions contemplated
at this meeting were expected to be consistent
with modest growth in M2 and M3 over the
third quarter.




949 LEGAL DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and
pending cases.
AI FINANCIAL AND BUSINESS STATISTICS
These tables reflect data available as of
August 26, 1993.
A3 GUIDE TO TABULAR PRESENTATION
A4 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A69 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
A70 INDEX TO STATISTICAL TABLES
A72 BOARD OF GOVERNORS AND STAFF
A74 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A76 FEDERAL RESERVE BOARD
PUBLICATIONS
A78 MAPS OF THE FEDERAL RESERVE
SYSTEM
A80 FEDERAL RESERVE BANKS, BRANCHES,
AND OFFICES

U.S. Branches and Agencies of Foreign Banks:
A New Look
Henry S. Terrell, of the Board's Division of International Finance, prepared this article.
Branches and agencies of non-U.S. banks have
been active in U.S. banking markets for the past
two decades. Initially, these U.S.-based offices of
foreign banks served primarily the credit and other
banking needs of U.S. affiliates of their homecountry customers. They also tended to be active in
the broad domestic U.S. interbank market, using
that market as a source of funds, an outlet for
investments, and an element in their general liquidity management. In recent years, many foreign
banks have expanded their customer base by
actively soliciting business from U.S. companies,
competing in terms of price and quality of service,
and in some cases by purchasing loans to U.S.
customers that were originated by U.S. banks. Foreign bank branches and agencies have shown considerable diversity in their approaches to U.S.
markets, and their activities cannot be described
with simple generalizations.

U.S. ACTIVITY OF FOREIGN BANKS, 1973-92:
TWO DECADES OF GROWTH
From year-end 1973, the first year for which the
Federal Reserve collected data, through year-end
1992, the reported assets of branches and agencies
of foreign banks located in the United States grew
from $25 billion to more than $700 billion. Over
the same period, assets at domestic offices of U.S.
banks increased about threefold, to more than
$3 trillion. U.S. branches and agencies of foreign
banks currently account for about 18 percent of the
assets of all banking offices in the United States, up
from 3 percent at year-end 1973.
Asset growth did not proceed at an even rate
over the two decades. Between year-end 1973 and




year-end 1990, the assets of U.S. branches and
agencies of foreign banks grew rapidly, at an average annual rate of nearly 21 percent, and in no year
was asset growth less than 8 percent. Between
year-end 1990 and year-end 1992, in contrast,
annual growth averaged only 6.5 percent. The
slowdown in asset growth occurred against a backdrop of a slowing U.S. economy, an economic
slowdown in the home countries of some of the
banks, and concerns about meeting the enhanced
capital standards required of their consolidated
banking entity. Nevertheless, the growth of assets
of foreign bank branches and agencies in the
United States exceeded the sluggish growth of
assets of domestic offices of U.S. banks, which
increased less than 1 percent over the two years.
The reported slowdown in asset growth at foreign bank branches and agencies between year-end
1990 and year-end 1992 differed widely with
respect to the home countries of these institutions.
Over the two-year period, the assets of U.S. offices
of Japanese banks declined about 8 percent, largely
because of problems at their parent banks resulting
from increasing levels of problem assets and the
impact of the decline in the Japanese stock market
on the value of their equity holdings. By contrast,
the reported assets of U.S. branches and agencies of
banks of other foreign countries increased nearly
45 percent, and their share of total foreign bank
branch and agency assets increased from 40 percent at year-end 1990 to 52 percent at year-end
1992. Not all the rapid asset growth at U.S.
branches and agencies of non-Japanese banks was
due to an expansion of their U.S. business, however; some of the growth reflected the transfer of
business from offshore offices to branches and
agencies located in the United States. These transfers, or rebookings, were largely a response to a
change in the reserve requirements for banking
offices located in the United States: In December

914

Federal Reserve Bulletin • October 1993

1990, the requirement for their large time deposits
and Eurocurrency borrowings was reduced to zero.1
Throughout the two decades of growth, the Federal Reserve collected detailed balance sheet data
for the branches and agencies of foreign banks
located in the United States. Data on deposits and
loans at these offices were included in data on U.S.
monetary and credit aggregates, as U.S. offices of
foreign banks offer deposit and credit services to
nonbank U.S. customers that are virtually identical
to those offered by domestic U.S. banks. Where
appropriate, these balance sheet data also aided in
supervision of these offices and were used in studies of structural competitive issues in U.S. banking
markets. Until March 1993, the data collected by
the Federal Reserve covered only the assets and
liabilities directly on the books of the branches and
agencies of foreign banks located in the United
States; transactions on the books of the offshore
branches were not covered.
CHANGING LEGISLATIVE

ENVIRONMENT

The growth of reported foreign bank activity in
U.S. markets over the 1970s and 1980s led to
enactment of federal legislation governing these
banks' U.S. activities. Before passage of the International Banking Act of 1978 (IBA), the US.
activities of foreign banks were governed only by
state laws. The IBA, in implementing a federal
legislative framework, established a policy of
national treatment for U.S. offices of foreign banks
by (1) limiting any new multistate branching activities to activities more comparable to those of US.
banks, (2) placing the foreign bank offices under
the same reserve requirements that apply to U.S.
banks, (3) limiting foreign bank involvement in
U.S. securities and other US. nonbanking activities, and (4) making federal deposit insurance available to U.S. offices of foreign banks if they chose to
engage in retail banking.2
In 1991, in response to a request by the Federal
Reserve for broader supervisory powers over the
1. For detailed information on such transfers, see David C.
Lund, "Foreign Banking in the United States," in U.S. Department
of Commerce, Foreign Direct Investment in the United States: An

Update (Department of Commerce, June 1993), pp. 40-50.
2. See Sydney J. Key and James M. Brandy, "Implementation
of the International Banking Act," Federal

vol. 65 (October 1979), pp. 785-96.




Reserve

Bulletin,

substantially expanded U.S. activities of foreign
banks, Congress passed the Foreign Bank Supervision Enhancement Act (FBSEA). FBSEA
increased the Federal Reserve's supervisory powers over foreign banks by (1) requiring Federal
Reserve review before a foreign bank enters or
expands in the United States, (2) tightening the
standards for entry and expansion that must be
considered by the Federal Reserve (for example, a
foreign parent bank must be subject to consolidated
home-country supervision before entry or expansion in the United States can be approved),
(3) requiring Federal Reserve Board approval of
U.S. representative offices of foreign banks and,
(4) requiring that each U.S. office of a foreign
bank be examined at least once a year by the
Federal Reserve.3

BANKING FROM OFFSHORE
BANKING CENTERS

For many years, both U.S.-chartered banks and
foreign banks have conducted extensive activities
at branches in offshore banking centers, principally
the Bahamas and the Cayman Islands. The activities of offshore branches of U.S. banks, both in the
aggregate and with respect to transactions with
U.S.-based residents, have been monitored closely
through regular monthly and quarterly statistical
reports collected by the Federal Reserve from all
foreign branches of U.S. banks, including branches
in offshore centers. The data from foreign branches
of U.S. banks serve a variety of purposes, including
improving information on deposits and credit transactions of U.S.-based customers for monetary policy, and in some cases have assisted in the supervision of U.S. banks. Data on overnight Eurodollar
deposits of U.S. residents are included in the US.
monetary aggregate M2, while data on other (term)
Eurodollar deposits held by U.S. residents are
included in the broader US. monetary aggregate
M3.4
3. See Ann E. Misback, "The Foreign Bank Supervision
Enhancement Act of 1991," Federal

Reserve

Bulletin, vol. 79

(January 1993), pp. 1-14.
4. Data for M3 collected by the Federal Reserve are augmented
by data on liabilities to nonbank U.S. residents at offices of nonU.S. banks in the United Kingdom and Canada through statistical
cooperation with the Bank of England and the Bank of Canada.

U.S. Branches and Agencies of Foreign Banks: A New Look

Offshore Branches of U.S. Banks
Over the past decade, the year-end assets of
branches of U.S. banks in the Bahamas and the
Cayman Islands, the two offshore centers where
US. banks conduct the preponderance of their foreign branch transactions with U.S. residents, averaged about $150 billion (table l). 5 Since the late
1980s, about two-thirds of the assets and liabilities
of these branches arose from transactions with US.
residents, mainly the branches' parent banks. Over
the same period, these branches' claims on nonbank U.S. residents averaged only about $20 billion, a figure that has grown little in the past five
years and is quite small relative to total loans to
nondepository institutions by the domestic offices
of U.S. banks of about $1.2 trillion.
The year-end liabilities of branches of U.S. banks
in the Bahamas and the Cayman Islands to nonbank US. residents averaged about $40 billion over
the past decade; dollar-denominated deposits payable in overnight funds accounted for about half
that amount. Offshore branches are an attractive
booking location for deposits for both U.S. banks
and their U.S. customers because in some instances
these deposits are not subject to reserve requirements and deposit insurance premia; avoidance of
the costs of required reserves and deposit insurance
allows the branches to offer higher interest rates on
deposits. Relative to deposits at domestic offices of
5. U.S. banks operate branches in other international banking
centers, such as Hong Kong, Singapore, and London.

1.

US. banks, nonbank U.S. residents' deposits at
offshore branches of U.S. banks are quite small.
Offshore Branches of Foreign Banks
For a number of years, foreign banks have also
offered banking services to nonbank US. residents
from offices outside the United States, including
offices licensed in offshore banking centers. In
many instances, these banking services, though
booked offshore, are marketed to U.S. customers
from offices of the foreign banks located in the
United States. Some of the same general incentives
that induced U.S. residents to place deposits at
offshore branches of U.S. banks existed for making
deposits at offshore offices of non-U.S. banks.
Before the Eurocurrency reserve requirements were
reduced to zero in December 1990, non-U.S. banks
had an additional advantage in booking loans to
U.S. borrowers at offshore branches: Such loans
were not subject to the Federal Reserve's Eurocurrency reserve requirements, whereas loans to U.S.
borrowers booked at foreign branches of US. banks
were potentially subject to the 3 percent Eurocurrency reserve requirement.6 State-licensed
branches and agencies of foreign banks have addi6. Loans to U.S. borrowers by foreign branches of U.S. banks
were subject to the reserve requirement if the U.S. bank was a net
borrower from its foreign branches. If the domestic office of the
U.S. bank was a net lender to its foreign branches, the Eurocurrency
reserves applied only to the excess of foreign branch loans to U.S.
borrowers over net domestic office funding of branches.

Assets and liabilities of branches of U.S. banks in the Bahamas and the Cayman Islands, 1983-93
Billions of dollars

n.a. Not available.




915

SOURCE. Federal Reserve Board.

916

Federal Reserve Bulletin • October 1993

tional incentives for booking transactions offshore,
as some states impose capital equivalence and asset
maintenance requirements, and all foreign banks
have an incentive for booking transactions offshore
when states and localities tax their U.S. activities.
Before 1993, scattered data on the transactions
of non-U.S. banks with U.S. residents from offshore
offices were available, but data were not collected
regularly. In early 1983, the Federal Reserve conducted a one-time survey of loans to and deposits
from nonbank U.S. residents on the books of offshore branches of non-U.S. banks at the end of
1982. Conducted through contacts with the U.S.
branch or agency offices of the foreign bank, the
survey indicated that at the end of 1982, the offshore branches of these offices had $18 billion in
commercial and industrial loans to U.S. borrowers
on their books, compared with about $57 billion on
the books of the branches and agencies located in
the United States. The survey also indicated that
dollar-denominated deposits of nonbank U.S. residents at offshore branches of these non-U.S. banks
amounted to $31.2 billion, about one-third of their
U.S. branch and agency deposit liabilities. Data
collected annually since 1989 by the Banking
Supervision Department of the Cayman Islands
Government also indicate that foreign banks in that
offshore center conduct a large volume of transactions with U.S. residents.

NEW REPORTING REQUIREMENT
FOR FOREIGN BANKS

The volume of transactions at offshore branches of
foreign banks is large, a large proportion of the
transactions are with U.S. residents, and decisionmaking about such matters as credit extension,
interest rate pricing, accounting, and other
customer-related activities often is located at the
banks' U.S. branches or agencies. Therefore, the
Federal Reserve, on behalf of the Federal Financial
Institutions Examination Council (FF1EC), recently
implemented new requirements for reporting on the
offshore activities of non-U.S. banks that have
related U.S. offices. As of March 31, 1993, data on
assets and liabilities of offshore branches of nonU.S. banks that are managed or controlled by a U.S.
branch or agency of the same parent bank must be
reported on a supplement to the regular quarterly



report of assets and liabilities (Call Report) for
branches and agencies (form FFIEC 002s). The
new data are expected to serve some of the same
purposes served by data collected from offshore
branches of U.S. banks. The primary reason for
collecting the data is to improve estimates of
deposits and credits of U.S. residents. The information will be available to supervisory personnel. It
will also contribute to a more accurate estimate of
the size and nationality structure of foreign bank
participation in U.S. markets.
The new quarterly supplements covering the
activities of these branches are filed by U.S.
branches and agencies of foreign banks. To the
extent that the loans and deposits at these offshore
branches are transactions with U.S. customers, they
are virtually indistinguishable from similar loans
and deposits on the books of the banks' U.S.
branches and agencies, except for a booking convention. Therefore, the new data will give a much
more accurate picture of the extent of foreign bank
business with U.S. customers and improve the database on the banking transactions of U.S. residents.
Because some non-U.S. banks that operate offshore branches do not have branches and agencies
in the United States, and because some non-U.S.
banks operating both in the United States and in
offshore centers do not manage or control their
offshore branches from their U.S. offices, the sample of reporting banks, though large, does not cover
all banking transactions with U.S. residents undertaken by all non-U.S. banks in these offshore centers. However, this gap in coverage may not be
significant. The lack of a related U.S. agency or
branch, or the lack of management or control of the
offshore branch from outside the United States, can
be assumed to limit the extent to which these
nonreporting offshore branches of non-U.S. banks
are conducting day-to-day transactions with U.S.based customers.

DATA FROM THE
FIRST QUARTERLY REPORTS

The first quarterly supplemental reports of offshore
activities were received from 132 foreign banking
organizations, including 73 of the world's 100 largest non-U.S. banks. Reported assets and liabilities
of these offshore branches at the end of

U.S. Branches and Agencies of Foreign Banks: A New Look

March 1993 amounted to $329 billion—more than
twice the assets reported by offshore branches of
U.S. banks (table 2). Nine-tenths of this amount

2.

was reported by branches of non-U.S. banks
licensed in the Cayman Islands. Most of the
remainder was reported by branches licensed in the

Assets and liabilities of offshore branches of non-U.S. banks, by location, March 31, 1993 1
Billions of dollars
Location of offshore branch
Account

All
locations

Cayman
Islands

Bahamas

86.3

82.3

4.0

137.7
7.1

125.9
6.2

10.4
.8

5.4
15.4
4.7
10.7
101.1
12.2
2.6
72.1
14.3
3.2

.1
.7
1.1
.2
.9
8.0
.8
1.2
5.6
.5
.5

All other
locations2

ASSETS

Claims on U.S.-domiciled offices of related depository institutions
denominated in U.S. dollars
Claims on all other U.S. addresses denominated in U.S. dollars
Balances due from nonrelated depository institutions
Remaining maturities of one day or under continuing contract
("overnight")
All other maturities ("term")
Securities
U.S. Treasury and federal agencies
Other securities
,
Loans
Real estate
To nonrelated depository institutions
Commercial and industrial
Other
Other claims

1.0
6.1

16.5
4.9
11.6
110.2

13.0
3.8
78.7
15.0
3.7

*

1.4
.1
.1

*
*
*
*

1.3
*
*

1.0
.2
*

Claims on all U.S. addressees denominated in currencies other than
U.S. dollars

10.3

9.7

.5

Claims on home-country addressees denominated in any currency
Related depository institutions
Nonrelated depository institutions
Home-country government and official institutions
Others

41.3
23.3
4.6
7.4
6.0

35.5
4.0
5.3
5.0

5.7
2.0
.6
2.1
1.0

Claims on all other non-U.S. addressees denominated in any currency ..

47.7

37.4

10.2

5.9

5.7

.2

329.0

296.5

31.1

1.4

68.2

62.9

5.0

.3

119.4
28.4

111.5
26.7

7.6
1.6

.3
.1

8.9
19.5
91.0

8.7
18.0
84.8

.2
1.4
6.0

*

27.9
63.1

24.8
60.0

2.9
3.1

*

Liabilities to all U.S. addressees denominated in currencies
other than U.S. dollars

13.6

13.2

.5

*

Liabilities to home-country addressees denominated in any currency ...
Related depository institutions
Nonrelated depository institutions
Home-country government and official institutions
Others

47.2
35.2
3.0
3.0
6.0

39.2
28.4
2.5
2.4
5.9

7.7
6.5
.5
.6
.1

Liabilities to all other non-U.S. addressees denominated in any currency

73.2

62.7

9.8

All other assets
Total assets

21.2

.1
.1
.1

•
*
*

.1
*

LIABILITIES

Liabilities to U.S.-domiciled offices of related depository institutions
denominated in U.S. dollars
Liabilities to all other U.S. addressees denominated in U.S. dollars
To nonrelated depository institutions in the U.S
Remaining maturities of one day or under continuing contract
("overnight")
All other maturities ("term")
To all other U.S. addressees
Remaining maturities of one day or under continuing contract
("overnight")
All other maturities ("term")

All other liabilities
Total liabilities
1. Excludes assets and liabilities of subsidiaiy commercial banks operated
by non-U.S. banks in offshore banking centers. In this and subsequent tables,
components may not sum to totals because of rounding.




917

7.4

7.0

.4

329.0

296.5

31.1

.1
.2
.2

.3
.3

•
*
*

.7
•

1.4

2. Panama, Netherlands Antilles, and Turks and Caicos Islands.
* Less than $50 million.
SOURCE. Federal Financial Institutions Examination Council.

918

Federal Reserve Bulletin • October 1993

Bahamas; very small amounts of activity were
reported by branches in the other offshore
centers—Panama, the Netherlands Antilles, and
Turks and Caicos Islands.
Approximately two-thirds of the total reported
assets of these offshore branches were dollardenominated claims on U.S. residents. The largest
categories of assets were (1) dollar-denominated
claims of $86 billion on the branches' related US.
branches and agencies, mainly intrabank funding
of lending by related U.S. branches and agencies of
Japanese banks, and (2) dollar-denominated commercial and industrial loans to US. companies of
nearly $80 billion, about four times as much as was
reported at the end of 1982 in the Federal Reserve
survey cited earlier. Lending to U.S. businesses by
offshore branches of non-U.S. banks was also about
four times as large as the lending to all nonbank
U.S. residents by offshore branches of U.S. banks.
Assets of other types held by these offshore
branches of non-U.S. banks generally were fairly
small. Interbank claims on nonrelated depository
institutions in the United States, both loans to and
balances due from nonrelated depository institutions, amounted to only about $12 billion, or 4 percent of total assets, a relatively small component
for multinational banks that tend to be active in
interbank markets. These offshore branches of nonU.S. banks held $16.5 billion in securities issued by
U.S. residents (including U.S. Treasury and federal
agencies), $13 billion in real estate loans to U.S.
residents, and about $10 billion in non-dollar
denominated claims on U.S. residents, the latter
reflecting primarily transactions with their related
U.S. offices.
Offshore branches of non-U.S. banks also
engaged in transactions with non-U.S. residents.
About $40 billion, or one-eighth of their assets,
were claims on residents of their home countries.7
More than half these home-country claims were
claims on the banks' parent offices. In addition,
these branches reported approximately $48 billion
in claims on third-country residents (that is, residents of neither the United States nor their home
country) for which no customer detail was provided; a large proportion of these third-country

7. For example, a reporting branch of a Canadian bank dealing
with customers resident in Canada.




claims likely also represented intrabank transfers of
funds.8
Nearly two-thirds of the liabilities of offshore
branches of non-U.S. banks on March 31, 1993,
were dollar-denominated liabilities either to their
related U.S. branch or agency or to nonrelated
parties in the United States. More than $90 billion,
or about three-fourths of their dollar-denominated
liabilities to nonrelated parties in the United States,
were overnight or term liabilities to nonbank U.S.
residents, more than twice as much as reported by
offshore branches of U.S. banks. This pattern for
liabilities is consistent with the pattern for assets
and suggests that the offshore branches of foreign
banks were not heavily involved in interbank
markets.
The offshore branches of non-U.S. banks also
obtained funds from non-U.S. sources. In the aggregate, they obtained about $47 billion from homecountry residents, largely their parent offices; relatively little came from nonbank residents in their
home countries. In addition, they had liabilities of
about $73 billion to third-country parties, an
unknown but presumably large proportion of which
was owed to their related branches operating in
other financial centers, such as related branches in
London or other international funding centers.

OFFSHORE FOREIGN BANKING
IN PERSPECTIVE

Comparisons of data on assets and liabilities from
the new supplemental report with similar data for
branches and agencies of foreign banks located in
the United States, and with data for U.S. banks, put
the activities of the offshore branches of non-U.S.
banks into perspective (table 3). Unlike U.S. banks,
which book the preponderance of their transactions
with U.S. residents at their domestic offices, nonU.S. banks book a large proportion of their transactions with U.S. residents at their offshore offices.
Adding the new data on offshore activities to
existing data on branches and agencies increases by
nearly 50 percent the estimate of total U.S. assets of

8. For example, an offshore branch of a Canadian bank in the
Cayman Islands may be using that branch to fund its London
branch.

U.S. Branches and Agencies of Foreign Banks: A New Look

foreign banks, to more than $1 trillion. The estimate of their total loans increases $110 billion, or
one-third, and the estimate of their commercial and
industrial loans to U.S. businesses increases nearly
$80 billion, or more than one-half, to more than
$220 billion. On the liabilities side, inclusion of
data for offshore branches nearly doubles the estimate of the deposits of nondepository U.S residents
(individuals, partnerships, and corporations) at nonU.S. banks; the additional amount includes nearly
$28 billion in overnight deposits and more than
$63 billion in term deposits.
Comparable data for U.S.-chartered commercial
banks are also given in table 3. The first column for
U.S. banks gives data for large U.S. banks that have
foreign offices and thus would appear to be the
principal competitors of the large multinational
foreign banks operating in the United States. The
second column for U.S. banks gives data for all
U.S.-chartered banks. Both sets of data for U.S.
banks cover their transactions with U.S. residents
from all domestic and foreign offices. The new data
show that the branches and agencies of foreign
banks operating in the United States, in combination with their branches in offshore banking centers, had about 30 percent as much in total assets as
all U.S. banks. With commercial and industrial
loans to U.S. borrowers of more than $220 billion,
these offices of foreign banks have extended about
one-half as much in business loans to U.S. residents
as all U.S.-chartered banks. The new data on deposit liabilities of reporting offshore branches also
increase estimates of foreign bank participation in
U.S. markets both in percentage terms and in abso3.

919

lute amounts. Foreign bank assets and liabilities are
even higher relative to the large (mainly moneycenter) banks who are the foreign banks' principal
competitors.
The new data have also helped refine estimates
of foreign banks' "share" of lending in U.S. markets. Foreign banks' share of lending can be measured in several ways, depending on assumptions
about the location of the banking office extending
the loan, the residence of the borrower (U.S. or
foreign), and the currency in which the loan is
denominated. Beyond issues of definition are more
general issues of what a lending share in a geographically defined market means in a world of
integrated global banking and capital markets,
where businesses can either borrow from banks or
issue securities in a variety of centers, and can
alternatively use home-country companies or foreign subsidiaries as the nominal borrowing vehicle.
Measures of market share in national banking markets are heavily influenced by preferences of borrowers and lenders as to where transactions are
booked, as well as by choices between obtaining
bank loans or issuing securities. Therefore, such
measures by themselves are not meaningful indicators of the competitive presence of foreign banks.
The traditional approach to estimating market
share from data made available by the Federal
Reserve has been to measure foreign banks' share
of business loans to all domestic and foreign borrowers, by all foreign-controlled banking offices in
the United States, in all currencies. This traditional
measure (which includes lending by domestically
chartered U.S. commercial bank subsidiaries of

Selected assets and liabilities of banking offices, March 31, 1993
Billions of dollars
U.S.-chartered
commercial banks2

Non-U.S. banks1
At U.S.
branches
and agencies

Liabilities to nondepository U.S. residents
Overnight
Term

—

Total

Large banks3

All banks

683.1
291.3
143.7
49.4

Total assets
All loans
Commercial and industrial4
Real estate

At offshore
branches
329.0
110.4
78.7
13.0

1,012.1
401.7
222.4
62.4

1,919.7
1,116.5
297.4
391.2

3,487.3
2,008.5
455.2
860.2

94.3
4.5
89.8

91.0
27.9
63.1

185.3
32.4
152.9

991.4
335.5
655.9

2,209.4
679.5
1,529.9

1. Includes U.S. branches and agencies of foreign banks and reporting
branches of foreign banks in offshore banking centers; excludes banking
subsidiaries of foreign banks in the United States and in offshore centers.
2. Includes transactions at domestic offices and all foreign offices.




3. U.S.-chartered commercial banks with foreign offices.
4. To U.S. borrowers; for offshore branches, includes only loans denominated in U.S. dollars.
SOURCE. Federal Financial Institutions Examination Council.

920

Federal Reserve Bulletin • October 1993

foreign banks not included in the foreign bank data
in table 3) indicates that on March 31, 1993, offices
of foreign banks located in the United States together had about 35 percent of such loans booked
by all banking offices located in the United States.
Adjusting the numerator of that share to include
business loans (denominated in U.S. dollars) to
U.S. borrowers by offshore branches of non-U.S.
banks, and adjusting the denominator to include
both that lending and business lending to U.S.
borrowers by foreign offices of U.S. banks, results
in an estimated foreign bank lending share of about
42 percent.

reduce the estimated share of foreign bank lending
to U.S. businesses of Japanese banks from more
than one-half to a proportion closer to one-third.
About two-thirds of the decline in the share of
Japanese banks was accounted for by an increase in
the shares of French, German, and British banks.
On the liabilities side, adding the new data for
offshore branches changes the nationality share in
deposits relatively little, with declines in Canadian
and French banks' shares partially offset by
increases in British and Japanese banks' shares.

Japanese Banks: More Involved in Deposit
Business and a Smaller Share of Lending
NATIONALITY STRUCTURE:
A CHANGING PICTURE

The new data on banking activities of offshore
offices of non-U.S. banks modify estimates of the
distribution of foreign bank participation in U.S.
markets by nationality of the parent bank. The
following discussion focuses primarily on loans to
U.S. businesses and deposits from nonbank U.S.
residents, two lines of banking activity for which
direct customer contact, and therefore a U.S. presence, is important.
Table 4 summarizes the effects of the new data
on the nationality distribution of foreign bank activity in U.S. markets. On the asset side, the new data

4.

Throughout most of the 1980s, the US. activities of
foreign banks were heavily influenced by the activities of U.S. branches and agencies of Japanese
banks. Between year-end 1980 and year-end 1990,
Japanese bank branches and agencies in the United
States accounted for more than 80 percent of the
reported growth in commercial and industrial lending to U.S. businesses by all foreign bank branches
and agencies in the United States, and their share of
total foreign bank activity in the United States
soared. The share of Japanese bank branch and
agency lending to U.S. businesses in total foreign
bank branch and agency lending of all types
increased from slightly less than one-third in 1980

Nationality share of foreign bank activity in the United States and from offshore banking centers, March 31, 1993
Percent
Lending to U.S. businesses
Country of parent bank

Japan
France
Germany
Canada
Switzerland
United Kingdom
Subtotal
Australia
Austria
Belgium
Italy
Netherlands
Subtotal
All others
Total
* Less than 0.05 percent.




Deposits from nonbank U.S. residents

By U.S. branches
and agencies

By U.S. branches
and agencies
and offshore branches

At U.S. branches
and agencies

At U.S. branches
and agencies
and offshore branches

54.1
7.7
2.1
9.4
7.4
1.2
81.9

36.3
11.6
6.9
10.5
8.5
5.7
79.5

31.6
18.9
15.4
8.4
6.5
3.0
83.7

33.5
14.6
15.3
5.0
6.1
5.2
79.6

.6
.1

2.2
1.1
1.2
3.8
4.2
12.5

1.5
1.3
.7
2.7
5.4
11.6

2.5
1.3
1.6
3.9
4.8
14.1

8.0

4.8

6.3

100.0

100.0

100.0

*

3.8
6.1
7.5
100.0

^

m

SOURCE. Federal Financial Institutions Examination Council.

U.S. Branches and Agencies of Foreign Banks: A New Look

to well over two-thirds in 1990, before declining to
slightly more than one-half in early 1993 (chart 1).
In contrast, other types of assets of Japanese bank
branches and agencies, particularly interbank
claims, increased much less as a share of total
foreign bank activity in the United States, and by
March 1993 that share was little different from its
1980 level.
Chart 2 scales the growth of business lending by
U.S. offices of Japanese banks (end-of-quarter data
in U.S. dollars) to the growth of Japanese foreign
trade, defined as the sum of total Japanese imports
and exports (quarterly data in U.S. dollars). This
scaling was motivated by previous research that
observed a statistical correlation between lending
at U.S. offices of Japanese banks and Japan's total
international trade.9 That correlation is due to the
nature of this lending: Lending by U.S. offices of
Japanese banks often financed the foreign trade
(typically invoiced in dollars) of large Japanese
companies. Had Japanese international trade and
Japanese branch and agency lending to U.S. businesses grown at the same rate over time, the curve
in chart 2 for commercial and industrial loans
would be a flat line at 100.
Between mid-1980 and 1983, Japanese external
trade and lending by U.S. offices of Japanese banks
retained a roughly proportional relationship, with
the ratio of lending to trade rising only slightly
9. See Henry S. Terrell, Robert S. Dohner, and Barbara R.
Lowrey, "The United States and United Kingdom Activities of
Japanese Banks: 1980-1988," North American Review of Econom-

921

through the middle of 1983. Starting in the second
half of 1983 and continuing until 1989, business
lending by U.S. offices of Japanese banks expanded
much more rapidly than did Japanese external
trade, and by June 1989 the ratio of U.S. office
loans to trade was approximately five times as
large as in June 1980, suggesting clearly that during the later period factors other than external trade
were the principal determinants of lending at U.S.
offices of Japanese banks.
Chart 2 also plots the quarterly average Nikkei
stock index. The rapid runup of the index between
1984 and 1989 paralleled the expansion of Japanese
bank lending in the United States. This statistical
association is not surprising, as the increase in the
market valuation of the stocks in the Nikkei index
improved the capital position of Japanese banks
because they were able to count unrealized gains
(up to 45 percent) on their equity holdings as tier 2
capital. This period of rapid increase in Japanese
bank lending in U.S. markets was characterized by
large purchases of loans originated by other banks,
primarily U.S. banks.
The sharp decline in the Nikkei index beginning
in early 1990 affected the ability of Japanese banks
to compete in U.S. markets because it reduced the
capital positions of their parent banks and raised
their costs of acquiring additional capital through
offerings of their own stock. With a time lag, these
U.S. offices of Japanese banks began to reduce their
lending to U.S. companies; the lag reflects the time
it took to reduce the absolute amount of loans
without incurring a major loss.

ics and Finance, vol. 1 (1990), pp. 53-73.

1. Japanese bank share of activity of U.S. branches and
agencies of foreign banks, 1980:Q2-1993:Q1'

2. Commercial and industrial lending by U.S. branches and
agencies of Japanese banks relative to Japanese foreign
trade, and Nikkei index, 1980:Q3-1992:Q4 1
Scale, 1980:Q3 = 100

I
Share of total assets less
commercial and industrial
loans to U.S. borrowers

1. Excludes lending by offshore branches.




1. Lending excludes lending by offshore branches. Foreign trade is total
imports plus exports.

922

5.

Federal Reserve Bulletin • October 1993

U.S. activity of U.S. branches and agencies of banks of selected foreign countries, 1985-93 1
Billions of dollars
Assets
Date

Total
assets

Liabilities

Commercial and
industrial
loans to U.S.
residents

Claims
on unrelated
banks in U.S.

Deposits from
nonbank U.S.
residents

To unrelated
banks in
U.S.

Japanese banks
December 31, 1985
1986
1987
1988
1989
1990
1991
1992
March 31, 1993 traditional
1993 augmented

20.1

151.2
208.3
252.3
307.8
361.1
373.0
364.3
344.3

30.2
45.6
60.9
78.4
90.1
84.3
81.7

41.0
60.5
63.4
71.3
88.7
81.7
75.8
76.8

8.3
15.2
17.3
22.6
29.7
24.3
33.5
28.6

51.6
69.4
85.2
89.4
111.6
110.5
100.5
97.9

315.4
365.8

77.7
80.7

67.9
68.0

29.8
62.0

87.3
97.3

French banks
December 31, 1985
1986
1987
1988
1989
1990
1991
1992
March 31, 1993 traditional
1993 augmented

17.4
18.7
21.1
25.0
25.4
31.9
53.8
73.4
77.2
119.3

tiillilBi
•iliilliUlll

IffSl
•iiisiiiftJl

3.2
3.6
3.7
4.0
3.8
4.0
7.6
10.8

4.8
4.8
4.2
4.3
4.2
6.8
8.6
8.1

2.4
2.2
1.8
2.3
3.0
3.3
12.7
17.7

3.6
4.0
4.1
4.9
4.0
3.8
5.3
6.7

11.1
25.8

8.4
8.9

17.8
27.0

6.8
10.1

2.3
3.2
4.7
3.5
4.9
3.8
4.4
4.5

1.5
2.2
2.5
2.1
2.5
2.5
9.5
12.5

.9
1.2
.7
.8
1.2
1.3
1.2
1.2

4.6
6.5

14.5
28.3

1.7
2.0

German banks
December 31, 1985
1986
1987
1988
1989
1990
1991
1992
March 31, 1993 traditional
1993 augmented

8.8
11.1
13.5
13.0
15.6
15.7
23.3
30.8

1.3
1.9
1.6
2.1
2.4
2.3
mmmtxBmtwm
PiiHpMIISi 1.9
2.4

isiistfil
• • il||l§p

ilSlilllilte^^®^

32.0
76.6

Table 5 shows how the new supplemental information collected from offshore branches of Japanese banks changes the picture of the types of
business activities conducted in the United States
by Japanese banks. U.S. offices of Japanese banks
have historically had very large domestic interbank
transactions in both assets and liabilities, and from
1985 through 1992 they raised large amounts of
funds, net, in U.S. interbank markets.10 They tended
to fund a relatively small portion of their assets
10. Interbank assets consist of cash and amounts due from
banks, federal funds sold, and deposits placed at depository institutions. Interbank liabilities include federal funds borrowed, deposits
owed to depository institutions, and borrowings from depository
institutions.




3.0
15.4

(less than 10 percent) with deposits from nonbank
U.S. residents.
Augmenting the traditional data with the new
data from branches in offshore banking centers
suggests several significant differences. The new
data increase the estimate of assets of U.S.-run
offices of Japanese banks at the end of March 1993
only $50 billion, or about 16 percent, with a negligible increase of $3 billion, or 4 percent, in estimated lending to U.S. businesses. On the funding
side, however, the data covering offshore branches
indicate more than twice as much in total deposits
from nonbank U.S. residents. The new data indicate
that Japanese banks also borrowed an additional
$10 billion, net, in U.S. interbank markets than was

U.S. Branches and Agencies of Foreign Banks: A New Look

923

5.—Continued
Billions of dollars
Assets

'
Total
assets

m

Liabilities

Commercial and
industrial
loans to U.S.
residents

Claims
on unrelated
banks in U.S.

Deposits from
nonbank U.S.
residents

To unrelated
banks in
U.S.

^ZRlWHUlHi

Canadian banks
December 31, 1985
1986
1987
1988
1989
1990
1991
1992
March 31, 1993 traditional .
1993 augmented

29.5
31.0
32.7
27.9
26.7
27.8
43.0
44.3

9.0
Saafcifc V-P
,
9.8 i
,
8.8 • l i l i l i l l l l
8.2 mgmmmm
6.6
5.5
13.4
14.4

2.5
2.7
2.8
2.3
1.8
2.5
1.6
2.9

4.5
5.0
5.6
5.5
3.2
2.9
7.1
9.2

8.4
7.1
5.6
3.7
3.1
2.6
4.7
3.6

44.6
70.0

13.5
23.4

2.6
2.8

7.9
9.2

2.8
6.2

iisii

Swiss banks
December 31, 1985
1986
1987
1988
1989
1990
1991
1992

18.3
24.2
28.0
23.9
18.2

25.6
38.7
44.0

2.5
3.9
6.3
4.9
2.9

2.2

6.1

1.7

2.6

4.5
4.9

9.1

6.8

10.2

10.7

March 31, 1993 traditional
1993 augmented

4.5
7.0
6.3

111

18.8

6.0

2.4
3.6
1.6

2.5
6.0

7.0

6.2
6.2
British banks

December 31, 1985 . . . .
1986
1987
1988
1989
1990
1991
1992
March 31, 1993 traditional .
1993 augmented

15.1
16.4
16.1
15.7
14.5
257
23I2
21.9

41.6

1. Data for 1985-92 and data labeled traditional are for branches and
agencies located in the United States; data labeled 1993 augmented are for
offshore branches as well as U.S. branches and agencies.

3.7
4.4
4.4
4.7
3.4
2.5
2.5
1.5
1.7
12.6

LIIFSSEFLL

3

1 1 1 1
YRT^FJFF

IWM

2.6

2.4
2.4
3.4
2.4
2.8
3.5
2.9
2.5

2.3
2.4

2.3

3.4
3.6

2.8
9.7

2.7

1.8
2.6
1.7
1.0

i

.8

1.4
2.7
1.6
1.6
1.2
1.1
2.6

1.8

SOURCE. Federal Financial Institutions Examination Council.

estimated from data covering only branches and
agencies located in the United States.

residents and were small net borrowers, rather than
small net placers, in US. interbank markets.

French Banks:
More Loans and More Deposits

German Banks:
More Loans and More Deposits

The new data increase the estimate of assets of U.S.
offices of French banks as of March 31,1993, more
than 50 percent and more than double the estimate
of business loans by French banks to U.S. borrowers. With U.S. assets of nearly $120 billion, Frenchbanks ranked second among non-U.S. banks in US.
markets. The new data indicate that French banks
had more than $25 billion in deposits from U.S.

The new data more than double the estimated U.S.based assets of German banks as of March 31,
1993, and increase the estimate of their U.S. business lending fivefold, from $3 billion to more than
$15 billion. On the liabilities side, German banks
had about twice as much in deposits from nonbank
U.S. residents than was previously estimated. The
new data do not change the estimate that German




924

Federal Reserve Bulletin • October 1993

banks are small net placers of funds in domestic
U.S. interbank markets, a position they have maintained consistently over time.

Canadian Banks: More Loans
The new data increase the estimate of assets of
U.S.-based offices of Canadian banks by threefourths. Estimated business loans to U.S. residents
by Canadian banks increased by the same proportion despite the fact that in 1991 one large Canadian bank shifted a large amount of commercial
and industrial loans from its offshore branch to a
U.S. office. The new data suggest that Canadian
banks were slightly larger net borrowers in U.S.
interbank markets than was previously estimated.
They do not appear to have a significant amount of
deposits from nonbank U.S. residents at their offshore offices. The reason that these offshore
branches had relatively little in U.S.-resident deposits is that Canadian banks have a locational advantage over European and Japanese banks in booking
such deposits at their head offices because of the
similarity of time zones and ease of direct communication with the United States.11

Swiss Banks:
More Loans and More Deposits
Until fairly recently, U.S. offices of Swiss banks
lent relatively little to U.S. companies. In 1991, the
reported amount of loans to U.S. companies by
Swiss banks increased greatly, as loans from offshore branches of Swiss banks were rebooked to
their U.S. offices. The new data indicate that even
after that rebooking, Swiss banks still had about
three-fourths as much in U.S. business loans at
their offshore offices as they had on the books of
their U.S. branches and agencies. The new data
nearly double the estimate of deposits from U.S.
residents at U.S.-based offices of Swiss banks. Adding in data from the new supplemental report confirm a tendency of Swiss banks, on balance, to be

11. As of March 31, 1993, Canadian banks located in Canada
had on their books about $11 billion in U.S. dollar-denominated
deposits from nonbank U.S. residents.




net placers of funds in domestic U.S. interbank
markets.
British Banks:
More Loans and More Deposits
The traditional data for branches and agencies
alone indicate a very small role for U.S. branches
and agencies of British banks in both lending to
U.S. businesses and deposit-taking from nonbank
U.S. residents. The new data covering offshore
branches of British banks belie these conclusions.
Adding these data more than doubles the estimate
of total assets of U.S.-based British banks, increases
more than sevenfold estimated lending to U.S. businesses, and more than triples estimated deposits
from nonbank U.S. residents. The new data confirm
the general impression that British banks are small
net placers of funds in domestic U.S. interbank
markets.

SUMMARY AND CONCLUSION

Collecting data on the assets and liabilities of offshore branches of non-U.S. banks will enhance the
Federal Reserve's ability to monitor, on a quarterly
basis, a major source of banking transactions with
U.S. residents. The new information will improve
the interpretation of domestic credit and deposit
aggregates and will also aid in evaluating the
response of foreign banking institutions to various
policy measures, such as changes in reserve
requirements. Besides improving aggregate banking statistics, the new data will enhance the quality
of information on the size, composition, and nationality structure of foreign bank activity in U.S.
markets. The first quarterly supplementary reports,
which provide data as of March 31, 1993, indicate
that foreign banks are more active in U.S. markets
than was previously estimated, and that shares of
foreign bank activity by nationality are different
from the shares revealed by data covering only
branches and agencies located in the United States.

U.S. Branches and Agencies of Foreign Banks: A New Look

REFERENCES

Key, Sydney J., and James M. Brundy. "Implementation of the International Banking Act," Federal Reserve Bulletin, vol. 65 (October 1979),
pp. 785-96.
Lund, David C. "Foreign Banking in the United
States," in U.S. Department of Commerce, Foreign Direct Investment in the United States: An
Update. Washington, D.C.: Department of Commerce, June 1993, pp. 40-50.
Misback, Ann E. "The Foreign Bank Supervision
Enhancement Act of 1991," Federal Reserve
Bulletin, vol. 79 (January 1993), pp. 1-14.




925

McCauley, Robert N., and Rama Seth. "Foreign
Bank Credit to U.S. Corporations: The Implications of Offshore Loans," Federal Reserve Bank
of New York, Quarterly Review, vol. 17 (Spring
1992), pp. 52-65.
Terrell, Henry S., Robert S. Dohner, and Barbara R.
Lowrey. "The United States and United Kingdom Activities of Japanese Banks: 1980-1988,"
North American Review of Economics and
Finance, vol. 1 (1990), pp. 53-73.
•

926

Treasury and Federal Reserve
Foreign Exchange Operations
This quarterly report describes Treasury and System foreign exchange operations for the period
from May through July 1993. It was presented by
Margaret L. Greene, Senior Vice President and
Deputy Manager for Foreign Operations of the
Federal Reserve Bank of New York. Frank Keane
was primarily responsible for preparation of the
report.1
The dollar appreciated against most major currencies during the May-July period, more than reversing its decline earlier in the year. It rose 9.9 percent
against the German mark, for example, and 6.6 percent on a trade-weighted average basis.2 The one
major exception was the dollar's performance relative to the Japanese yen: The dollar extended its
earlier decline against this currency by dropping
5.8 percent and hitting successive new lows in June
and July.
These exchange rate movements occurred in a
context of cumulating evidence that several major
industrialized countries were experiencing less
growth than had been expected at the start of the
year. At the same time, central banks in many of
these countries, including the Federal Reserve,
demonstrated by their actions and policy statements that they remained cautious about the extent
to which they would provide more monetary
accommodation, and long-term interest rates continued to decline in the United States and in most
Group of Ten (G-10) countries.
The US. authorities intervened on three occasions during the period, purchasing a total of
$1,067.5 million against the yen to show that they
were willing to cooperate with other monetary
1. The charts for the report are available from Publications
Services, Board of Governors of the Federal Reserve System, mail
stop 158, Washington, DC 20551.
2. The dollar's movements on a trade-weighted basis are measured using an index developed by the staff of the Board of
Governors of the Federal Reserve System.




authorities as appropriate and were not favoring a
weak dollar as a matter of policy.

RESUMPTION OF THE DOLLAR'S
DEPRECIATION AGAINST THE YEN

During the first few weeks of the period, the dollar
was relatively stable against the yen, trading cautiously around ¥111, after having declined about
11 percent against the yen earlier in the year. Market participants had taken note of Japan's widening
trade surplus and tried to assess the extent to which
the exchange rate might be expected to adjust to
help redress this growing imbalance. In April, just
before the period under review, the U.S. monetary
authorities had intervened in the exchange market.
They had also issued a public statement that underscored the Administration's belief that exchange
rates should reflect economic fundamentals and
that attempts to artificially influence or manipulate
1.

Federal R e s e r v e reciprocal currency arrangements
Millions of dollars
Amount of
facility.
July 31, 1993

Institution
Austrian National Bank . . . . . . . . . . . . . . . . . . . . . . . . . .
National Bank of B e l g i u m . . . . . . . . . . . . . . . . . . . . . . . .
Bank of Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Bank of Denmark . . . . . . . . . . . . . . . . . . . . . .
Bank of England . . , , . , , . , . , . . . . , . . . . . , . . , . . , . . . .
Bank of France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deutsche Bundesbank . . . . , . . , . . , . . . , . . , , , , , , . , , ,
Bank of Italy . . , . . . . . , , , . . , . . . . . . , . . . . . , , . . , , , . . .
Bank of Japan , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,

250
1,000
2,000
250
3,000
2,000
6,000
3,000
5,000

Bank of Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Netherlands Bank
Bank of Norway
Bank of Sweden
Swiss National Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . .

700
500
250
300
4,000

Bank for International Settlements
Dollars against Swiss francs
Dollars against other authorized European
currencies . . . . > . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

600

x

Ibtal

H

S
K

1,250

10,100

Si
yii

927

exchange rates were inappropriate. However, with
the passage of time, intense trade negotiations with
Japan, and the release on May 19 of U.S. trade data
that were worse than expected, many market participants came again to believe that a dollar decline
against the yen would be welcomed by the U.S
authorities.
In this context, the yen again began to strengthen
against the dollar as well as all other currencies. In
the weeks between the beginning of May and June
15, the yen's strength was reflected in a decline of
the dollar against the yen of 5.6 percent from
¥111.05 to a low of ¥104.80 and a drop of the mark
against the yen of 8.5 percent from ¥70.09 to a low
of ¥64.12. For much the same reasons as in April,
the U.S. monetary authorities intervened as the
dollar moved lower on three days—May 27, May
28, and June 8— buying $200 million, $492.5 million, and $375 million respectively, against the yen.
These operations were shared equally between the
Federal Reserve and the Treasury's Exchange Stabilization Fund (ESF).
About mid-June the yen temporarily reversed
course and the dollar rose to a high of ¥111.80
when the Miyazawa government lost a confidence
vote in the Diet, an event that presaged the end of
thirty-eight years of Liberal Democratic Party rule
in Japan. For a time, market participants were
uncertain whether trade negotiations would continue in the midst of a change in leadership. They
were also unsure about what changes in economic
policy might emerge from this unusual government
transition. But then the dollar eased below ¥110 as
market participants focused on the upcoming Economic Summit of the Group of Seven (G-7) in
Tokyo on July 7-9.
Although the dollar received some lift from the
perception that greater-than-expected progress on
trade negotiations was made around the time of the
summit, the dollar's gains against the yen proved
temporary. During the balance of the period under
review, market participants came to believe that
achieving near-term progress on trade issues with
Japan would be difficult. Also, anxieties about the
effects of the change in leadership on Japan's economic policy began to dissipate. Moreover, with
the renewal of exchange rate pressure in Europe,
market participants bid up the yen as Japanese and
other investors hedged their assets denominated in
European currencies. As a result of these factors,



the dollar again declined against the yen as the
period ended, recording a historic low against the
yen of ¥104.23 on July 30.

APPRECIATION OF THE DOLLAR AGAINST
THE MARK AND OTHER EUROPEAN
CURRENCIES ON THE EXPECTATION OF
NARROWING INTEREST RATE DIFFERENTIALS
The dollar, as well as many other currencies, was
firming against the German mark, especially during
June when the market focused on growing evidence of recession, a widening fiscal deficit, and
high labor costs in Germany. From the beginning
of May to the end of June, the dollar rose against
the mark nearly 8 percent. During this period market participants expected that the German Bundesbank would continue to ease short-term interest
rates in response to the weakening German economy. These expectations contributed not only to
the firming of the dollar against the mark, but also
to a general diminishing of strains within the
Exchange Rate Mechanism (ERM) of the European
Monetary System (EMS) that permitted other European countries, either within or outside the ERM,
to rebuild their foreign currency reserves, lower
interest rates, or do both. Indeed, on July 1 the
Bundesbank announced a reduction in its official
discount and Lombard rates of 50 and 25 basis
points to 6.75 and 8.25 percent respectively.
As July progressed, however, it became evident
that further easing of German interest rates would
come only gradually and cautiously. Germany's
money market rates continued to trend downward
during the month. The Bundesbank accepted a drop
in the rate at which it routinely supplies liquidity to
the banking system and announced a further reduction in its Lombard rate of Vi percentage point to
7.75 percent. However, the Bundesbank did not
further reduce the discount rate, an adjustment that
many market participants had expected and hoped
might pave the way for a new round of official
interest rate cuts throughout Europe.
Under these circumstances, other European currencies came under increasing selling pressure as
market participants came to question how long
European monetary authorities could justify using
interest rates to support existing ERM parities in
the face of high unemployment and slowing or

928

Federal Reserve Bulletin • October 1993

negative growth. During the month, pressures
within the ERM intensified. Several currencies fell
toward their intervention floors against the mark,
leading to a decision on August 1 to widen temporarily, by a significant amount, the obligatory intervention bands in the ERM.
The dollar was at times caught up in these pressures as market participants attempted to gauge the
effect of these developments and of possible policy
responses on the dollar-mark exchange rate. On
balance, the dollar benefited somewhat as investors
either hedged exposures resulting from investments
in European currencies other than the mark or
2.

Net profits or l o s s e s ( - ) on U.S. Treasury
and Federal Reserve foreign e x c h a n g e operations 1
Millions of dollars

t .Period :and item . - *
•

Federal
Reserve

U.S. Treasury
Exchange
Stabilization
Fund

Valuation profits and losses on
outstanding assets and liabilities
as of July 31, 1993

4,152.0

3,221.8

128.0

127.7

3,226.6

3,005.5

Realized, April 30July 31, 1993
Valuation profits and losses on
outstanding assets and liabilities
as of July 31, 1993
1. Data are on a value-date basis.




otherwise turned to the dollar as a refuge from the
currency turmoil in Europe. As a result, the dollar
firmed on balance during July, gaining roughly
another 2 percent, to close near the period high at
DM1.7410.
OTHER OPERATIONS

The Federal Reserve and the Treasury's Exchange
Stabilization Fund (ESF) realized profits of
$128.0 million and $127.7 million respectively,
from the sales of yen in the market during the
period. Cumulative bookkeeping or valuation gains
on outstanding foreign currency balances as of the
end of July were $3,226.6 million for the Federal
Reserve and $3,005.5 million for the ESF.
The Federal Reserve and the ESF regularly
invest their foreign currency balances in a variety
of instruments that yield market-related rates of
return and that have a high degree of liquidity and
credit quality. A portion of the balances is invested
in securities issued by foreign governments. As of
the end of July, the Federal Reserve and the ESF
held either directly or under repurchase agreements
$9,784.6 million and $10,115.8 million, respectively, in foreign government securities valued at
end-of-period exchange rates.
•

929

Staff Studies
The staff members of the Board of Governors of the
Federal Reserve System and of the Federal Reserve
Banks undertake studies that cover a wide range of
economic and financial subjects. From time to time
the studies that are of general interest are published in the Staff Studies series and summarized in
the FEDERAL RESERVE BULLETIN. The analyses
and conclusions set forth are those of the authors

and do not necessarily indicate concurrence by the
Board of Governors, by the Federal Reserve Banks,
or by members of their staffs.
Single copies of the full text of each study are
available without charge. The titles available are
shown under "Staff Studies" in the list of Federal
Reserve Board publications at the back of each
BULLETIN.

STUDY SUMMARY

THE DEMAND FOR TRADE CREDIT: AN INVESTIGATION OF MOTIVES
FOR TRADE CREDIT USE BY SMALL BUSINESSES

Gregory E. Elliehausen and John D. Wolken
Prepared as a staff study in spring 1993
Trade credit—credit extended by a seller who does
not require immediate payment for delivery of a
product—is an important source of funds for business customers. In 1987, such credit accounted for
about 15 percent of the liabilities of nonfarm nonfinancial businesses in the United States, approximately the same percentage of liabilities as these
firms' nonmortgage loans from banks. Trade credit
apparently is especially important for small businesses: In the same year, it accounted for about
20 percent of small firms' liabilities.
Businesses that choose to finance their purchases
through trade credit have several options for payment: They may pay the supplier promptly and in
so doing receive a cash discount; wait until the
bill's due date and consequently pay the interest
cost implicit in forgoing the cash discount, at a rate
frequently higher than the rate on credit from institutional lenders; or pay late, after the bill's due
date, and thereby risk incurring additional costs in
the form of explicit interest charges or penalties, or




both. Although trade credit is an important source
of funds for small businesses, little has been known
about the reasons business customers use it.
Theoreticians have linked the use of trade credit
to a transaction motive—a desire to realize economies in cash management—and to a financing
motive—use of trade credit because credit from
other sources, particularly from financial institutions, is limited. These theories are not mutually
exclusive, yet no earlier study has integrated the
two in a single theoretical or empirical model.
Previous studies have focused on one or the other
of the motives, and available empirical evidence on
trade credit use, especially by small businesses, is
limited.
This paper presents a model of trade credit
demand that incorporates both the transaction and
financing theories of trade credit use. The model
relates characteristics of the firm to trade credit use
associated with either the transaction or the financing motive. One important feature of the model is a

930

Federal Reserve Bulletin • October 1993

link between trade credit use and credit rationing.
This link permits an empirical test for the presence
of rationing in markets for business credit.
The model of trade credit demand was used to
analyze small businesses' decisions about using
trade credit at all, about making late payments, and
about the amount of trade credit to use. The data
came from the National Survey of Small Business
Finances, a one-time survey of a nationally representative sample of about 3,400 businesses having
500 or fewer employees that were operating at the
end of December 1987. (The survey was conducted
in 1988-89 for the Board of Governors of the
Federal Reserve System and the U.S. Small Business Administration.)
The results suggest that both the transaction and
financing motives explain small businesses' use of
trade credit. Characteristics of firms associated with
the transaction motive—notably, a relatively large
volume of purchases and relatively great variability
in the timing of delivery of the purchases—were
significantly related to a greater probability of using
trade credit and a greater dollar amount of trade
credit outstanding. Similarly, firm characteristics
associated with a financing motive—relatively
higher business and financial risk, among others—
were significantly related not only to a greater
probability of using trade credit and a greater dollar




amount of trade credit outstanding, but also to a
greater probability that the firm made some percentage of its payments on trade credit after the due
date. These results are consistent with the predictions of theoretical models of transaction and
financing motives for trade credit use.
The results suggest that the financing motive
does not stem from the substitutability of trade
credit and institutional credit. Instead, firms having
relatively large amounts of short-term institutional
credit were also the largest users of trade credit.
This finding is consistent with the hypothesis that
small businesses are subject to credit rationing by
financial institutions: Firms with already-high levels of debt from financial institutions, facing limitations on additional institutional credit, turn to trade
credit as a source of additional credit despite the
high implicit interest cost.
Also investigated using the model of trade credit
demand was the relative importance of the transaction and financing motives. The size of the financing component of trade credit demand ranged from
about two-fifths to one-half the estimated size of
the transaction component. Clearly, each motive
accounts for a sizable portion of total trade credit
demand. Thus, both the transaction motive and the
financing motive appear to be economically significant determinants of trade credit use.
•

931

Industrial Production and Capacity Utilization
for July 1993
Released for publication August 16
Industrial production, which edged down in May
and June, increased 0.4 percent in July. Although
the output of automobiles and light trucks declined
again, the production of consumer goods, equip-

ment, and materials advanced, and hot weather
during July boosted the use of electricity. At
110.6 percent of its 1987 annual average, total
industrial production was 0.2 percentage point
above its level in April and 3.5 percent above its
year-earlier level. Utilization of total industrial

Industrial production indexes
Twelve-month percent change

1988

1989

1990

1991

1992

1993

Twelve-month percent change

1988

1989

1990

1991

1992

1993

Capacity and industrial production
Ratio scale, 1987 production « 100

1981

1983

198S

1987

1989

1991

1993

Ratio scale, 1987 production = 100

1981

1983

1985

All series are seasonally adjusted. Latest series, July. Capacity is an index of potential industrial production.




1987

1989

1991

1993

932

Federal Reserve Bulletin • October 1993

Industrial production and capacity utilization1
Industrial production, index, 1987=100
Percentage change
Category

1993
19932
r

Apr.

r

May

r

June

July

Apr.

Total

110.4

110.2

110.2

110.6

Previous estimate

110.4

110.3

110.1

Major market groups
Products, total'
Consumer goods
Business equipment
Construction supplies
Materials

109.6
108.1
134.8
96.4
111.5

109.4
107.5
135.2
97.7
111.5

109.1
107.1
135.1
96.4
111.8

109.5
107.4
135.4
97.1
112.3

Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities

111.4
115.0
106.9
96.4
114.4

111.1

111.0

111.1

114.8
106.6
96.9
114.3

114.4
106.8
96.2
116.0

114.7
106.8
95.9
119.8

r

May'

June'

.3

-.2

-.1

.3

.0

-.2

.2

-.5
1.0
.0
.6

-.3
-.5
.3
1.3
-.1

.6
.8
.3
1.2
-2.9

-.2
-.2
-.4
.5
.0

JulyP
.4

3.5

-.3
-.4
-.1
-1.3
.3

.4
.3
.2
.7
.5

3.5
2.4
9.5
3.0
3.5

-.1
-.4
.2
-.7
1.5

.2
.3
.0
-.3
3.3

3.8
5.9
1.0
-2.6
7.7
MEMO

Capacity utilization, percent
1992
Average,
1967-92

Low,
1982

July 1992
to
July 1993

1993

High,
1988-89
July

Apr.'

May'

June'

JulyP

Capacity,
percentage
change,
July 1992
to
July 1993

Total

81.9

71.8

84.8

80.0

81.7

81.5

81.3

81.5

1.6

Manufacturing
Advanced processing
Primary processing .
Mining
Utilities

81.2
80.7
82.2
87.4
86.7

70.0
71.4
66.8
80.6
76.2

85.1
83.3
89.1
87.0
92.6

78.9
77.3
82.6
87.6
84.8

80.9
79.5
84.3
86.4
86.4

80.6
79.2
84.1
86.9
86.3

80.4
78.8
84.2
86.3
87.5

80.4
78.8
84.2
86.1
90.3

1.8
2.2
.8
-.9
1.2

1. Data seasonally adjusted or calculated from seasonally adjusted
monthly data.
2. Change from preceding month.

capacity rose to 81.5 percent, a level about equal to
the average rate for the first half of the year.
When analyzed by market group, the data show
that the output of consumer goods rose 0.3 percent,
with a rise in the production of nondurables more
than offsetting a slight drop in the output of durables. Among consumer durable goods, the output
of automotive products fell more than 2 percent for
the third consecutive month, but the production of
appliances and television sets rebounded. The output of consumer nondurables advanced 0.4 percent,
with strong growth in sales of residential electricity; decreases in the production of clothing, gasoline, and paper products slowed the overall pickup
in nondurables.
The production of equipment edged up in July,
as declines in the output of defense equipment and
oil and gas well drilling largely offset the small
gain in business equipment. The output of business



3. Contains components in addition to those shown,
r Revised,
p Preliminary.

equipment rose 0.2 percent, with increases in the
output of information processing, communications,
and industrial equipment more than offsetting a
decrease in motor vehicle assemblies.
The output of construction supplies, which on
balance had not changed from March to June,
increased 0.7 percent. The output of industrial materials rose 0.5 percent in July, largely because of
gains in semiconductors, computer parts, and the
generation of electricity. The production of nondurable materials edged down.
When analyzed by industry group, the data show
that within manufacturing, output increased
0.2 percent; excluding motor vehicles and parts, it
rose 0.4 percent. Production in nondurable manufacturing was unchanged on balance. Durable manufacturing rose 0.3 percent, with increases of 1 percent or more in the machinery and lumber
industries. At 80.4 percent, the utilization of manu-

Industrial Production and Capacity Utilization

factoring capacity was the same as in June and
equal to the January-February average. The operating rate for advanced-processing industries held
steady at 78.8 percent in July; the rate for primaryprocessing industries was also unchanged, at
84.2 percent.




933

The output at mines fell 0.3 percent because of
the continued coal strike and a decline in the
drilling of oil and gas wells. The output at utilities
rose 3.3 percent after having gained 1.5 percent
in June.
•

934

Statement to the Congress
Statement by William L. Rutledge, Senior Vice
President, Federal Reserve Bank of New York,
before the Subcommittee on Consumer Credit
and Insurance and the Subcommittee on General
Oversight, Investigations, and the Resolution of
Failed Financial Institutions of the Committee
on Banking, Finance and Urban Affairs, U,S,
House of Representatives, August 10, 1993
In my comments today, I will focus primarily on
the supervisory process we have followed in
implementing the Community Reinvestment Act
(CRA). I will address four areas: (1) our current
examination approach; (2) the kinds of problems
we have been finding; (3) what we can do to
cause those problems to be corrected; and (4)
how we are trying to make the examination
process more effective. I will close with a few
observations on trends in the ways in which
banks have been satisfying their CRA obligations.

SUPERVISORY

Examination

PROCESS

Approach

The Federal Reserve Bank of New York supervises thirty-seven state member banks that are
subject to the CRA, performing a comprehensive
examination approximately every eighteen
months. Work before the on-site examination
includes extensive statistical analyses of a bank's
Home Mortgage Disclosure Act (HMDA) data
and plotting of the data on maps to demonstrate
the geographic distribution of loan approvals and
denials, Once in the bank, our examiners review
procedures, interview bank personnel, and critically evaluate hundreds of loan files. The examinations are conducted by specialized Federal
Reserve staff members—examiners whose training and responsibilities are directed exclusively
to the review of bank compliance with the CRA



and to such other consumer statutes as the Equal
Credit Opportunity Act.
Types of Shortcomings

Found

Our overall sense from these examinations is that
when less-than-satisfactory performance is
found, it is frequently characterized by shortcomings in two key areas. The first is a failure to
commit significant dollars to lending and investing for community development. Within that
category, I would include specially structured
loans, investments, and grants directed to enhancing the long-term viability of a bank's community; such credits and grants normally entail
innovative underwriting standards, some public
funds, or the participation of not-for-profit organizations. Although some banks, including some
large wholesale-oriented ones, have been very
active in this area, others have done very little.
The second typical shortcoming is the failure
to achieve an appropriate geographic distribution
of mortgage and small business loan products
throughout a bank's community. The bank either
has failed to deliver its credit products within its
delineated community—focusing instead on extending credit to more distant locales~or it has
not adequately served the low- to moderateincome neighborhoods within its delineated community.
Enforcement

Process

When our examiners find these or other shortcomings in a bank's performance, the findings
are presented to the bank's senior management
and its board of directors. Our examination report provides our rating of performance, details
the problems found, and presents actions we
believe should be pursued to remedy the problems. We require that the bank respond in writing, laying out its remedial program. If there is a
downgrade in the rating, we also shorten the time

935

period until the next examination—sometimes to
as short as six months, depending on the severity
of the problems.
The composite rating and the evaluation in
support of it are required to be made public by
both the bank and ourselves, contributing to the
incentive of bank management to address its
problems as quickly as possible.
It is our experience that when a bank's board
of directors and its senior management are presented with negative findings, they typically take
actions to improve that performance. In this
District, of the thirty-seven state banks, there
have been five instances in the past two years
when a bank that had been rated less than
satisfactory improved to satisfactory.
The other key factor in enforcing CRA compliance is the applications process. Banks with
general shortcomings in their CRA performance
have effectively been foreclosed from expanding
their bank operations. Although the Board of
Governors has denied only a handful of applications on CRA grounds, numerous other applications have been withdrawn, or proposals abandoned without the filing of an application,
because of this approach.
In some instances, a banking organization
with some limited specific shortcoming in its
CRA performance has been allowed to expand
if it has made specific commitments to the
Board of Governors to address that shortcoming. We draw a distinction between commitments that have been made to the Board and
commitments that may have been made to a
private group but not to the Board. The former
set of commitments is always closely monitored
to ensure compliance. The banks with commitments to the Board are subjected to specific
reporting requirements, and our examiners review the extent to which the commitments have
been satisfied as an integral part of the examinations process. Failure to fulfill a Board commitment is grounds for taking specific remedial
action, including the possible imposition of civil
money penalties.
On the other hand, commitments made to a
private party, but not to the Board, are not
matters that are enforced by the Board. However, actions taken in satisfaction of such commitments, such as the providing of funding, will



be considered during examinations as part of the
bank's overall CRA performance.
Improving

the Examinations

Process

We are continuously looking for ways to
strengthen the examinations process. For example, we at the the New York Fed have been at
work to develop sophisticated statistical approaches to direct our examination resources to
individual banks, and individual credit files, in
which home mortgage discrimination appears
most likely. We are using the richer HMD A data
now available as an initial source and then supplementing the analysis with additional data from
those banks in which race appears, in the initial
analysis, to be a statistically significant factor. If
race is still a statistically significant factor after
inclusion of the additional variables, we then
develop statistically matched pairs of approved
white applicants and denied minority applicants
for review of individual credit files.
In addition, we and the other federal banking
regulators are exploring whether quantitative performance standards can and should be more
strongly built into the assessment process.
Clearly, the lack of specific performance guidelines has caused frustration for all involved in the
process and has created at least the potential for
the supervisory focus to be too heavily on form
and not enough on substance. The recent request
by President Clinton to the federal supervisory
agencies to develop more objective, performance-based assessment standards is a clear
reflection of the concern. We were already in the
process of conducting such a review ourselves
and expect to be heavily involved in the response
to the President's request.
The resolution of the issue is not an easy one,
and the challenge will be to strike the right
balance. Beyond the obvious concern of avoiding
credit allocation, too much specificity could lead
to minimalist strategies and stifle the development of innovative approaches to CRA compliance.
CURRENT

TRENDS

We have seen some banks taking innovative
approaches. Historically, to many people com-

936

Federal Reserve Bulletin • October 1993

munity reinvestment has been almost synonymous with mortgage lending, but increasingly it
is now recognized that small businesses are central to the growth and vitality of communities.
Some bankers have responded by developing
mechanisms to work through local government
agencies and intermediaries to improve their
delivery of loans to small businesses and microenterprises. For example, in an effort to provide small businesses and fledgling entrepreneurs
with greater access to capital, seven banks are
participating with New York City's Borough
Development Corporations in the Regional Economic Development Assistance Corporation
(REDAC) Mini Loan Program.
On the mortgage front, some bankers have
developed innovative approaches to try to address the troubling disparities in the denial rate
that have persisted, even when increased flexi-




bility in underwriting standards has been built
into their mortgage programs. Two steps strike
us as particularly important: (1) consumer education in the complexities of the mortgage application process and home ownership; and (2) a
mechanism to provide a second, and even a
third, look at applications that have been denied.
Sometimes these steps have been facilitated
through cooperative arrangements. For example, twelve banks serving New York City have
recently formed a coalition to administer an
affordable mortgage program. Besides committing mortgage funds with no fixed upper limit,
they have committed $1 million per year for
three years to fund a program for credit counseling and consumer education. They have also
established a mechanism in which denied applicants will be re-reviewed by the other bank
participants.
•

937

Announcements
PROPOSED ACTIONS
The Federal Reserve Board issued for public comment on August 20,1993, proposed amendments to
Regulation A (Extensions of Credit by Federal
Reserve Banks) to implement section 142 of the
Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) regarding limits on
Federal Reserve bank credit. Comments were
requested by September 24, 1993.
The Federal Reserve Board also requested public
comment on August 23,1993, on proposed amendments to Regulation S (Reimbursement to Financial Institutions for Providing or Assembling Financial Records; Recordkeeping Requirements for




Certain Financial Records) regarding enhanced
recordkeeping requirements for certain wire transfers by financial institutions. These amendments
would incorporate by reference certain proposed
provisions of 31 CFR 103.33(e), (f), and (g). Comments were requested by October 4,1993.

CHANGE IN BOARD STAFF

The Federal Reserve Board announced on August
30, 1993, that MaryEllen A. Brown, Assistant to
the General Counsel and the Board's ethics official,
would retire at the end of August.
•

938

Minutes of the
Federal Open Market Committee Meeting
of July 6-7,1993
A meeting of the Federal Open Market Committee
was held in the offices of the Board of Governors
of the Federal Reserve System in Washington,
D.C., on Tuesday, July 6, 1993, at 2:30 p.m. and
continued on Wednesday, July 7,1993, at 9:00 a.m.
Present:
Mr. Greenspan, Chairman
Mr. Mullins1
Mr. Angell
Mr. Boehne
Mr. Keehn
Mr. Kelley
Mr. LaWare
Mr. Lindsey
Mr. McTeer
Mr. Oltman2
Ms. Phillips
Mr. Stern
Messrs. Broaddus, Jordan, Forrestal, and Parry,
Alternate Members of the Committee
Messrs. Hoenig, Melzer, and Syron, Presidents
of the Federal Reserve Banks of Kansas City,
St. Louis, and Boston respectively
Mr. Kohn, Secretary and Economist
Mr. Bernard, Deputy Secretary
Mr. Coyne, Assistant Secretary
Mr. Gillum, Assistant Secretary
Mr. Mattingly, General Counsel
Mr. Patrikis, Deputy General Counsel
Mr. Prell, Economist
Mr. Truman, Economist
Messrs. R. Davis, Lang, Lindsey, Promisel,
Rolnick, Rosenblum, Scheld, Siegman,
Simpson, and Slifman, Associate Economists
Mr. McDonough, Manager of the System Open
Market Account
1. Acting Vice Chairman in Mr. Corrigan's absence.
2. First Vice President, Federal Reserve Bank of New York,
attending as alternate member for Mr. Corrigan.




Ms. Greene, Deputy Manager for Foreign
Operations
Ms. Lovett, Deputy Manager for Domestic
Operations
Mr. Madigan, Associate Director, Division of
Monetary Affairs, Board of Governors
Mr. Stockton, Associate Director, Division of
Research and Statistics, Board of Governors
Ms. Danker, Assistant Director, Division of
Monetary Affairs, Board of Governors
Messrs. Small,3 and Whitesell,4 Section Chiefs,
Division of Monetary Affairs, Board of
Governors
Ms. Kusko,4 Senior Economist, Division of
Research and Statistics, Board of Governors
Ms. Low, Open Market Secretariat Assistant,
Division of Monetary Affairs, Board of
Governors
Messrs. Beebe, J. Davis, T. Davis, Goodfriend,
and Ms. Tschinkel, Senior Vice Presidents,
Federal Reserve Banks of San Francisco,
Cleveland, Kansas City, Richmond, and
Atlanta respectively
Mr. McNees, Vice President, Federal Reserve Bank
of Boston, Messrs. Coughlin and Guentner,
Assistant Vice Presidents, Federal Reserve
Banks of St. Louis and New York respectively

By unanimous vote, the minutes for the meeting
of the Federal Open Market Committee held on
May 18,1993, were approved.
The Manager of the System Open Market
Account reported on developments in foreign
exchange markets and on System transactions in
foreign currencies during the period May 18,1993,

3. Attended portion of meeting relating to a discussion of the
uses of a broad monetary aggregate that includes bond and stock
mutual funds.
4. Attended portion of meeting relating to the Committee's
discussion of the economic outlook and its longer-run growth
objectives for monetary and debt aggregates.

939

through July 6, 1993. By unanimous vote, the
Committee ratified these transactions.
The Deputy Manager for Domestic Operations
reported on developments in domestic financial
markets and on System open market transactions in
government securities and federal agency obligations during the period May 18, 1993, through
July 6, 1993. By unanimous vote, the Committee
ratified these transactions.
The Committee then turned to a discussion of the
economic outlook, the ranges for the growth of
money and debt in 1993 and 1994, and the implementation of monetary policy over the intermeeting
period ahead. A summary of the economic and
financial information available at the time of the
meeting and of the Committee's discussion is provided below, followed by the domestic policy
directive that was approved by the Committee and
issued to the Federal Reserve Bank of New York.
The information reviewed at this meeting provided a mixed reading on the economy, but on
balance the available data suggested that the expansion had picked up somewhat during the second
quarter from the very slow pace of the first quarter.
Employment statistics, while tending to soften in
June, pointed to considerable strength for the second quarter as a whole, although recent spending
indicators suggested a much more moderate expansion. Consumer and producer price inflation slowed
substantially in May, but prices had risen at a faster
rate over the first five months of the year than over
the second half of 1992.
Total nonfarm payroll employment changed little
in June after registering substantial gains in April
and May. For the second quarter as a whole, the
increase in employment matched that of the first
quarter. Manufacturing employment, which was
about unchanged over the first quarter, declined
somewhat in June for a third straight month. Construction payrolls edged lower after rising appreciably over the preceding two months, and job gains
in the services industries were considerably smaller
in June than those recorded earlier in the year. The
civilian unemployment rate backed up to 7.0 percent in June.
Industrial production increased in May at the
relatively subdued rate recorded in March and
April; for June, the limited data available suggested
a modest decline in output. In May, assemblies
of motor vehicles declined after holding steady



over the two previous months. Among other
manufactured goods, the production of business
equipment, led by computers and industrial equipment, recorded another brisk advance whereas the
output of non-auto consumer goods continued to
expand sluggishly. Total utilization of industrial
capacity was unchanged in May for a third straight
month.
Real personal consumption expenditures edged
higher in May after a sizable rebound in April from
weather-related weakness. On balance, however,
consumer spending had increased only slightly thus
far this year. Outlays for new cars and light trucks
advanced in May to their highest level since January 1990 and apparently remained near that elevated level in June. In addition, spending for nonenergy services had increased substantially in
recent months. By contrast, energy consumption
had fallen from the especially high levels of late
winter, and outlays for nondurable goods in May
were still below their fourth-quarter level. Housing
starts increased in April and May from a depressed
first-quarter pace, with most of the rise attributable
to starts of single-family dwellings.
Shipments of nondefense capital goods in May
retraced only a portion of a sizable April decline.
However, for the two months combined, shipments
of such goods were above the average for the first
quarter and apparently remained on an upward
trend that began early in 1992. The upward trajectory for spending on machinery and on electrical
and communications equipment seemed to have
reflected improved cash flows for the business sector and a declining cost of capital, and incoming
data suggested that outlays for business equipment
would increase further over the months ahead.
Nonresidential construction activity was unchanged
over the first quarter but picked up slightly on
balance over April and May. Office building rose
over the two months, while construction of nonoffice commercial structures was little changed and
industrial building activity was down sharply.
Business inventories recorded another appreciable rise in April, and available data pointed to a
further increase in May. In manufacturing, inventory accumulation stepped up in April and May
after changing little in the first quarter; the ratio of
stocks to shipments edged higher in each month
and was only slightly above the very low level
reached early in 1993. In the wholesale trade sec-

940

Federal Reserve Bulletin • October 1993

tor, inventories advanced at a slower rate in May
than in April, and the inventory-to-sales ratio fell to
the low end of the range for the past three years.
The buildup of retail inventories slowed considerably in April, and with sales rebounding from the
effect of March storms, the inventory-to-sales ratio
declined for the retail sector. Nonetheless, the ratio
still was near the high end of its range for the past
several years.
The nominal U.S. merchandise trade deficit for
April was unchanged from March, with both
imports and exports declining slightly. However,
the April deficit was substantially above the average for the first quarter, reflecting sizable increases
in imports of capital goods, automotive products,
consumer goods, and oil. The value of exports in
April was only slightly above the first-quarter average. Recent indicators pointed to further weakness
in economic activity in continental Europe thus far
this year. By contrast, economic recovery appeared
to be continuing in the United Kingdom and Canada. In Japan, economic activity was up appreciably in the first quarter, but available data suggested
that this strength had not carried over to the second
quarter.
Changes in producer and consumer prices were
small in May following sizable increases earlier in
the year. Producer prices of finished goods were
unchanged in May, as declines in prices of finished
consumer food and energy products offset small
advances in prices of other finished goods. Excluding the food and energy components, producer
prices had risen more rapidly thus far in 1993 than
they had in the second half of 1992. At the consumer level, prices of items other than food and
energy rose only slightly in May, but this measure
of inflation also had risen faster this year than in
the second half of last year. Labor costs likewise
had evidenced a quickened pace of increases this
year. Average hourly earnings of production or
nonsupervisory workers rose substantially in May
after edging lower in April, and these earnings had
grown more rapidly over the first five months of
1993 than over the preceding six months.
At its meeting on May 18, the Committee
adopted a directive that called for maintaining the
existing degree of pressure on reserve positions but
that included a tilt toward possible firming of
reserve conditions during the intermeeting period.
Accordingly, the directive indicated that in the



context of the Committee's long-run objectives for
price stability and sustainable economic growth,
and giving careful consideration to economic,
financial, and monetary developments, slightly
greater reserve restraint would be acceptable or
slightly lesser reserve restraint might be acceptable
during the intermeeting period. The reserve conditions associated with this directive were expected
to be consistent with appreciable growth of the
broader monetary aggregates over the second
quarter.
Open market operations were directed toward
maintaining the existing degree of pressure on
reserve positions throughout the intermeeting
period. Several upward adjustments were made to
expected levels of adjustment plus seasonal borrowing during the period in anticipation of
stepped-up demand for seasonal credit during the
crop-growing season; borrowing averaged near
expected levels over the period. The federal funds
rate remained close to 3 percent over the period,
although quarter-end pressures in money markets
pushed the rate higher for a brief period at the end
of June.
Other short-term interest rates also were little
changed on balance over the period since the May
meeting. Early in the period, unexpectedly robust
employment data for May, coupled with media
reports about the monetary policy stance adopted at
the May meeting, led to some upward pressure on
money market interest rates. Subsequently, however, this pressure abated in response to the release
of data suggesting slower inflation and a somewhat
weaker outlook for the economy. These developments along with the progress in the Congress
toward adoption of a deficit-reduction package fostered a decline in bond yields; buoyed by the drop
in yields, major indexes of stock prices rose over
the intermeeting period in spite of disappointing
second-quarter earnings reports by several major
companies.
In foreign exchange markets, the trade-weighted
value of the dollar in terms of the other G-10
currencies increased on balance over the intermeeting period. After depreciating somewhat through
the end of May, the dollar recovered in early June
when U.S. money market interest rates moved
higher. The dollar rose more strongly over the last
half of June, principally in response to actual and
expected monetary easing abroad. The rise in the

Minutes of the Federal Open Market Committee Meeting

dollar over the intermeeting interval reflected
sizable appreciations against European currencies,
especially the German mark. The dollar continued
to fall against the Japanese yen through the middle
of June, in the process setting several new lows,
before recovering a little over the remainder of the
period.
After contracting during the first quarter, M2 and
M3 expanded appreciably over the second quarter.
Most of this growth, which was especially pronounced in May, reflected strength in Ml and
occurred despite continued heavy outflows to bond
and equity funds. The May surge resulted in part
from a strong pickup in mortgage refinancing activity and a reversal of the depressing effect in April
of relatively damped individual nonwithheld tax
payments on the seasonally adjusted level of liquid
deposits. The growth of the broader aggregates
moderated substantially in June, and by more than
might have been suggested by the waning of these
mortgage and tax influences. For the year through
June, growth of both M2 and M3 was below the
lower ends of the ranges for 1993 that the Committee had established in February. This sluggishness
reflected ongoing changes in asset preferences and
financing patterns rather than restrictive financial
conditions. The velocity of M2 was estimated to
have increased at a rate of about AV2 percent over
the first half of the year after a 4 percent rise in
1992. Total domestic nonfinancial debt expanded
somewhat further through April.
The staff projection prepared for this meeting
suggested moderate growth in economic activity
and modest reductions in margins of unemployed
labor and capital through 1994. The projection
assumed the enactment of a federal budget bill that
implied a moderately restrictive fiscal policy over
the forecast horizon. As in earlier staff projections,
lower interest rates were expected to support appreciable gains in interest-sensitive expenditures,
including housing, consumer durables, and business equipment. Private spending also would be
buttressed by a favorable financial environment
associated with strengthened balance sheets and
reduced debt burdens and by the apparently
increasing willingness of banking institutions to
make new loans. Export demand was likely to
remain constrained over the near term by the weakness in the economies of several major industrial
countries, but some improvement in foreign



941

demand was anticipated later as those economies
started to strengthen. The outlook for moderate
growth and continuing slack in resource utilization
suggested considerably more subdued price
increases than had occurred in the early months of
1993.
In the Committee's discussion, the members generally agreed that ongoing economic developments
remained consistent with moderate but sustained
growth in economic activity. No sector of the economy seemed poised at this juncture to provide
strong impetus to the expansion, but a promising
basis for further growth was seen in the much
improved financial condition of many households
and business firms. Lower long-term interest rates,
which had contributed to the improvement in balance sheets, were likely as well to bolster housing
and business capital spending more directly. While
the expansion now appeared to be firmly established, a number of members cautioned that it was
subject to some downside risks, notably those associated with the still uncertain outlook for government budget and other policies. The possibility of
higher taxes, associated with the deficit reduction
legislation currently under consideration in the
Congress and with the forthcoming proposals for
national health care reform, was widely reported to
be damping spending. With regard to the outlook
for inflation, the most recent data on prices offered
some encouragement that the earlier upturn in key
measures of inflation might prove to be temporary,
especially in the context of still ample margins of
unutilized labor and other production resources.
Even so, given generally held expectations among
the public that inflation was not likely to decline
and might in fact trend higher, many members
concluded that for now the disinflationary trend
might have been arrested or, at least, that further
progress toward price stability would be quite difficult to achieve over the next several quarters.
In conformance with the usual practice at meetings when the Committee considers its longer-run
objectives for growth of the monetary and debt
aggregates, the members of the Committee and the
Federal Reserve Bank presidents not currently serving as members provided individual projections of
growth in real and nominal GDP, the rate of unemployment, and the rate of inflation for the years
1993 and 1994. In light of the experience in the
first half of the year, forecasts of real growth in

942

Federal Reserve Bulletin • October 1993

1993 had been revised down somewhat since February, while projections of inflation had been
raised. The central tendency of the forecasts of the
rate of expansion in real GDP in 1993 was now
2Vi to 23A percent for the year as a whole; for 1994,
these projections had a central tendency of 2xh to
3 lA percent. With regard to the expansion of nominal GDP, the forecasts converged on growth rates
of 5 to 53A percent for 1993 and 5 to 6V2 percent
for 1994. Given the projections of a moderate
uptrend in economic activity and expectations of
some further gains in labor productivity, the forecasts incorporated only a small decline in unemployment to rates of around 63A percent in the
fourth quarter of 1993 and only slightly lower by
the fourth quarter of 1994. For the rate of inflation,
as measured by the CPI, the projections had a
central tendency of 3 to 3 lA percent in 1993 and
3 to 3V2 percent in 1994, reflecting little change in
both years from the rate of inflation experienced in
1992.
Members commented that the improved prospects for significant reductions in the federal deficit
had played an important role in fostering the
declines in longer-term interest rates that had
occurred since the latter part of 1992; the lower
rates were having positive effects on spending decisions in a number of interest-sensitive sectors of
the economy as well as on balance sheets more
generally. At the same time, the prospects for
higher taxes—accentuated by uncertainties about
their size and incidence—were widely reported to
be inhibiting spending decisions by business firms
and might also be adding to cautious consumer
attitudes. Some of the anecdotal evidence suggested that uncertainties associated with the potential impact of the still unannounced proposals for
health care reform were making many businesses
especially cautious, notably in their hiring decisions. Adding to the effects of anticipated federal
legislation were concerns in various parts of the
country about further cuts in defense spending and
the impact of additional reductions in state and
local expenditures or of increases in state and local
taxes. Some members observed that the fiscal policy legislation before the Congress appeared to
have generated a perhaps exaggerated degree of
concern, and passage of this legislation might have
a generally favorable effect on business and consumer sentiment.



Turning to the outlook for individual sectors of
the economy, members referred to indications of an
upturn in consumer spending in recent months, but
they also noted that survey results and anecdotal
reports still suggested generally cautious consumer
attitudes. The prospects for increased taxes might
be having some negative effect on consumer confidence, but consumers remained especially concerned about the outlook for jobs and incomes as
defense cutbacks continued and many firms, notably larger business establishments, took further
steps to restructure and downsize their operations.
To an important extent the improvement in retail
sales in the second quarter was associated with
stronger sales of motor vehicles that, in the view of
at least some members, appeared to reflect previously postponed replacement demand rather than a
major shift in consumer attitudes. In any event,
moderate growth in consumer spending was likely
to be maintained in the context of the improved
financial condition and the related reduction in
debt-service burdens of many households. Further
growth in overall employment, in line with that
achieved in the first half of the year, would if it
persisted provide important support toward sustaining the expansion of consumer spending and thus
the growth of the economy more generally.
With regard to the outlook for business fixed
investment, members reported that many firms
were scaling back or putting on hold their capital
spending plans pending a resolution of the business
tax proposals under consideration in the Congress.
Nonetheless, business spending for equipment still
constituted a relatively robust sector of the economy, at least according to the data available to date.
To a considerable extent, such spending reflected
ongoing efforts to improve the quality of products
and the efficiency of business operations while
holding down the number of employees, and the
members saw this trend as likely to continue. In
general, other business capital spending had
remained sluggish, although construction activity
other than office building appeared to have picked
up in parts of the country. The prospects for housing construction, though not ebullient, were viewed
as more promising particularly in light of the
declines in mortgage interest rates to relatively low
levels. The improved financial position of many
potential homebuyers also provided a basis for
anticipating stronger housing markets. Despite

Minutes of the Federal Open Market Committee Meeting

these favorable factors, however, overall housing
activity had improved only modestly in recent
months as homebuyers tended to remain cautious,
and at least in some areas housing developers continued to report that they were encountering difficulties in securing construction finance. On balance, housing construction seemed likely to
provide some impetus to the expansion in coming
quarters.
Relatively weak economic conditions in a number of foreign industrial countries were likely to
continue to limit U.S. exports, which had declined
since the end of 1992. Indeed, available data supplemented by reports from a variety of contacts
suggested that business conditions had remained
quite weak or had worsened in a number of foreign
industrial nations. Even so, business contacts in
some parts of the United States indicated that foreign demand for their products was still quite
robust. Business activity abroad, which already
was trending higher in a few industrial nations, was
viewed as likely to strengthen more generally over
the year ahead, with positive effects on overall U.S.
exports.
Turning to the outlook for inflation, members
commented that despite favorable readings recently, a wide range of price and wage data had
suggested some acceleration in the rate of inflation
during the early months of the year. To some
extent, the indications of intensified inflation might
have been the result of difficulties with seasonal
adjustments or other temporary factors, but there
were reports of some successful efforts by business
firms to raise prices following the spurt in demand
and the rise in capacity utilization toward the end
of 1992. These price developments were disappointing and suggested to many members that the
disinflationary trend might have been arrested, at
least for now, though the economic fundamentals
remained consistent with a resumption of some
further downward movement in the rate of inflation. With regard to those fundamentals, many
members saw significant, albeit diminished, slack
in labor and product markets as likely to persist
over the forecast horizon, given their current forecasts of moderate expansion in economic activity.
Other favorable factors in the inflation outlook
included efforts by businesses to hold down costs
and increase productivity by restructuring their
operations and investing in new, more productive



943

equipment. Unfortunately, these favorable elements
in the underlying economic situation seemed at
odds with the apparently widely held view by the
public that inflation would not diminish and indeed
was likely to increase and that in any event current
inflation levels were tolerable. Such expectations
and attitudes would tend to temper the gains against
inflation, if any, over the forecast horizon by
their effects on the pricing and wage behavior of
business firms and employees and the reactions of
consumers toward rising prices. This inflationary
climate underscored the importance of credible
government policies—monetary, fiscal, trade, and
regulatory—that encouraged reduced inflation over
time.
In keeping with the requirements of the Full
Employment and Balanced Growth Act of 1978
(the Humphrey-Hawkins Act), the Committee at
this meeting reviewed the ranges for growth in the
monetary and debt aggregates that it had established in February for 1993, and it decided on
tentative ranges for growth in those aggregates in
1994. The current ranges for the period from the
fourth quarter of 1992 to the fourth quarter of 1993
included expansion of 2 to 6 percent for M2 and
Vi to 4V2 percent for M3. A monitoring range for
growth of total domestic nonfinancial debt had
been set at
to 8V2 percent for 1993.
In the Committee's discussion, the members
focused on the issue of whether or not to lower the
ranges further. In February, the ranges for M2 and
M3 had been reduced by V percentage point in the
2
expectation that continuing rechanneling of credit
demands and savings flows into securities markets
and away from depository institutions would result
in further increases in velocity, the ratio of nominal
GDP to monetary measures such as M2 or M3. In
fact, the strength of these forces was underestimated to some extent. Substantial increases
occurred in the velocity of both M2 and M3, especially in the first quarter, that were reflected in
weak bank credit and huge inflows into bond and
stock mutual funds. In the circumstances, the
expansion of both aggregates through midyear was
below the lower ends of the reduced ranges established by the Committee for the year. According to
a staff analysis, the developments boosting M2 and
M3 velocity could be expected to persist over the
balance of 1993. Such an outcome would imply
monetary growth for the year as a whole slightly

944

Federal Reserve Bulletin • October 1993

below the Committee's current ranges, even if the
growth of nominal GDP picked up in the second
half of the year as implied by the central tendency
of the members' forecasts.
In light of this expectation, many of the members
indicated their support of a proposal to lower the
M2 and M3 ranges further for 1993 and on a
tentative basis to retain the reduced ranges for
1994. It was emphasized during the discussion that
the reductions were intended solely as technical
adjustments to reflect expected increases in velocity and that the lower ranges did not imply any
tightening of monetary policy. Rather, the reductions in the ranges would serve to align them with
monetary growth rates that were more likely to be
associated with a satisfactory economic performance. Indeed, M2 and M3 growth consistent with
most members' forecasts might still leave the
expansion of those aggregates near the lower ends
of their reduced ranges for the year; at the same
time, the probability of a surge in monetary growth
to levels above the new ranges appeared remote. In
this connection, some members commented that
the uncertainties surrounding the behavior of M2
and M3 might well persist for some time. The
value of these aggregates in guiding policy seemed
to have diminished in 1992 and 1993, and the
Committee needed to continue to rely on its evaluation of a broad array of other financial and economic developments in its assessment of an appropriate course for monetary policy. The members
did not rule out the possibility that a more normal
or predictable relationship between money and economic activity might be restored once the current
process of balance sheet adjustments was completed, the yield curve flattened, and some stabilization in the intermediation function of depository
institutions emerged. In the view of a few members, moreover, the lower range proposed for M2
might in fact be more consistent with the rate of
monetary growth that would be needed over the
long term to sustain price stability and satisfactory
economic expansion, if the earlier relationships
between broad money growth and economic performance were to reemerge.
Many of these members commented that the
considerations underlying the desirability of a technical adjustment to the ranges for this year applied
to 1994 as well, and they therefore supported
extending the reduced ranges to 1994 on a tentative



basis subject to review early next year. Monetary
growth outcomes somewhat higher within these
ranges might be anticipated in association with the
somewhat faster economic growth and essentially
unchanged rate of inflation that most members had
forecast for next year.
Several members indicated that while they could
accept reductions in the 1993 ranges, they nonetheless preferred to retain the existing ranges. One
reason given for this preference was that the prospective performance of the broad monetary aggregates in relation to developments in the economy
was not sufficiently understood to warrant the specification of new ranges. Indeed, a change might be
misinterpreted as implying more knowledge about
velocity relationships than the Committee in fact
possessed and could set up expectations that the
Committee would put greater and, depending on
emerging circumstances, perhaps undesirable
emphasis on achieving monetary growth within the
new ranges. Moreover, to the extent that some
observers interpreted the ranges as the Committee's proxies for presumed nominal GDP objectives, an erroneous conclusion could be reached
that the Committee had decided on a reduced target
level of nominal GDP even though the Committee
had not in fact framed its objectives in terms of
GDP targets. On balance, while these members did
not view this choice as a matter of great consequence in current circumstances, they concluded
that it was marginally preferable to retain the
ranges for this year, and if necessary, to accept and
explain the reasons for a shortfall once the latter
were more clearly established. The members who
preferred to retain the current ranges agreed that
there were plausible arguments on both sides of
this issue and they could accept a proposal to
reduce the ranges for both 1993 and 1994.
In light of the limited reliance that the members
felt they could place on the behavior of the current
monetary aggregates, the Committee at this meeting reviewed the possible advantages of a newly
constructed measure of money. This measure
involved the addition of bond and stock mutual
funds to M2 as currently defined. There were indications that the shares of such funds had become
closer substitutes for M2, and large portfolio shifts
into such funds seemed to account for much of the
weakness in M2 and its uncertain relationship to
income and the longer-run behavior of prices. After

Minutes of the Federal Open Market Committee Meeting

examining the properties of this measure and
reviewing its past behavior in relation to key indicators of economic performance, the members concluded that it would not enhance the formulation or
implementation of monetary policy, at least at this
point. However, the members agreed that mutual
funds flows should continue to be monitored for
their effects on M2 and that the relevant data should
be made available to outside analysts.
At the conclusion of its discussion, the Committee voted to lower the M2 range that it had established in February by an additional 1 percentage
point and to reduce the M3 range by another V2 percentage point, bringing the M2 range to 1 to 5 percent and that for M3 to 0 to 4 percent for 1993. The
Committee also voted to reduce the annual monitoring range for growth of total domestic nonfinancial debt by V2 percentage point to 4 to 8 percent.
The members anticipated that this debt aggregate
would continue to grow at a rate that was roughly
in line with that of nominal GDP. The Committee
approved the following statement for inclusion in
its domestic policy directive.
The Federal Open Market Committee seeks monetary
and financial conditions that will foster price stability
and promote sustainable growth in output. In furtherance
of these objectives, the Committee at this meeting lowered the ranges it had established in February for growth
of M2 and M3 to ranges of 1 to 5 percent and 0 to
4 percent respectively, measured from the fourth quarter
of 1992 to the fourth quarter of 1993. The Committee
anticipated that developments contributing to unusual
velocity increases would persist over the balance of the
year and that money growth within these lower ranges
would be consistent with its broad policy objectives. The
monitoring range for growth of total domestic nonfinancial debt also was lowered to 4 to 8 percent for the year.
Votes for this action: Messrs. Greenspan, Mullins,
Angell, Boehne, Keehn, Kelley, LaWare, Lindsey,
McTeer, Oltman, Ms. Phillips, and Mr. Stern. Votes
against this action: None. Absent: Mr. Corrigan. (Mr.
Oltman voted as alternate for Mr. Corrigan.)

For the year 1994, the Committee approved provisional ranges that were unchanged from the
reduced levels for 1993. Accordingly, the Committee voted to incorporate the following statement
regarding the 1994 ranges in its domestic policy
directive.
For 1994, the Committee agreed on tentative ranges
for monetary growth, measured from the fourth quarter




945

of 1993 to the fourth quarter of 1994, of 1 to 5 percent
for M2 and 0 to 4 percent for M3. The Committee
provisionally set the monitoring range for growth of
total domestic nonfinancial debt at 4 to 8 percent for
1994. The behavior of the monetary aggregates will
continue to be evaluated in the light of progress toward
price level stability, movements in their velocities, and
developments in the economy and financial markets.
Votes for this action: Messrs. Greenspan, Mullins,
Angell, Boehne, Keehn, Kelley, LaWare, Lindsey,
McTeer, Oltman, Ms. Phillips, and Mr. Stern. Votes
against this action: None. Absent: Mr. Corrigan. (Mr.
Oltman voted as alternate for Mr. Corrigan.)

In the Committee's discussion of policy for the
period until the next meeting, most of the members
indicated that they saw little or no reason to change
monetary policy in either direction. The most recent information on the performance of the economy was mixed, and this together with questions
about the course of fiscal policy contributed to
considerable uncertainty about the outlook. Even
so, the members felt that the evidence pointed on
the whole to a sustained rate of economic expansion. The latest price statistics provided some encouragement that the apparent intensification of
inflation in earlier months of the year might have
abated. For now, therefore, nearly all the members
saw the balance of factors bearing on the course of
economic activity and the outlook for inflation as
calling for an unchanged degree of pressure on
reserve positions.
According to a staff analysis prepared for this
meeting, the growth of M2 could be expected to
slow markedly in the months ahead from its pace
over the second quarter. The projected deceleration
was mainly associated with some unwinding of the
second-quarter bulge in mortgage refinancings
along with further heavy inflows to bond and stock
mutual funds. The expansion of M3 appeared likely
to be held down by weaker bank credit extensions
as alternative sources of funds in the capital markets attracted more borrowers. On balance, modest
growth of both M2 and M3 would keep them close
to the lower ends of their downward-revised ranges
through September.
Some members cautioned that despite the very
sluggish behavior of the broad measures of money
thus far this year, monetary policy was relatively
expansive as evidenced by a variety of other indicators including the growth in narrow measures of

946

Federal Reserve Bulletin • October 1993

money and reserves and the very low levels of
money market interest rates. Indeed, in the view of
several members, in a period characterized by indications of some worsening in inflationary expectations, a policy course that maintained steady conditions in reserve markets could be said to have
become more accommodative as the federal funds
rate, in real terms after adjustment for expected
inflation, moved down from an already low level.
Accordingly, while current monetary policy
seemed likely to support further economic expansion, the Committee needed to remain alert to the
potential for intensifying inflation. At some point
the current policy stance could well begin to foster
greater price pressures. One member urged a
prompt move toward restraint, given the prospect
in his view that further progress toward price stability was unlikely with the current, quite stimulative,
stance of monetary policy.
A majority of the members, taking account of the
current stance of monetary policy, favored a proposal to retain the bias toward possible tightening
that the Committee had adopted at the May meeting. In this connection, some commented that while
the need for any policy adjustment during the
period ahead seemed somewhat remote, the next
policy move was more likely to be in the direction
of some firming than toward easing. Other members suggested that a symmetrical directive might
be more consistent with current economic conditions and the related outlook for a steady policy
course over the near term. These members agreed,
however, that a return to symmetry so soon after
the adoption of a directive that was biased toward
restraint could convey a misleading impression that
recent developments had increased the Committee's concerns about the sustainability of the expansion or that the Committee had become less
committed to a disinflationary policy course.
Accordingly, these members indicated that they
could support an asymmetric directive at this point.
Several members observed that a number of key
economic measures were scheduled for release
during the intermeeting period and that the data in
question should provide a firmer basis for evaluating the performance of the economy and a desirable course for monetary policy.
At the conclusion of the Committee's discussion,
all but one of the members indicated that they
preferred or found acceptable a directive that called



for maintaining the existing degree of pressure on
reserve positions and that retained a bias toward
possible firming of reserve conditions during the
intermeeting period. Accordingly, in the context of
the Committee's long-run objectives for price stability and sustainable economic growth, and giving
careful consideration to economic, financial, and
monetary developments, the Committee decided
that slightly greater reserve restraint would be
acceptable or slightly lesser reserve restraint might
be acceptable during the intermeeting period. The
reserve conditions contemplated at this meeting
were expected to be consistent with modest growth
in the broader monetary aggregates over the third
quarter.
At the conclusion of the meeting, the Federal
Reserve Bank of New York was authorized and
directed, until instructed otherwise by the Committee, to execute transactions in the System account
in accordance with the following domestic policy
directive:
The information reviewed at this meeting suggests
that the economic expansion has picked up somewhat in
recent months from the very slow pace of the first
quarter. Total nonfarm payroll employment changed little in June after registering substantial gains in April and
May, and the civilian unemployment rate edged up to
7.0 percent in June. Industrial production has changed
little on balance over the last few months. Real consumer expenditures edged higher in May after a sizable
rise in April but have increased only slightly thus far this
year. Housing starts turned up in April from a depressed
first-quarter pace and rose somewhat further in May.
Incoming data suggest a continued brisk advance in
outlays for business equipment, while nonresidential
construction has remained soft. The nominal U.S. merchandise trade deficit was about unchanged in April but
substantially larger than its average rate in the first
quarter. Consumer and producer prices were about
unchanged in May, but for the year to date inflation has
been more rapid than in the second half of 1992.
Short-term interest rates have changed little since the
Committee meeting on May 18 while bond yields have
declined somewhat. In foreign exchange markets, the
trade-weighted value of the dollar in terms of the other
G-10 currencies increased on balance over the intermeeting period.
After contracting during the first quarter, M2 and M3
expanded appreciably over the second quarter. For the
year through June, growth of the two aggregates was
below the lower ends of the ranges established by the
Committee for 1993. Total domestic nonfinancial debt
expanded somewhat further through April.
The Federal Open Market Committee seeks monetary
and financial conditions that will foster price stability

Minutes of the Federal Open Market Committee Meeting

and promote sustainable growth in output. In furtherance
of these objectives, the Committee at this meeting lowered the ranges it had established in February for growth
of M2 and M3 to ranges of 1 to 5 percent and 0 to
4 percent respectively, measured from the fourth quarter
of 1992 to the fourth quarter of 1993. The Committee
anticipated that developments contributing to unusual
velocity increases would persist over the balance of the
year and that money growth within these lower ranges
would be consistent with its broad policy objectives. The
monitoring range for growth of total domestic nonfinancial debt also was lowered to 4 to 8 percent for the year.
For 1994, the Committee agreed on tentative ranges for
monetary growth, measured from the fourth quarter of
1993 to the fourth quarter of 1994, of 1 to 5 percent for
M2 and 0 to 4 percent for M3. The Committee provisionally set the monitoring range for growth of total domestic nonfinancial debt at 4 to 8 percent for 1994. The
behavior of the monetary aggregates will continue to be
evaluated in the light of progress toward price level
stability, movements in their velocities, and developments in the economy and financial markets.
In the implementation of policy for the immediate
future, the Committee seeks to maintain the existing
degree of pressure on reserve positions. In the context of
the Committee's long-run objectives for price stability
and sustainable economic growth, and giving careful
consideration to economic, financial, and monetary
developments, slightly greater reserve restraint would or
slightly lesser reserve restraint might be acceptable in
the intermeeting period. The contemplated reserve conditions are expected to be consistent with modest growth
in the broader monetary aggregates over the third
quarter.
Votes for this action: Messrs. Greenspan, Mullins,
Boehne, Keehn, Kelley, LaWare, Lindsey, McTeer,
Oltman, Ms. Phillips, and Mr. Stern. Vote against this
action: Mr. Angell. Absent: Mr. Corrigan. (Mr. Oltman voted as alternate for Mr. Corrigan.)

Mr. Angell dissented because he favored a
prompt move to tighten policy. In his view, monetary policy was overly expansive at this point as
evidenced by what he viewed as excessive liquidity
in financial markets, the negative level of real
short-term interest rates, and the disappointing lack
of progress toward lower inflation this year. Given
indications of worsening inflationary expectations,
such as the substantial rise in the price of gold, as
well as projections of an increase in inflation, a
policy that led to a steady federal funds rate in fact




947

implied a further easing of an already stimulative
monetary policy. In these circumstances, a tightening of policy would not involve any significant risk
to the expansion but would foster changes in financial conditions and the outlook for inflation that
would be more consistent with renewed progress
toward price stability in 1994 and later. Declining
inflation around the world and a stronger trend of
productivity growth in the United States, among
other factors, were providing a favorable environment for further disinflation, but those developments needed to be supported and validated by
appropriate monetary policy action.
At this meeting, the Committee reviewed its
practices with regard to the release of information
to the public. This review was undertaken in
response to media reports of the purported results
of the May meeting before the Committee had
made public any information about that meeting. In
its discussion, the Committee reaffirmed its longstanding rules governing the confidentiality of
FOMC information, including the schedule that
calls for releasing the minutes of a Committee
meeting, along with an explanation of the Committee's decisions, a few days after the next meeting.
These rules are designed to safeguard the Committee's flexibility to make needed adjustments to
policy and also to provide adequate time to prepare
a full report of the context and rationale for its
decisions. Committee members emphasized the
potential for inadvertent leaks of information in the
course of general conversations with representatives of the news media or others concerning the
members' views about economic developments or
monetary policy. The members agreed that particular care needed to be taken for some period before
and after each of its meetings.
It was agreed that the next meeting of the Committee would be held on Tuesday, August 17, 1993.
The meeting adjourned at 12:25 p.m. on Wednesday, July 7, 1993.

Donald L. Kohn,
Secretary

949

Legal Developments
FINAL RULE—AMENDMENT
AND Y

TO

REGULATIONS

H, K,

The Board of Governors is amending 12 C.F.R. Parts
208, 211, and 225, its Regulations H, K, and Y
(Membership of State Banking Institutions in the Federal Reserve System; International Banking Operations; Bank Holding Companies and Change in Bank
Control; Criminal Referral Report). An interagency
task force has designed a uniform multi-agency criminal referral form in order to facilitate compliance with
financial institutions' criminal activity reporting requirements, to enhance law enforcement agencies'
ability to investigate and prosecute the matters reported in the criminal referrals, and to develop and
maintain a new interagency database. This uniform
criminal referral form will replace the various criminal
referral forms that are currently being used by Federal
bank, thrift and credit union regulatory agencies and
by the banking organizations they supervise. The
purpose of the proposed regulation is to create a
uniform criminal referral reporting requirement for all
domestic and foreign financial institutions operating in
the United States.
Effective October 6, 1993, 12 C.F.R. Parts 208, 211,
and 225 are amended as follows:

Part 208—Membership of State Banking
Institutions in the Federal Reserve System
I. The authority citation for 12 C.F.R. Part 208 is
revised to read as follows:
Authority: 12 U.S.C. 248(a) and (c), 321-328, 461,
481-486, 601, 611, 814, 1818, 18230) and 1831o.
2. Section 208.20 is added to read as follows:

Section 208.20—Reports of crimes and
suspected crimes.
(a) Purpose. This section applies to known or suspected crimes involving state member banks. This
section ensures that law enforcement agencies are
notified by means of criminal referral reports when
unexplained losses or known or suspected criminal
acts are discovered. Based on these reports, the Fed-




eral government will take appropriate measures and
will maintain an interagency database that is derived
from these reports.
(b) Institution-affiliated party.
Institution-affiliated
party means any institution-affiliated party as that term
is defined in sections 3(u) and 8(b)(3) and (4) of the
FDIA (12 U.S.C. 1813(u) and 1818(b)(3) and (4)).
(c) Reports Required. A state member bank shall file a
criminal referral report using a standardized form (the
"Form"),1 in accordance with instructions for the
Form, in every situation where:
(1) The State member bank suspects one of its
directors, officers, employees, agents, or other
institution-affiliated parties of having committed or
aided in the commission of a crime;
(2) There is an actual or potential loss to the state
member bank (before reimbursement or recovery)
of more than $1,000 where the State member bank
has a substantial basis for identifying a possible
suspect or group of suspects and the suspect(s) is
not a director, officer, employee, agent, or institution-affiliated party of the State member bank;
(3) There is an actual or potential loss to the state
member bank (before reimbursement or recovery)
of $5,000 or more and where the State member bank
has no substantial basis for identifying a possible
suspect or group of suspects; or
(4) The State member bank suspects that it is being
used as a conduit for criminal activity, such as
money laundering or structuring transactions to
evade the Bank Secrecy Act reporting requirements.
(d) Time for Reporting. (1) A state member bank shall
file the report required by paragraph (c) of this
section no later than 30 calendar days after the date
of detection of the loss or the known or suspected
criminal violation or activity. If no suspect has been
identified within 30 calendar days after the date of
the detection of the loss or the known, attempted or
suspected criminal violation or activity, reporting
may be delayed an additional 30 calendar days or

1. Copies of the Form (FR 2230) are available from the Federal
Reserve Banks. The Form may be prepared using a computer shell
that is distributed by the Board.

950

Federal Reserve Bulletin • October 1993

until a suspect has been identified; but in no case
shall reporting of known or suspected crimes be
delayed more than 60 calendar days after the date of
the detection of the loss or the known, attempted or
suspected criminal violation or activity. When a
report requirement is triggered by the identification
of a suspect or group of suspects, the reporting
period commences with the identification of each
suspect or group of suspects.
(2) When a State member bank detects a pattern of
crimes committed by an identifiable individual, the
State member bank shall file a report no later than 30
calendar days after the aggregated amount of the
crimes exceeds $1,000.
(3) In situations involving violations requiring immediate attention or where a reportable violation is
ongoing, the State member bank shall immediately
notify by telephone the appropriate law enforcement
agency and the appropriate Federal Reserve Bank in
addition to filing a timely written report.
(e) Reporting to State and Local Authorities. State
member banks are encouraged to file copies of the
Form with State and local authorities where appropriate.
(f) Exceptions. A State member bank need not file the
Form:
(1) For those robberies and burglaries that are
reported to local law enforcement authorities; and
(2) For lost, missing, counterfeit or stolen securities
if a report is filed pursuant to the reporting requirements of 17 C.F.R. 240.17f-l.
(g) Retention of Records. A State member bank shall
maintain copies of any Form that it filed and the
originals of all related documents for a period of
10 years from the date of the report.
(h) Notification to Board of Directors. The management of a State member bank shall promptly notify its
board of directors of any report filed pursuant to this
section.
(i) Penalty. Failure to file a report in accordance with
the instructions on the Form and this regulation may
subject the State member bank, its directors, officers,
employees, agents, or other institution-affiliated parties to supervisory action.

Section 211.8—Reports of crimes and
suspected crimes.
(a) An Edge corporation or any branch or subsidiary
thereof or an Agreement corporation or branch or any
subsidiary thereof shall file a criminal referral form in
accordance with the provisions of section 208.20 of the
Board's Regulation H, 12 C.F.R. 208.20.
3. Section 211.24 is amended by adding a new paragraph (f) to read as follows:

Section 211.24—Nonbanking activities of
foreign banking organizations.

(f) Reports of Crimes and Suspected Crimes. Except
for a federal branch or a federal agency or a state
branch that is insured by the Federal Deposit Insurance Corporation, a branch or agency or a representative office of a foreign bank operating in the United
States shall file a criminal referral form in accordance
with the provisions of section 208.20 of the Board's
Regulation H, 12 C.F.R. 208.20.

Part 225—Bank Holding Companies and
Change in Bank Control
1. The authority citation for 12 C.F.R. Part 225 is
revised to read as follows:
Authority: 12 U.S.C. 18170(13); 1818(b); 1844(b);
3106 and 3108; and Pub. L. 98-181, title IX.
2. Section 225.4 is amended by adding a new paragraph (g) to read as follows:

Section 225.4—Corporate practices.

Part 211—International Banking Operations
1. The authority citation for 12 C.F.R. Part 211 is
revised to read as follows:
Authority: 12 U.S.C. 221 et seq., 1818, 1841 et seq.,
3101 et seq., 3901 et seq., and Pub. L. 100-418, 102
Stat. 1384 (1988).
2. Section 211.8 is added to read as follows:



(g) Criminal referral report. A bank holding company
or any nonbank subsidiary thereof, or a foreign bank
that is subject to the BHC Act or any nonbank
subsidiary of such foreign bank operating in the United
States, shall file a criminal referral form in accordance
with the provisions of section 208.20 of the Board's
Regulation H, 12 C.F.R. 208.20.

Legal Developments

ORDERS ISSUED UNDER BANK
COMPANY ACT

HOLDING

Orders Issued Under Section 3 of the Bank
Holding Company Act
AmSouth Bancorporation
Birmingham, Alabama
Order Approving the Acquisition of a Bank Holding
Company
AmSouth Bancorporation, Birmingham, Alabama
("AmSouth"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied under section 3 of the BHC Act
(12 U.S.C. § 1842) to acquire all the voting shares of
Charter Banking Corp., St. Petersburg, Florida,
("Charter"), and thereby indirectly acquire First Gulf
Bank, Gulfport, Florida ("First Gulf Bank").1
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 30,788 (1993)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3 of the
BHC Act.
AmSouth, with total consolidated assets of
$10.9 billion, operates four subsidiary banks in Alabama, Florida, and Tennessee.2 AmSouth is the sixth
largest commercial banking organization in Florida,
controlling deposits of $1.4 billion, representing 1.2
percent of total deposits in commercial banking organizations in the state.3 Charter is the 68th largest
commercial banking organization in Florida, controlling deposits of $102.6 million, representing less than 1
percent of total deposits in commercial banking organizations in the state. Upon consummation of this
proposal, AmSouth would remain the sixth largest
commercial banking organization in Florida, controlling deposits of $1.5 billion, representing 1.2 percent of
total deposits in commercial banks in the state.4

1. Upon consummation of this proposal, Charter will merge into
AmSouth and First Gulf Bank will merge into AmSouth's subsidiary
bank, AmSouth Bank of Florida, Pensacola, Florida ("AmSouth
Florida").
2. Asset data are as of December 31, 1992.
3. State deposit data are as of June 30, 1992.
4. The Board previously has determined that the interstate banking
statute of Florida permits an Alabama bank holding company to
acquire banking organizations in Florida (see SouthTrust Corporation,
74 Federal Reserve Bulletin 56 (1988)), and AmSouth currently
operates a commercial bank in Florida. Thus, consummation of this
transaction is not barred by section 3(d) of the BHC Act (12 U.S.C.
§ (d)).




951

AmSouth and Charter compete directly in the
Tampa Bay Area banking market.5 Upon consummation of this proposal, AmSouth would become the
eighth largest commercial bank or thrift institution
("depository institution") in the market, controlling
deposits of $507.8 million, representing 2.1 percent of
total deposits in depository institutions in the market.6
After considering the number of competitors remaining in the market, the relatively small increase in
concentration as measured by the HerfindahlHirschman Index ("HHI"), 7 market shares, and all
other facts of record, the Board concludes that consummation of this proposal would not result in a
significantly adverse effect on competition in the
Tampa Bay Area banking market or any other relevant
banking market.
Convenience and Needs Considerations
In reviewing an application to acquire a depository
institution under the BHC Act, the Board must consider the convenience and needs of the communities to
be served, and take into account the records of the
relevant depository institutions under the Community
Reinvestment Act (12 U.S.C. § 2901 et seq.)
("CRA"). The CRA requires the federal financial
supervisory agencies to encourage financial institutions to help meet the credit needs of the local communities in which they operate, consistent with the
safe and sound operation of such institutions. To
accomplish this end, the CRA requires the appropriate
federal supervisory authority to "assess the institu-

5. The Tampa Bay Area banking market is approximated by
Hernando, Hillsborough, Pasco, and Pinnelas Counties.
6. Market data are as of June 30,1992. Market share data are based
on calculations in which the deposits of thrift institutions are included
at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, major competitors of commercial banks. See Midwest Financial Group, 75 Federal
Reserve Bulletin 386 (1989); National City Corporation, 70 Federal
Reserve Bulletin 743 (1984). Thus, the Board has regularly included
thrift deposits in the calculation of market share on a 50 percent
weighted basis. See, e.g., First Hawaiian Inc., 77 Federal Reserve
Bulletin 52 (1991).
7. The HHI in this market would increase 1 point to 1456. Under the
revised Department of Justice Merger Guidelines, 49 Federal Register
26,823 (June 29, 1984), a market in which the post-merger HHI is
between 1000 and 1800 is considered moderately concentrated. A
market in which the post-merger HHI is above 1800 is considered to
be highly concentrated. In such markets, the Justice Department is
likely to challenge a merger that increases the HHI by more than 50
points. The Justice Department has informed the Board that a bank
merger or acquisition generally will not be challenged (in the absence
of other factors indicating anti-competitive effects) unless the postmerger HHI is at least 1800 and the merger or acquisition increases the
HHI by at least 200 points. The Justice Department has stated that the
higher than normal threshold for an increase in the HHI when
screening bank mergers and acquisitions for anti-competitive effects
implicitly recognizes the competitive effect of limited-purpose lenders
and other non-depository financial entities.

952

Federal Reserve Bulletin • October 1993

tion's record of meeting the credit needs of its entire
community, including low- and moderate-income
neighborhoods, consistent with the safe and sound
operation of such institution," and to take that record
into account in its evaluation of bank holding company
applications.8
In this regard, the Board has received comments
critical of AmSouth's record of performance under the
CRA from the Center for Research on Human Rights,
Birmingham, Alabama, and the National Community
Reinvestment Network ("Protestants"). Protestants
allege that AmSouth has not met the convenience and
needs of low- and moderate-income African-American
residents in Jefferson County and Birmingham, Alabama, and that AmSouth has not made direct investments in inner-city neighborhoods.9
The Board has carefully reviewed the CRA performance records of AmSouth, Charter, and their subsidiary banks, as well as the comments received regarding this application, AmSouth's responses to those
comments, and all other relevant facts of record in
light of the CRA, the Board's regulations, and the
Statement of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act
("Agency CRA Statement").10

A. CRA Performance Examinations
The Agency CRA Statement provides that a CRA
examination is an important, and often controlling,
factor in the consideration of an institution's CRA
record, and that these reports will be given great
weight in the applications process.11 The record in this
case indicates that all of AmSouth's subsidiary banks
have received "outstanding" or "satisfactory" ratings
during the most recent examinations of their CRA
performance. AmSouth's lead subsidiary bank, AmSouth Bank, N.A., Birmingham, Alabama ("AmSouth
Bank"), which includes Birmingham and Jefferson
County in its delineated service area, received an
"outstanding" rating for CRA performance from its
primary regulator, the Office of the Comptroller of the

8. 12 U.S.C. § 2903.
9. Protestants made substantially similar allegations relating to
AmSouth's record of performance under the CRA in connection with
AmSouth's application to acquire First Bank of Maury County,
Columbia, Tennessee. See AmSouth Bancorporation, 76 Federal
Reserve Bulletin 957 (1990) (the "1990 Order"). In reviewing those
comments in 1990, the Board stated that it would monitor AmSouth's
progress under the CRA in future applications to expand its deposittaking facilities.
10. 54 Federal Register 13,742 (1989).
11. 54 Federal Register at 13,745.




Currency ("OCC"), in October 1992.12 This rating
reflects an improvement from the "satisfactory" rating received in July 1990. In addition, First Gulf Bank
received a "satisfactory" rating from the FDIC in
April 1992.

B. Other Aspects of CRA Performance
Lending and Investment Programs. Since the 1990
Order, AmSouth Bank has taken various steps to
increase the availability of credit to its delineated
community and to address disparities in its lending.
AmSouth Bank offers a variety of products and
services, such as first-time real estate mortgage
loans, rehabilitation loans, small business loans, and
home improvement loans, that are specifically designed to help meet the credit needs of its communities, including low- and moderate-income neighborhoods. In July 1992, AmSouth Bank established a
low-income mortgage loan program that applies more
flexible underwriting criteria than are used for conventional mortgages. Through June 1993, this program has resulted in the origination of 703 loans
totaling $28 million. AmSouth also has committed to
extend an additional $25 million in home mortgage
loans to families earning less than 80 percent of the
median income of their local community. In addition,
as of July 1992, AmSouth Bank and AmSouth Mortgage Company, Birmingham, Alabama ("AmSouth
Mortgage"), had $681 million in residential firstmortgage loans outstanding and $51 million in residential second-mortgage loans outstanding in the
communities they serve.
AmSouth Bank is the largest investor in the Alabama Small Business Investment Company ("SBIC"),
having contributed $415,000 of the $1 million fund.13
AmSouth Bank also is the lead contributor in a multibank Community Development Corporation which,
from June 1990 to March 1993, extended 112 loans
totaling $4 million.
In addition, AmSouth Bank originates various government sponsored or guaranteed loans including
FHA and VA mortgage loans, government-backed

12. AmSouth's other subsidiary banks have received the following
CRA ratings: AmSouth Bank of Florida, Pensacola, Florida, received
an "outstanding" rating from the FDIC in January 1993; AmSouth
Bank of Tennessee, Nashville, Tennessee, received a "satisfactory"
rating from the FDIC in September 1992; and AmSouth Bank of
Walker County, Jasper, Alabama, received a "satisfactory" rating
from the FDIC in January 1991. AmSouth Bank of Georgia, Summerville, Georgia, opened for business in February 1993 and has not yet
had a CRA examination.
13. From April 1988 to December 1992, this SBIC extended 40 loans
totaling $3.7 million.

Legal Developments

education loans, and SBA-guaranteed loans for small
businesses. As of July 31, 1992, AmSouth Bank had
30,157 FHA/VA loans outstanding totaling $819 million in Alabama, and had provided 15,541 government-backed education loans totaling $66.6 million.
As of June 22, 1992, AmSouth Bank had 108 outstanding SBA loans totaling $18.7 million.
AmSouth participates in the Birmingham Community Development Corporation, Inc., a lending program, and has led efforts to establish multi-bank Community Development Corporations ("CDCs") in
Mobile and Huntsville, Alabama. AmSouth Bank also
has representatives on the boards of various organizations that assist minority businesses in acquiring credit
including the Birmingham City Wide Local Development Corporation, the Minority Enterprise Small Business Investment Company, and the Birmingham Business Assistance Network.
In mid-1992, AmSouth Bank initiated the organization of the Montgomery Area Loan Fund, a consortium of eight banks, to provide small business development financing and capital for community
development. AmSouth Bank also participated in the
formation of the Greater Huntsville Loan Fund, a
consortium of six area banks. In 1992, AmSouth Bank
extended $265,000 in capital and lines of credit to this
fund. In addition, AmSouth Bank supports municipal
projects throughout Alabama.
Policies and Programs. The record indicates that
AmSouth has put in place the types of policies outlined
in the Agency CRA Statement that contribute to an
effective CRA program. Although primary responsibility for monitoring CRA compliance has been assigned
to the Audit Committee, the board of directors has
established a corporate CRA policy and reviews the
performance of each subsidiary bank's management.
The board of directors receives annual reports from
each subsidiary bank detailing efforts to meet the
requirements of CRA, and the Audit Committee reviews all CRA self-assessment reports and any signed
written comments concerning a subsidiary bank's
CRA performance. AmSouth also has established an
Office of Community Affairs to:
(1) Ensure that each subsidiary bank fulfills its
obligations under CRA;
(2) Train AmSouth officers on the requirements of
CRA;
(3) Coordinate corporate CRA programs; and
(4) Evaluate the reasonableness of each subsidiary
bank's CRA statement and community delineation.
A City President in each of AmSouth's delineated
communities is responsible for ascertaining local credit




953

needs and keeping staff informed of CRA-related issues
and the requirements of consumer protection and fair
lending laws.14 In AmSouth's most recent CRA examination, examiners noted that AmSouth Bank's ascertainment program showed improvement because of the
implementation of a credit needs assessment call program that targets community contacts and specifically
gathers information on credit needs. In Birmingham,
AmSouth Bank has established contact with local politicians, minority and small business organizations,
civic and religious leaders, local realtors, and corporate
individuals. AmSouth Bank also has hired a research
firm to conduct a telephone survey of local consumers,
and encourages employee involvement in local community groups.
AmSouth's Corporate Marketing Department has
developed overall goals, strategies, and action plans
designed to ensure that marketing and advertising
programs reach all segments of the communities to be
served. In particular, AmSouth Bank markets available products and services through sales calling programs and through the local media, including minorityowned radio stations and newspapers. Directors of
AmSouth Bank also attend meetings of various community groups to inform members of available credit
services.

C. HMDA Analysis
Protestants allege generally that data which AmSouth's subsidiary banks are required to file under
the Home Mortgage Disclosure Act (12 U.S.C. § 2801
et seq.) ("HMDA") show that AmSouth has not met
the credit needs of low- and moderate-income and
minority communities in Birmingham, Alabama. In
this regard, the Board noted in the 1990 Order that
AmSouth Bank's HMDA data for 1984-1989 showed
disparities between the bank's lending in low- to
moderate-income census tracts as compared with
lending in high-income census tracts.
The Board has carefully reviewed HMDA data filed
by AmSouth Bank and AmSouth Mortgage for the
years 1990 through 1992 in the Birmingham MSA.15
These data show improvement in AmSouth's record of
lending in low- to moderate-income and minority communities. For example, data indicate that there has
been an increase in the number of loan applications
received by AmSouth from residents of low- to moderate-income census tracts as well as an increase in the

14. AmSouth also maintains an Office of Consumer Compliance to
ensure compliance with all fair lending and consumer protection laws.
15. All 1992 HMDA data used in this analysis is preliminary data.
The Birmingham MSA includes Jefferson County, Alabama.

954

Federal Reserve Bulletin • October 1993

number of loans originated in low- to moderate-income
census tracts by AmSouth. These data also show that,
at the same time that the number of loan applications
from residents of low- to moderate-income census
tracts increased, the disparity in the ratio of loan
originations to loan applications in low- to moderateincome census tracts has decreased compared with the
same ratio in high-income census tracts served by
AmSouth.16
AmSouth also has shown improvement in its record
of lending to minority communities. In particular,
HMDA data indicate an increase in the number of loan
applications received from African-Americans and in
the number of loans originated to African-Americans,
as well as a decrease in the percentage of denied
African-American loan applications. AmSouth also
has improved the ratio of loans originated to AfricanAmericans as compared to loans originated to white
residents in the Birmingham MSA.17 The Board notes
that HMDA data also indicate that mortgage loans
made by AmSouth to African-Americans, as a percentage of total mortgage loans originated by AmSouth, exceeds the aggregate percentage of mortgages
made by all lenders in the Birmingham MSA. In
addition, AmSouth has originated a higher percentage
of its total loans in low- to moderate-income census
tracts to minority low- to moderate-income census
tracts than all lenders in this aggregate.
Since the 1990 Order, AmSouth has undertaken a
number of steps to address disparities in its record of
lending to low- and moderate-income and minority
communities. In June 1992, AmSouth conducted a
telephone survey in low- and moderate-income census
tracts in various cities, including Birmingham, Alabama. As a result of this survey, AmSouth Bank hired
minority loan originators in Birmingham, Huntsville,
and Mobile, Alabama, and developed a training program to ensure that all of its lending officers provide
fair and equal treatment to all loan applicants.

16. In 1990, AmSouth received 281 loan applications from residents
of low- to moderate-income tracts and originated 59 percent (165) of
these loans. In 1991, AmSouth received 302 loan applications from
residents of low- to moderate-income tracts and originated 66 percent
(199). In 1992, AmSouth received 503 loan applications from residents
of low- to moderate-income tracts and originated 68 percent (341).
Over this period, AmSouth originated approximately 84 percent of the
loan applications submitted by residents of high-income census tracts.
17. In 1990, AmSouth received 457 loan applications from AfricanAmerican residents and originated 56 percent (257) of these loans. In
1991, AmSouth received 578 loan applications from African-American
residents and originated 61 percent (350). In 1992, AmSouth received
627 loan applications from African-American residents and originated
65 percent (409). Over this period, AmSouth originated approximately
83 percent of loan applications submitted by white residents in the
Birmingham MSA. In addition, data for these years indicate that the
denial rate for African-American loan applications decreased from
36 percent to 24 percent.




To further address approval rate disparities, AmSouth Bank initiated a secondary review process for
all minority purchase-money loan applications that are
denied. As a result of this secondary review process,
during the period June 1992 through December 1992,
27 applications have been approved, providing
$1.7 million in new loans. AmSouth also retained an
outside consultant to review all 1990 loan applications
and the consultant determined that disparities in the
approval rates between minority and non-minority
mortgage loan applicants were not the result of illegal
discrimination.

D. Conclusion Regarding the Convenience and
Needs Factor
The Board has carefully considered the entire record,
including comments filed in this case, in reviewing the
convenience and needs factor under the BHC Act. The
Board also has considered the results of AmSouth
Bank's most recent CRA examination conducted in
October 1992 by the OCC. This examination indicated
that AmSouth Bank has achieved a reasonable penetration in all segments of its local communities, and
found no evidence of illegal discrimination in AmSouth Bank's lending practices.
Based on a review of the entire record of performance of AmSouth and its subsidiary banks, the
Board believes that the efforts of AmSouth and its
subsidiary banks to help meet the credit needs of all
segments of the communities they serve, including
low- and moderate-income and minority communities,
are consistent with approval. The Board recognizes,
however, that HMDA data indicate that some disparities in lending to low- and moderate-income and
minority residents remain. In this regard, the Board
will continue to monitor AmSouth's efforts in meeting
the credit needs of all its communities, including lowand moderate-income and minority neighborhoods,
and consider those efforts in future applications.
Based on all the facts of record, the Board concludes
that convenience and needs considerations, including
the CRA performance of AmSouth, Charter, and their
subsidiary banks, are consistent with approval of this
application.18

18. Protestants have requested that the Board hold a public meeting
or hearing on this application. The Board is not required under section
3(b) of the BHC Act to hold a hearing on an application unless the
appropriate banking authority for the bank to be acquired makes a
timely written recommendation of denial of the application. In this
case, the OCC has not recommended denial of the proposal.
Generally, under the Board's rules, the Board may, in its discretion,
hold a public hearing or meeting on an application to clarify factual
issues related to the application, and to provide an opportunity for
testimony, if appropriate. 12 C.F.R. 262.3(e) and 262.25(d). The
Board has carefully considered this request. In the Board's view,

Legal Developments

Other Considerations
The Board also concludes that the financial and managerial resources and future prospects of AmSouth,
Charter, and their subsidiary banks, and other supervisory factors the Board must consider under section 3
of the BHC Act, are consistent with approval.
Based on all the facts of record, the Board has
determined that this application should be, and hereby
is, approved. The Board's approval is specifically
conditioned upon compliance by AmSouth with all the
commitments made in connection with this application. For the purpose of this action, these commitments and conditions will both be considered conditions imposed in writing and, as such, may be enforced
in proceedings under applicable law. The Board's
approval also is conditioned upon AmSouth Florida
obtaining the approval of the FDIC to merge with First
Gulf Bank.
This acquisition shall not be consummated before
the thirtieth calendar day following the effective date
of this Order, or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Atlanta, acting pursuant to
delegated authority.
By order of the Board of Governors, effective
August 23, 1993.
Voting for this action: Vice Chairman Mullins and Governors LaWare, Lindsey, and Phillips. Absent and not voting:
Chairman Greenspan and Governors Angell and Kelley.
JENNIFER J. JOHNSON

Associate Secretary of the Board

Dickinson Bancorporation, Inc.
Dickinson, North Dakota
Order Approving Acquisition of a Bank
Dickinson Bancorporation, Inc., Dickinson, North
Dakota ("Dickinson"), a bank holding company
within the meaning of the Bank Holding Company Act
("BHC Act"), has applied under section 3 of the BHC
Act (12 U.S.C. § 1842) to acquire all the voting shares
of First National Bank of Bowman, Bowman, North
Dakota ("Bowman Bank").

interested parties have had a sufficient opportunity to present written
submissions, and have submitted substantial written comments that
have been considered by the Board. On the basis of all the facts of
record, the Board has determined that a public meeting or hearing is
not necessary to clarify the factual record in this application, or
otherwise warranted in this case. Accordingly, the request for a public
meeting or hearing on this application is hereby denied.




955

Notice of the application, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 11,411 (1993)). The time
for filing comments has expired, and the Board has
considered the application and all comments received
in light of the factors set forth in section 3(c) of the BHC
Act.
Dickinson is the 20th largest commercial banking
organization in North Dakota, controlling deposits of
$70.9 million, representing approximately 1 percent
of total deposits in commercial banks in the state.1
Bowman Bank is the 27th largest commercial banking organization in North Dakota, controlling deposits of $50.4 million, representing less than 1 percent
of total deposits in commercial banks in the state.
Upon consummation of this proposal, Dickinson
would become the ninth largest commercial banking
organization in North Dakota. Dickinson and Bowman Bank do not compete directly in any banking
market. Accordingly, based on all the facts of record
in this case, consummation of this proposal would
not have a significantly adverse effect on competition
or the concentration of banking resources in any
relevant banking market.
The Board has carefully considered the comments
of a bank holding company ("Commenter") currently
involved in litigation with Dickinson over the ownership of a minority (21.1 percent) interest in Dickinson's subsidiary bank, Liberty National Bank and
Trust Company, Dickinson, North Dakota ("Liberty
Bank").2 In particular, the Commenter alleges that the
financial projections by Dickinson do not take into
account Commenter's minority interest in Liberty
Bank and rely on Bowman Bank as a source of funds.
In addition, Commenter asserts that Liberty Bank's
managerial resources will be impaired as a result of the
Bowman Bank acquisition.
The Board has carefully reviewed the financial
aspects of this proposal on the basis of Dickinson
owning all or, in the alternative, 78.1 percent of
Liberty Bank, and without regard to dividends from
Bowman Bank. In either event, Dickinson would be

1. State deposit data are as of December 31, 1992.
2. In a transaction approved in 1990 by the bank's primary regulator, the Office of the Comptroller of the Currency ("OCC"), Liberty
Bank merged over Commenter's objection with a de novo national
bank wholly owned by Dickinson and thereby "cashed out" Commenter's minority interest in Liberty Bank. Commenter sued Dickinson in federal district court, and the court held that mergers in which
minority shareholders were "cashed out" were not authorized under
the National Bank Act. This decision was recently reversed on appeal
by a federal appellate court, which found the transaction permissible
under the OCC's interpretation of the National Bank Act. Commenter
has questioned Liberty Bank's payment of legal fees associated with
this litigation. Dickinson has reimbursed Liberty Bank for its legal fees
with the understanding that this reimbursement will be returned if
Dickinson prevails in the litigation.

956

Federal Reserve Bulletin • October 1993

able to service its acquisition debt consistent with the
Board's guidelines. The Board also has considered
the managerial resources and capabilities of Dickinson and Liberty Bank, and Dickinson's proposed
management plan for Bowman Bank, in light of all
information in the record, including the assessment
of managerial resources contained in reports of examination from Liberty Bank's primary regulator,
the OCC. On the basis of all facts of record, the
Board concludes that Commenter's objections do not
warrant denial of this proposal, and that the financial
and managerial resources and future prospects of the
institutions involved are consistent with approval of
the application.
Considerations relating to the convenience and
needs of the communities to be served, and other
supervisory factors the Board must consider under
section 3 of the BHC Act are also consistent with
approval of this application.
Based on the foregoing and other facts of record,
the Board has determined that the application should
be, and hereby is, approved. The Board's approval is
specifically conditioned on Dickinson's compliance
with the commitments made in connection with this
application. All of the commitments and conditions
relied upon by the Board in reaching its decision are
both conditions imposed in writing in connection
with the Board's findings and decision and, as such,
may be enforced in proceedings under applicable
law. The transaction approved in this Order shall not
be consummated before the thirtieth calendar day
following the effective date of this Order, or later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Minneapolis, acting pursuant to delegated authority.
By order of the Board of Governors, effective
August 2, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, and LaWare. Absent and not voting:
Governors Lindsey and Phillips.
JENNIFER J. JOHNSON

Associate Secretary of the Board

First United Bank Group, Inc.
Albuquerque, New Mexico
Ford Bank Group, Inc.
Lubbock, Texas
Ford Bank Group Holdings, Inc.
Wilmington, Delaware



Order Approving Acquisition of Banks
First United Bank Group, Inc., Albuquerque, New
Mexico, Ford Bank Group, Inc., Lubbock, Texas, and
Ford Bank Group Holdings, Inc., Wilmington, Delaware (together "Ford"), bank holding companies
within the meaning of the Bank Holding Company Act
("BHC Act"), have applied for the Board's approval
under section 3(a)(3) of the BHC Act (12 U.S.C.
§ 1842(a)(3)) to acquire Texas Commerce Bank National Association, Lubbock, Texas ("TCB-Lubbock").1 Ford also has applied to establish a de novo
bank subsidiary, Midland National Bank, Midland,
Texas ("Midland").2
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 33,097 (1993)). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in section 3(c)
of the BHC Act.
Ford has consolidated assets of approximately
$3.4 billion, and controls 19 banks in Texas and New
Mexico.3 Upon consummation of this proposal, Ford
would become the 16th largest commercial banking
organization in Texas, controlling deposits of $1.3 billion, representing approximately 1 percent of the deposits in commercial banks in the state.4
Competitive Effects
In every bank holding company application to acquire
a bank, the Board must consider the competitive
aspects of the proposal. In this regard the Board has
carefully reviewed comments opposing the proposal
from an individual ("Protestant"). In particular, Protestant contends that this proposal will materially
lessen competition for all banking activities in Lubbock, Texas. Ford and TCB-Lubbock compete in the
Lubbock County banking market.5
Ford is the largest depository institution6 in the

1. First United Bank Group owns Ford Bank Group which is a
multi-bank holding company that owns Ford Bank Group Holdings.
TCB-Lubbock will be merged into First National Bank of West Texas,
Lubbock, Texas ("FNB-West Texas"), a wholly owned subsidiary of
Ford.
2. Midland will purchase certain assets and assume certain liabilities
from Texas Commerce Bank National Association, Midland, Texas.
3. Asset data are as of June 30, 1993.
4. Market deposit data are as of June 30, 1992.
5. The Lubbock County banking market is approximated by Lubbock County, Texas.
6. In this context, depository institutions include commercial banks,
savings banks, and savings associations. The Board previously has
indicated that thrift institutions have become, or have the potential to
become, major competitors of commercial banks. See Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City

Legal Developments

Lubbock banking market, controlling deposits of
$610 million, representing 24.9 percent of total deposits in depository institutions in the market ("market
deposits"). TCB-Lubbock is the fifth largest depository institution in the market, controlling deposits of
$171.2 million, representing 7 percent of market deposits. Upon consummation of this proposal, Ford
would remain the largest depository institution in the
Lubbock banking market, controlling deposits of
$781.2 million, representing 31.9 percent of market
deposits.7 The Herfindahl-Hirschman Index ("HHI")
would increase by 347 points to 1761, and therefore
not exceed the threshold standards in the Department
of Justice's revised guidelines.8
A number of other factors also indicate that this
proposal would not have an adverse effect on competition. For example, upon consummation of this proposal, fourteen depository institutions, including one
national commercial banking organization, would continue to serve the market. In addition, the legal barriers to entry are low. Texas permits statewide branch
banking and nationwide interstate banking, which facilitates entry into the market for potential competitors.
Ford's acquisition of Midland also would not have
an adverse effect on competition in the Midland banking market because Ford currently does not control
Corporation, 70 Federal Reserve Bulletin 743 (1984). Thus, the Board
has regularly included thrift deposits in the calculation of market share
on a 50 percent weighted basis. See, e.g., First Hawaiian, Inc., 11
Federal Reserve Bulletin 52 (1991). In considering the competition
offered by thrifts in all banking markets in this case, thrift deposits are
weighted at 50 percent.
7. Protestant also has expressed concern that this transaction would
lessen competition among the trust departments operating in Lubbock. For the reasons explained in previous decisions, the Board
continues to believe that the competitive analysis of bank expansion
proposals should be based on the availability of the cluster of banking
services to a range of customers in the local banking market. See
SouthTrust Corporation, 78 Federal Reserve Bulletin 710, 713 (1992);
First Hawaiian, Inc., 11 Federal Reserve Bulletin 52 , 53 (1991);
United States v. Philadelphia National Bank, 374 U.S. 321 (1963).
Protestant has provided no data supporting treatment of trust services
as a separate product market. In any event, the Board has considered
the effect of this proposal on trust services, and given the availability
of these services by depository institutions and others, and the broad
geographical market for these services, the Board has determined that
this proposal would not have a significantly adverse effect on competition for trust services in the Lubbock banking market.
8. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered to be highly concentrated. In such markets, the Justice Department is likely to challenge
a merger that increases the HHI by more than 50 points. The Justice
Department has informed the Board that a bank merger or acquisition
generally will not be challenged (in the absence of other factors
indicating anti-competitive effects) unless the post-merger HHI is at
least 1800 and the merger or acquisition increases the HHI by at least
200 points. The Justice Department has stated that the higher than
normal threshold for an increase in the HHI when screening bank
mergers and acquisitions for anti-competitive effects implicitly recognizes the competitive effect of limited-purpose lenders and other
non-depository financial entities.




957

deposits in this market.9 Ford would become the
second largest depository institution in the Midland
banking market, controlling deposits of $265 million,
representing 20 percent of market deposits.
Based on all the facts of record, and for the reasons
discussed above, the Board believes that consummation of this proposal would not have a significantly
adverse effect on competition or the concentration of
banking resources in any relevant banking market.
Other Considerations
The Board also concludes that the financial and managerial resources and future prospects of Ford, its
subsidiaries, TCB-Lubbock, and Midland, are consistent with approval of this proposal. Convenience and
needs considerations and the other supervisory factors
that the Board is required to consider under section 3
of the BHC Act, also are consistent with approval.10
Based on the foregoing and all the facts of record,
the Board has determined that the application should
be, and hereby is, approved. The Board's approval of
this proposal is expressly conditioned on compliance
with the commitments made by Ford in connection
with this application. For purposes of this action,
these commitments and conditions relied on in reaching this decision are deemed to be conditions imposed
in writing by the Board in connection with its findings
and decision, and, as such, may be enforced in proceedings under applicable law.

9. The Midland banking market is approximated by Midland
County, Texas.
10. Protestant has expressed concern about the future employment
of individuals who worked at TCB-Lubbock. In response, Ford has
stated that four of the six officers who worked at TCB-Lubbock have
accepted offers of employment with FNB-West Texas. One of the
remaining officers has been offered employment at another Texas
Commerce Bank subsidiary. FNB-West Texas also plans to hire most
of the remaining employees of TCB-Lubbock. Ford has committed to
provide full severance benefits for those few employees of TCBLubbock who ultimately are affected by the acquisition.
In addition, Protestant believes that this merger would cause the
closing of an office building in downtown Lubbock, and, therefore,
adversely affect the development of the downtown area. Protestant
also has asked that no merger be permitted without requiring the
present management of TCB-Lubbock to investigate the possibility of
local investors buying the bank. Ford has stated that TCB-Lubbock
currently occupies a portion of one office building in downtown
Lubbock and that this acquisition will not affect the economic vitality
of the downtown area. Protestant has not stated any reason why the
sale of TCB-Lubbock to non-local investors should adversely impact
the convenience and needs considerations that the Board is required
to examine under the BHC Act. The Board notes that the majority of
the senior management from TCB-Lubbock has accepted employment
at FNB-West Texas. In addition, the Board expects that Ford will
continue to meet its statutory obligation to serve the convenience and
needs of Lubbock after this acquisition. Based on all the facts of
record, the Board does not believe that these comments cause the
balancing of the convenience and needs factors to be inconsistent with
approval of this proposal.

958

Federal Reserve Bulletin • October 1993

This transaction shall not be consummated before
the thirtieth day following the effective date of this
Order, or later than three months after the effective
date of this Order, unless such period is extended for
good cause by the Board or by the Federal Reserve
Bank of Dallas, acting pursuant to delegated authority.
By order of the Board of Governors, effective
August 30, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips.
JENNIFER J. JOHNSON

Associate Secretary of the Board

PNC Bank Corp.
Pittsburgh, Pennsylvania
Order Approving Acquisition of a Bank
PNC Bank Corp., Pittsburgh, Pennsylvania ("PNC"),
a bank holding company within the meaning of the
Bank Holding Company Act ("BHC Act"), has applied under section 3(a)(3) of the BHC Act (12 U.S.C.
§ 1842(a)(3)) to acquire The Massachusetts Company,
Boston, Massachusetts ("TMC").1
Notice of this application, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 31,714 (1993)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
PNC, with total consolidated assets of $51.5 billion,
operates 13 subsidiary banks in Pennsylvania, Kentucky, Ohio, Indiana, New Jersey, and Delaware.2
Upon consummation of this proposal, PNC would
become the tenth largest commercial banking organization in Massachusetts, controlling deposits of
$644.6 million, representing approximately 1.2 percent
of the deposits in commercial banks in the state.3

1. TMC became a bank for purposes of the BHC Act upon
enactment of the Competitive Equality in Banking Act of 1987
("CEBA"), but its ownership by The Travelers Corporation was
grandfathered under section 101(c) of CEBA.
2. Asset and state banking data are as of March 31, 1993.
3. The Board previously has determined that the interstate banking
statute of Massachusetts permits a Pennsylvania bank holding company to acquire banking organizations in Massachusetts. See Mellon
Bank Corporation, 79 Federal Reserve Bulletin 626 (1993). Thus,
consummation of this transaction is not barred by section 3(d) of the
BHC Act (12 U.S.C. § (d)).




Financial, Managerial, and Competitive
Considerations
The Board concludes that the financial and managerial
factors and future prospects of PNC and TMC, and
other supervisory factors that the Board must consider
under section 3 of the BHC Act, are consistent with
approval of this application. The competitive factors
under section 3 also are consistent with approval.
Convenience and Needs Considerations
In considering an application under the BHC Act, the
Board is required to consider the convenience and
needs of the communities to be served, and take into
account the records of the relevant depository institutions under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the federal financial supervisory agencies to
encourage financial institutions to help meet the credit
needs of the local communities in which they operate,
consistent with safe and sound operation of such
institutions. To accomplish this end, the CRA requires
the appropriate federal supervisory agency to "assess
the institution's record of meeting the credit needs of
its entire community, including low- and moderateincome neighborhoods, consistent with the safe and
sound operation of such institutions," and to take that
record into account in its evaluation of bank holding
company applications.4
In this regard, the Board has received comments
from the Pittsburgh Community Reinvestment Group
supporting PNC's application to purchase TMC. The
Board also has received comments from the United
Paperworkers International Union ("Protestant") alleging that 1991 Home Mortgage Disclosure Act
("HMDA") data indicate that PNC rejects minority
mortgage applicants at rates far higher than white
applicants.5 The Board has carefully reviewed the
CRA performance record of PNC, as well as all
comments received, the responses to those comments,
and all the other relevant facts of record in light of the
CRA, the Board's regulations, and the Statement of
the Federal Financial Supervisory Agencies Regarding
the Community Reinvestment Act ("Agency CRA
Statement").6

4. 12 U.S.C. § 2903.
5. The HMDA requires banks to report certain information regarding loan applications, approvals, and denials to the various banking
agencies and the public. This information includes data on the race,
gender, and income of individual loan applicants, as well as the
location of the property securing the potential loan, and a description
of the application.
6. 54 Federal Register 13,742 (1989).

Legal Developments

Record of Performance

Under the CRA

A. CRA Performance Examinations
The Agency CRA Statement provides that a CRA
examination is an important, and often controlling,
factor in the consideration of an institution's CRA
record and that these reports will be given great weight
in the applications process.7 In this case, the Board
notes that all of PNC's 13 subsidiary banks received
"outstanding" or "satisfactory" ratings during the
most recent examinations of their CRA performance.8
In addition, TMC received a "satisfactory" rating
during its most recent examination of its CRA performance conducted by the FDIC in August 1991.

B. Analysis of HMDA Data and Other Lending
Activities
The Board has carefully reviewed the 1991 HMDA
data reported by PNC in light of the Protestant's
comments. These data indicate that, as a general
matter, PNC has extended a significant number and
percentage of home mortgage loans in low- and
moderate-income neighborhoods. In certain neighborhoods, however, the data reflect disparities between
the loan rejection rates for minority applicants when
compared to white applicants.
The Board is concerned when the record of an
institution indicates disparities in lending to minority
applicants and believes that all banks are obligated to
ensure that their lending practices are based on criteria
that assure not only safe and sound lending, but also
assure equal access to credit by creditworthy applicants regardless of race. The Board recognizes, however, that HMDA data alone provide an incomplete
measure of an institution's lending in its community.
The Board also recognizes that HMDA data have
limitations that make the data an inadequate basis,
absent other information, for concluding that an institution has engaged in illegal discrimination in making
lending decisions.
The Board notes that the most recent CRA examinations of all 13 PNC subsidiary banks found no

7. Id. at 13,745.
8. PNC's lead subsidiary bank, PNC Bank, N.A., Pittsburgh,
Pennsylvania, is the product of a merger between Pittsburgh National
Bank, Pittsburgh, Pennsylvania, Provident National Bank, Philadelphia, Pennsylvania, and Marine Bank, Erie, Pennsylvania. At present,
the consolidated PNC Bank, N.A. has not received a CRA exam
rating, but the former Pittsburgh National Bank had received an
"outstanding" rating for two years in a row from the Office of the
Comptroller of the Currency ("OCC") prior to the merger and
Provident National Bank also received an "outstanding" rating from
the OCC. Marine Bank did not receive a public CRA rating from the
Federal Deposit Insurance Corporation ("FDIC").




959

evidence of illegal discrimination or other illegal credit
practices.9 In this regard, examiners randomly selected and reviewed the banks' loan documentation,
including files for rejected loans.
The Board also notes that PNC has taken a number
of steps to address the disparities in its HMDA data.
For example, PNC affiliates have fair mortgage lending
programs that include credit counseling, second loan
reviews, sensitivity training, special mortgage products, marketing to minorities, minority business goals,
and compliance monitoring. In 1992, PNC Bank-Pittsburgh created the Community Mortgage Department
which is a specialized unit dedicated to originating and
underwriting mortgage loans in Pittsburgh.
PNC has worked with community groups in all
markets to establish or renew support for local credit
counseling programs to help minority and low-income
applicants. In Pittsburgh, this initiative led to the
development of the Community Lender Credit Program designed to provide comprehensive credit and
financial education to low-income Pittsburgh residents. In Dayton, PNC participates in Neighbor to
Neighbor, Inc., a program designed to provide technical assistance services, training and financial resource
development to neighborhood-based development corporations.
PNC offers special mortgage products to attract
minority customers. For example, the Neighborhood
Mortgage Program in Pittsburgh and similar programs
in other markets, offer reduced interest rates, points
and fees, higher acceptable debt-to-income and loanto-value ratios and specialized credit histories for
borrowers who normally do not use credit. In Cincinnati, PNC met with community groups and enhanced
its Open Door Mortgage program to better meet minority credit needs. These enhancements included a
zero downpayment requirement for the lowest income
homebuyers, flexible underwriting criteria and reduced interest rates.
PNC affiliates help meet the credit needs of small
businesses through loans, investments, and technical
assistance. For example, PNC banks in Pennsylvania
have committed $1 million to the Keystone Minority
Capital Fund which will be managed by local minority
enterprise corporations in Pittsburgh and Philadelphia.
The Fund will provide both start-up and development
financing to Black, Hispanic, and Asian owned businesses. In Philadelphia, PNC worked with the His-

9. Protestant identified PNC Bank of Pittsburgh, Central Trust of
Ohio, and Provident National Bank as PNC subsidiaries that reject
minority mortgage applicants at rates higher than for white applicants.
PNC Bank of Pittsburgh and Provident National Bank are now part of
PNC Bank, N.A., Pittsburgh, Pennsylvania. Central Trust is now part
of PNC Bank, Ohio, N.A., Cincinnati, Ohio.

960

Federal Reserve Bulletin • October 1993

panic Chamber of Commerce to establish a special
multibank micro-business loan pool. In 1992, PNC
made over $150 million available in new credit to small
businesses located in low- and moderate-income
neighborhoods. PNC banks also provide Small Business Administration ("SBA") loans and have been
named preferred lenders under the SBA Preferred
Lender Program.
PNC also helps meet the credit needs of its communities through its participation in programs such as
Project HOPE. This program is designed to help
unemployed and underemployed homeowners, who
are having difficulty meeting mortgage payments and
risk foreclosure, keep their homes. Further, PNC also
has helped to develop affordable rental housing for
low-income communities. For example, PNC made
over $50 million in loans to non-profit developers of
affordable rental housing in 1992 and provided over
$10 million in equity investments in affordable rental
projects during that time.

C. Additional Elements of CRA Performance
In addition to HMDA data and other lending activities,
the Board also has considered other elements of the
CRA performance of PNC. The record indicates that
PNC has in place the types of policies outlined in the
Agency CRA Statement that contribute to an effective
CRA program. In evaluating a bank's CRA program
the Board examines factors such as, but not limited to,
a bank's corporate CRA policies, its ascertainment of
community needs and its marketing efforts.
PNC has in place the types of corporate policies
necessary to ensure a successful CRA program. For
example, PNC Bank-Pittsburgh has a CRA Policy
committee, whose membership includes the chief executive officer, that exercises policy supervision for
the CRA program at the bank. The committee's responsibilities include internal audit examinations designed to verify that compliance with CRA regulatory
requirements is consistently met. PNC affiliates also
prepare annual CRA Business Plans designed to meet
the requirements of the PNC CRA Model Compliance
Program. The Model Compliance Program establishes
minimum standards and encompasses compliance with
each of the 12 CRA regulatory assessment factors used
by bank supervisory agencies.
A major focus of PNC's ascertainment of community credit needs is through outreach to communitybased organizations. PNC requires that subsidiary
banks regularly meet with community leaders. Ascertainment findings are then analyzed by senior management to determine if new products need to be developed.



PNC markets its CRA-related products through a
wide variety of media. In addition to traditional media
advertising, PNC utilizes minority newspaper advertisements and spots on minority radio stations. For
example, PNC officers in Cincinnati have been guests
on a minority radio station to discuss the bank's
special mortgage products for minorities and low- and
moderate-income individuals. In Pittsburgh, PNC has
sponsored radio and television shows on minority
owned stations. PNC also has advertised in Spanish
when appropriate for a particular market.

D. Conclusion Regarding Convenience and
Needs Factors
The Board has carefully considered all the facts of
record, including the comments filed in this case, in
reviewing the convenience and needs factor under the
BHC Act. In considering PNC's CRA record, the
Board has examined PNC's record of lending to minorities, including HMDA data, as well as other aspects of PNC's CRA performance, such as the various
types of lending programs offered by PNC, its subsidiaries' CRA ratings, PNC's corporate CRA policies,
and its ascertainment and marketing efforts. Based on
a review of the entire record of this application,
including the most recent CRA performance examinations of the institutions involved in this case, the
Board believes that the efforts of PNC to help meet the
credit needs of all segments of the communities
served, including low- and moderate-income neighborhoods, and all other convenience and needs considerations, are consistent with approval of this application.
Based on the foregoing and all the facts of record,
the Board has determined that this application should
be, and hereby is, approved. The Board's approval is
specifically conditioned upon compliance by PNC with
all the commitments made in its application. For
purposes of this action, the commitments are considered conditions imposed in writing by the Board in
connection with its findings and decisions, and, as
such, may be enforced in proceedings under applicable
law.
This transaction shall not be consummated before
the thirtieth 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 by the Federal Reserve
Bank of Cleveland, acting pursuant to delegated authority.
By order of the Board of Governors, effective
August 4, 1993.

Legal Developments

Voting for this action: Governors Kelley and LaWare
under authority specifically delegated by the Board of Governors.
JENNIFER J. JOHNSON

Associate Secretary of the Board

Orders Issued Under Section 4 of the Bank
Holding Company Act
Commerzbank Aktiengesellschaft
Frankfurt am Main, Federal Republic of
Germany
Order Approving Application to Engage in Futures
Commission Merchant Activities and Other
Nonbanking Activities
Commerzbank Aktiengesellschaft, Frankfurt am
Main, Federal Republic of Germany ("Applicant"), a
foreign banking organization subject to the provisions
of the Bank Holding Company Act ("BHC Act"),1 has
applied under section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)) and section 225.23(a) of the
Board's Regulation Y (12 C.F.R. 225.23(a)) to engage
de novo through its subsidiary, CB Clearing, Inc.,
Chicago, Illinois ("Company"),2 in clearing trades of
institutional customers relating to futures contracts
and options on futures contracts that have been executed by nonaffiliated floor brokers, and in other
futures commission merchant ("FCM") and related
nonbanking activities. In particular, Company proposes to engage in the following nonbanking activities:
(1) Acting as a FCM for nonaffiliated persons in the
execution and clearance, and in the clearance without execution, on the Chicago Mercantile Exchange
("CME") and the Board of Trade of the City of
Chicago ("CBOT") of futures contracts and options
on futures contracts for bullion, foreign exchange,
government securities, certificates of deposit, and
other money market instruments that a bank may
buy or sell in the cash market for its own account,
pursuant to section 225.25(b)(18) of the Board's
Regulation Y (12 C.F.R. 225.25(b)(18));
(2) Acting as a FCM for nonaffiliated persons in the
execution and clearance, and in the clearance without execution, of Standard and Poor's 500 Stock
Price Index futures and options on such futures

1. As a foreign banking organization operating branches and an
agency in the United States, Applicant is subject to certain provisions
of the BHC Act by operation of section 8(a) of the International
Banking Act of 1978 (12 U.S.C. § 3106(a)).
2. Applicant owns 62.5 percent of the voting shares of Company.
The remaining voting shares are owned by senior management officials of Company.




961

traded on the CME and The Bond Buyer Municipal
Bond Index futures, options on The Bond Buyer
Municipal Bond Index futures, and Major Market
Index Maxi Stock Index futures traded on the
CBOT;3
(3) Acting as a FCM for nonaffiliated persons in the
purchase and sale on customer order, through omnibus accounts on certain major futures exchanges
other than the CME and the CBOT, of futures
contracts and options on futures contracts for bullion, foreign exchange, government securities, certificates of deposit, other money market instruments
that a bank may buy or sell in the cash market for its
own account, and those futures contracts and options on futures contracts listed in the Appendix;4
and
(4) Data processing and transmission services, pursuant to section 225.25(b)(7) of the Board's Regulation Y (12 C.F.R. 225.25(b)(7)).
Applicant has committed that Company will conduct
these activities in accordance with the provisions and
subject to the limitations of Regulation Y (12 C.F.R.
225.25(b)(18) and 225.25(b)(7)).5
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (57 Federal Register 22,769 (1992)).
The time for filing comments has expired, and the
Board has considered the application and all comments received in light of the factors set forth in
section 4(c)(8) of the BHC Act.
Applicant, with total consolidated assets of approximately $149.2 billion, is the fourth largest banking
organization in the Federal Republic of Germany and
the 35th largest banking organization in the world.6 In
the United States, Applicant operates branches in
New York, New York; Chicago, Illinois; and Los
Angeles, California; and an agency in Atlanta, Geor-

3. Company currently conducts the same FCM clearing activities
described in the proposal for affiliated persons pursuant to section
4(c)(1)(C) of the BHC Act (12 U.S.C. § 1843(c)(1)(C)) and section
225.22(a)(1) of the Board's Regulation Y (12 C.F.R. 225.22(a)(1)).
4. Company would not become a member of any of the exchanges
identified for this activity, or any other exchange except for the CME
and the CBOT, without prior notice to and, if required, approval by
the Federal Reserve System. See SR Letter No. 93-27 (FIS) (May 21,
1993).
5. The Board notes that Company would not trade for its own
account except for the purpose of hedging a cash position in the
related financial instrument as permitted by Regulation Y (see
12 C.F.R. 225.25(b)(18)(ii)) or to offset or liquidate a clearing error
arising in the normal course of business. The Board considers such
trading for the purpose of correcting clearing errors to be incidental to
the permissible FCM activities under Regulation Y and the Board's
previous orders, and therefore to be consistent with approval of this
application.
6. Asset and ranking data are as of December 31, 1991, and employ
exchange rates then in effect.

962

Federal Reserve Bulletin • October 1993

gia. In addition to these banking operations, Applicant
owns a finance company, Commerzbank U.S. Finance, Inc., Wilmington, Delaware, and, pursuant to
the grandfather provisions of section 8(c) of the International Banking Act of 1978 (12 U.S.C. § 3106(c)),
engages in investment banking and securities brokerage activities through Commerzbank Capital Markets
Corporation, New York, New York ("CCMC").
Company has registered as a FCM with the Commodity Futures Trading Commission ("CFTC"), and
therefore is subject to the record-keeping, reporting,
fiduciary standards, and other requirements of the
Commodity Exchange Act (7 U.S.C. § 1 et seq.) and
the CFTC. In addition, Company is a member of the
National Futures Association, and Company and its
officers have obtained the memberships necessary for
Company to become a clearing member of the CME
and the CBOT.
Proposed Activities
Applicant seeks authority for Company to execute and
clear trades as a FCM on the CME and the CBOT. In
addition, Applicant seeks authority for Company to
clear trades of sophisticated institutional investors7
that have been executed by nonaffiliated floor brokers.
In particular, Company proposes to accept for clearance orders of its customers that have been executed
by preapproved execution groups pursuant to socalled "give-up agreements".8 Applicant expects that,
initially, this clearing-only FCM activity will be the
primary activity of Company, and that Company will
provide only limited execution services.9 Company
would not be the primary clearing firm for any non-

7. Applicant expects these institutional investors to include banks,
corporations, insurance companies, and pension and investment
funds, and has stated that it will not perform FCM services for
customers who are not "institutional customers" as defined in
12 C.F.R. 225.2(g)(1) and (2). Company will not execute or clear
contracts, or perform other FCM services, for individuals (including
locals, market makers, specialists, and other professional floor traders
acting for their own accounts).
8. Under a give-up agreement, the executing floor broker or
execution group, pursuant to a customer's instructions, gives up the
order for clearance to a clearing member other than the executing
broker's primary (or qualifying) clearing firm. These agreements will
describe the parameters for each customer within which Company
would be obligated to accept an order for clearance. Orders not
satisfying the risk and other parameters established by the relevant
give-up agreement may be rejected by Company.
9. Applicant has stated that although Company would have the
long-term objective of creating a full-service execution capability,
Company does not intend initially to employ phone clerks or salaried
floor brokers. However, at a customer's request, Company would
employ "dedicated" phone clerks to enter the customer's orders into
a specified exchange pit. In addition, Company eventually could
employ "general" phone clerks that would compete with execution
groups for the right to provide order entry and execution services.




clearing member on the CBOT, and would not qualify
any non-clearing member on the CME.10
Company also proposes to conduct FCM activities
through omnibus customer trading accounts established in its own name with clearing members of the
exchanges on which Company would not itself be a
clearing member.11 These omnibus accounts would be
used for customers of Company wishing to purchase
or sell contracts on such exchanges, and would be
divided into segments reflecting separately the positions of each such customer. Using these omnibus
accounts, Company could, as agent for customers,
purchase and sell contracts described in section
225.25(b)(18) of Regulation Y or listed in the Appendix
through a clearing member of the relevant exchange.
Alternatively, a customer of Company could place
orders for such contracts, for its segment of an omnibus account, directly with the clearing firm with which
Company maintains the omnibus account.
In addition, Company proposes to engage in certain
financial data processing activities in connection with
its FCM services, including the creation of trade data,
the production of account statements and activity
reports, and the balancing of clearing accounts.12
10. See generally CBOT Rules 333.00(a) and 350.06; CME Rules 511
and 524.
11. An omnibus account is an arrangement between a member
clearing firm of an exchange and a nonmember FCM that seeks to
conduct business on that exchange. Under such an arrangement, the
member clearing firm executes and clears transactions for the nonmember FCM and its customers. The omnibus account reflects all
positions of the nonmember FCM's customers, but is divided into
separate segments for each customer for purposes of calculating
margin requirements, reporting current holdings, and other matters.
Applicant has stated that this service would be provided as an
accomodation to institutional customers: the customer would not need
to open its own account with a clearing member, a transaction which
may not be justifiable if anticipated trading activity is minimal, and
Company would be able to provide each customer with a single
statement describing the customer's overall futures position. Company would be financially responsible to the clearing member with
which it establishes an omnibus account with respect to all trades
properly made by the clearing member through the account, but would
not hold an ownership interest in the traded contracts.
12. Company also proposes to engage in certain other activities
which Applicant maintains are incidental to its FCM services, including the management of institutional customer funds under its control
and the provision to institutional customers, on request, of general
advice as to sources of information, the selection and arrangement of
an appropriate execution group, the availability of computer software
relating to futures and options on futures, order placement alternatives, and cost-reduction methods in the use of futures and options for
hedging purposes. Applicant has stated that Company's funds management activities will consist of investing customers' earned or
deposited funds (including funds deposited for purposes of satisfying
margin requirements) in obligations of the United States in accordance
with applicable rules of the CFTC. See 17 C.F.R. 1.25 et seq.
Company would not provide investment advice relating to futures,
options on futures, or any other matter. In view of Applicant's
commitments and representations with respect to these incidental
services, the Board has determined that such services are an integral
part of Company's proposed FCM activities, including its marketing
efforts on behalf thereof, and therefore necessary to the conduct of
such activities.

Legal Developments

Closely Related to Banking Standard
The Board previously has determined by regulation or
order that the provision of FCM services for the
futures contracts and options on futures contracts at
issue in this application is an activity closely related to
banking for purposes of section 4(c)(8) of the BHC
Act.13 In addition, the Board has authorized by regulation the provision of the financial data processing
services proposed to be offered by Company. See
12 C.F.R. 225.25(b)(7).
Proper Incident to Banking Standard
In order to approve this application, the Board also
must find that the performance of the proposed activities by Company "can reasonably be expected to
produce benefits to the public . . . that outweigh
possible adverse effects, such as undue concentration
of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices."
12 U.S.C. § 1843(c)(8).
The Board previously has denied a proposal in which
a nonbanking subsidiary of a bank holding company
primarily would have cleared, but not executed, trades
for professional floor traders (primarily market makers
and specialists) trading for their own accounts on major
securities and commodity exchanges. See Stichting
Prioriteit ABN AMRO Holding, et al, 11 Federal
Reserve Bulletin 189 (1991) ("Amro Order"). In the
Amro Order, the Board was concerned that, by not
engaging in both the execution and clearance of a trade,
the nonbanking subsidiary would have been unable to
decline transactions that presented unacceptable risk.
In this regard, the subsidiary would have been obligated
to settle each trade entered into by one of its customers,
even if the customer did not have the financial resources to honor its obligations. The Board also noted
that no mechanism existed in that case by which the
nonbanking subsidiary could monitor, on a contemporaneous basis, the intra-day trading activities of the
floor traders who were to be its primary customers.14
On the basis of this inability of the subsidiary to monitor
and control the risks it would undertake, and in light of
the fact that clearing agents must guarantee the financial performance of their customers to the clearing

13. See 12 C.F.R. 225.25(b)(18); The Long-Term Credit Bank of
Japan, Limited, 74 Federal Reserve Bulletin 573 (1988) (Standard and
Poor's 500 Stock Price Index futures, and options on such futures);
The Hongkong and Shanghai Banking Corporation, et al., 76 Federal
Reserve Bulletin 770 (1990) (The Bond Buyer Municipal Bond Index
futures, and options on such futures, and Major Market Index Maxi
Stock Index futures). See also the Board's orders referred to in the
Appendix.
14. See Amro Order at 191.




963

houses of the exchanges on which they operate, the
Board concluded that the proposed activity presented
substantial credit risk exposure to the parent bank
holding company, and that public benefit considerations precluded approval of the applications under
section 4(c)(8) of the BHC Act.
Applicant's proposal differs from the situation presented in the Amro Order in a number of respects. For
example, in the Amro Order, the bank-affiliated FCM
would have been the primary clearing firm for customers (market makers and other professional floor traders acting for their own accounts) who executed their
own trades. As a primary clearing firm, the FCM
would have been obligated to clear all trades executed
by any of these customers regardless of the risk to the
FCM or the ability of the customer to meet its financial
obligations. In the present case, by contrast, Company
would not serve as the primary or qualifying clearing
firm for any broker that executes Company's clearingonly trades, or for any nonaffiliated customer. Company would clear only those trades that Company
itself executes, or that other executing brokers execute and Company accepts for clearance pursuant to a
customer give-up agreement.15
Applicant has represented that, under these give-up
agreements, Company will have the contractual right
to refuse to clear trades that exceed the trading parameters established by Company and contained in the
give-up agreement for the particular customer concerned. As an operational matter, if a trade varies from
the customer's authorized limits as set forth in the
relevant give-up agreement, Company would be able
to reject the trade, either by refusing to accept the
order from the customer or, if the customer places the
order with the executing broker and the trade is
executed, by refusing to clear the trade. In this regard,
the Board notes that Company will have a period of
time in which to determine whether a trade already
executed was within established parameters and otherwise properly authorized and, if the trade was not
properly authorized, to decide whether to reject the
trade for clearance.16 In connection with Company's

15. The Board notes that, in these circumstances, an executing
broker ordinarily will have an incentive to review all trades that it
gives up for clearance to a nonaffiliated clearing FCM, because the
clearing FCM, pursuant to the give-up agreement, may refuse to
accept the trade for clearance if the trade exceeds the customer's
trading limits or otherwise does not conform to the parameters
contained in the give-up agreement. In such a case, the executing
broker or its primary or qualifying clearing firm would be obligated to
clear the trade. The Board also notes that Company will not knowingly
enter into any give-up agreement where the customer and the execution group are affiliated.
16. Under the rules of the CBOT, the pertinent execution group
would be required to deliver trading cards to Company within 15
minutes after the half-hour interval during which an order was
executed or 15 minutes after the close of the relevant market; because

964

Federal Reserve Bulletin • October 1993

ability to refuse to clear non-conforming trades, the
Board also notes that Company would implement a
computerized risk management system to monitor and
control risk on both an inter-day and intra-day basis.
Company's risk management department, in addition
to monitoring each account on a daily basis for violations of risk parameters, will review each trade before
accepting it for clearance.17
In addition, the Board has noted that Company's
proposed customer base consists of sophisticated institutional investors.18 Company will review the creditworthiness and other characteristics of each potential
customer, and, based on such review, will approve or
reject the customer and establish appropriate trading,
credit, margin, and exposure limits for the customer.19
Also, as previously noted, Company will accept for
clearance only trades executed by preapproved execution groups trading on the CBOT or the CME.20
On the basis of the framework described in this
Order, including the fact that Company will not be the
primary or qualifying clearing firm for any broker that
executes Company's clearing-only trades, or for any
nonaffiliated customer, and the other contractual and
operational distinctions between Applicant's proposal
and the proposal reviewed in the Amro Order, as well
as other facts of record, the Board has determined that
credit and other risk considerations associated with the
CBOT rules require that trades be submitted to the clearing corporation
for matching within one hour after the end of any such half-hour
interval or market close, Company would have at least 45 minutes to
review a trade before it would be required to submit the trade to the
CBOT Clearing Corporation for matching. See Memorandum of CBOT
dated May 3, 1990; CBOT Clearing Corporation Submission Deadlines
dated November, 1991. Under the comparable rules of the CME,
Company would have at least one hour to review a trade before
submitting it to the exchange's clearing house. See CME Clearing
Member Transfer Agreement Procedures Guide dated May, 1989;
Memorandum of CME Clearing House Division dated February 26,
1990.
17. Any trade not properly authorized or outside the parameters
agreed to by Company would need to be reviewed by Company's
officer responsible for risk management, who could decide to accept
the trade despite such non-conformance. In particular, the risk
manager will have authority to the extent prescribed by Company's
Executive Committee to approve some trades that do not conform to
general risk system parameters. Trades that would violate a customer's specific risk parameters may be accepted by the risk manager only
if the trade results in a reduction of overall portfolio risk.
18. It is a condition of the Board's approval in this case that Applicant
provide the Federal Reserve System with prior notice of any significant
change in the characteristics of Company's customer base.
19. Company's Executive Committee will serve as a credit committee to evaluate the creditworthiness of all potential clients. This
evaluation will include examination of a potential customer's current
and prior financial statements, the customer's previous trading statements, and a profile of the customer's intended market usage. A
review of the customer's credit standing will be conducted at least
annually. The committee will have the benefit of consultations with
Applicant's credit departments in Chicago and Frankfurt.
20. Applicant has stated that Company would approve an execution
group only if the floor brokers and their primary or qualifying clearing
firms satisfy Company's financial, managerial, and operational standards.




proposed clearing-only activities on the CME and the
CBOT are consistent with approval of this application.
In this regard, the Board notes that it recently has
approved applications by two bank-affiliated FCM's to
engage in clearing-only activities on these exchanges.
See Northern Trust Corporation, 79 Federal Reserve
Bulletin 723 (1993) ("Northern Trust"); Sakura Bank,
Limited, 79 Federal Reserve Bulletin 728 (1993)
("Sakura Bank").
Based upon all the facts of record, including the
foregoing considerations and the commitments made
by Applicant regarding the conduct of the proposed
activities and other matters,21 the Board has determined that the performance of the proposed activities
by Company can reasonably be expected to produce
benefits to the public that would outweigh any possible
adverse effects of this proposal. In this regard, the
Board expects that consummation of the proposal will
provide added service and convenience to Applicant's
customers, and that the de novo entry of Company
into the market for the proposed services in the United
States will increase the level of competition among
providers of those services. Moreover, there is no
evidence in the record to indicate that consummation
of this proposal, subject to the commitments and
conditions noted in the application or in this Order,
would result in any significant adverse effects, such as
undue concentration of resources, decreased or unfair
competition, conflicts of interest,22 or unsound bank-

21. In this regard, the Board has noted that Company would employ
the same credit approval and risk management procedures developed
for its clearing-only activities with respect to its omnibus account
customers. In particular, Company's omnibus account activities will
be conducted only pursuant to agreements which impose duties on
clearing firms to comply with Company's instructions as to customer
trade parameters. In addition, Company would open omnibus accounts only with clearing firms that satisfied Company's financial,
managerial, and operational standards. The Board has approved these
omnibus account activities for other bank-affiliated FCM's. See
Northern Trust, supra; Sakura Bank, supra.
22. Applicant has made numerous commitments designed to separate the operations of Company from the operations of CCMC, which
is a securities firm that Applicant is permitted to retain under the
grandfathering provisions of the International Banking Act of 1978.
See 12 U.S.C. § 3106(c). Applicant has requested that the Board
permit an individual, who is a member of the board of CCMC, to serve
as chairman of Company's board of directors. This individual has
general oversight authority over several subsidiaries of Applicant, and
would not have daily management or operational responsibilities with
respect to either CCMC or Company. Company and CCMC would not
engage in any activities or transactions with or on behalf of the other
company, and, with the exception of the proposed director interlock,
would not maintain any other relationship of any kind. In addition, this
individual would not disclose to Company any confidential information of CCMC, or vice versa. In view of the commitments and
representations made by Applicant in this case, the Board has
concluded that the interlock proposed in this case does not provide the
potential for any significant competitive advantage or conflict of
interest, and is a prudent measure to provide control and awareness of
Applicant's nonbanking operations in the United States. See Deutsche
Bank AG, 79 Federal Reserve Bulletin 133 (1992). Accordingly, the
Board does not object to the establishment of the proposed director

Legal Developments

ing practices, that are not outweighed by these expected public benefits. In making this determination,
the Board has considered the financial and managerial
resources of Applicant and its subsidiaries, including
Company, and the effect of this proposal upon such
resources, and has concluded that these factors are
consistent with approval of this application.23
Based on all the facts of record, including all the
commitments made by Applicant in this case and the
conditions and limitations discussed in this Order, the
Board has determined that the application should be,
and hereby is, approved. The Board's approval is
specifically conditioned on compliance with all of the
commitments made in connection with this application
and with the conditions and limitations discussed in this
Order. The Board's determination also is subject to all
of the conditions set forth in Regulation Y, including
those in sections 225.4(d) and 225.23(b) of Regulation
Y, and to the Board's authority to require such modification or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the
Board's regulations and orders issued thereunder. For
purposes of this action, the commitments and conditions relied on in reaching this decision are deemed to
be conditions imposed in writing by the Board in
connection with its findings and decision, and, as such,
may be enforced in proceedings under applicable law.
This transaction shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of New
York, acting pursuant to delegated authority.
By order of the Board of Governors, effective
August 2, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, Kelley, and LaWare. Voting against this action:
Governor Angell. Absent and not voting: Governors Lindsey
and Phillips.
JENNIFER J. JOHNSON

965

Appendix
Deutsche Terminborse GmbH:
Deutsche Aktienindex 30 stock index (DAX) futures1
German government bond futures1
Kansas City Board of Trade:
Mini Value Line futures2
Value Line Index futures3
London International Financial Futures and Options
Exchange:
3-Month Eurodollar Deposit Interest Rate futures4
3-Month Sterling Deposit Interest Rate futures4
U.K. Bond futures4
Marche A Terme International de France:
French Government Bond Index futures4
New York Futures Exchange:
New York Stock Exchange Composite Index futures3
Options on the NYSE Composite Index futures3
Philadelphia Board of Trade:
National Over-The-Counter Index futures5
Singapore International Monetary Exchange:
Nikkei 225 Stock Average futures6
Tokyo International Financial Futures Exchange:
3-Month Euroyen futures7
3-Month Eurodollar futures7
Japanese Yen/U.S. dollar futures7.

Associate Secretary of the Board

interlock. Any change in the individual serving as the interlocking
director, or in the responsibilities or role of this individual over the
operations or management of CCMC or Company, would require prior
approval by the Board.
23. See 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal
Reserve Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal
Reserve Bulletin 155 (1987). In this regard, the Board has noted that
Applicant's capital ratios satisfy applicable risk-based standards established under the Basle Accord, and are considered equivalent to
the capital levels that would be required of a U.S. banking organization. The Board specifically has considered the size of the investment
expected to be required by this proposal in relation to Applicant's
consolidated capital.




1. Northern Trust Corporation, 79 Federal Reserve Bulletin 723
(1993).
2. Saban, S.A., 73 Federal Reserve Bulletin 224 (1987).
3. Manufacturers Hanover Corporation, 72 Federal Reserve Bulletin 144 (1985).
4. The Hongkong and Shanghai Banking Corporation, et al., 76
Federal Reserve Bulletin 770 (1990).
5. The Chase Manhattan Corporation, 72 Federal Reserve Bulletin
203 (1986).
6. BankAmerica Corporation, 75 Federal Reserve Bulletin 78
(1988).
7. Citicorp, 76 Federal Reserve Bulletin 664 (1990).

966

Federal Reserve Bulletin • October 1993

Dissenting Statement of Governor Angell
The Board previously has required that a foreign
banking organization that operates a grandfathered
securities subsidiary in the United States separate
completely the operations of this subsidiary from the
operations of other U.S. subsidiaries of the organization engaged in activities approved under the bank
Holding Company Act. The Board has required this
separation to ensure that foreign banking organizations will not gain an unfair competitive advantage
over domestic bank holding companies by combining
impermissible activities of a grandfathered subsidiary
with the permissible activities of other subsidiaries, or
by otherwise using the grandfathered subsidiary to
support or enhance the activities of the organization's
other domestic subsidiaries.
I do not believe that allowing Commerzbank to have
a director interlock between CB Clearing and CCMC
is consistent with the Board's prior policy of completely separating grandfathered subsidiaries from
other domestic subsidiaries of foreign banking organizations. Allowing a director interlock may, in fact,
serve to undermine this policy. For this reason, I
would deny this application.
August 2, 1993

First Hawaiian, Inc.
Honolulu, Hawaii
Order Approving Applications to Acquire a Savings
Association and to Engage in Insurance Agency
Activities
First Hawaiian, Inc., Honolulu, Hawaii ("First Hawaiian"), a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"), has
applied for the Board's approval under section 4(c)(8)
of the BHC Act (12 U.S.C. § 1843(c)(8)) and section
225.23 of the Board's Regulation Y (12 C.F.R. 225.23),
to acquire Pioneer Fed BanCorp, Inc., Honolulu,
Hawaii ("Pioneer"), and thereby acquire both Pioneer
Federal Savings Bank, Honolulu, Hawaii ("Savings
Bank"), a wholly owned, federally chartered stock
savings bank subsidiary of Pioneer, and the wholly
owned subsidiaries of Savings Bank.1

1. First Hawaiian will operate Savings Bank as a separate subsidiary. In connection with this proposal, Pioneer has issued to First
Hawaiian an option to purchase, under certain circumstances, approximately 16.6 percent of the outstanding common stock of Pioneer. The
option will terminate upon the occurrence of certain events.
Savings Bank operates three wholly owned subsidiaries: Pioneer
Insurance Agency, Inc. (engaging in general insurance agency activities), Pioneer Advertising Agency, Inc. (engaging in advertising




Notice of these applications, affording interested
persons an opportunity to submit comments, has been
published (58 Federal Register 25,989 (1993)). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the public interest factors set forth
in section 4(c)(8) of the BHC Act.
The Board has determined that the operation of a
savings association by a bank holding company is
closely related to banking for purposes of section
4(c)(8) of the BHC Act. 2 In making this determination,
the Board required that savings associations acquired
by bank holding companies conform their direct and
indirect activities to those permissible for bank holding
companies under section 4(c)(8) of the BHC Act. First
Hawaiian has committed to conform all activities of
Savings Bank to the requirements of section 4 of the
BHC Act and the Board's Regulation Y. 3
First Hawaiian is the second largest commercial
bank or thrift institution ("depository institution") in
Hawaii, controlling deposits of $4.7 billion, representing approximately 29.9 percent of the total deposits in
commercial banking organizations in the state.4 Pioneer is the second largest thrift institution in Hawaii,
controlling deposits of $406 million, representing approximately 14.0 percent of the total deposits in thrift
institutions in the state. Upon consummation of the
proposal, First Hawaiian would remain the second
largest depository institution in Hawaii, controlling
deposits of $5.1 billion, representing approximately
27.4 percent of the total deposits in depository institutions in the state.
Competitive Considerations
Under section 4(c)(8) of the BHC Act, the Board must
consider the competitive aspects of each proposal.5 In

activities), and Pioneer Properties, Inc. (engaging in real property
management), all located in Honolulu, Hawaii.
2. See 12 C.F.R. 225.25(b)(9).
3. First Hawaiian has committed to terminate all impermissible
insurance activities of Pioneer Insurance Agency within two years of
consummation of the proposal and to limit the insurance agency
activities to those permissible pursuant to section 225.25(b)(8) of the
Board's Regulation Y (12 C.F.R. 225.25(b)(8)). During this two-year
period, First Hawaiian has committed to limit the agency's impermissible insurance activities to renewals of existing policies. First Hawaiian has also committed to limit Pioneer Advertising Agency's activities to those which are permissible for bank holding companies
pursuant to section 225.22(a)(2)(ii) of the Board's Regulation Y
(12 C.F.R. 225.22(a)(2)(ii)). Finally, First Hawaiian has committed to
terminate Pioneer Properties's activities on or before consummation
of this proposal.
4. All data are as of June 30, 1992.
5. Section 4(c)(8) of the BHC Act requires the Board to determine
that the acquisition of Savings Bank "can reasonably be expected to
produce benefits to the public . . . that outweigh possible adverse
effects, such as undue concentration of resources, decreased or unfair

Legal Developments

this regard, the Board has carefully reviewed comments opposing the proposal from a competitor of
Savings Bank ("Protestant") maintaining that approval of this transaction will result in significantly
adverse competitive effects for banking services in
Hawaii. In particular, Protestant contends that the
effect of the merger on the availability of certain
individual banking products, including time and savings deposits and 1-4 family mortgages, indicates that
the merger would be significantly anticompetitive.
Protestant also maintains that the proposed acquisition
of Savings Bank will remove one of the few attractive
candidates for merger among small local institutions or
for some potential future acquisition by an out-of-state
financial institution.
The Board has previously stated that thrift institutions must be recognized as competitors of banks
because they offer the same cluster of products and
services.6 In this regard, the ability of thrifts and banks
to offer their products and services in combination
distinguishes them from other institutions. The Board
has long held that the product market for evaluating
bank mergers and acquisitions is the cluster of products and services offered by banking institutions.7 The
Supreme Court has emphasized that it is this cluster of
products and services that, as a matter of trade reality,
makes banking a distinct line of commerce.8 According to the Court, this clustering facilitates the convenient access to these products and services, and vests
the cluster with economic significance beyond the
individual products and services that constitute the
cluster.9 The courts have continued to follow this
position.10 In addition, a recent study conducted by
Board staff supports the conclusion that customers

competition, conflicts of interests, or unsound banking practices."
12 U.S.C. § 1843(c)(8).
6. See Midwest Financial Group, 75 Federal Reserve Bulletin 386
(1989); National City Corporation, 70 Federal Reserve Bulletin 743
(1984). See also First Hawaiian, Inc., 77 Federal Reserve Bulletin 52,
56 - 57 (1991) ("First Hawaiian Order"). Protestant argues that thrifts
should be weighted at the same level as commercial banks for
purposes of considering the competitive effects of this proposal. For
the reasons discussed in this order, the Board does not believe that the
proposal would be significantly adverse if deposits of banks and thrifts
are weighted equally.
7. Even assuming that deposit accounts and mortgage lending
constitute separate product markets as maintained by the Protestant,
the record does not demonstrate significantly adverse competitive
effects in this case when the competitive effect of other institutions
that offer insured deposit products, such as credit unions, and
companies that offer mortgage products, such as finance companies,
operating in the Hawaiian banking markets are taken into account.
8. United States v. Philadelphia National Bank, 374 U.S. 321, 357
(1963). Accord United States v. Connecticut National Bank, 418 U.S.
656 (1974); United States v. Phillipsburg National Bank, 399 U.S. 350
(1969) ("l/.S. v. Phillipsburg").
9. U.S. v. Phillipsburg, 399 U.S. at 361.
10. See United States v. Central State Bank, 621 F. Supp. 1276
(W.D. Mich. 1985), affd per curiam, 817 F.2d 22 (6th Cir. 1987).




967

still seek to obtain this cluster of services.11 Because
thrift institutions, such as Savings Bank, offer or have
the potential to offer nearly all the same products and
services offered by banks, the Board believes that the
cluster of services represents the appropriate product
market for evaluating the acquisition of a thrift institution by a bank holding company. After considering
all the facts of record in light of relevant Board and
judicial precedents, the Board believes that the appropriate product market in this case is the cluster of
banking products and services.12
First Hawaii and Pioneer compete directly in the
following five Hawaiian banking markets: Eastern
Hawaii Island, Honolulu, Kauai, Maui, and Western
Hawaii Island.13 Consummation of this proposal
would not exceed the threshold levels of market
concentration in the Justice Department merger guidelines as measured by the Herfindahl-Hirschman Index
("HHI"),14 in all the markets except the Eastern

11. See Gregory E. Elliehausen and John D. Wolken, Banking
Markets and the Use of Financial Services by Small and MediumSized Businesses, 76 Federal Reserve Bulletin 726 (1990). For a
discussion of this study, see First Hawaiian Order, supra note 6, at
53-54.
12. In evaluating acquisitions of banks, the Board has weighted the
measure of market share of thrift institutions at 50 percent to account
for the fact that all thrifts in the market may not in fact exercise their
authority to offer the full cluster of bank products and services.
Because Savings Bank will be affiliated with a commercial banking
organization upon consummation of this proposal, the deposits of
Savings Bank are weighted equally with the deposits of insured banks
in the calculation of pro forma market share. See Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992); First Banks, Inc., 76
Federal Reserve Bulletin 669, 670 n.9 (1990).
13. The Board previously has identified these five local geographic
areas in Hawaii as the appropriate markets in which the effects of bank
holding company expansion proposals on competition must be analyzed. See First Hawaiian Order, supra note 6, at 54; Bancorp
Hawaii, Inc., 76 Federal Reserve Bulletin 759 (1990). Protestant does
not challenge this definition of the geographic market, and has
provided no evidence to support a different delineation of the relevant
banking markets. Moreover, the record indicates that consummation
of this proposal would not exceed the levels of concentration under
the Justice Department merger guidelines if Hawaii is considered as a
single banking market.
14. Under the revised Department of Justice merger guidelines, a
market in which the post-merger HHI is above 1800 is considered to
be highly concentrated. See 49 Federal Register 26,823 (1984). In such
markets, the Justice Department is likely to challenge a merger that
increases the HHI by more than 50 points. Protestant maintains that
this threshold, which is a standard generally applied, should be
applied to this proposal. A more lenient threshold, however, is
routinely applied under the merger guidelines to bank mergers and
acquisitions. The Justice Department has informed the Board that a
bank merger or acquisition generally will not be challenged (in the
absence of other factors indicating anticompetitive effects) unless the
post-merger HHI is at least 1800 and the merger increases the HHI by
more than 200 points. The Justice Department has stated that the
higher than normal HHI thresholds for screening bank mergers for
anticompetitive effects implicitly recognizes the competitive effect of
limited-purpose lenders and other non-depository financial entities. In
this case, Hawaii's limited-purpose lenders and non-depository financial entities include a number of mortgage banks affiliated with
mainland based industrial companies and super-regional banks.

968

Federal Reserve Bulletin • October 1993

Hawaii Island banking market.15 In the Eastern Hawaii Island banking market, the HHI would increase
by 227 points to 2919, representing 37.5 percent of the
deposits in depository institutions in the market
("market deposits") upon consummation of the proposal. First Hawaiian would become the largest depository institution in this market, controlling deposits
of approximately $311.3 million.
The Board believes that there are a number of other
relevant factors that must be considered in analyzing
the effects of this proposal on competition in all these
markets. For example, a number of depository institution competitors would remain in each market following consummation of the proposal: (1) Honolulu —
11 competitors; (2) Maui — 9 competitors; (3) Kauai —
6 competitors; (4) Western Hawaii Island — 6 competitors; and (5) Eastern Hawaii Island — 7 competitors.
In addition, all five banking markets have experienced
the recent entry of a very large California commercial
bank competitor through the acquisition of a savings
association.16 Moreover, on average, credit unions
compete in these markets on a stronger level in Hawaii
than in the rest of the United States. In this regard, 127
credit unions control 14 percent of the total deposits in
depository institutions in Hawaii as compared with the
nationwide average for credit unions of 7 percent of
such deposits. In the Eastern Hawaii Island, Western
Hawaii Island, and Kauai banking markets, where the
proposal would have the most significant structural
effect, credit unions control 26 percent, 24 percent,
and 28 percent, respectively, of the total market deposits in depository institutions.
Protestant's concerns regarding the elimination of
an attractive candidate for acquisition by smaller inmarket and out-of-market acquirors are substantially
mitigated by the facts of record in this case. As
discussed above, a number of other merger candidates
remain in each market.17 In addition, out-of-state entry
by federal savings associations is permissible under
applicable law, and, as discussed above, a large outof-state commercial bank holding company recently
established branches of its federal savings bank in all
five banking markets.

15. Upon consummation of this proposal, the HHI and First
Hawaiian's market share in these markets would increase as follows:
(1) Honolulu (61 points to 2491; 1.8 percentage points to
27.6 percent of market deposits);
(2) Maui (98 points to 3126; 2.1 percentage points to 36 percent of
market deposits);
(3) Kauai (101 points to 3594; 1.5 percentage points to 44.1 percent
of market deposits) ; and
(4) Western Hawaii Island (157 points to 3404; 2.8 percentage points
to 40.7 percent of market deposits).
16. See BankAmerica Corporation, 78 Federal Reserve Bulletin 707
(1992).
17. Protestant is in the process of acquiring an in-market thrift
institution.




The Board has also considered the views of the
Department of Justice regarding the likely competitive
effects of this proposal. The Justice Department has
advised the Board that First Hawaiian's acquisition of
Savings Bank is not likely to have a significantly
adverse effect on competition in any of the Hawaiian
banking markets.
Based on all the facts of record, including the
comments submitted by Protestant and First Hawaiian's response to those comments, the Board's previous consideration of these banking markets, and the
factors discussed above, the Board concludes that
consummation of this proposal would not have a
significantly adverse effect on competition in any
relevant banking market.
Other Considerations
The financial and managerial resources of First Hawaiian and its subsidiaries and Pioneer are consistent with
approval. In assessing the financial factors, the Board
believes that bank holding companies must maintain
adequate capital at savings associations they propose
to acquire. Upon consummation, Savings Bank will
meet all applicable capital requirements and will meet
all current and future minimum capital ratios adopted
for savings association by the Office of Thrift Supervision or the Federal Deposit Insurance Corporation.
In considering First Hawaiian's acquisition of the
nonbanking activities of Savings Bank, the Board
notes that these subsidiaries compete in geographic
markets that are regional or national in scope. These
markets are served by numerous competitors, and
First Hawaiian does not have a significant market
share in any of these markets. Accordingly, the Board
concludes that consummation of this proposal would
not have a significant adverse effect on competition in
any relevant market.
Conclusion
The record does not indicate that consummation of
this proposal is likely to result in any significantly
adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices that are not
likely to be outweighed by the public benefits of this
proposal. Accordingly, on the basis of all the facts of
record and commitments made by First Hawaiian, the
Board concludes that the public benefits that would
result from approval of these applications outweigh
the potential adverse effects, and that the public interest factors it must consider under section 4(c)(8) of the
BHC Act are consistent with approval.

Legal Developments

Based on the foregoing and all the facts of record,
the Board has determined that these applications
should be, and hereby are, approved. The Board's
approval of this proposal is specifically conditioned on
compliance by First Hawaiian with the commitments
made in connection with these applications, as supplemented, and with previous applications.
The Board's determination also is subject to all the
conditions set forth in the Board's Regulation Y,
including those in sections 225.4(d) and 225.23(b)(3),
and to the Board's authority to require modification or
termination of the activities of a bank holding company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions and purposes of the BHC
Act and the Board's regulations and orders issued
thereunder. The commitments and conditions relied
on by the Board in reaching this decision are deemed
to be conditions imposed in writing by the Board in
connection with its findings and decision, and as such
may be enforced in proceedings under applicable law.
This transaction shall not be consummated later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of San
Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
August 2, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, and Kelley. Voting against this action:
Governor LaWare. Absent and not voting: Governors Lindsey and Phillips.
JENNIFER J. JOHNSON

Associate Secretary of the Board

969

Savings Bank, Honolulu, Hawaii ("Pioneer"), is a
thrift institution that, while having the authority to
engage in commercial lending, is not actively engaged
in commercial lending. Thus, First Hawaiian's acquisition of Pioneer should increase the availability of
small business loans and other types of commercial
loans in the Hawaiian banking markets. For these
reasons and the reasons stated in the Board's Order, I
believe that consummation of this proposal would not
have a significantly adverse effect on competition in
any of the Hawaiian banking markets.
August 2, 1993
Dissenting Statement of Governor LaWare
I dissent from the Board's action in this case. This is
the second acquisition in Hawaii for First Hawaiian,
Inc., Honolulu, Hawaii ("First Hawaiian"), within the
last two and one-half years. While I voted in favor of
the acquisition of First Interstate of Hawaii, Inc., also
of Honolulu, Hawaii, by First Hawaiian, I felt at that
time that the proposal represented the upper limit of
permissible concentration in these highly concentrated
banking markets. This acquisition would further substantially concentrate the already highly concentrated
Hawaiian banking markets, and, when viewed in light
of First Hawaiian's previous acquisition, represents,
in my view, a significantly adverse lessening of competition. The anti-competitive effects of this trend are
particularly troubling in light of the barriers to potential competition imposed by Hawaii's decision not to
permit interstate banking acquisitions. I am also unable to find any significant competitive developments
in these markets that would mitigate my concerns. I
would therefore deny these applications.

Concurring Statement of Governor Angell
August 2, 1993
I concur in the Board's decision in this case. While I
dissented from the Board's decision to approve a
previous acquisition by First Hawaiian, Inc., Honolulu, Hawaii ("First Hawaiian"), see First Hawaiian,
Inc., 77 Federal Reserve Bulletin 52, 58 (1991), I
believe that a number of factors differentiate this case
and, on balance, warrant approval of this proposal.
First, since the last acquisition by First Hawaiian, a
major commercial bank holding company has entered
the five Hawaiian banking markets. See BankAmerica
Corporation, 78 Federal Reserve Bulletin 707 (1992).
Entry of this bank holding company should increase
competition and indicates a method by which others
may enter into the Hawaiian banking markets.
In addition, unlike the previous case, which involved the acquisition of a bank, Pioneer Federal



Orders Issued Under Sections 3 and 4 of the
Bank Holding Company Act
NationsBank Corporation
Charlotte, North Carolina
Order Approving the Merger of Bank Holding
Companies
NationsBank Corporation, Charlotte, North Carolina
("NationsBank"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied under section 3 of the BHC Act
(12 U.S.C. § 1842) to merge with MNC Financial,
Inc., Baltimore, Maryland ("MNC"), and thereby

970

Federal Reserve Bulletin • October 1993

indirectly acquire MNC's subsidiary banks:
(1) American Security Bank, National Association,
Washington, D.C.;1 and
(2) Maryland National Bank, Baltimore, Maryland.
NationsBank also has applied under section 4(c)(8)
of the BHC Act (12 U.S.C. § 1843(c)(8)) and section
225.23 of the Board's Regulation Y (12 C.F.R. 225.23)
to acquire MNC's subsidiary savings association, Virginia Federal Savings Bank, Richmond, Virginia, and
thereby engage in the operation of a savings association pursuant to section 225.25(b)(9) of the Board's
Regulation Y (12 C.F.R. 225.25(b)(9)). In addition,
NationsBank has applied under section 4(c)(8) to acquire the shares of certain nonbanking subsidiaries
owned by MNC, and listed in the Appendix to this
Order. Each of these companies engages in nonbanking activities that have been authorized by the Board
by order or regulation.
NationsBank also has given notice to acquire Equitable Bancorporation Overseas Finance N.V., Curacao, Netherlands Antilles, a foreign subsidiary of
MNC engaged in raising funds for its parent, pursuant
to section 4(c)(13) of the BHC Act (12 U.S.C.
1843(c)(13)) and the Board's Regulation K; and MNC
International Bank, Baltimore, Maryland, a corporation chartered pursuant to section 25A of the Federal
Reserve Act (12 U.S.C. § 611 et seq.).
Notice of these applications, affording interested
persons an opportunity to submit comments, has been
published (58 Federal Register 30,790 (1993)). The
time for filing comments has expired, and the Board
has considered these applications and all comments
received in light of the factors set forth in sections
3 and 4 of the BHC Act.2
NationsBank, with total consolidated assets of
$118 billion, operates 11 subsidiary banks in Delaware,
the District of Columbia, Florida, Georgia, Kentucky,
Maryland, North Carolina, South Carolina, Tennessee, Texas, and Virginia, and holds approximately
$82.7 billion in total domestic deposits. MNC, with
total consolidated assets of $17 billion, controls two
subsidiary banks that operate in the District of Columbia and Maryland, and holds approximately
$11.7 billion in total domestic deposits. Upon consummation of this proposal, NationsBank would remain
the fourth largest commercial banking organization in

1. This bank is owned by American Security Corporation, Washington, D.C., a wholly owned bank holding company subsidiary of
MNC that also will be acquired as part of this proposal.
2. The Board has considered comments filed after the close of the
public comment period. Under the Board's rules, the Board may in its
discretion, take into account the substance of such comments.
12 C.F.R. 262.3(e).




the United States, with consolidated assets of $134.6
billion and total domestic deposits of $94.4 billion.3
Interstate Banking Provisions
Section 3(d) of the BHC Act (the "Douglas Amendment") prohibits a bank holding company from acquiring a bank located outside of its home state4 "unless
the acquisition of . . . a State bank by an out-of-State
bank holding company is specifically authorized by the
statute laws of the State in which [the] bank is located,
by language to that effect and not merely by implication."5 For purposes of the Douglas Amendment, the
home state of NationsBank is North Carolina. The
Board previously has determined that the interstate
statutes of the District of Columbia and Maryland
permit a bank holding company located in North
Carolina to acquire banking organizations in those
jurisdictions.6 Based on a review of the relevant statutes and the facts of record, the Board has determined
that approval of this proposal is not prohibited by the
Douglas Amendment. This finding and the Board's
action in this case are conditioned upon NationsBank
receiving all required state regulatory approvals.
Competitive Considerations
NationsBank and MNC own depository institutions7
that compete directly in the following nine banking
markets: Annapolis, Baltimore, and Frederick

3. Deposit data and asset data are as of December 31, 1992.
4. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later. The
operations of a bank holding company are considered principally
conducted in that state in which the total deposits of all such banking
subsidiaries are largest.
5. 12 U.S.C. § 1842(d).
6. See Statement by the Board of Governors of the Federal Reserve
System Regarding the Application by NCNB Corporation to Acquire
C&SISovran Corporation, 78 Federal Reserve Bulletin 141 (1992)
("C&S/Sovran Order"); see also Md. Fin. Inst. Code Ann. § 5-1001
et seq. ; see also D.C. Code Ann. § 26-801 et seq.
7. When used in this context, depository institutions include commercial banks and savings associations. Market deposit share data,
except for data for Virginia Federal Savings Bank, MNC's savings
association subsidiary, are based on calculations in which the deposits
of thrift institutions are included at 50 percent. The Board previously
has indicated that thrift institutions have become, or have the potential to become, significant competitors of commercial banks. See
Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989);
National City Corporation, 70 Federal Reserve Bulletin 743 (1984).
Thus, the Board has regularly included thrift deposits in the calculation of market share on a 50 percent weighted basis. See, e.g., First
Hawaiian Inc., 77 Federal Reserve Bulletin 52 (1991). In this case, the
deposits of Virginia Federal Savings Bank are controlled by a commercial banking organization, and would continue to be controlled by
a commercial banking organization under this proposal. Accordingly,
these deposits are included at 100 percent in the calculation of the
pre-consummation and pro forma market share.

Legal Developments

County, all in Maryland; Charlottesville, Newport
News, Orange County, Richmond and Staunton, all in
Virginia; and Washington, D.C. Consummation of this
proposal would not exceed the levels of market concentration contained in the Department of Justice
Merger Guidelines8 in the Maryland and Washington,
D.C. banking markets, or in the Virginia banking
markets of Newport News and Richmond.9
In the Virginia banking markets of Charlottesville
and Orange County, market concentration as measured by the HHI would increase above the levels
prescribed in the merger guidelines.10 In order to
mitigate the anticompetitive effects that would result
from consummation of this proposal in these markets,
NationsBank has committed to divest certain offices of
sufficient size, and in such a manner, so that the
transaction would not result in an increase in market
concentration that would exceed the Department of
Justice guidelines.11

8. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger Herfindahl-Hirschman Index ("HHI") is above 1800 is
considered to be highly concentrated. In such markets, the Justice
Department is likely to challenge a merger that increases the HHI by
more than 50 points. The Justice Department has informed the Board
that a bank merger or acquisition generally will not be challenged (in
the absence of other factors indicating anti-competitive effects) unless
the post-merger HHI is at least 1800 and the merger or acquisition
increases the HHI by at least 200 points. The Justice Department has
stated that the higher than normal threshold for an increase in the HHI
when screening bank mergers and acquisitions for anti-competitive
effects implicitly recognizes the competitive effect of limited-purpose
lenders and other non-depository financial entities.
9. Market data are as of June 30, 1992. Upon consummation of this
proposal, the HHI in the Maryland and Washington, D.C. banking
markets would increase as follows:
(1) Annapolis (by 88 points to 1185, and NationsBank's market
share would increase to 14.9 percent of the market deposits);
(2) Baltimore (by 102 points to 1215, and NationsBank's market
share would increase to 28.4 percent of market deposits);
(3) Frederick County (by 63 points to 1545, and NationsBank's
market share would increase to 11.2 percent of market deposits);
and
(4) Washington, D.C. (by 270 points to 943, and NationsBank's
market share would increase to 23.6 percent of market deposits).
In the Virginia banking markets, the levels of concentration would
increase as follows:
(1) Newport News (by 45 points to 1232, and NationsBank's market
share would increase to 17.9 percent of market deposits); and
(2) Richmond (by 90 points to 1569, and NationsBank's market
share would increase to 18.8 percent of market deposits).
10. In the Charlottesville banking market, the HHI would increase
by 388 points to 2275, and NationsBank's market share would
increase to 34.2 percent of market deposits. In the Orange County
banking market, the HHI would increase by 840 points to 4263, and
NationsBank's market share would increase to 51.8 percent of market
deposits.
11. NationsBank has committed to execute final sales agreements to
effect these divestitures prior to the consummation of the acquisition
of MNC, and to consummate these divestitures within 180 days of
consummation of the acquisition of MNC. NationsBank also has
committed that, in the event it is unsuccessful in completing the
divestiture within 180 days of consummation of the proposal, NationsBank will transfer the relevant office or offices to an independent
trustee that has been instructed to sell the office promptly. See, e.g.,
BankAmerica Corporation, 78 Federal Reserve Bulletin 338, 340




971

Based on all the facts of record, including the
number of competitors remaining in these markets, the
relatively small increase in the market concentration
and market share, and NationsBank's divestiture commitments, the Board believes that consummation of
this proposal would not have a significantly adverse
effect on competition in the Maryland or Washington,
D.C. banking markets or in the Virginia banking
markets of Charlottesville, Newport News, Orange
County and Richmond.
NationsBank is the second largest depository institution in the Staunton, Virginia, banking market,12
controlling deposits of $172.5 million, representing
21.1 percent of market deposits. MNC is the seventh
largest depository institution in the market, controlling
deposits of $48.6 million, representing 5.9 percent of
market deposits. Upon consummation of this proposal, NationsBank would remain the second largest
depository institution, controlling deposits of
$221.1 million, representing 24.8 percent of market
deposits with eight depository institutions remaining in
the market. The HHI would increase by 212 points to
1881.
The Board believes that a number of factors indicate
that this increased level of concentration in the Staunton banking market, as measured by the HHI, overstates the competitive effect of this proposal. For
example, eight depository institution competitors, including five of the state's ten largest bank holding
companies would remain in the market. Moreover, the
Staunton banking market also has a number of features
that make it attractive for entry.13 The Virginia banking statute permits statewide branching and regional
bank holding company entry on a reciprocal basis. In
addition, the depository institution to be acquired in
this market does not offer non-real estate commercial
loans or extend lines of credit to small- and/or medium-sized businesses. Moreover, since 1987, the savings association has not originated commercial real
estate loans, and therefore does not compete with
commercial banks in the market on an equal basis.
Based on all the facts of record, and in light of these
factors, the Board does not believe that consummation
of this proposal would have a significantly adverse
effect on competition in the Staunton banking market.

(1992); United New Mexico Financial Corporation, 77 Federal Reserve Bulletin 484,485 (1991). If the proposed divestitures are made to
an in-market competitor, the HHI would increase by 162 points to
2049 in the Charlottesville banking market, and the HHI would
increase by 164 points to 3587 in the Orange County banking market.
12. The Staunton, Virginia, banking market is approximated by
Augusta County, Virginia, and Waynesboro, Virginia.
13. For example, the Staunton banking market is the largest of 85
non-metropolitan statistical area markets in Virginia, and exceeds
these markets substantially in terms of growth in deposits and
population.

972

Federal Reserve Bulletin • October 1993

The Board also sought comments from the United
States Attorney General, the Office of the Comptroller
of the Currency ("OCC"), and the Federal Deposit
Insurance Corporation on the competitive effects of
this proposal. The Attorney General indicated that,
subject to NationsBank's proposed divestitures, there
would be no significantly adverse effects on competition in any relevant banking market. In light of all the
facts of record, the Board concludes that the proposal
would not have a significantly adverse effect on competition or the concentration of banking resources in
any of the relevant banking markets in which NationsBank and MNC compete.
Convenience and Needs Considerations
In acting upon an application to acquire a depository
institution under the BHC Act, the Board must consider the convenience and needs of the communities to
be served, and take into account the records of the
relevant depository institutions under the Community
Reinvestment Act (12 U.S.C. § 2901 et seq.). The
CRA requires the federal financial supervisory agencies to encourage financial institutions to help meet the
credit needs of the local communities in which they
operate consistent with the safe and sound operation
of such institutions. To accomplish this end, the CRA
requires the appropriate federal supervisory authority
to "assess the institution's record of meeting the credit
needs of its entire community, including low- and
moderate-income neighborhoods, consistent with the
safe and sound operation of such institution," and to
take that record into account in its evaluation of bank
expansion proposals.14
In connection with these applications, the Board
received comments from an organization ("Protestant") criticizing NationsBank's record of performance under the CRA in Virginia.15 In particular, the
group contends that an analysis of data collected under
the Home Mortgage Disclosure Act ("HMDA") and in
reports published by NationsBank indicate that Virginia's low- and moderate-income and AfricanAmerican borrowers have not benefitted from NationsBank's operations in Virginia. Protestant also

14. 12 U.S.C. § 2903.
15. Another organization in Maryland has raised issues regarding
whether NationsBank would honor an existing community reinvestment agreement with MNC and enter into such agreements in the
future. This commenter also has raised concerns regarding the responsiveness of NationsBank's centralized management to the credit needs
of low- and moderate-income neighborhoods in Maryland. NationsBank has committed to fulfill MNC's current agreement with the group,
and to coordinate future initiatives through its 10-year/$10-billion Community Investment Program rather than on an agreement-by-agreement
basis. NationsBank also has stated that the Maryland bank will continue to make local lending decisions under the program.




maintains that NationsBank has been reluctant to
enter into partnerships with community and non-profit
organizations and that NationsBank has not fulfilled
certain commitments to improve CRA performance by
targeting lending efforts as discussed by the Board in
connection with the acquisition of C&S/Sovran Corporation.16 The targeted lending areas identified by
Protestant include rural development/agricultural
lending, affordable multi-family housing, and rehabilitation/mortgage financing.
The Board has carefully reviewed the CRA performance record of NationsBank and MNC, and their
subsidiary banks, as well as the comments and NationsBank's responses to those comments, and all the
other relevant facts of record in light of the CRA, the
Board's regulations, and the Statement of the Federal
Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement").17

Record of Performance Under the CRA
A. Evaluations of CRA Performance
The Agency CRA Statement provides that a CRA
examination is an important and often controlling
factor in the consideration of an institution's CRA
record and that these reports will be given great weight
in the applications process.18 The Board notes that all
of NationsBank's subsidiary banks were examined for
CRA performance prior to the acquisition of C&S
Sovran Corporation, and received "satisfactory" ratings from their primary supervisors during the most
recent examinations of their CRA performance. In
particular, NationsBank's lead subsidiary bank, NationsBank of North Carolina, N.A., Charlotte, North
Carolina, received a "satisfactory" rating for CRA
performance from the OCC in November 1991.19 In
addition, all of MNC's subsidiary banks have received

16. See C&S/Sovran Order.
17. 54 Federal Register 13,742 (1989).
18. Id. at 13,745.
19. NationsBank's subsidiary banks in Delaware, Florida, Georgia,
Maryland, South Carolina and Texas received "satisfactory" ratings
for CRA performance from the OCC in November 1991. NationsBank's predecessor banks, the C&S/Sovran Corporation's subsidiary
banks in Florida, Georgia, South Carolina, Virginia and Washington,
D.C. received "satisfactory" ratings for CRA performance from the
OCC in October 1991. NationsBank's predecessor bank subsidiary in
Tennessee received a "satisfactory" rating for CRA performance
from the Federal Reserve Bank of Atlanta in September 1991, and
NationsBank's Kentucky bank subsidiary received a "satisfactory"
rating for CRA performance from the Federal Reserve Bank of
St. Louis in March 1992.

Legal Developments

"satisfactory" ratings during their most recent examinations for CRA performance.20

B. CRA Performance Record of NationsBank
In addition to considering the record of CRA performance examinations of the subsidiary banks of NationsBank and MNC, the Board has carefully considered the actual CRA-related policies, procedures, and
programs instituted and in place at these institutions.
In this regard, the Board conducted a thorough review
of the CRA performance record of NationsBank in the
C&S Sovran Order. In that Order, the Board concluded that the overall CRA performance record of the
NationsBank organization, including its CRA programs and policies, efforts to ascertain community
credit needs, marketing programs, HMDA data and
lending practices, and record of lending, community
development, and other CRA-related activities, was
consistent with approval of NationsBank's proposal to
acquire C&S/Sovran. The Board also noted that it
would take into account NationsBank's efforts to
improve its CRA performance record through its commitment to initiate a 10-year/$10 billion Community
Investment Program in future acquisitions.21 Lending
in the first year of this program totalled $2.2 billion.22
With regard to residential lending, NationsBank
provides residential mortgage loans, housing rehabilitation loans, and home improvement loans. For example, in 1992, NationsBank's subsidiaries made 7,025

20. Maryland National Bank, Baltimore, Maryland, and American
Security Bank, National Association, Washington, D.C., each received a "satisfactory" CRA rating from the OCC in November 1992.
Virginia Federal Savings Bank received a "satisfactory" rating from
the Office of Thrift Supervision in April 1993.
21. This program contained a 10-year commitment to lend a
minimum of $10 billion for the purposes of community development in
banking markets served by NationsBank. Under this program, NationsBank targets consumers who live in low- to moderate-income
areas or have an income that is less than 80 percent of the market's
median income; small businesses and businesses located in low- and
moderate-income areas; real estate projects in low-income areas that
use low-income housing tax credits or benefit consumers with incomes
less than 80 percent of the county median income; loans that support
the agriculture industry, including Farmers Home Administration and
other government-sponsored loans; and loans to nonprofit organizations, government agencies and other programs that serve low- and
moderate-income consumers and neighborhoods.
22. NationsBank's residential and small business lending to lowand moderate-income and minority areas in Virginia are discussed in
the next section. In Washington, D.C., NationsBank made 197 home
mortgage and home improvement loans totalling $23.7 million in lowand moderate-income census tracts, and 102 home mortgage and
home improvement loans totalling $11 million to minority applicants.
Small business lending in Washington, D.C., included 14S loans of less
than $500,000 for a total of $16.4 million. In Maryland, NationsBank
make 260 home mortgage and home improvement loans totalling
$22.7 million in low- and moderate-income census tracts, and 329
home mortgage and home improvement loans totalling $32 million to
minority applicants. Small business lending in Maryland included 132
loans totalling $47.4 million to businesses in low- and moderateincome areas.




973

home mortgage and home improvement loans totalling
$399.2 million in low- and moderate-income census
tracts, and 7,543 home mortgage and home improvement loans totalling $387.2 million to minority applicants as part of its Community Investment Program.
NationsBank also engages in commercial real estate
lending activities as part of this program. In 1992,
NationsBank's subsidiaries made 1,353 commercial
loans totalling $417.8 million, including loans to fund
6,950 single- and multi-family housing units for lowand moderate-income residents, and rehabilitation
loans for retail and community centers in underserved
areas.
NationsBank also has established the "Nations
Housing Fund" as part of its Community Investment
Program. Nations Housing Fund will provide
$100 million for use in the construction of up to 4,000
low-cost housing units in inner cities and other areas
throughout the United States over the next three years.
NationsBank's Community Development Corporation ("CDC") is a nonprofit subsidiary of NationsBank established to provide financing for residential
and commercial developments in inner-city areas. The
CDC has purchased 25 multi-family developments
with the purpose of rehabilitating the units, stabilizing
and increasing the number of affordable housing units,
and selling the developments to local entities.
NationsBank also participates in a number of other
programs designed to help meet the housing-related
credit needs of low- and moderate-income borrowers.
For example, NationsBank is an active participant in
the Federal Housing Administration, and Veterans
Administration government-insured lending programs.
With respect to small business lending, NationsBank participates in a variety of Small Business Administration ("SBA") loan programs and actively supports local small business development. In 1992,
NationsBank's subsidiaries made more than 35,000
calls on small and minority-owned businesses to solicit
new banking relationships and expand existing ones.
Moreover, as part of its Community Investment Program, NationsBank's subsidiaries made 6,220 loans
totalling $917 million to small businesses in low- and
moderate-income areas, and 188 SBA loans totalling
$50.7 million that year. The record also indicates that
in 1992 NationsBank's subsidiaries originated 869
loans, totalling $35.9 million to agriculturally-oriented
businesses and small farmers. NationsBank recently
announced its plan to provide additional funding to
small businesses through the establishment of a "Business Banking" unit that will target small businesses
with annual revenues of less than $4 million. Business
Banking has committed to lend more than $1 billion
over the next three years as part of NationsBank's
Community Investment Program. The unit will make

974

Federal Reserve Bulletin • October 1993

loans up to $500,000, and will target companies in over
30 communities.

C. NationsBank's CRA Performance in Virginia
The Board has reviewed the CRA performance of
NationsBank of Virginia, N.A., Richmond, Virginia
("NationsBank—Va.") in light of Protestant's comments criticizing NationsBank's CRA record in Virginia.
Corporate Policies. NationsBank—Va. has in place
the types of policies outlined in the Agency CRA
Statement that contribute to an effective CRA program. The bank has adopted its own community
investment policy modeled on the NationsBank corporate format that includes goals, objectives, and
methodology for community needs assessment, product development, strategic target marketing, internal
assessment and review, management involvement,
training, and community and economic development,
and maintains a board of directors CRA Committee
that has oversight responsibility for the bank's community reinvestment strategy and performance. The
committee meets prior to each regularly scheduled
board meeting to review the bank's CRA initiatives
and performance. NationsBank—Va. also conducts
regular CRA self-assessments, and provides CRA
training to bank personnel.
Ascertainment and Marketing. NationsBank—Va.
uses several methods to ascertain community credit
needs, including surveys, direct contacts and community outreach programs. For example, NationsBank—
Va. ascertains the credit needs of communities
through direct contacts with civic and communitybased organizations, nonprofit entities, religious
groups, trade and special interest groups, and government agencies. These outreach efforts include joint
efforts with community organizations. For example,
NationsBank—Va., in conjunction with the National
Association for the Advancement of Colored People,
has established a Community Development Resource
Center in Richmond to prepare consumers, small
businesses and non-profit organizations to apply for
credit, and to assist these groups in the applications
process. Bank representatives also participate in meetings with numerous organizations, and serve on the
boards of directors of organizations that represent
low- and moderate-income neighborhoods, small businesses and minority consumers and other special
interest groups. Since 1992, NationsBank—Va. has
met with approximately 260 organizations. Moreover,
the bank's outreach efforts also include educational
programs for members of the public. For example,
NationsBank—Va. participated in approximately
13 outreach programs that provided education and



awareness on products and services available for small
business and low- and moderate-income neighborhoods in 1992. NationsBank—Va. also provided approximately 234 credit education seminars including
Home Buyer Education and Basic Banking classes.
NationsBank—Va. markets its products and services through a variety of advertising activities, including print media, direct mail, outdoor billboard
advertising, and radio and television advertising.
HMDA Data and Lending Practices. The Board has
carefully reviewed the HMDA data reported by NationsBank—Va. in light of Protestant's comments.
These data indicate disparities in rates of housingrelated loan applications, and in approvals and denials
that vary by racial and ethnic group in areas served by
NationsBank—Va. Because all banks are obligated to
ensure that their lending practices are based on criteria
that assure not only safe and sound lending, but also
assure equal access to credit by creditworthy applicants regardless of race, the Board is concerned when
the record of an institution indicates disparities in
lending to minority applicants. The Board recognizes,
however, that HMDA data alone provide only a limited measure of any given institution's lending in its
community. The Board also recognizes that HMDA
data have limitations that make the data an inadequate
basis, absent other information, for conclusively determining whether an institution has engaged in illegal
discrimination on the basis of race or ethnicity in
making lending decisions.
In this regard, the Board notes that the OCC determined at the 1991 examination of Sovran Bank, N.A.,
Richmond, Virginia, the predecessor of NationsBank—Va., that the community delineation of the
bank was reasonable, and did not arbitrarily exclude
any low- and moderate-income neighborhoods. The
OCC also concluded that the bank's geographic distribution of credit applications, extensions, and denials
demonstrated reasonable penetration of all segments
of its local community, including low- and moderateincome and minority areas, with no evidence of exclusionary practices. The OCC also found no evidence of
illegal discrimination or other illegal credit practices.
NationsBank—Va. also has taken steps under the
NationsBank Community Investment Program designed to improve its lending to minorities and lowand moderate-income communities. For example, preliminary 1992 data indicate that NationsBank—Va.
originated 430 home mortgage and home improvement
loans totalling $5.3 million in low- and moderateincome census tracts, and 431 home mortgage and
home improvement loans totalling $4.7 million to
minority applicants. Moreover, NationsBank's mortgage subsidiary, NationsBank Mortgage Corporation,
originated 441 home mortgage loans totalling $36 mil-

Legal Developments

lion in low- and moderate-income census tracts, and
714 home mortgage loans totalling $75.5 million to
minority applicants in the state. Commercial real estate lending under the Community Investment Program in Virginia consisted of 124 loans totalling
$57 million in 1992. The bank also has made a threeyear commitment to the Norfolk Redevelopment and
Housing Authority loan rehabilitation program, which
provides homeowners in designated conservation areas with low-cost deferred loans to improve their
homes. In addition, NationsBank—Va. is an active
participant in the Federal Housing Administration and
Veterans Administration government-insured lending
programs.
NationsBank—Va. participates in a number of
Small Business Administration ("SBA") loan programs and actively supports local small business development. In 1992, NationsBank—Va. made approximately 1,483 small and minority-owned businesses to
solicit new banking relationships and expand existing
ones. Moreover, as part of its Community Investment
Program, NationsBank—Va. originated 1,196 loans
totalling $80.4 million to businesses in low- and moderate-income areas and 50 SBA loans totalling
$14.6 million to small businesses. The bank's rural
development and agricultural lending program originated 66 loans totalling $611,000 to agriculturallyoriented businesses and small farmers in 1992.

D. Conclusion Regarding Convenience and
Needs Factors
The Board has carefully considered the entire record,
including the comments filed in this case, in reviewing
the convenience and needs factor under the BHC Act.
Based on a review of the entire record of performance,
including information provided by Protestant and NationsBank, the results of the most recent CRA performance examinations conducted by the relevant primary regulators, and NationsBank's progress in
implementing its commitments, the Board believes
that the efforts of NationsBank and MNC to help meet
the credit needs of all segments of the communities
served by NationsBank and MNC, including low- and
moderate-income neighborhoods, as well as all other
convenience and needs considerations, are consistent
with approval.
Other Considerations
The Board also concludes that the financial and managerial resources and future prospects of NationsBank
and MNC, and their respective subsidiaries, and the
other supervisory factors that the Board must consider



975

under section 3 of the BHC Act, are consistent with
approval.23
NationsBank also has applied under section 4(c)(8)
of the BHC Act to acquire the nonbanking subsidiaries
of MNC. The Board has determined by regulation or
order that each of the activities of these companies is
closely related to banking and generally permissible
for bank holding companies under section 4(c)(8) of
the BHC Act, and has approved applications by MNC
to own shares in each of these companies.
NationsBank operates subsidiaries engaged in nonbanking activities that compete with many of the
nonbanking subsidiaries of MNC. In each case, the
markets for nonbanking services are unconcentrated
and there are numerous providers of these services. In
light of these facts and the shares of each of these
markets controlled by NationsBank and MNC, the
Board concludes that consummation of this proposal
would not have a significantly adverse effect on competition for these services in any relevant market.
The evidence of record does not indicate that approval of the proposed acquisition of shares of any of
the nonbanking companies of MNC would result in
any significantly adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices that are not outweighed by public benefits.
Accordingly, the Board has determined that the balance of public interest factors that the Board must
consider under section 4(c)(8) of the BHC Act is
favorable and consistent with approval of NationsBank's application to acquire the nonbank subsidiaries
of MNC.
NationsBank also has requested Board approval to
permit American Security Insurance Corporation, Ellicott City, Maryland ("ASIC"), to continue, following its acquisition by NationsBank, to conduct insurance agency activities pursuant to section 4(c)(8)(D) of

23. The Board has received comments from two individuals relating
to loan transactions at NationsBank's Florida and Virginia subsidiary
banks. One commenter alleges violations under the Fair Debt Collection Practices Act in connection with a debt incurred when NationsBank of Florida purchased an insurance policy to replace the lapsed
coverage on an automobile securing the bank's loan. The complaint
has been referred to the bank's primary regulator, the OCC, for
investigation. Another commenter contends that Nationsbank—Va.
violated the Equal Credit Opportunity Act by erroneously disclosing
that a credit report was used to deny the commenter's loan. The OCC
has investigated this complaint and concluded that, while no credit
reports were used in the evaluation of the commenter's loan, the bank
considered appropriate underwriting criteria in evaluating the application.
The Board has carefully reviewed these comments in light of the
relevant reports of examination for these banks. Based on all facts of
record, the Board believes that these isolated incidents do not warrant
denial of the applications. The Board also notes that federal law
provides adequate civil remedies to the commenters if they are able to
establish any improper action on the part of the banks.

976

Federal Reserve Bulletin • October 1993

the BHC Act ("Exemption D"). 24 ASIC sells singleinterest property and casualty insurance in Maryland,
Virginia, and Washington, D.C., respectively. Exemption D permits bank holding companies to continue to
engage in insurance agency activities that were "engaged in" by the bank holding company or any of its
subsidiaries on "May 1, 1982." NationsBank has
provided evidence that ASIC was engaged in selling
these insurance lines on May 1, 1982.25
ASIC would remain a separate subsidiary of NationsBank, and its grandfathered insurance activities
would not be conducted by any of NationsBank's
other subsidiaries.26 Based on the record, the Board
has determined that ASIC may continue to engage in
insurance activities pursuant to Exemption D following its acquisition by NationsBank.27
The Board also has considered NationsBank notice
of intent to acquire Equitable Bancorporation Overseas Finance N.V. pursuant to section 4(c)(13) of the
BHC Act, and MNC International Bank pursuant to
section 25A of the Federal Reserve Act, and has
determined that disapproval of the acquisitions is not
warranted.
Conclusion
Based upon the foregoing and all the other facts of
record, including commitments made by Nations-

24. 12 U.S.C. § 1843(c)(8)(D). Exemption D permits a bank holding
company to engage in "any insurance activity which was engaged in
by the bank holding company or any of its subsidiaries on May 1,
1982." Such activities may be conducted in the grandfathered company's home state, states adjacent thereto, or any state where the
company was authorized to operate an insurance business before the
grandfather date. The Board has previously determined that an
insurance agency that is entitled to continue to sell insurance under
Exemption D does not lose its grandfathered rights if the agency is
acquired by another bank holding company, provided the agency
maintains its separate corporate structure and its insurance activities
are not extended to other subsidiaries within the acquiror's organization. Sovran Financial Corporation, 73 Federal Reserve Bulletin 672
(1987) ("Sovran"). This determination has been upheld by the courts.
National Ass' n of Casualty and Surety Agents v. Board of Governors,
856 F.2d 282, reh'g denied en banc, 862 F.2d 351 (D.C. Cir. 1988),
cert, denied, 490 U.S. 1090 (1989).
25. This evidence was consistent with the types of evidence relied
upon by the Board in previous orders in which the Board found that a
company met the requirements of Exemption D. See MidAmerican
Corporation, 76 Federal Reserve Bulletin 559 (1990); Citicorp, 76
Federal Reserve Bulletin 70 (1990).
26. This condition is not intended to preclude NationsBank from
seeking Board approval to merge ASIC into one subsidiary or merge
it into other subsidiaries of NationsBank and continue to engage
through the resulting company in insurance agency activities under
Exemption D if the merger is for legitimate business purposes and
otherwise conforms with the limitations in this order and the requirements of the Board's regulations. See 12 C.F.R. 225.25(b)(8)(iv),
footnote 10.
27. Pursuant to Exemption D, the insurance agency activities of
ASIC may be conducted only in Maryland, Virginia, or Washington,
D.C., or states in which this company lawfully engaged in insurance
activities on May 1, 1982.




Bank, the Board has determined that the applications
should be, and hereby are, approved. The Board's
determination is subject to all the commitments made
in connection with these applications as well as all the
conditions set forth in the Board's Regulation Y,
including the Board's authority to require modification
or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the
Board's regulations and orders thereunder. All the
commitments and conditions relied upon by the Board
in reaching its decision are conditions imposed in
writing in connection with the Board's findings and
decision and, as such, may be enforced in proceedings
under applicable law.
The acquisition of banks shall not be consummated
before the thirtieth calendar day following the effective
date of this Order, and the acquisition of the banks and
nonbanking subsidiaries of MNC 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
Richmond, acting pursuant to delegated authority.
By order of the Board of Governors, effective
August 2, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, and LaWare. Absent and not voting:
Governors Lindsey and Phillips.
JENNIFER J. JOHNSON

Associate Secretary of the Board
Appendix
Nonbanking subsidiaries to be acquired:
(1) American Security Insurance Corporation, Ellicott
City, Maryland, and thereby engage in insurance
agency activities pursuant to § 225.25(b)(8)(iv) of the
Board's Regulation Y;
(2) ASB Capital Management, Inc., Washington,
D.C., and thereby engage in furnishing investment
advisory services pursuant to § 225.25(b)(4) of the
Board's Regulation Y;
(3) Fayette Insurance Corporation, Baltimore, Maryland, and thereby engage in the sale as agent of
credit-related insurance pursuant to § 225.25(b)(8)(i) of
the Board's Regulation Y;
(4) IFCO, Inc., Fayetteville, North Carolina, and
thereby engage in the making and servicing of loans
pursuant to § 225.25(b)(1) of the Board's Regulation Y;

Legal Developments

(5) Maryland National Mortgage Corporation, Baltimore, Maryland, and thereby engage in the making
and servicing of loans pursuant to § 225.25(b)(1) of the
Board's Regulation Y;
(6) Maryland National Pennsylvania Corporation, Baltimore, Maryland, and thereby engage in the making
and servicing of loans pursuant to § 225.25(b)(1) of the
Board's Regulation Y;
(7) Mid-Atlantic Life Insurance Company, Phoenix,
Arizona, and thereby engage in the sale as principal,
agent or broker of credit- related insurance pursuant to
§ 225.25(b)(8)(i) of the Board's Regulation Y;
(8) MN Credit Corporation, Baltimore, Maryland, and
thereby engage in the making and servicing of loans
pursuant to § 225.25(b)(1) of the Board's Regulation Y;
(9) MNC American Corporation, Towson, Maryland,
and thereby engage in industrial banking activities
pursuant to § 225.25(b)(2) of the Board's Regulation Y;
(10) MNC Credit Corp., Towson, Maryland, and
thereby engage in the making and servicing of loans
pursuant to § 225.25(b)(1) of Regulation Y, and the
leasing of personal or real property pursuant to
§ 225.25(b)(5) of the Board's Regulation Y; and
(11) Prime Rate Premium Finance Corporation, Florence, South Carolina, and thereby engage in the
making and servicing of loans pursuant to
§ 225.25(b)(1) of the Board's Regulation Y.

Saban, S.A.
Marina Bay, Gibraltar
RNYC Holdings Limited
Marina Bay, Gibraltar
Order Approving Acquisition of a Bank Holding
Company
RNYC Holdings Limited, Marina Bay, Gibraltar
("RNYCH"), has applied under section 3(a)(1) of the
Bank Holding Company Act ("BHC Act")(12
U.S.C. § 1842(a)(1)) to acquire up to 28 percent of
the outstanding shares of Republic New York Corporation ("RNYC"), and thereby to acquire indirectly Republic National Bank of New York and
Republic Bank for Savings, all of New York, New
York. RNYCH proposes to acquire the RNYC
shares from Saban, S.A., Marina Bay, Gibraltar
("Saban"), a bank holding company within the
meaning of the BHC Act, and Saban in turn has
applied pursuant to section 3 of the BHC Act to



977

acquire all the shares of RNYCH. 1 RNYCH also has
applied under section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)) and the Board's Regulation
Y to acquire indirectly the domestic nonbanking
subsidiaries of RNYC set forth in Appendix A, and
under section 4(c)(13) of the BHC Act (12 U.S.C.
§ 1843(c)(13)) and the Board's Regulation K to acquire indirectly the foreign banking and nonbanking
subsidiaries of RNYC set forth in Appendix B.
RNYCH also proposes to acquire indirectly from
Saban the shares of Republic International Bank of
New York, Miami, Florida, and Republic International Bank of New York (California), Beverly Hills,
California, which are corporations chartered under
section 25A of the Federal Reserve Act ("Edge
Act") (12 U.S.C. § 611 et seq.).
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 15,351 (1993)). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in sections 3(c),
4(c)(8), and 4(c)(13) of the BHC Act.
RNYC, with $36.2 billion in total consolidated assets, is the seventh largest commercial banking organization in New York.2 RNYC operates one commercial bank and one savings bank in New York, and
engages directly and through its subsidiaries in a broad
range of permissible nonbanking activities throughout
the United States.
Considerations relating to the financial and managerial resources and future prospects of Saban,
RNYCH, RNYC, and their subsidiaries, the convenience and needs of the communities to be served,
the effect that consummation of this proposal will
have on competition or the concentration of banking
resources in any relevant banking market, and other
supervisory factors that the Board is required to
consider under section 3 of the BHC Act are consistent with approval of these applications. In addition,
the Board has received commitments to ensure that it
will have access to information on the operations or
activities of Saban and RNYCH, and of their affiliates, to permit the Board to determine and enforce
compliance with the BHC Act and other federal
banking law. The record also indicates that the
conduct of the activities that Saban, RNYCH and
RNYC propose to conduct through nonbanking sub-

1. This proposal represents a corporate reorganization of Saban
whereby RNYCH will be established as an intermediate holding
company between Saban and RNYC. Saban also would retain direct
ownership of 1.01 percent of the outstanding shares of RNYC, and
would retain its interest in Safra Republic Holdings, S.A., Luxembourg City, Grand Duchy of Luxembourg.
2. Asset data are as of June 30, 1993.

978

Federal Reserve Bulletin • October 1993

sidiaries can reasonably be expected to produce
public benefits that outweigh the possible adverse
effects associated with this proposal. Thus, based on
consideration of all the relevant facts, the Board
concludes that the balance of public interest factors
that it is required to consider under section 4(c)(8) of
the BHC Act is consistent with approval of
RNYCH's application to acquire the nonbank subsidiaries of RNYC set forth in Appendix A.
The Board also has considered RNYCH's application to acquire indirectly the foreign banking and
nonbanking subsidiaries of RNYC set forth in Appendix B pursuant to section 4(c)(13) of the BHC Act, and
to acquire indirectly the shares of Republic International Bank of New York and Republic International
Bank of New York (California) under the Edge Act.
After consideration of all the factors specified in the
Board's Regulation K and based on all the facts of
record, the Board has determined that disapproval of
these acquisitions is not warranted.
Based on the foregoing and all the facts of record,
the Board has determined that the applications
should be, and hereby are, approved. The Board's
approval of this proposal is expressly conditioned on
compliance with the commitments made in connection with these applications, and with the commitments made in previous applications to the extent
such commitments are not modified or superseded by
the commitments made in connection with these
applications. The Board's determination also is subject to all the conditions set forth in Regulation Y,
including those in sections 225.4(d) and 225.23(b),
and to the Board's authority to require modification
or termination of the activities of a bank holding
company or any of its subsidiaries as the Board finds
necessary to ensure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the
Board's regulations and orders issued thereunder.
For purposes of this action, these commitments and
conditions are deemed to be conditions imposed in
writing by the Board in connection with its findings
and decision and, as such, may be enforced in
proceedings under applicable law.
The banking acquisitions approved in this Order
shall not be consummated before the thirtieth calendar day following the effective date of this Order, and
the banking and nonbanking acquisitions 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, pursuant to delegated
authority.
By order of the Board of Governors, effective
August 18, 1993.




Voting for this action: Chairman Greenspan and Governors
Mullins, Kelley, LaWare, Lindsey, and Phillips. Absent and
not voting: Governor Angell.
JENNIFER J. JOHNSON

Associate Secretary of the Board
Appendix A
Domestic Nonbanking Subsidiaries Controlled and
Activities Engaged in under Section 4(c)(8) and
Regulation Y
Republic Clearing Corporation, New York, New York
(futures commission merchant activities)
Republic Factors Corporation, New York, New York
(factoring activities)
Republic Information and Communications Services,
Inc., New York, New York
(disaster recovery product and services)
Republic New York Trust Company of Florida, National Association, North Miami, Florida
(trust and other fiduciary services)
Republic New York Mortgage Corporation, Pompano
Beach, Florida
(originating and servicing mortgage loans)
Republic New York Securities Corporation, New
York, New York
(providing investment advisory services and financial advisory services, securities brokerage services, purchasing and selling all types of securities
as "riskless principal," and engaging in securities
credit activities)
Appendix B
Foreign Banking Subsidiaries Controlled and
Activities Engaged in under Section 4(c)(l3) and
Regulation K
Republic National Bank of New York (Luxembourg)
S.A., Luxembourg City, Grand Duchy of Luxembourg
(foreign commercial banking)
Republic National Bank of New York (France) S.A.,
Paris, France
(foreign commercial banking)
Republic National Bank of New York (Suisse) S.A.,
Geneva, Switzerland
(foreign commercial banking)
Republic National Bank of New York (Guernsey)
Limited, St. Peter Port, Channel Islands
(foreign commercial banking)

Legal Developments

Republic National Bank of New York (Gibraltar)
Limited, Marina Bay, Gibraltar
(foreign commercial banking)
Republic National Bank of New York (International)
Limited, Nassau, Bahamas
(foreign commercial banking)
Republic National Bank of New York (Canada) Limited, Montreal, Canada
(foreign commercial banking)
Republic National Bank of New York (Cayman) Limited, Cayman Islands, British West Indies
(foreign commercial banking)
Republic National Bank of New York (Singapore)
Ltd., Singapore
(foreign commercial banking)
Foreign Nonbanking Subsidiaries Controlled and Activities Engaged in under Section 4(c)(13) and Regulation K
RIBNY Overseas Investments Holding Corporation,
Wilmington, Delaware
(holding company for foreign commercial banks and
foreign services corporations)
Republic Overseas Banks Holding Corporation, Wilmington, Delaware
(holding company for foreign commercial banks and
foreign services corporations)
Safra Republic Holdings S.A., Luxembourg City,
Grand Duchy of Luxembourg
(holding company for foreign commercial banks and
foreign services corporations)

Orders Issued Under Bank Merger Act
Banco Popular de Puerto Rico
Hato Rey, Puerto Rico

979

Notice of the applications, affording interested persons an opportunity to submit comments, has been
given in accordance with the Bank Merger Act and the
Board's Rules of Procedure (12 C.F.R. 262.3(b)). As
required by the Bank Merger Act, reports on the
competitive effects of the merger were requested from
the United States Attorney General, the Office of the
Comptroller of the Currency ("OCC"), and the Federal Deposit Insurance Corporation ("FDIC"). 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 the Bank
Merger Act and the Federal Reserve Act.
Banco Popular is a wholly owned subsidiary of
BanPonce Corporation, Hato Rey, Puerto Rico, a
bank holding company within the meaning of the Bank
Holding Company Act (12 U.S.C. § 1841 et seq.) and
incorporated under the laws of the Commonwealth of
Puerto Rico. Banco Popular, with total consolidated
assets of $9.6 billion, is the largest commercial banking
organization in Puerto Rico.2 In addition to Puerto
Rico and the U.S. Virgin Islands, Banco Popular
operates branches in New York, Chicago and Los
Angeles, and it operates two nonbanking subsidiaries
in Puerto Rico.
Banco Popular is the fourth largest commercial
banking organization in the U.S. Virgin Islands, controlling deposits of $166.1 million, representing
12.8 percent of the total deposits in commercial banking organizations in the U.S. Virgin Islands.3 Upon
consummation of this proposal, Banco Popular would
become the largest commercial banking organization
in the U.S. Virgin Islands, controlling deposits of
$445.4 million, representing 34.4 percent of the total
deposits in commercial banking organizations in the
U.S. Virgin Islands.
Competitive Considerations

Order Approving the Merger of Banks
Banco Popular de Puerto Rico, Hato Rey, Puerto Rico
("Banco Popular"), 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
acquire certain assets and assume certain liabilities of
the St. Thomas, U.S. Virgin Islands, branches and the
Tortola, British Virgin Islands, branch of CoreStates
Bank, N.A., Philadelphia, Pennsylvania ("Core
States").1

1. Banco Popular also has applied to establish branches in St.
Thomas, U.S. Virgin Islands, and in Tortola, British Virgin Islands,
pursuant to sections 9 and 25 of the Federal Reserve Act (12 U.S.C.
§§ 321 and 601) and section 211.3 of the Board's Regulation K




The Board may not approve any application filed
under the Bank Merger Act if the effect of the proposal
in any section of the country may be substantially to
lessen competition, unless the Board finds that the
"anticompetitive effects of the proposed transaction
are clearly outweighed in the public interest by the
probable effect of the transaction in meeting the convenience and needs of the community to be served."

(12 C.F.R. 211.3). In addition, Banco Popular has applied pursuant to
section 24A of the Federal Reserve Act (12 U.S.C. § 371d) to make an
additional investment in bank premises.
2. Asset data are as of December 31, 1992.
3. Deposit data are as of June 30, 1992, for domestic banking
organizations and March 31, 1993, for foreign banking organizations.

980

Federal Reserve Bulletin • October 1993

12 U.S.C. § 1828(c)(5)(B). In this regard, the Board
has received comments concerning the competitive
effects of this proposal, including comments from an
elected local representative in the U.S. Virgin Islands
("Protestant"), maintaining that the proposed acquisition would substantially reduce competition in the
U.S. Virgin Islands.4
In the U.S. Virgin Islands, Banco Popular and
CoreStates compete directly in the St. Thomas banking market.5 The record indicates that thrift institutions in this market are active in commercial lending
and are fully competitive with commercial banks.6
Banco Popular is the fifth largest commercial bank or
thrift institution ("depository institution") in the St.
Thomas banking market, controlling deposits of
$118.5 million, representing 11 percent of total deposits in depository institutions in the market ("market
deposits"). CoreStates is the largest depository institution in the St. Thomas banking market, controlling
deposits of $279.4 million, representing 25.9 percent of
market deposits. Upon consummation of this proposal, Banco Popular would become the largest depository institution in the St. Thomas banking market,
controlling deposits of $397.9 million, representing
36.9 percent of market deposits.

4. Protestant also raises concerns that local residents were given
inadequate notice of the proposed transaction, and that Banco Popular's acquisition of the proposed branches would eliminate jobs in the
U.S. Virgin Islands. As noted above, notice of the proposed transaction was published in accordance with the Bank Merger Act and the
Board's Rules of Procedure. In addition, Banco Popular distributed
press releases announcing the proposed transaction to all newspapers,
and radio and television stations in the Virgin Islands, and has met
with the Governor and Lieutenant Governor of the U.S. Virgin
Islands, and the U.S. Virgin Islands Banking Board. In response to
Protestant's comments regarding the possible loss of jobs, Banco
Popular, as part of the branch sale agreement with CoreStates, has
guaranteed that it will offer equivalent jobs and benefits to all affected
CoreStates employees for a period of at least two years, and has
committed to the Lieutenant Governor of the U.S. Virgin Islands that
it will not close any of the acquired branches.
5. The St. Thomas banking market is approximated by the islands of
St. Thomas and St. John. This definition takes into account the
geographic and economic separation, identified by Protestant, between these islands and St. Croix island. Originally, this proposal
included the acquisition of CoreStates's branches on St. Croix Island
and Protestant raised concerns about the acquisition of these
branches. The Lieutenant Governor of the U.S. Virgin Islands, who
also serves as Commissioner of Banking and Insurance, commented
that he had no objection to the acquisition of the St. Croix branches.
Banco Popular amended its proposal to exclude the St. Croix
branches and therefore the acquisition of these branches is not before
the Board.
6. Commercial lending constitutes on average 6.5 percent of the
total assets of these institutions, which is significantly greater than the
national thrift average of 1 percent. The Board previously has recognized that thrifts in certain markets compete fully with banks and
should be fully weighted in analyzing the competitive effects of bank
expansion proposals. See e.g., Fleet/Norstar Financial Group, Inc.,
77 Federal Reserve Bulletin 750 (1991); BanPonce Corporation, 77
Federal Reserve Bulletin 42 (1991). Based on all the facts of record in
this case, the deposits of these institutions have been weighted at
100 percent.




The Board believes that a calculation of the Herfindahl-Hirschman Index ("HHI") based on total market
deposits does not accurately reflect the competitive
effect of this proposal in the St. Thomas banking
market because of the unique characteristics of this
market.7 In particular, the record indicates that government deposits represent a significant amount of the
deposits held by CoreStates. Local government deposits may be volatile and subject to restrictive collateral
requirements that often restrict a bank's ability to use
these deposits for making loans or providing other
banking products.8 The Board previously has determined that individual, partnership, and corporation
("IPC") deposits may be the proper focus of the
competitive analysis in mergers and acquisitions in
markets, such as those including state capitals, in
which government deposits constitute a relatively
large share of total deposits.9 In this case, deposits
attributable to the U.S. Virgin Islands government
account for substantially all the non-IPC deposits in
the St. Thomas banking market, and non-IPC deposits
represent approximately 23.2 percent of all market
deposits.10 In light of these and all the facts of record,
the Board concludes that the competitive effects of
this proposal should be considered on the basis of IPC
deposits.
Banco Popular is the fifth largest depository institution in the market, controlling IPC deposits of
$52.9 million, representing 6.4 percent of market deposits. CoreStates is the fourth largest depository
institution in the market, controlling IPC deposits of
$111.5 million, representing 13.5 percent of market

7. The HHI would increase 569 points to 2465. Under the revised
Department of Justice Merger Guidelines, 49 Federal Register 26,823
(June 29, 1984), a market in which the post-merger HHI is between
1000 and 1800 is considered moderately concentrated. A market in
which the post-merger HHI is above 1800 is considered to be highly
concentrated. In such markets, the Justice Department is likely to
challenge a merger that increases the HHI by more than 50 points. The
Justice Department has informed the Board that a bank merger or
acquisition generally will not be challenged (in the absence of other
factors indicating anti-competitive effects) unless the post-merger
HHI is at least 1800 and the merger or acquisition increases the HHI
by at least 200 points. The Justice Department has stated that the
higher than normal threshold for an increase in the HHI when
screening bank mergers and acquisitions for anti-competitive effects
implicitly recognizes the competitive effect of limited-purpose lenders
and other non-depository financial entities.
8. Deposits of the Virgin Islands government are subject to an
informal bidding process on a short-term basis under the supervision
of the Virgin Islands Commissioner of Finance and are required to be
collateralized with government securities.
9. See, for example, United Bank Corporation of New York, 66
Federal Reserve Bulletin 61 (1980); Valley Bank of Nevada, 74
Federal Reserve Bulletin 67 (1987).
10. On average, non-IPC deposits account for approximately
7 percent of total deposits in banks in the United States. Non-IPC
deposits represent 55.4 percent of Banco Popular's total deposits and
60.1 percent of CoreStates's total deposits in the St. Thomas banking
market.

Legal Developments

deposits. Upon consummation of this proposal, Banco
Popular would become the third largest depository
institution in the St. Thomas banking market, controlling IPC deposits of $164.4 million, representing 19.9
percent of all IPC deposits in the market. The HHI
would increase 172 points to 2191.
Four commercial banks and two thrift institutions,
representing 63.1 percent of all market deposits, would
remain in the market upon consummation of this
transaction. Among these remaining institutions are
two large bank holding companies with market shares
of approximately 42.9 percent, and two foreign banking organizations with market shares of approximately
14 percent.
The Attorney General has indicated that consummation of this proposal would not have a significantly
adverse effect on competition in the St. Thomas banking market. Neither the OCC nor the FDIC objected to
consummation of the proposal or indicated that the
proposal would have any significantly adverse competitive effects. Accordingly, based on all the facts of
record, including Protestant's comments and Banco
Popular's response, the number of competitors remaining in the market, and the level of increase in
market concentration, the Board concludes that consummation of this proposal is not likely to result in any
significantly adverse effect on competition in the St.
Thomas banking market or any other relevant banking
market.
Other Considerations
Based on all the facts of record, the Board concludes
that considerations relating to the financial and managerial resources and future prospects of Banco Popular
and CoreStates and their subsidiaries, and the convenience and needs of the community to be served, are
consistent with approval of the applications filed by
Banco Popular under the Bank Merger Act. In addition, the Board has reviewed Banco Popular's applications to establish branches and invest in bank premises in light of the factors it must consider under
sections 9, 25, and 24A of the Federal Reserve Act,
and finds those factors to be consistent with approval.
Conclusion
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The Board's approval is
specifically conditioned upon compliance by Banco
Popular with all the commitments made in connection
with these applications. For purposes of this action,
these commitments and conditions are both considered conditions imposed in writing by the Board in



981

connection with its findings and decisions, and, as
such, may be enforced in proceedings under applicable
law.
The bank merger transactions should not be consummated before the thirtieth calendar day following
the effective date of this Order, or later than three
months after the effective date of this Order, unless
such period is extended for good cause by the Federal
Reserve Bank of New York, acting pursuant to delegated authority.
By order of the Board of Governors, effective
August 12, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, Kelley, La Ware, and Phillips. Absent and not voting: Governors Angell and Lindsey.
JENNIFER J. JOHNSON

Associate Secretary of the Board

ACTIONS TAKEN UNDER THE FEDERAL
DEPOSIT
INSURANCE CORPORATION IMPROVEMENT
ACT

By the Board
AmSouth Bancorporation
Birmingham, Alabama
Order Approving the Merger of a Savings
Association With a Commercial Bank
AmSouth Bancorporation, Birmingham, Alabama
("AmSouth"), a bank holding company within the
meaning of the Bank Holding Company Act, has
applied to the Board for its subsidiary bank, AmSouth
Bank of Florida, Pensacola, Florida ("Bank"), to
acquire certain assets and assume certain liabilities of
Mid-State Federal Savings Bank, Ocala, Florida
("Mid-State"), pursuant to section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. § 1815(d)(3))
("FDI Act"), as amended by the Federal Deposit
Insurance Corporation Improvement Act of 1991, Pub.
L. No. 102-242, § 102-242, § 501, 105 Stat. 2236, 2388
(1991). Section 5(d)(3) of the FDI Act requires the
Board to review the transfer of such assets and liabilities to a bank holding company's subsidiary bank that
is a Bank Insurance Fund member, and, in reviewing
these proposals, to follow the procedures and consider
the factors set forth in section 18(c) of the FDI Act
(12 U.S.C. § 1828(c)) ("the Bank Merger Act").
12 U.S.C. § 1815(d)(3)(E).1

1. These factors include considerations relating to competition,
financial and managerial resources, and future prospects of the

982

Federal Reserve Bulletin • October 1993

Notice of the application, affording interested persons an opportunity to submit comments, has been
published in accordance with the Bank Merger Act
and the Board's Rules of Procedure (12 C.F.R.
262.3(b)). Reports on the competitive effects of the
merger were requested from the United States Attorney General, the Office of the Comptroller of the
Currency, the Federal Deposit Insurance Corporation,
and the Office of Thrift Supervision. The time for filing
comments has expired, and the Board has considered
the application and all comments received in light of
the factors set forth in the Bank Merger Act and
section 5(d)(3) of the FDI Act.
AmSouth, with total consolidated assets of $11 billion, controls subsidiary banks in Alabama, Florida,
and Tennessee.2 AmSouth is the sixth largest commercial banking organization in Florida, controlling deposits of $1.5 billion, representing 1.2 percent of total
deposits in commercial banking organizations in the
state. Mid-State is the 17th largest thrift institution in
Florida, controlling deposits of $653.8 million, representing 2 percent of total deposits in thrift institutions in
the state. Upon consummation of the proposed transaction, AmSouth would become the fifth largest commercial banking organization in Florida, controlling
deposits of $2.2 billion, representing 1.9 percent of total
deposits in commercial banking organizations in the
state.3
AmSouth and Mid-State compete directly in the
Tampa Bay Area banking market.4 Upon consummation of this proposal, AmSouth would become the
seventh largest commercial bank or thrift institution
("depository institution") in the market, controlling
deposits of $604.8 million, representing 2.5 percent of
total deposits in depository institutions in the market.
After considering the number of competitors remaining

existing and proposed institutions, and the convenience and needs of
the communities to be served. 12 U.S.C. § 1828(c).
2. Asset data are as of December 31, 1992.
3. Deposit data are as of June 30, 1992, and include AmSouth's
acquisition of Charter Banking Corp., St. Petersburg, Florida, approved by the Board by Order dated August 23, 1993. See AmSouth
Bancorporation, 79 Federal Reserve Bulletin 951 (1993). State deposit
concentration and market share data are based on calculations in
which the deposits of thrift institutions are included at 50 percent. The
Board previously has indicated that thrift institutions have become, or
have the potential to become, major competitors of commercial
banks. See Midwest Financial Group, 75 Federal Reserve Bulletin 386
(1989); National City Corporation, 70 Federal Reserve Bulletin 743
(1984). Thus, the Board has regularly included thrift deposits in the
calculation of market share on a 50 percent weighted basis. See, e.g.,
First Hawaiian Inc., 77 Federal Reserve Bulletin 52 (1991). Because
Mid-State would be merged with a commercial bank under AmSouth's
proposal, the deposits of Mid-State are included at 100 percent in the
calculation of the pro forma state deposit concentration and market
share. See First Banks, Inc., 76 Federal Reserve Bulletin 669, 670 n.9
(1990); Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992).
4. The Tampa Bay Area banking market is approximated by
Hernando, Hillsborough, Pasco, and Pinnelas Counties.




in the market, resulting market shares, the relatively
small increase in concentration as measured by the
Herfindahl-Hirschman Index ("HHI"),5 and all other
facts of record, the Board concludes that consummation of this proposal would not have a significantly
adverse effect on competition in the Tampa Bay Area
banking market or any other relevant banking market.
The Board also concludes that the financial and
managerial resources and future prospects of AmSouth and Mid-State, and considerations relating to
the convenience and needs of the communities to be
served, are consistent with approval of this application. Moreover, the record in this case shows that:
(1) The transaction will not result in the transfer of
any federally insured depository institution's federal
deposit insurance from one federal deposit insurance fund to the other;
(2) AmSouth and Bank currently meet, and upon
consummation of the proposed transaction will continue to meet, all applicable capital standards; and
(3) Because AmSouth is in Alabama and is acquiring
certain assets and assuming certain liabilities of a
Florida federal savings bank, the proposed transaction would comply with the Douglas Amendment if
Mid-State were a state bank that AmSouth was
applying to acquire directly. See 12 U.S.C.
§ 1815(d)(3).
Based on the foregoing and all the facts of record,
the Board has determined that this application should
be, and hereby is, approved. This approval is subject
to Bank obtaining the required approval of the appropriate Federal banking agency for the proposed merger
under the Bank Merger Act. The Board's approval of
this application also is conditioned upon AmSouth's
compliance with the commitments made in connection
with this application. For purposes of this action, the
commitments and conditions relied on in reaching this
decision are both conditions imposed in writing by the
Board and, as such, may be enforced in proceedings
under applicable law. This approval is limited to the

5. The HHI in this market would not increase. Under the revised
Department of Justice Merger Guidelines, 49 Federal Register 26,823
(June 29, 1984), a market in which the post-merger HHI is between
1000 and 1800 is considered moderately concentrated. A market in
which the post-merger HHI is above 1800 is considered to be highly
concentrated. In such markets, the Justice Department is likely to
challenge a merger that increases the HHI by more than 50 points. The
Justice Department has informed the Board that a bank merger or
acquisition generally will not be challenged (in the absence of other
factors indicating anti-competitive effects) unless the post-merger
HHI is at least 1800 and the merger or acquisition increases the HHI
by at least 200 points. The Justice Department has stated that the
higher than normal threshold for an increase in the HHI when
screening bank mergers and acquisitions for anti-competitive effects
implicitly recognizes the competitive effect of limited-purpose lenders
and other non-depository financial entities.

Legal Developments

proposal presented to the Board by AmSouth, and may
not be construed as applying to any other transaction.
This transaction may not be consummated before
the thirtieth 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 by
the Board or by the Federal Reserve Bank of Atlanta,
acting pursuant to delegated authority. In connection
with this provision, advice of the fact of consummation should be given in writing to the Reserve Bank.

ACTIONS

TAKEN

UNDER

THE FEDERAL

983

By order of the Board of Governors, effective
August 23, 1993.
Voting for this action: Vice Chairman Mullins and
Governors LaWare, Lindsey, and Phillips. Absent and not
voting: Chairman Greenspan and Governors Angell and
Kelley.

DEPOSIT INSURANCE

JENNIFER J. JOHNSON

Associate Secretary of the Board

CORPORATION

IMPROVEMENT

ACT

OF

1991
By the Director of the Division of Banking Supervision and Regulation and the General Counsel of
the Board
Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of
Governors of the Federal Reserve System, Washington, D.C. 20551.
Acquired
Thrift

Surviving
Bank(s)

Button Gwinnett Financial
Corporation,
Lawrenceville, Georgia

Button Gwinnett National
Bank,
Snellville, Georgia

CoBancorp,
Elyria, Ohio

The Crestline Savings and
Loan Association,
Crestline, Ohio
First Federal Savings and
Loan Association of
Russell County,
Phenix City, Alabama
United Savings Bank,
F.S.B.,
Anniston, Alabama
First Federal Savings
Bank,
Marianna, Florida
First Federal Savings
Bank of DeFuniak
Springs,
DeFuniak Springs,
Florida
Pioneer Savings Bank,
Inc.,
Rocky Mount, North
Carolina

The Bank of
Gwinnett County,
Lawrence ville,
Georgia
PremierBank & Trust
Company,
Elyria, Ohio
Colonial Bank,
Montgomery,
Alabama

Bank Holding Company

The Colonial BancGroup, Inc.,
Montgomery, Alabama

The Colonial BancGroup, Inc.,
Montgomery, Alabama
First Alabama Bancshares, Inc.,
Birmingham, Alabama
First Alabama Bancshares, Inc.,
Birmingham, Alabama

First Citizens BancShares, Inc.,
Raleigh, North Carolina




Approval
Date
August 11, 1993

July 30, 1993

July 23, 1993

Colonial Bank,
Montgomery,
Alabama
Sunshine Bank,
Pensacola, Florida

July 30, 1993

Sunshine Bank,
Pensacola, Florida

August 24, 1993

First Citizens Bank &
Trust Company,
Raleigh, North
Carolina

July 29, 1993

July 30, 1993

984

Federal Reserve Bulletin • October 1993

FDICIA Orders—Continued

Bank Holding Company
InterCounty Bancshares, Inc.,
Wilmington, Ohio

Mountain Holding Corporation,
Tucker, Georgia
Pueblo Bancorporation, Inc.,
Pueblo, Colorado
SouthTrust Corporation,
Birmingham, Alabama

Summit Bancorporation,
Chatham, New Jersey

Synovus Financial Corp.
Columbus, Georgia

ACTIONS

TAKEN

Acquired
Thrift
The Williamsburg
Building and Loan
Company,
Williamsburg, Ohio
Button Gwinnett National
Bank,
Norcross, Georgia
Thatcher Bank,
F.S.B.,
Salida, Colorado
First Federal Savings and
Loan Association of
Russell County,
Phenix City, Alabama
Marine View Federal
Savings Bank,
North Middletown,
New Jersey
TB&C Bancshares, Inc.,
Columbus, Georgia
First Commercial
Bancshares, Inc.,
Jasper, Alabama

UNDER THE FEDERAL DEPOSIT INSURANCE

Surviving
Bank(s)

Approval
Date

The National Bank
and Trust
Company,
Wilmington, Ohio
Mountain National
Bank,
Tucker, Georgia
Pueblo Bank and
Trust Company,
Pueblo, Colorado
SouthTrust Bank of
Dothan, N.A.,
Dothan, Alabama

August 23, 1993

August 11, 1993

August 2, 1993

July 23, 1993

Summit Bank,
Chatham, New
Jersey

August 6, 1993

Birmingham Federal
Savings Bank,
Birmingham,
Alabama
First Commercial
Bank,
Birmingham,
Alabama

August 6, 1993

CORPORATION

IMPROVEMENT ACT OF

1991
By the Secretary of the Board
Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of
Governors of the Federal Reserve System, Washington, D.C. 20551.

Bank Holding Company
Southern National Corporation,
Lumberton, North Carolina




Acquired
Thrift

Surviving
Bank(s)

East Coast Savings Bank,
Inc., SSB,
Goldsboro, North
Carolina

Southern National
Bank of North
Carolina,
Lumberton, North
Carolina

Approval
Date
August 18, 1993

Legal Developments

APPLICATIONS

APPROVED

UNDER BANK HOLDING

COMPANY

985

ACT

By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.

Section 3
Applicant(s)
Southern National Corporation,
Lumberton, North Carolina

APPLICATIONS

APPROVED

Effective
Date

Bank(s)
East Coast Savings Bank, Inc., SSB,
Goldsboro, North Carolina

UNDER BANK HOLDING

COMPANY

August 18, 1993

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)
BB&T Financial Corporation,
Wilson, North Carolina

BB&T Financial Corporation,
Wilson, North Carolina

BNMHC Acquisition
Corporation,
New Port, Minnesota
Carbon County Holding
Company,
Englewood, Colorado
Castle BancGroup, Inc.,
DeKalb, Illinois
Castle Rock Bank Holding
Company,
Castle Rock, Colorado
Cherokee County Banshares,
Inc.,
Hulbert, Oklahoma



Bank(s)
Citizens Savings Bank,
SSB, Inc.,
Newton, North
Carolina
Mutual Savings Bank of
Rockingham County,
SSB,
Reidsville, North
Carolina
The Bank of New Mexico
Holding Company,
Albuquerque, New
Mexico
Rawlins National
Bancorporation, Inc.,
Denver, Colorado
B.O.Y. Bancorp, Inc.,
Yorkville, Illinois
Castle Rock Bank,
Castle Rock, Colorado
First State Bank,
Hulbert, Oklahoma

Reserve
Bank

Effective
Date

Richmond

July 28, 1993

Richmond

August 11, 1993

Kansas City

August 19, 1993

Kansas City

August 19, 1993

Chicago

August 13, 1993

Kansas City

August 6, 1993

Kansas City

August 13, 1993

986

Federal Reserve Bulletin • October 1993

Section 3—Continued

Applicant(s)
Citizens Banking Corporation,
Flint, Michigan
Citizens Holding Corporation and
Bank ESOP,
Keenesburg, Colorado
City Holding Company,
Charleston, West Virginia
Community Bancs of Oklahoma,
Inc.,
Tulsa, Oklahoma
Community National Bank
Corporation,
Venice, Florida

Royal Bank Group, Inc.,
Royal Oak, Michigan
Citizens Holding
Corporation,
Keenesburg, Colorado
First National Bank,
Beckley, West Virginia
Community Bank and
Trust Company,
Tulsa, Oklahoma
Community National
Bank of Sarasota
County,
Venice, Florida
Deepwater State Bank,
Deepwater, Missouri

Reserve
Bank

Bank(s)

Continental Security Bancshares,
Inc.,
Springfield, Missouri
Corte Banc Corporation,
New Orleans, Louisiana
D Bancorp, Inc.,
DeSoto, Texas
Dairyland Bancorp, Inc.,
Bruce, Wisconsin
Dakota Company, Inc.,
Minneapolis, Minnesota
South Dakota Bancorp, Inc.,
Minneapolis, Minnesota
South Dakota Financial
Bancorporation, Inc.,
Minneapolis, Minnesota
DeWitt Bancorp, Inc.,
DeWitt, Iowa
Dickinson Financial Corporation,
Kansas City, Missouri
East Dubuque Bancshares, Inc.,
East Dubuque, Illinois
Elkhart Bancorporation, Inc.,
Elkhart, Texas
Enevoldsen Management
Company,
Potter, Nebraska




Effective
Date

Chicago

August 12, 1993

Kansas City

August 6, 1993

Richmond

August 2, 1993

Kansas City

August 12, 1993

Atlanta

July 30, 1993

Kansas City

July 23, 1993

First Bank and Trust,
New Orleans,
Louisiana
Bank of DeSoto, N.A.,
DeSoto, Texas
Bruce Bancshares, Inc.,
Bruce, Wisconsin
O'Neill Properties, Inc.,
Minneapolis, Minnesota

Atlanta

July 26, 1993

Dallas

August 19, 1993

Minneapolis

July 29, 1993

Minneapolis

July 23, 1993

River Valley Bancorp,
Inc.,
Eldridge, Iowa
Livingston Life Insurance
Company,
Phoenix, Arizona
East Dubuque Investment
Company,
East Dubuque, Illinois
The Elkhart State Bank,
Elkhart, Texas
The Potter State Bank,
Potter, Nebraska

Chicago

July 27, 1993

Kansas City

August 24, 1993

Chicago

August 19, 1993

Dallas

August 5, 1993

Kansas City

August 17, 1993

Legal Developments

Section 3—Continued
Applicant(s)
Farmers State Corporation,
Mountain Lake, Minnesota
Finger Interests Number One,
Ltd.,
Houston, Texas

First American Corporation,
Nashville, Tennessee

First Bancorp of Louisiana, Inc.,
West Monroe, Louisiana
First Bancorp of Louisiana, Inc.,
Employee Stock Ownership Plan
Trust,
West Monroe, Louisiana
First Community Bancshares,
Inc.,
Winnfield, Louisiana

First Security Bancorp, Inc.,
Elmwood Park, Illinois
First Sonora Bancshares, Inc.,
Sonora, Texas

First Sonora Delaware
Bancshares, Inc.,
Dover, Delaware
FNB Financial Services, Inc.
Employee Stock Ownership
Plan,
Durant, Oklahoma
FNB, Inc.,
Greeley, Colorado




Reserve
Bank

Bank(s)
Green Lake
Bancorporation, Inc.,
Spicer, Minnesota
Charter Bancshares, Inc.,
Houston, Texas
CBH, Inc.,
Wilmington, Delaware
University National Bank,
Galveston, Texas
Charter National
Bank-Colonial,
Houston, Texas
Charter Bank-Houston,
Houston, Texas
First American National
Bank of Kentucky,
Bowling Green,
Kentucky
Southern National Bank
at Tallulah,
Tallulah, Louisiana

Winn Bancshares, Inc.,
Winnfield, Louisiana
Winn State Bank and
Trust Company,
Winnfield, Louisiana
First Security Trust &
Savings Bank,
Elmwood Park, Illinois
First Sonora Delaware
Bancshares, Inc.,
Dover, Delaware
The First National Bank
of Sonora,
Sonora, Texas
The First National Bank
of Sonora,
Sonora, Texas
FNB Financial Services,
Inc.,
Durant, Oklahoma
Poudre Valley Bank,
Fort Collins, Colorado

Effective
Date

Minneapolis

July 30, 1993

Dallas

August 26, 1993

Atlanta

August 20, 1993

Dallas

July 27, 1993

Dallas

August 13, 1993

Chicago

August 18, 1993

Dallas

August 13, 1993

Dallas

August 13, 1993

Kansas City

August 5, 1993

Kansas City

August 24, 1993

987

988

Federal Reserve Bulletin • October 1993

Section 3—Continued
Applicant(s)
The Fort Bancorp, Inc.,
Fort Deposit, Alabama
Harris Financial, MHC,
Harrisburg, Pennsylvania
HeartWay Bancorporation,
Way land, Iowa
Holcomb Bancshares, Inc.,
Holcomb, Kansas
Independent Bank Corporation,
Ionia, Michigan
Industry Bancshares, Inc.,
Industry, Texas
Liberty Bancorp, Inc.,
Oklahoma City, Oklahoma
Missoula Bancshares, Inc.,
Missoula, Montana
ONBANCorp, Inc.,
Syracuse, New York

Otto Bremer Foundation,
St. Paul, Minnesota
Bremer Financial Corporation,
St. Paul, Minnesota
Peotone Bancorp, Inc.,
Peotone, Illinois
River Valley Bancorp, Inc.,
Eldridge, Iowa
Saban S.A.,
Marina Bay, City of Gibraltar
RNYC Holdings Limited,
Marina Bay, City of Gibraltar
Republic of New York
Corporation,
New York, New York
Snyder Holding Corporation,
Kittanning, Pennsylvania
F&A Financial Company,
Kittanning, Pennsylvania
THE Bancorp, Inc.,
LaGrange, Kentucky




Reserve
Bank

Bank(s)

Effective
Date

Atlanta

August 18, 1993

Philadelphia

July 29, 1993

Chicago

August 18, 1993

Kansas City

August 6, 1993

Chicago

August 24, 1993

Dallas

July 26, 1993

Kansas City

August 19, 1993

Minneapolis

August 4, 1993

New York

July 30, 1993

Minneapolis

August 18, 1993

Rock River
Bancorporation, Inc.,
Oregon, Illinois
Valley State Bank,
Eldridge, Iowa
SafraCorp California,
Los Angeles, California

Chicago

August 10, 1993

Chicago

July 27, 1993

New York

August 20, 1993

The Armstrong County
Trust Company,
Kittanning,
Pennsylvania
THE BANK - Oldham
County, Inc.,
LaGrange, Kentucky

Cleveland

July 28, 1993

St. Louis

August 2, 1993

First Lowndes Bank,
Fort Deposit, Alabama
Harris Savings Bank,
Harrisburg,
Pennsylvania
Wayland State Bank,
Way land, Iowa
First National Bank of
Holcomb,
Holcomb, Kansas
American Home Bank,
Unionville, Michigan
Industry State Bank,
Industry, Texas
First Edmond
Bancshares, Inc.,
Edmond, Oklahoma
First Security Bank of
Missoula,
Missoula, Montana
Franklin First Financial
Corp.,
Wilkes-Barre,
Pennsylvania
Valley Bancshares, Inc.,
Grand Forks, North
Dakota

Legal Developments

Section 3—Continued
Applicant(s)
Union Bancorp, Inc.,
Potts ville, Pennsylvania
Valentine Bancorporation,
Valentine, Nebraska
Van Buren Bancorporation
Employee Stock Ownership
Plan,
Keosauqua, Iowa
Wilmington Trust Corporation,
Wilmington, Delaware

Reserve
Bank

Bank(s)

Effective
Date

The Peoples State Bank,
East Berlin,
Pennsylvania
The First National Bank
of Valentine,
Valentine, Nebraska
Van Buren
Bancorporation,
Keosauqua, Iowa

Philadelphia

July 26, 1993

Kansas City

July 29, 1993

Chicago

August 23, 1993

Freedom Valley Bank,
West Chester,
Pennsylvania

Philadelphia

August 13, 1993

Section 4
Applicant(s)
BB&T Financial Corporation,
Wilson, North Carolina

Chambanco, Inc.,
Chambers, Nebraska
Chemical Banking Corporation,
New York, New York
Cheshire Financial Corporation,
Keene, New Hampshire
Community Banc-Corp. of
Sheboygan,
Sheboygan, Wisconsin
Community Bankers, Inc.,
Granbury, Texas
Crestar Financial Corporation,

Farmers State Corporation,
Mountain Lake, Minnesota
First Alabama Bancshares, Inc.,
Birmingham, Alabama




Nonbanking
Activity/Company
Old Stone Bank of North
Carolina, a Federal
Savings Bank,
High Point, North
Carolina
to engage de novo in the
making and servicing of
loans
Bishop Trust Company,
Limited,
Honolulu, Hawaii
Colonial Mortgage, Inc.,
Amherst, New
Hampshire
G & H Insurance Agency,
Inc.,
Sheboygan, Wisconsin
Community Data
Services, Inc.,
Cleburne, Texas
Richmond, Virginia
Internet, Inc.,
Reston, Virginia
United Prairie Insurance
Agency,
Slayton, Minnesota
First Federal Enterprises,
Inc.,
Marianna, Florida

Reserve
Bank

Effective
Date

Richmond

August 13, 1993

Kansas City

August 13, 1993

New York

August 20, 1993

Boston

August 12, 1993

Chicago

August 13, 1993

Dallas

August 2, 1993

Richmond

August 11, 1993

Minneapolis

August 4, 1993

Atlanta

July 30, 1993

989

990

Federal Reserve Bulletin • October 1993

Section 4—Continued
Applicant(s)
First Citizens BancShares, Inc.,
Raleigh, North Carolina
First Union Corporation,
Charlotte, North Carolina

Internationale Nederlanden
Group N.V.,
Amsterdam, The Netherlands

Northern Bankshares, Inc.,
McFarland, Wisconsin
PNC Bank Corp,
Pittsburgh, Pennsylvania

Whitaker Bank Corporation of
Kentucky,
Lexington, Kentucky
Whitaker Bancorp, Inc.,
Lexington, Kentucky

Nonbanking
Activity/Company
Pioneer Bancorp, Inc.,
Rocky Mount, North
Carolina
Dominion Mortgage
Corporation,
Charlotte, North
Carolina
to engage de novo in
investment advisory
activities, securities
brokerage activities and
underwriting and
dealing in government
obligations
to engage in the making
and servicing of loans
PNC Asset Management
Corp.,
Pittsburgh,
Pennsylvania
Whitaker Management
Corporation,
Lexington, Kentucky

Reserve
Bank

Effective
Date

Richmond

July 29, 1993

Richmond

August 23, 1993

New York

July 29, 1993

Chicago

July 28, 1993

Cleveland

July 26, 1993

Cleveland

July 26, 1993

Sections 3 and 4
..

Nonbanking
Activity/Company

First Alabama Bancshares, Inc.,
Birmingham, Alabama

First Federal Bancshares
of DeFuniak Springs,
Inc.,
DeFuniak, Florida
First Federal Savings
Bank of DeFuniak
Springs,
DeFuniak Springs,
Florida

.
P




Reserve
Bank
Atlanta

Effective
Date
August 24, 1993

Legal Developments

APPLICATIONS

APPROVED

UNDER BANK MERGER

991

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)
PremierBank & Trust,
Elyria, Ohio

Sulphur Springs State Bank,
Sulphur Springs, Texas

PENDING CASES INVOLVING

The Crestline Federal
Savings and Loan
Association,
Crestline, Ohio
Wolfe City National
Bank,
Wolfe City, Texas

THE BOARD OF

Effective
Date

Cleveland

July 30, 1993

Dallas

July 29, 1993

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.
Kubany v. Board of Governors, et al., No. 93-1428 (D.
D.C., filed July 9, 1993). Action challenging Board
determination under the Freedom of Information
Act.
Bennett v. Greenspan, No. 93-1813 (D. D.C., filed
April 20, 1993). Employment discrimination action.
Ezell v. Federal Reserve Board, No. 93-0361 (D.
D.C., filed February 19, 1993). Action seeking damages for personal injuries arising from motor vehicle
collision. The case was dismissed by the court on
July 30, 1993.
Amann v. Prudential Home Mortgage Co., et al., No.
93-10320 WD (D. Massachusetts, filed February 12,
1993). Action for fraud and breach of contract
arising out of a home mortgage. On April 17, 1993,
the Board filed a motion to dismiss.
Adams v. Greenspan, No. 93-0167 (D. D.C., filed
January 27,1993). Action by former employee under
the Civil Rights Act of 1964 and the Rehabilitation
Act of 1973 concerning termination of employment.
Sisti v. Board of Governors, No. 93-0033 (D. D.C.,
filed January 6, 1993). Challenge to Board staff
interpretation with respect to margin accounts. The
Board's motion to dismiss was granted on May 13,
1993. On June 3,1993, the petitioner filed a notice of
appeal. Cross-motions for summary disposition
were filed on August 13, 1993.



Reserve
Bank

Bank(s)

U.S. Check v. Board of Governors, No 92-2892 (D.
D.C., filed December 30, 1992). Challenge to partial
denial of request for information under the Freedom
of Information Act.
CBC, Inc. v. Board of Governors, No. 92-9572 (10th
Cir., filed December 2, 1992). Petition for review of
civil money penalty assessment against a bank holding company and three of its officers and directors
for failure to comply with reporting requirements.
The Board's brief was filed on March 19, 1993.
DLG Financial Corporation v. Board of Governors,
No. 392 Civ. 2086-G (N.D. Texas, filed October 9,
1992). Action to enjoin the Board and the Federal
Reserve Bank of Dallas from taking certain enforcement actions, and seeking money damages on a
variety of tort and contract theories. On October 9,
1992, the court denied plaintiffs' motion for a temporary restraining order. On March 30, 1993, the
court granted the Board's motion to dismiss as to it,
and also dismissed certain claims against the Reserve Bank. On April 29, the plaintiffs filed an
amended complaint. The Board's motion to dismiss
the amended complaint was filed on May 17.
Zemel v. Board of Governors, No. 92-1056 (D. D.C.,
filed May 4, 1992). Age Discrimination in Employment Act case. The parties' cross-motions for summary judgment are pending.
State of Idaho, Department of Finance v. Board of
Governors, No. 92-70107 (9th Cir., filed February 24, 1992). Petition for review of Board order
returning without action a bank holding company
application to relocate its subsidiary bank from

992

Federal Reserve Bulletin • October 1993

Washington to Idaho. On June 4, 1993, the Court of
Appeals denied the petition for review.
In re Subpoena Served on the Board of Governors,
Nos. 91-5427, 91-5428 (D.C. Cir., filed December 27, 1991). Appeal of order of district court,
dated December 3, 1991, requiring the Board and
the Office of the Comptroller of the Currency to
produce confidential examination material to a
private litigant. On June 26, 1992, the court of
appeals affirmed the district court order in part, but
held that the bank examination privilege was not
waived by the agencies' provision of examination
materials to the examined institution, and remanded for further consideration of the privilege
issue. On August 6, 1992, the district court ordered
the matter held in abeyance pending settlement of
the underlying action.
Board of Governors v. Kemal Shoaib, No. CV 91-5152
(C.D. California, filed September 24, 1991). Action
to freeze assets of individual pending administrative
adjudication of civil money penalty assessment by
the Board. On October 15, 1991, the court issued a
preliminary injunction restraining the transfer or
disposition of the individual's assets.
Board of Governors v. Ghaith R. Pharaon, No. 91CIV-6250 (S.D. New York, filed September 17,
1991). Action to freeze assets of individual pending
administrative adjudication of civil money penalty
assessment by the Board. On September 17, 1991,
the court issued an order temporarily restraining the
transfer or disposition of the individual's assets.

FINAL ENFORCEMENT DECISION ISSUED BY THE
BOARD OF GOVERNORS

On Certification of the Department of the
Treasury—Office of the Comptroller of the
Currency
In the Matter of a Notice to Prohibit Further Participation Against
Preston J. Brooks
Former President and Director
First National Bank of Deport, N. A.
Deport, Texas
OCC No. AA-EC-91-154
Final Decision
This is an administrative proceeding pursuant to
section 8(e) of the Federal Deposit Insurance Act
("FDI Act"), 12 U.S.C. § 1818(e), in which the Office



of the Comptroller of the Currency of the United
States of America ("OCC") seeks to prohibit Preston
J. Brooks from further participation in the affairs of
any federally-supervised financial institution as a result of his conduct during his former affiliation as
president and director of First National Bank of Deport, N.A., Deport, Texas (the "Bank"). As required
by the FDI Act, the OCC has referred the action to the
Board of Governors of the Federal Reserve System
("Board") for final decision.
The proceeding comes before the Board in the form
of a Recommended Decision by Administrative Law
Judge ("ALJ") Arthur L. Shipe, issued following an
administrative hearing held on September 22 and 23,
1992, in Dallas, Texas, and the filing of post-hearing
briefs by the parties. In the Recommended Decision,
the ALJ found that as president and chairman of the
Bank, Brooks participated in violations of banking
laws and engaged in an unsafe and unsound practice
that caused loss to the Bank and financial gain to him.
The ALJ concluded, however, that the violations did
not reflect willful or continuing disregard for safety or
soundness or personal dishonesty, but instead resulted
from good-faith mistakes and therefore were not of a
sufficiently serious character to justify Brooks's prohibition from banking.
The OCC's Enforcement and Compliance Division, which prosecuted the case, has submitted exceptions to the Recommended Decision. The OCC
argues, first, that Brooks's testimony at the hearing
should be stricken from the record because he refused to answer questions at a pre-hearing deposition
on the basis of his rights under the Fifth Amendment.
The OCC also argues that the ALJ applied erroneous
legal standards in concluding that Brooks's violations of law and unsafe and unsound practices were
insufficiently serious to satisfy the culpability requirements for an order of prohibition. Brooks has
filed no exceptions.
Upon review of the record and the OCC's exceptions, the Board concludes that the record establishes that Brooks was responsible for a variety of
substandard practices during his tenure with the
Bank, and that a number of these were unsafe or
unsound practices or violated regulatory restrictions,
thereby satisfying the first, misconduct, test for
prohibition. The Board also finds the effects test
satisfied in that some of these practices resulted in
financial gain to Brooks or in loss or other damage to
the Bank.
The Board concludes, however, after a close review of the record including the ALJ's findings of
fact, that the preponderance of the evidence does not
support the OCC's allegations as to Brooks's culpability. Accordingly, the Board adopts the ALJ's

Legal Developments

findings and conclusions, except as specifically
noted, and orders that this proceeding be dismissed.1

Statement of the Case
A. Standards for Prohibition Order
Under the FDI Act, the ALJ is responsible for conducting an administrative hearing on a notice of intention to prohibit participation. 12 U.S.C. § 1818(e)(4).
Following the hearing, the ALJ issues a recommended
decision that is referred to the Board. The parties may
then file with the Board exceptions to the ALJ's
recommendations. The Board makes the final findings
of fact, conclusions of law, and determination whether
to issue an order of prohibition. Id.; 12 C.F.R. 263.40.
The FDI Act sets forth the substantive basis upon
which a federal banking agency may issue against a
bank official an order of prohibition from further
participation in banking. In order to issue such an
order pursuant to section 1818(e)(1), the Board must
make each of three findings:
(1) There must be a specified type of misconduct —
violation of law, unsafe or unsound practice,2 or
breach of fiduciary duty;3
(2) The misconduct must have a prescribed effect —
financial gain or other benefit to the respondent or
financial harm or other damage4 to the institution or
prejudice to the institution's depositors; and
(3) The misconduct must involve culpability of a
certain degree—personal dishonesty or willful or
continuing disregard for the safety or soundness of
the institution.
"Disregard for safety or soundness" is established
by participation in an unsafe or unsound practice, i.e.
one that is contrary to prudent practices and that could
expose a bank to abnormal risk of harm or loss. In the

993

Matter of Magee, 78 Federal Reserve Bulletin 968,974
(1992). A "continuing disregard for safety or soundness" standard is established by a mental state akin to
"recklessness" in connection with a repetition of
unsafe or unsound banking practices. Brickner v.
FDIC, 747 F.2d 1198, 1203 & n.6.5 (8th Cir. 1984). The
Board has generally found that a "continuing disregard" exists when a respondent continues to engage in
an unsafe or unsound course of action after the occurrence of some event, such as a warning from a
regulator, that should have made him or her aware that
the practice was unsafe and unsound. See, e.g., In the
Matter of Freitag, OCC No. AA-EC-89-139 (1991).
"Willful disregard" may be shown in the absence of a
continuing course of conduct where the unsafe or
unsound practice is such that a degree of intent greater
than recklessness may be inferred. See Brickner, 747
F.2d at 1203.

B. Relevant Individuals and Business Entities
At all times relevant to this proceeding, the Bank was
a national banking association, chartered and examined by the OCC. Recommended Finding of Fact
("RFF") RFF 1. At all times relevant to this proceeding, Brooks was chairman of the board of directors and
chief executive officer of the Bank and therefore an
"institution-affiliated party" under the terms of the
FDI Act subject to the OCC's supervisory authority.
RFF 4. Brooks was a controlling and principal shareholder of Deport Financial Company, a bank holding
company, which owned 100 percent of another bank
holding company, Deport Bancshares, Inc., of which
the Bank was a wholly owned subsidiary. Recommended Decision ("RD") RD 3. Brooks therefore
controlled both the bank holding companies and the
Bank.

Discussion
1. The Board notes that the Comptroller of the Currency has
penalized Brooks $18,000 in a parallel civil money penalty proceeding
on the basis of the illegal dividend and preferential loan charges
discussed below. In the Matter of Preston J. Brooks, No. AA-EC-91153, June 17, 1993.
2. An "unsafe or unsound banking practice" has been defined as a
practice "deemed contrary to accepted standards of banking operations which might result in abnormal risk or loss to a banking
institution or shareholder.'' First Nat'I Bank of Eden v. Comptroller of
the Currency, 568 F.2d 610, 611 n.2 (8th Cir. 1978) (per curiam).
3. As the OCC notes in its exceptions, the Recommended Decision
misstated this standard by indicating that the misconduct prong
requires both a finding of a violation of law and either an unsafe or
unsound practice or breach of fiduciary duty. Recommended Decision
("RD") 32. There is no indication that this error is reflected in the
ALJ's analysis or that it is anything other than a clerical error.
4. Because of statutory amendments, a slightly different standard
for the effects requirement applies to conduct engaged in before
August 15, 1989, but the culpability standards that are here at issue
remained substantively unchanged by the amendments.




A. Procedural Issues
The OCC excepts first to the ALJ's ruling that permitted Brooks to testify in his own behalf at the hearing

5. The Brickner court made clear that the standard did not encompass an "honest error of judgment," 747 F.2d at 1201, 1202, but also
rejected the argument that the agency must show that the respondent
intentionally did something to endanger the bank's safety. Id. at 1202.
In Brickner, the respondents conceded that, after a warning from a
regulator, they knew that the practices found unsafe and unsound
were occurring, but failed to disclose that knowledge to the board of
directors or to take other steps to prevent losses to the bank. The
court found such failure to act sufficient to establish continuing
disregard for safety or soundness, even though the respondents had
not been directly responsible for the practices, and had received no
benefit as a result. Id.

994

Federal Reserve Bulletin • October 1993

even though, the OCC alleges, he had evaded document discovery, failed definitively to identify himself
as a witness on the prehearing witness list, and had
refused to answer questions at a prehearing deposition
on Fifth Amendment grounds. OCC Exceptions ("Except.") Except. 7. The OCC argues that this ruling
violated the Rules of Practice and Procedure applicable to the hearing, and prejudiced the agency by
unfairly denying the OCC discovery.
The OCC's Rules of Practice and Procedure require
that before the hearing each party must serve upon
every other party, inter alia, a final list of witnesses to
be called to testify at the hearing, including a short
summary of the expected testimony of each witness.
12 C.F.R. 19.32(a)(2). The Rule further provides that
"no witness may testify . . . if such witness . . . is not
listed in the prehearing submissions . . . except for
good cause shown." 12 C.F.R. 19.32(b). In this case,
the OCC identified its witnesses in compliance with
this Rule. Brooks also filed a list of witnesses, but did
not definitively identify himself as a witness, purportedly reserving the decision to testify to see whether
the OCC established a prima facie case against him.
Brooks did, however, provide a roughly three-page
summary of his expected testimony in the event that
he did testify.
The OCC states that "[0]n the eve of trial and out of
an abundance of caution" the OCC conducted a
deposition of Brooks as a potential hearing witness
five days before the hearing. OCC Except. 5. The OCC
asserts, without contradiction from Brooks, that at the
deposition Brooks refused to answer any substantive
questions on Fifth Amendment grounds. At the hearing, the OCC moved to prohibit Brooks from testifying
on the basis of his failure to identify himself definitively as a witness, and because of his failure to
respond to questions at the deposition. Transcript
("Tr.") 21-23. Brooks replied that his pre-hearing
statement provided sufficient detail to preclude unfair
surprise to the OCC, and that the OCC was at fault for
noticing the deposition only on the eve of trial. Tr.
23-25. The ALJ denied the OCC's motion without
explanation and permitted Brooks to testify. Tr. 25.
The OCC did not move to adjourn the hearing to
depose Brooks before his hearing testimony, did not
cross-examine Brooks, and did not address the issue in
its post-hearing brief to the ALJ. The OCC asks that
the Board strike Brooks's testimony from consideration. OCC Except. 7.
In these circumstances, the Board declines to impose the extreme sanction of striking the testimony of
a respondent in his own defense. The ALJ is generally
vested with "all powers necessary to conduct a proceeding in a fair and impartial manner and to avoid
unnecessary delay." 12 C.F.R. 19.5(a). More specifi


cally, the ALJ is vested with the power "to consider
and rule upon all procedural and other motions [other
than granting a motion to dismiss] appropriate in an
adjudicatory proceeding. 12 C.F.R. 19.5(b)(7). An
ALJ's evidentiary rulings therefore are generally accorded deference in the absence of an abuse of discretion or manifest unfairness.
While the Board is concerned about the potential for
misuse of the Fifth Amendment privilege to evade
pre-hearing deposition testimony, the Board cannot
conclude on the circumstances of this case, including
the availability to OCC Enforcement Counsel of alternatives that were not pursued at the hearing stage, that
the ALJ's decision to permit Brooks to testify rendered the proceeding manifestly unfair. Accordingly,
the Board finds that the OCC has not sustained its
burden of showing that the ALJ abused his discretion
in permitting Brooks to testify and declines to strike
Brooks's testimony.

B. Substantive Basis for Prohibition
1. Illegal Dividend Payments. The OCC charged that
in 1989 Brooks caused the Bank to declare dividends
that exceeded the amount permitted by section 60 of
the National Bank Act. 12 U.S.C. § 60. The OCC
alleged that this conduct warranted Brooks's prohibition from banking in that he engaged in a violation of
law that resulted in financial gain to him and that
involved willful or continuing disregard for the safety
and soundness of the Bank.6 The ALJ found that
Brooks had violated Section 60 by causing the Bank to
declare and pay excessive dividends, and that Brooks
received some financial gain by reason of this violation.7 Recommended Conclusion of Law 4; RD 32;
RFF 14-18. The ALJ further found that Brooks's
violation resulted from an "honest mistake" and did
not evidence a willful or continuing disregard for the
safety and soundness of the Bank, and therefore did
not warrant his prohibition from banking.
OCC Enforcement Counsel strongly excepts to the
ALJ's conclusions regarding the absence of willful or
continuing disregard for safety or soundness. The
OCC argues, among other things, that the record
supports a finding that Brooks's actions demonstrated
continuing disregard in that Brooks, in declaring an
illegal dividend, recklessly failed to heed prior OCC
warnings.

6. The OCC does not argue that the misconduct satisfied the
alternative culpability test of "personal dishonesty". OCC Except.
50-60.
7. The dividends declared by the Bank were paid to its holding
companies in order to enable them to service debt that Brooks had
personally guaranteed.

Legal Developments

While the Board generally defers to an ALJ's factual
findings, especially those based on the ALJ's judgments as to the credibility of the witnesses, the Board
is not bound by them, and may reach different factual
findings so long as there is substantial evidence in the
record to support those findings.8
Here, however, upon a careful review of the record,
the Board concludes that while there is some record
evidence supporting a finding that Brooks's conduct in
causing illegal dividends meets the culpability test of
section 1818(e), that evidence is outweighed by countervailing evidence showing that Brooks did not act
recklessly or with willful disregard for safety and
soundness. Accordingly, the Board adopts the ALJ's
conclusion that the OCC did not establish that
Brooks's actions with respect to the excessive dividends demonstrated willful or continuing disregard for
safety or soundness.
Section 60 limits the dividends that a national bank
may declare out of the "net profits" of the bank. The
approval of the OCC is required if the total of the
dividends in a calendar year exceeds the total of its net
profits for that year combined with its retained net
profits of the preceding two years (less any required
transfers to surplus or a fund for the retirement of any
preferred stock). 12 U.S.C. § 60(b). "Net profits" is
defined by the statute as current earnings plus certain
adjustments (such as actual loan recoveries) less current expenses and certain other deductions (such as
actual loan losses). 9 Prior to December 1990,10 a
Federal Reserve interpretation of section 60 applicable
to national banks established a uniform means of
determining net profits for purposes of dividend restrictions. 12 C.F.R. 250.104 (1989). The interpretation allowed "net profits" to be computed using net
income determined from the call report, with certain
other additions and deductions required by the terms
of section 60 (such as actual recoveries and losses). Id.
The record shows that Brooks was responsible for
making the computations necessary to assure that
dividends paid by the Bank complied with the limita-

8. Universal Camera Corp. v. NLRB, 340 U.S. 474, 496 (1951). It is
the agency, and not the ALJ, whose factual determinations are
entitled to deference by a reviewing court. Penasquitos Village, Inc.
v. NLRB, 565 F.2d 1074, 1076 (9th Cir. 1977). Thus, the Board has
been upheld by reviewing courts in enforcement decisions where it
has declined to adopt an ALJ's findings, both as to issues of legal
interpretation (Van Dyke v. Board of Governors, 876 F.2d 1377, 1379
(8th Cir. 1989)), and as to issues of fact, including credibility (Stanley
v. Board of Governors, 940 F.2d 267, 272 (7th Cir. 1991)).
9. The statute defines "net profits" as "the remainder of all earnings
from current operations plus actual recoveries on loans and investments and other assets, after deducting from the total thereof all
current operating expenses, actual losses, accrued dividends on
preferred stock, and ail Federal and state taxes". 12 U.S.C. § 60(c).
10. The interpretation was repealed in December 1990, as discussed
below.




995

tions in section 60. RD 16. Beginning in at least May
1987 and continuing through at least 1990, Brooks used
a consistent method to determine the amount of net
profits that were eligible under section 60 to be paid
out as dividends in each quarter. Respondent Exhibit
("RX") 4. Under this method, Brooks computed net
profits by adding the amount of net income from the
prior quarter that had not been paid out as dividends to
the net income from the current quarter. Id. This
method of computing net profits differed from the
method prescribed in section 60 and described in the
Board's interpretation in two ways. First, this method
did not limit the amount of prior years' retained net
profits used in the calculations to the previous two
years, as required by the terms of section 60. Second,
this method did not make the specific additions and
subtractions to net income (such as actual loan recoveries and losses) required by the applicable interpretation. RX 4.H
The Bank paid dividends for each quarter in 1989,
aggregating $143,000 for the year, using Brooks's
method for calculating net profits for purposes of
section 60.12 RD 14. In January 1990, Brooks caused
the holding company to refund $1,347 of the $40,000
fourth quarter 1989 dividend, which turned out to be
excessive under Brooks's computation method, as a
result of unexpected losses during December. RD 16.
In March 1990, the OCC, based on a routine off-site
review of the Bank's filings, advised the Bank that its
dividends for 1989 exceeded the section 60 limitations
by over $63,000.13 RD 16-17. Brooks then wrote to the
OCC admitting the miscalculation of the permissible
dividend amount, taking responsibility for the error,
and asking that the OCC retroactively grant approval
for the excessive dividends. RD 17. When approval
was denied,14 the board of directors, including Brooks,
stipulated to the entry of a cease and desist order by

11. Although the method Brooks used to calculate net profits did not
comply with section 60, there is no evidence in the record that the
dividends paid by the Bank during the years 1987 and 1988 exceeded
the limits in that provision. The OCC examinations of the Bank in
early 1988 and early 1989 found no violations of section 60. For those
years, there is no evidence that the OCC reviewed the specific
computations the Bank used to apply the section 60 limitation on
dividends.
12. At the end of the OCC's examination that began in February
1989, the OCC advised the Bank's board of directors that earnings for
year-to-date 1989 were weak. Noting that the holding company's debt
service requirements were anticipated to exceed 1988's earnings, the
Report of Supervisory Activity expressly advised the Bank that "[a]
careful review of 12 U.S.C. § 56 and 12 U.S.C. § 60 should be
performed prior to the declaration of dividends to ensure future
dividend payments do not exceed legal limitations." OCCX 5 at 3.
13. The Bank had experienced reduced earnings in the last quarter
of 1989.
14. The OCC denied the request on August 3, 1990, because the
dividends caused the Bank's capital to be low, because the Bank was
exposed to loss from high-risk loans, and because of the OCC's
concerns with the Bank's supervision and management. OCCX 70.

996

Federal Reserve Bulletin • October 1993

the OCC calling for the members of the board of
directors to pay back into the bank the excessive
dividends plus interest. RFF 48-49. The six directors
who had voted for the excessive dividends, including
Brooks, then reimbursed the Bank for the excessive
dividends (but not interest on those amounts) pursuant
to the order. RD 18; RFF 42.
The Board finds, as the OCC asserts, that there is
evidence in the record tending to show that Brooks's
use of his own method of calculating permissible
dividends is considerably more serious than an "honest mistake". This evidence includes Brooks's background as a CPA and bank examiner, the OCC's
repeated criticisms of Brooks's conduct at the Bank
and general warning to comply with dividend restrictions, and Brooks's apparent motive to maximize
dividends in light of the need to meet debt service
obligations.
On balance, however, the Board finds that the
weight of the evidence in the record as a whole does
not support the conclusion that Brooks acted with
continuing or willful disregard for the Bank's safety or
soundness. Brooks testified that the method he used
for computing compliance with section 60 was one he
devised when he was an OCC examiner.15 Brooks
offered into evidence a sheet of calculations purporting
to show how he calculated the available dividends
from 1987 to 1990. RX 4. While Brooks does not
except to the ALJ's finding that his dividend calculation method caused the Bank to pay dividends during
1989 that violated section 60, it does not appear that
his calculation method was in all respects inherently
disadvantageous to the Bank. As explained above, one
of the reasons why Brooks's method was inconsistent
with section 60 was that, in determining the amount of
"net profits" for purposes of these restriction, Brooks
failed to make the adjustments to the Bank's reported
net income—adjustments for amounts added to the
Bank's provision for loan loss reserves and for actual
loan recoveries and charge-offs—called for by the
applicable regulatory interpretation of net profits. See
12 C.F.R. 225.104(e)(1989). However, shortly thereafter, in December 1990, the OCC and the Board
adopted new rules for computing net profits providing
that, given current accounting principles and regulatory reporting procedures, these adjustments to net
15. Brooks testified that: "[T]he basis of my computation of the
compliance sheet was the fact that when I worked for the OCC and we
analyzed the change to accrual accounting, we decided that the most
conservative way to compute the dividend—to restrict the dividends
according to 12 U.S.C. 60 was by just taking the fully-accrued
earnings and subtracting off the dividend, and then . . . taking the
previous two years' excess . . . ." Tr. at 334-35. Brooks denied ever
having seen the OCC's compliance worksheet that implemented
12 C.F.R. 250.104 (OCCX 42) until the OCC's 1990 examination
revealed the excessive dividends. Tr. 334.




income should not be made.16 Although adoption of
the new rules in 1990 does not excuse the violation of
section 60 in 1989, the new rules, which employ a
method that coincides at least in part with the method
Brooks had been using, tend to show that he was not
acting in a manner that was necessarily detrimental to
the Bank. Moreover, the fact that Brooks used a
consistent method to calculate the section 60 limitations from at least 1987 until 1989 tends to negate the
allegation that Brooks devised his calculation method
solely as a means to assure high dividend levels in the
face of declining earnings in 1989, so that debt service
demands could be met.17
Other facts of record also mitigate Brooks's culpability with respect to the excessive dividends. There is
no evidence that Brooks deliberately concealed his
method of calculating the dividends. The OCC's previous general warnings as to capitalization and compliance with section 60, while they should have made
Brooks more careful with respect to his dividend
calculations, did not alert him that his specific method
of computing dividends was impermissible. Moreover,
Brooks promptly and on his own initiative caused the
bank holding company to refund to the Bank $1,300 in
January 1990 when his method indicated that the Bank
dividends paid in December had been excessive in that
amount.18
Accordingly, while the excessive dividends were a
violation of law and an unsafe or unsound practice
from which Brooks received financial gain, the Board
concludes that, on this record, the OCC has not
sustained its burden of establishing that the misconduct demonstrated the willful or continuing disregard
for safety or soundness necessary for an order of
prohibition.

16. 12 C.F.R. 208.19(b)(2); 12 C.F.R. 5.62(c). The amended regulations did not alter the two-year limitation on use of prior year retained
net profits.
17. The ALJ's conclusion as to Brooks's culpability was also based
on the ALJ's finding, grounded solely on Brooks's uncorroborated
testimony, that in September 1989, before all of the excessive dividends had been paid, an OCC examiner reviewed the Bank's dividend
computation method. RD 19. The OCC excepts to this finding as
unsupported by the weight of the evidence, arguing that the OCC
examiners involved denied discussing dividends with Brooks at that
time. The Board finds it unnecessary to resolve this factual dispute.
Even if the OCC's version were to be accepted, there would, in the
Board's judgment, still be inadequate evidence in the record to
support the requisite determination of culpability.
18. The Board adopts OCC Enforcement Counsel's argument that
the ALJ was in error in finding that the improper dividends were the
result of Brooks's mistaken use of the cash accounting method, rather
than the accrual method. There is abundant evidence that Brooks
knew that the Bank used accrual accounting, as national banks have
been required to do since 1976. The erroneous dividends were caused,
not by a mistake over the proper accounting method, but by Brooks's
failure to make the adjustments to current earnings required by the
applicable interpretation and by failing to use the three-year statutory
computation period.

Legal Developments

2. Unauthorized Real Estate Brokerage. The OCC
based this prohibition action in part on allegations that
Brooks caused the Bank to exceed its statutory authority under 12 U.S.C. § 24 (seventh) to engage in
banking activities by operating a real estate agency for
one year, and that Brooks received benefit from its
operation. RD 5-6. The ALJ found, however, that the
OCC did not establish that the practice evidenced a
willful or continuing disregard for safety or soundness
by Brooks. RD 10-11.
The ALJ found that in 1984 the Bank's board of
directors approved the establishment of a real estate
brokerage in the Bank in order to sell a number of
vacant houses located in the small town where the
Bank was located. RD 5. Brooks, as a licensed real
estate broker, was responsible for the operation of the
real estate activities, which continued for one year,
and which generated commissions for the Bank. RD
5-6. After an OCC examination criticized the real
estate operation as an unauthorized activity for a
national bank, Brooks reimbursed the Bank for the
expenses of the operation borne by the Bank, and
claimed the commissions generated by the sales.
RD 5-6, 11.
The ALJ found that the real estate activities exceeded the authorization of the statute, but found that
the violation resulted from the board of directors'
mistaken belief that it was a permissible activity.
RD 9. The ALJ found that the Bank conducted the
activity openly, with no attempt to conceal the activities from the OCC. RD 10. Accordingly, the ALJ
found that Brooks did not act with the culpability
requisite to an order of prohibition. RD 11.
The OCC excepts to that conclusion, arguing that
the factual record indicates that Brooks in fact commingled his real estate operations with those of the
Bank, keeping the commissions earned while charging
the Bank with the expenses, without the knowledge of
the board of directors. OCC Except. 38-40. The OCC
also argues that the mistake-of-law finding is inherently flawed in light of Brooks's previous experience
as a national bank examiner. OCC Except. 42.
The Board finds that the record is insufficient to
establish the precise circumstances of Brooks's involvement in the real estate operations in 1984-1985,
including the circumstances bearing upon his culpability. The Board notes that the record evidence cited by
the OCC tends to show that the real estate operation
was entirely owned and operated by Brooks, which, if
true, would not establish a violation of 12 U.S.C. § 24.
Accordingly, the Board finds that the OCC has not
proved its charges with respect to the real estate
operations.
3. Alleged manipulation of bank accounts. The OCC
alleged that Brooks engaged in an unsafe and un


997

sound practice and breach of fiduciary duty in connection with alleged manipulation of the Bank's
correspondent account at another bank based on four
wire transfers from the account. The first two transfers were made on October 31, 1989, from the Bank's
correspondent account to an account at another bank
owned by a trust for which Brooks's mother was
trustee and Brooks a beneficiary. RFF 55-58. The
ALJ found that the transfers were made pursuant to
loans approved by the board of directors, one a
$5,000 loan to a bank customer that was then used to
buy an automobile from Brooks, and the second, an
$18,150 loan to Brooks to repay a debt to his mother.
RD 19. The other two wire-transfers, in the amounts
of $700 and $300, were initiated by Brooks on November 8, 1993, to transfer funds on behalf of his
brother to an account held by his sister-in-law. RD
20-21. In each case, the accounts were not promptly
reconciled after the transfers and remained out of
balance for 14 days with respect to the first two
transfers, and for 51 days with respect to the second
two. RD 20-21.
The ALJ found that Brooks was not responsible for
posting the wire-transferred amounts,19 and was not
aware of the delays in reconciling the account.
RFF 69, 70. The ALJ therefore rejected the OCC
charges that Brooks had directed that unauthorized
wire transfers be made to members of his family, then
tried to correct the problem with subsequently authorized loans, the proceeds of which were used to
reconcile the Bank's correspondent account. Instead,
the ALJ found that the transfers were authorized and
that the Bank's cashier was responsible for the delays
in posting the wire-transferred amounts. RD 21-24.
The Board adopts the ALJ's findings on this issue,
which are based on conflicting evidence, and in part,
on credibility determinations. While Brooks's actions
with regard to the wire transfers were unsafe and
unsound, and as discussed below embodied a preferential extension of credit, the record is insufficient to
find that these actions evidenced the culpability requisite for an order of prohibition.
4. Preferential extension of credit. The ALJ found, as
the OCC alleged, that a $18,150 loan to Brooks that
funded one of the wire transfers on October 31, 1989
was preferential, and therefore a violation of
12 U.S.C. § 375b, and 12 C.F.R. 215. RD 23-25. The
loan clearly constituted financial gain to Brooks. The
ALJ concluded, however, that the violation did not
evidence a willful or continuing disregard for safety or
soundness. RD 33.

19. Indeed, the ALJ noted that the internal control policy of the
Bank prohibited Brooks from making debit entries to the correspondent account for wire transfer activities that he initiated.

998

Federal Reserve Bulletin • October 1993

The Federal Reserve Act and Regulation O require
that extensions of credit from banks to individuals who
are bank "insiders," i.e., individuals who are bank
executive officers, directors, or principal shareholders, must be on substantially the same terms as are
available to non-insiders. 12 U.S.C. § 375b(3);
12 C.F.R. 215.4.
The ALJ reasonably found that the loan was preferential in a number of respects. RD 23-25. Brooks
wire-transferred the proceeds from the loan to an
account other than his own immediately upon signing
the promissory note, an action possible only because of
his position with the Bank. RD 24. The value of the
collateral for the loan, a 1964 Corvette and a 1984
recreational boat with outboard motor, was not supported by an appraisal or other documentation. RD 24.
An OCC examination also criticized the extension of
credit to Brooks because he was financially illiquid, had
numerous and continuing overdraft problems, had a
high level of contingent liabilities, and because his
creditworthiness did not support an extension of credit
on the terms applied. RD 24. The ALJ therefore found
that the loan was a violation of law, a breach of
Brooks's fiduciary duty, and an unsafe and unsound
banking practice. While Brooks clearly received financial gain as a result of the violation, the ALJ found that
he did not act with the requisite culpability to justify his
prohibition.

conduct—violation of laws and unsafe or unsound
practices—which caused financial gain to Brooks and
loss to the Bank, thereby satisfying the first two
requirements for an order of prohibition. The Board is
unable to conclude on this record, however, that the
OCC established the third requirement, that Brooks's
misconduct reflected personal dishonesty or willful or
continuing disregard for safety or soundness. This
conclusion in no way indicates that the OCC lacked a
reasonable basis for bringing this action. Nor does this
disposition excuse Brooks's actions, which clearly
involved a variety of substandard practices.
Accordingly, the Board orders that this prohibition
proceeding be dismissed.
By Order of the Board of Governors, this 6th day of
August, 1993.

The OCC's theory of the case was that it was
Brooks's entire course of conduct with respect to the
manipulation of the Bank accounts that included the
preferential loan that justified his prohibition. Notice of
Intention to Prohibit, Articles IV-VIII; OCC Except.
28-35. The OCC therefore did not argue that the single
preferential loan, standing alone, was a basis for prohibition. In the past, the Board has found that isolated or
discrete violations of the restrictions against insiderdealing do not necessarily warrant an order of prohibition, while they may readily be the subject of civil
money penalties.20 See In the Matter of John Van
Dyke, OCC No. AA-EC-87-88 (1988) at 36. In these
circumstances, the Board adopts the ALJ's conclusion
that the record did not establish a basis for Brooks's
prohibition with respect to the preferential loan.

Piedmont Trust Bank
Martinsville, Virginia

Conclusion

Board of Governors of the
Federal Reserve System
WILLIAM W . WILES

Secretary of the Board

FINAL ENFORCEMENT
ORDERS ISSUED BY THE
BOARD OF GOVERNORS

The Federal Reserve Board announced on August 6,
1993, the issuance of a Cease and Desist Order against
the Piedmont Trust Bank, Martinsville, Virginia.

WRITTEN
RESERVE

AGREEMENTS
BANKS

APPROVED

BY

FEDERAL

Commerce Exchange Bank
Beachwood, Ohio
The Federal Reserve Board announced on August 2,
1993, the execution of a Written Agreement among the
Federal Reserve Bank of Cleveland, the Superintendent of the Ohio Division of Banks, and the Commerce
Exchange Bank, Beachwood, Ohio.

After a close examination of the record, the Board
concludes that the OCC has established by a preponderance of the evidence that Brooks engaged in mis-

Sparta State Bank
Sparta, Michigan

20. The Board notes that the preferential loan was part of the basis
for the Comptroller's final civil money penalty.

The Federal Reserve Board announced on August 19,
1993, the execution of a Written Agreement between
the Federal Reserve Bank of Chicago and the Sparta
State Bank, Sparta, Michigan.




Al

Financial and Business Statistics
CONTENTS

WEEKLY REPORTING COMMERCIAL

A3 Guide to Tabular Presentation

Assets and liabilities
A22 Large reporting banks
A24 Branches and agencies of foreign banks

Domestic Financial Statistics

BANKS

MONEY STOCK AND BANK CREDIT

FINANCIAL

A4

A25 Commercial paper and bankers dollar
acceptances outstanding
A25 Prime rate charged by banks on short-term
business loans
A26 Interest rates—money and capital markets
A27 Stock market—Selected statistics

A5
A6
A7

Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Selected borrowings in immediately available
funds—Large member banks

FEDERAL
POLICY

MARKETS

FINANCE

INSTRUMENTS

A8 Federal Reserve Bank interest rates
A9 Reserve requirements of depository institutions
A10 Federal Reserve open market transactions

FEDERAL RESERVE BANKS

A l l Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings

MONETARY AND CREDIT

INSTITUTIONS

A19 Major nondeposit funds
A20 Assets and liabilities, Wednesday figures




Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types
and ownership
A31 U.S. government securities
dealers—Transactions
A32 U.S. government securities dealers—Positions
and financing
A3 3 Federal and federally sponsored credit
agencies—Debt outstanding

AGGREGATES

A13 Aggregate reserves of depository institutions
and monetary base
A14 Money stock, liquid assets, and debt measures
A16 Deposit interest rates and amounts outstanding—
commercial and BIF-insured banks
A17 Bank debits and deposit turnover
A18 Loans and securities—All commercial banks

COMMERCIAL BANKING

A28
A29
A30
A30

SECURITIES MARKETS AND
CORPORATE FINANCE

A34 New security issues—Tax-exempt state and local
governments and corporations
A35 Open-end investment companies—Net sales
and assets
A3 5 Corporate profits and their distribution
A35 Nonfarm business expenditures on new
plant and equipment
A36 Domestic finance companies—Assets and
liabilities, and consumer, real estate, and business
credit

2

Federal Reserve Bulletin • October 1993

Domestic Financial Statistics—Continued
REAL ESTATE

A37 Mortgage markets
A3 8 Mortgage debt outstanding
CONSUMER INSTALLMENT CREDIT

A39 Total outstanding
A39 Terms
FLOW OF FUNDS

A40
A42
A43
A44

Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities

Domestic Nonfinancial Statistics

A54 Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance
sheet data
A57 Selected U.S. liabilities to foreign official
institutions

REPORTED BY BANKS
IN THE UNITED STATES

A57
A58
A60
A61

Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches

REPORTED BY NONBANKING

BUSINESS

ENTERPRISES IN THE UNITED STATES
SELECTED

MEASURES

A45 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross domestic product and income
A52 Personal income and saving

International Statistics

A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners

SECURITIES HOLDINGS AND TRANSACTIONS

A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and
notes—Foreign transactions

INTEREST AND EXCHANGE

RATES

SUMMARY STATISTICS

A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates

A53 U.S. international transactions—Summary
A54 U.S. foreign trade
A54 U.S. reserve assets

A69 Guide to Statistical Releases and
Special Tables




A3

Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
c
e
n.a.
n.e.c.
P
r
*

0
ATS
BIF
CD
CMO
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7

Corrected
Estimated
Not available
Not elsewhere classified
Preliminary
Revised (Notation appears on column heading
when about half of the figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is millions)
Calculated to be zero
Cell not applicable
Automatic transfer service
Bank insurance fund
Certificate of deposit
Collateralized mortgage obligation
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Federal Savings and Loan Insurance Corporation
Group of Seven

G-10
GNMA
GDP
HUD
IMF
IO
IPCs
IRA
MMDA
NOW
OCD
OPEC
OTS
PO
REIT
REMIC
RP
RTC
SAIF
SCO
SDR
SIC
SMSA
VA

Group of Ten
Government National Mortgage Association
Gross domestic product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Principal only
Real estate investment trust
Real estate mortgage investment conduit
Repurchase agreement
Resolution Trust Corporation
Savings Association Insurance Fund
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Standard metropolitan statistical area
Veterans Administration

GENERAL INFORMATION
In many of the tables, components do not sum to totals because
of rounding.
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues
of U.S. government agencies (the flow of funds figures also




include not fully guaranteed issues) as well as direct obligations of the Treasury. "State and local government" also includes municipalities, special districts, and other political
subdivisions.

A4
1.10

DomesticNonfinancialStatistics • October 1993
R E S E R V E S , M O N E Y STOCK, L I Q U I D A S S E T S , A N D D E B T M E A S U R E S
Percent annual rate of change, seasonally adjusted1
1992

1993

1993

Monetary or credit aggregate
Mar.

Apr. r

May r

June 1

10.8
12.4
10.6
9.8

5.3
3.0
4.3
8.9

.7
3.3
1.1
7.6

36.5
39.5
35.5
13.8

5.1
7.0
3.8
10.9

9.4
5.7
8.1
9.5

6.6
-1.9
-3.7r
-2.4r
4.4

10.5
2.1
2.3
3.4
5.4

2.6
-.9
-1.3
-,5r
5.3 r

8.9
.5
3.1
4.0
5.2

27.4
10.3
8.3
9.7
5.7

7.3
2.4
-1.2
1.1
6.4

13.6
1.8
-2.2
n.a.
n.a.

-2.8
-14.4

-5.3r
-13.0

-1.5
3.4

-2.4
-3.3

-3.1
17.0

2.9
-2.2

.3
-20.2

-3.3
-23.8

10.9
-17.4
-18.6

12.9
-17.2
-18.4

1.6
-7.9"
-17.9

4.6
-8.0
.4

-2.9
-5.2r
-20.9

3.3
-11.2
21.7

14.0
-10.6
3.0

6.4
-10.5
-11.9

.8
-12.8
-20.2

9.2
-18.6
-14.9

8.7
-21.7
-11.3

-.2
-17.9 r
-17.3

.7
-10.1
-7.9

-5.1
-9.9"
-18.3

2.0
-7.2
11.2

9.0
-8.3
-14.7

2.8
-11.5
-9.3

2.5
-12.0
-1.9

-7.4
32.9

-4.2
-19.4

-10.1
-14.1

-.4
.5

-1.8
-5.9

-4.7
-3.0

18.1
14.4

-1.1
-27.8

-.7
-18.8

10.7
3.0

6.0
3.7

8.6
2.9

11.5
3.2

10.9
3.2

10.9
3.9

13.2
3.9

Q3

9.3
9.9
8.4
10.5

25.8
25.3
27.1
12.6

9.3
8.7
9.5
9.1

11.7
.8
.1
1.1
4.9

16.8
2.7
-.2
1.6
4.3

-3.2
-3.5

Q1

Q2r

July

institutions2

1
2
i
4

Reserves of depository
Total
Required
Nonborrowed
Monetary base

5
6
7
8
9

Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt

Nontrqnsaction
10 In M2 y
11 In M3 only 6

Q4

components

Time and savings deposits
Commercial banks
Savings, including MMDAs
Small time
Large time 8,9
Thrift institutions
15
Savings, including MMDAs
16 Small time 7
17 Large time '
12
13
14

Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
Debt components4
20 Federal
21 Nonfederal

1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or "breaks," associated with regulatory changes in reserve requirements. (See also table 1.20.)
3. The seasonally adjusted, break-adjusted monetary base consists of (1)
seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits, and Vault
Cash" and for all weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the
vaults of depository institutions, (2) travelers checks of nonbank issuers, (3)
demand deposits at all commercial banks other than those owed to depository
institutions, the U.S. government, and foreign banks and official 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) overnight (and continuing-contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, (2) savings (including MMDAs) and small time deposits (time deposits—including retail RPs—in
amounts of less than $100,000), and (3) balances in both taxable and tax-exempt
general-purpose and broker-dealer money market funds. Excludes individual
retirement accounts (IRAs) and Keogh balances at depository institutions and
money market funds. Also excludes all balances held by U.S. commercial banks,
money market funds (general purpose and broker-dealer), foreign governments
and commercial banks, and the U.S. government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this
result to seasonally adjusted Ml.
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) term Eurodollars held
by U.S. residents at foreign branches of U.S. banks worldwide and at all banking
offices in the United Kingdom and Canada, and (3) balances in both taxable and




15.0
1.9"

n.a.
n.a.

tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, net of money
market fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial
sectors are monthly averages, derived by averaging adjacent month-end levels.
Growth rates for debt reflect adjustments for discontinuities over time in the levels
of debt presented in other tables.
5. Sum of (1) overnight RPs and Eurodollars, (2) money market fund balances
(general purpose and broker-dealer), (3) savings deposits (including MMDAs),
and (4) small time deposits.
6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S.
residents, and (4) money market fund balances (institution-only), less (5) a
consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market funds. This sum is
seasonally adjusted as a whole.
7. Small time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRA and Keogh account balances at commercial banks and
thrift institutions are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market
funds, depository institutions, U.S. government and foreign banks and official
institutions.

Money Stock and Bank Credit

A5

1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT1
Millions of dollars
Average of
daily figures
1993
May

Average of daily figures for week ending on date indicated

1993

June

July

June 16

June 23

June 30

July 7

July 14

July 21

July 28

350,351

354,576

361,071r

355,464

355,871

357,374

351,105

314,052
7,754

315,101
2,825

311,945
5,728

313,429
5,774

313,911
0

SUPPLYING RESERVE FUNDS

1 Reserve Bank credit outstanding
U.S. government securities
2
Bought outright—System account
3
Held under repurchase agreements . . .
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements . . .
Acceptances
6
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10 Float
11 Other Federal Reserve assets

346,081

12 Gold stock
13 Special drawing rights certificate account .
14 Treasury currency outstanding

354,051r

354,701

305,421
2,598

312,928
3,537

313,725
3,235

313,630
0

314,888
2,351

5,086
117
0

5,050
220
0

5,011
278
0

5,054
0
0

5,054
178
0

5,035
581
0

5,032
220
0

5,024
369
0

5,013
643
0

4,992
0
0

43
83
0
435
32,298

55
143
0
466r
31,652

16
211
0
490
31,734

5
130
0
412
31,119

19
160
0
402
31,525

202
185
0
639r
32,622

39
195
0
711
31,342

5
203
0
678
31,919

14
218
0
326
31,957

11
224
0
290
31,677

11,054
8,018
21,651r

11,056
8,018
21,695r

11,057
8,018
21,731

11,055
8,018
21,692r

11,058
8,018
21,701r

11,057
8,018
21,71 l r

11,057
8,018
21,718

11,058
8,018
21,726

11,057
8,018
21,733

11,057
8,018
21,741

338,475r
497

342,775r
469

346,485
414

342,967r
481

342,675r
461

342,846r
448

346,321
431

347,781
425

346,415
408

345,573
405

5,851
272

8,781
238

6,266
222

5,364
225

9,667
206

16,256
218

6,833
222

6,822
192

6,065
197

5,435
253

6,193
310

6,221r
284

6,186
274

6,135
284

6,209
274

6,279r
291

6,249
288

6,192
294

6,208
273

6,141
259

ABSORBING RESERVE FUNDS

15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and
adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 3

9,509

9,360

9,232

9,440

9,379

9,301

8,953

9,287

9,325

9,306

25,699

26,694r

26,428

26,220

26,481

26,217r

26,960

25,680

29,292

24,548

July 21

July 28

End-of-month figures

Wednesday figures
June 16

June 23

June 30

July 7

July 14

352,092

351,462

362,036

368,859r

361,528

356,556

360,505

350,467

314,614
0

314,658
0

313,453
10,261

313,143
15,056

313,556
8,111

313,142
5,852

312,748
8,918

312,990
0

5,032
949
0

4,964
0
0

5,054
0
0

5,054
993
0

5,032
949
0

5,032
712
0

5,013
200
0

5,013
846
0

4,964
0
0

37
92
0
52
31,881

1,357
177
0
22 l r
32,924

11
223
0
460
31,819

12
144
0
414
31,180

181
0
-229
32,301

1,357
177
0
22 r
32,924

198
1%
0
1,648
32,075

4
210
0
106
32,029

12
225
0
470
32,273

9
220
0
499
31,785

11,053
8,018
21,674r

11,057
8,018
21,711r

11,057
8,018
21,748

11,058
8,018
21,692r

11,058
8,018
21,701r

11,057
8,018
21,711r

11,057
8,018
21,718

11,057
8,018
21,726

11,057
8,018
21,733

11,057
8,018
21,741

340,856r
489

344,123r
432

346,113
386

342,972r
481

342,617r
451

344,123r
432

347,637
428

347,425
408

345,944
408

345,753
386

5,787
194

28,386
286

5,818
284

8,605
292

13,673
186

28,386
286

6,566
247

7,097
203

6,787
198

5,747
234

6,297
300

6,279r
297

6,076
232

6,135
348

6,209
268

6,279r
297

6,249
266

6,192
471

6,208
262

6,141
233

May

June

346,958

368,859*"

304,494
5,347

313,143
15,056

5,054

0
0

July

SUPPLYING RESERVE FUNDS

1 Reserve Bank credit outstanding
U.S. government securities 2
Bought outright—System account .
Held under repurchase agreements
Federal agency obligations
Bought outright
Held under repurchase agreements
Acceptances
Loans to depository institutions
Adjustment credit
Seasonal credit
Extended credit
Float
Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account
14 Treasury currency outstanding

22

ABSORBING RESERVE FUNDS

15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and
adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 3

9,263

8,705

9,349

9,238

9,240

8,705

9,099

9,237

9,187

9,153

24,518

21,136r

24,659

24,158

30,169

21,136r

31,829

26,326

32,320

23,636

1. For amounts of cash held as reserves, see table 1.12.
2. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.




3. Excludes required clearing balances and adjustments to compensate for
float.

A6

DomesticNonfinancialStatistics • October 1993

1.12

RESERVES A N D BORROWINGS

Depository Institutions 1

Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification

Reserve balances with Reserve Banks
Total vault cash 3
Applied vault cash 4 ,
Surplus vault cash
Total reserves 6
Required reserves
Excess reserve balances at Reserve B a n k s 7 . . .
Total borrowings at Reserve Banks 8
Seasonal borrowings
Extended credit

1991

1992

Dec.
1
2
3
4
5
6
7
8
9
10

1990

Dec.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

30,237
31,789
28,884
2,905
59,120
57,456
1,664
326
76
23

26,659
32,510
28,872
3,638
55,532
54,553
979
192
38
1

25,368
34,535
31,172
3,364
56,540
55,385
1,155
124
18
1

23,636
35,991
32,368
3,623
56,004
54,744
1,260
165
11
1

23,515
33,914
30,368
3,546
53,882
52,778
1,104
45
18
0

24,383
33,293
29,912
3,381
54,296
53,083
1,213
91
26
0

26,975
32,721
29,567
3,154
56,541
55,445
1,096
73
41
0

25,968
33,462
30,133
3,329
56,101
55,104
996
121
84
0

26,462
34,106
30,776
3,330
57,238
56,328r
91 l r
181
142
0

26,561
34,535
31,189
3,347
57,750
56,661
1,089
244
210
0

1993

Biweekly averages of daily figures for weeks ending on date indicated
1993
Mar. 31
1
2
3
4
5
6
7
8
9
10

Reserve balances with Reserve Banks
Total vault cash 3
Applied vault cash
Surplus vault cash
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks . . .
Total borrowings at Reserve Banks
Seasonal borrowings
Extended credit 9

Apr. 14

Apr. 28

May 12

May 26

June 9

June 23

July 7 r

July 21

Aug. 4

24,747
32,343
29,098
3,245
53,845
52,572
1,273
98
32
0

26,612
33,218
29,995
3,223
56,607
55,763
844
38
31
0

27,586
32,010
28,960
3,050
56,546
55,160
1,387
99
47
1

25,228
34,225
30,816
3,409
56,044
55,217
828
142
71
1

26,396
32,728
29,455
3,273
55,851
54,649
1,202
105
90
0

26,543
33,685
30,391
3,294
56,933
56,109
824
118
101
0

26,352
34,237
30,897
3,341
57,248
56,477
772
158
145
0

26,579
34,385
31,032
3,354
57,610
56,311
1,299
311
190
0

27,489
34,026
30,772
3,255
58,261
57,294
967
220
211
0

25,250
35,354
31,883
3,470
57,134
56,021
1,112
232
222
0

1. Data in this table also appear in the Board's H.3 (502) weekly statistical
release. For ordering address, see inside front cover.
2. Excludes required clearing balances and adjustments to compensate for float
and includes other off-balance-sheet " a s - o f ' adjustments.
3. Total "lagged" vault cash held by depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash
can be used to satisfy reserve requirements. The maintenance period for weekly
reporters ends sixteen days after the lagged computation period during which the
vault cash is held. Before Nov. 25, 1992, the maintenance period ended thirty days
after the lagged computation period.
4. All vault cash held during the lagged computation period by "bound"
institutions (that is, those whose required reserves exceed their vault cash) plus
the amount of vault cash applied during the maintenance period by "nonbound"




institutions (that is, those whose vault cash exceeds their required reserves) to
satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Also includes adjustment credit.
9. Consists of borrowing at the discount window under the terms and conditions established for the extended credit program to help depository institutions
deal with sustained liquidity pressures. Because there is not the same need to
repay such borrowing promptly as with traditional short-term adjustment credit,
the money market impact of extended credit is similar to that of nonborrowed
reserves.

Money Stock and Bank Credit
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS

A7

Large Banks1

Millions of dollars, averages of daily figures
1993, week ending Monday
Source and maturity
May 31

1
2
3
4

5
6
7
8

Federal funds purchased, repurchase agreements, and
other selected borrowings
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
official institutions, and U.S. government agencies
For one day or under continuing contract
For all other maturities
Repurchase agreements on U.S. government and federal
agency securities
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities

June 7

June 14

June 21

June 28

July 5

July 12

July 19

July 26

70,624
12,825

74,804
13,802

76,818
14,807

72,102
14,560

67,613
13,505

77,333
11,669

77,723
12,618

76,026
13,407

72,614
13,549

18,376
20,968

19,975
21,003

18,784
21,028

19,191
18,699

20,843
19,745

18,304
17,843

17,751
20,809

19,858
20,483

19,395
18,974

13,028
27,872

15,690
28,435

15,708
28,888

13,790
27,625

11,380
27,186

9,795
28,988

17,059
45,566

16,820
44,578

18,943
44,430

24,170
14,364

23,262
14,441

25,386
14,530

24,028
14,457

23,209
15,108

23,528
14,270

24,644
14,172

24,587
14,520

26,362
14,312

43,503
20,169

44,107
23,201

43,067
24,632

44,117
25,825

41,742
21,259

49,013
27,332

43,078
30,529

42,975
30,192

43,555
29,535

MEMO

Federal funds loans and resale agreements in
immediately available funds in maturities of one day or
under continuing contract
9 To commercial banks in the United States
10 To all other specified customers 2

1. Banks with assets of $4 billion or more as of Dec. 31, 1988.
Data in this table also appear in the Board's H.5 (507) weekly statistical release.
For ordering address, see inside front cover.




2. Brokers and nonbank dealers in securities, other depository institutions,
foreign banks and official institutions, and U.S. government agencies.

A8

DomesticNonfinancialStatistics • October 1993

1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit 1
Federal Reserve
Bank

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta

On
9/3/93

Effective date

Previous rate

On
9/3/93

7/2/92
7/2/92
7/2/92
7/6/92
7/2/92
7/2/92

3.5

3.10

3

Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .

Seasonal credit 2

7/2/92
7/7/92
7/2/92
7/2/92
7/2/92
7/2/92

3

3.10

3.5

Extended credit 3

Effective date

Previous rate

On
9/3/93

9/2/93
9/2/93
9/2/93
9/2/93
9/2/93
9/2/93

3.10

3.60

9/2/93
9/2/93
9/2/93
9/2/93
9/2/93
9/2/93

3.10

3.60

Effective date

Previous rate

9/2/93
9/2/93
9/2/93
9/2/93
9/2/93
9/2/93

3.60

9/2/93
9/2/93
9/2/93
9/2/93
9/2/93
9/2/93

3.60

Range of rates for adjustment credit in recent years 4

Effective date

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
8
8-8.5
8.5
8.5-9.5
9.5

6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5

1981—May

In effect Dec. 31, 1977
1978—Jan.
May
July
Aug.
Sept.
Oct.
Nov.

9
20
11
12
3
10
21
22
16
20
1
3

1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
1980—Feb. 15
19
May 29
30
June 13
16
29
July 28
Sept. 26
Nov. 17
Dec. 5

Effective date

10
10-10.5
10.5
10.5-11
11
11-12
12

10
10.5
10.5
11
11
12
12

12-13
13
12-13
12

13
13
13
12

11-12
11

11
11

10
10-11
11

12

12-13

10
10
11

12

13

5
8
2
6
4

Effective date

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

1986—Aug. 21
22

5.5-6
5.5

5.5
5.5

1987—Sept. 4
11

5.5-6
6

6
6

11.5-12
11.5
11-11.5
11
10.5
10-10.5
10
9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5

11.5
11.5
11
11
10.5
10
10
9.5
9.5
9
9
9
8.5
8.5

1988—Aug. 9
11

6-6.5
6.5

6.5
6.5

1989—Feb. 24
27

6.5-7
7

7
7

9
13
Nov. 21
26
Dec. 24

8.5-9
9
8.5-9
8.5
8

9
9
8.5
8.5
8

1985—May 20
24

7.5-8
7.5

7.5
7.5

1986—Mar. 7
10
Apr. 21
July 11

7-7.5
7
6.5-7
6

7
7
6.5
6

Dec.

1982—July 20
23
Aug. 2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17

13-14
14
13-14
13
12

F.R.
Bank
of
N.Y.
14
14
13
13
12

Nov.

1990—Dec. 19
1991—Feb.
Apr.
May
Sept.
Nov.

1984—Apr.

Dec.
1992—July

6.5

6.5

1
4
30
2
13
17
6
7
20
24

6-6.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5

6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5

2
7

3-3.5
3

3
3

3

3

In effect Sept. 3, 1993

1. Available on a short-term basis to help depository institutions meet temporary needs for funds that cannot be met through reasonable alternative sources.
The highest rate established for loans to depository institutions may be charged on
adjustment-credit loans of unusual size that result from a major operating problem
at the borrower's facility.
2. Available to help relatively small depository institutions meet regular
seasonal needs for funds that arise from a clear pattern of intrayearly movements
in their deposits and loans and that cannot be met through special industry
lenders. The discount rate on seasonal credit takes into account rates on market
sources of funds and ordinarily is reestablished on the first business day of each
two-week reserve maintenance period; however, it is never less than the discount
rate applicable to adjustment credit.
3. May be made available to depository institutions when similar assistance is
not reasonably available from other sources, including special industry lenders.
Such credit may be provided when exceptional circumstances (including sustained deposit drains, impaired access to money market funds, or sudden
deterioration in loan repayment performance) or practices involve only a particular institution, or to meet the needs of institutions experiencing difficulties
adjusting to changing market conditions over a longer period (particularly at times
of deposit disintermediation). The discount rate applicable to adjustment credit




Range (or
level)—
All F.R.
Banks

ordinarily is charged on extended-credit loans outstanding less than thirty days;
however, at the discretion of the Federal Reserve Bank, this time period may be
shortened. Beyond this initial period, a flexible rate somewhat above rates on
market sources of funds is charged. The rate ordinarily is reestablished on the first
business day of each two-week reserve maintenance period, but it is never less
than the discount rate applicable to adjustment credit plus 50 basis points.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; and the Annual
Statistical Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment-credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. A surcharge of 2 percent was reimposed on Nov. 17, 1980; the surcharge
was subsequently raised to 3 percent on Dec. 5,1980, and to 4 percent on May 5,
1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, and to 2
percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the
surcharge was changed from a calendar quarter to a moving thirteen-week period.
The surcharge was eliminated on Nov. 17, 1981.

Policy Instruments

A9

1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1

Type of deposit 2

Net transaction accounts
1 $0 million-$46.8 million...
2 More than $46.8 million 4 ..

12/15/92
12/15/92

3

Nonpersonal time deposits'

12/27/90

4

Eurocurrency liabilities6. .

12/27/90

1. Required reserves must be held in the form of deposits with Federal Reserve
Banks or vault cash. Nonmember institutions may maintain reserve balances with
a Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions. For previous reserve requirements, see earlier editions of the Annual
Report or the Federal Reserve Bulletin. Under provisions of the Monetary
Control Act, depository institutions include commercial banks, mutual savings
banks, savings and loan associations, credit unions, agencies and branches of
foreign banks, and Edge Act corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
97—320) requires that $2 million of reservable liabilities of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 15, 1992, the exemption was raised from $3.6
million to $3.8 million. The exemption applies in the following order: (1) net
negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable
deductions); and (2) net other transaction accounts. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement.
3. Include ail deposits against which the account holder is permitted to make
withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of three per month
for the purpose of making payments to third persons or others. However, money
market deposit accounts (MMDAs) and similar accounts subject to the rules that




permit no more than six preauthorized, automatic, or other transfers per month,
of which no more than three may be checks, are not transaction accounts (such
accounts are savings deposits).
The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage change in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 15,
1992, for institutions reporting quarterly, and Dec. 24, 1992, for institutions
reporting weekly, the amount was increased from $42.2 million to $46.8 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on Apr.
2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions
that report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than \ Vz years was reduced from 3
percent to IVi percent for the maintenance period that began Dec. 13, 1990, and
to zero for the maintenance period that began Dec. 27, 1990. The reserve
requirement on nonpersonal time deposits with an original maturity of 1 Vi years
or more has been zero since Oct. 6, 1983.
For institutions that report quarterly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than IVi years was reduced from 3
percent to zero on Jan. 17, 1991,
6. The reserve requirement on Eurocurrency liabilities was reduced from 3
percent to zero in the same manner and on the same dates as was the reserve
requirement on nonpersonal time deposits with an original maturity of less than
1 Vi years (see note 4).

A10

DomesticNonfinancialStatistics • October 1993

1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1992

Type of transaction
and maturity

1990

1991

1993

1992

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

U . S . TREASURY SECURITIES

22
23
24

Outright transactions (excluding matched
transactions)
Treasury bills
Gross purchases
Gross sales
Exchanges
Redemptions
Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
All maturities
Gross purchases
Gross sales
Redemptions

25
26

Matched transactions
Gross sales
Gross purchases

7.7
28

Repurchase agreements
Gross purchases
Gross sales

29

Net change in U.S. Treasury securities

1
2
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

24,739
7,291
241,086
4,400

20,158
120
277,314
1,000

14,714
1,628
308,699
1,600

3,669
0
29,562
0

0
0
24,542
0

0
0
19,832
0

0
0
23,796
0

121
0
30,124
0

349
0
26,610
0

7,280
0
24,821
0

425
0
25,638
-27,424
0

3,043
0
24,454
-28,090
1,000

1,0%
0
36,662
-30,543
0

0
0
2,777
-1,570
0

0
0
561
-1,202
0

0
0
2,892
-6,044
0

279
0
4,303
-2,602
0

244
0
1,950
-1,100
0

0
0
4,108
-4,013
0

0
0
4,002
-2,152
0

250
200
-21,770
25,410

6,583
0
-21,211
24,594

13,118
0
-34,478
25,811

200
0
-2,777
1,570

0
0
-64
882

0
0
-2,617
4,564

1,441
0
-4,303
2,602

2,490
0
-1,630
800

0
0
-3,652
3,245

0
0
-4,002
2,152

0
100
-2,186
789

1,280
0
-2,037
2,894

2,818
0
-1,915
3,532

100
0
0
0

0
0
-497
0

0
0
-98
1,000

716
0
0
0

1,147
0
-320
300

0
0
-333
468

0
0
0
0

0
0
-1,681
1,226

375
0
-1,209
600

2,333
0
-269
1,200

0
0
0
0

0
0
0
0

0
0
-177
480

705
0
0
0

1,110
0
0
0

0
0
-123
300

0
0
0
0

25,414
7,591
4,400

31,439
120
1,000

34,079
1,628
1,600

3,969
0
0

0
0
0

0
0
0

3,141
0
0

5,111
0
0

349
0
0

7,280
0
0

1,369,052
1,363,434

1,570,456
1,571,534

1,482,467
1,480,140

144,232
142,578

114,543
116,510

111,491
113,349

146,563
143,049

127,115
128,924

124,462
123,227

111,726
113,095

219,632
202,551

310,084
311,752

378,374
386,257

48,904
44,697

34,768
42,231

28,544
25,889

37,815
33,714

30,197
36,953

33,987
28,640

53,051
43,342

24,886

29,729

20,642

6,521

-5,497

4,513

3,728

163

4,461

18,357

0
0
183

0
5
292

0
0
632

0
0
121

0
0
103

0
0
85

0
0
101

0
0
28

0
0
41

0
0
22

41,836
40,461

22,807
23,595

14,565
14,486

1,601
1,224

2,237
2,868

1,107
832

1,811
1,519

197
764

2,105
2,105

2,968
2,019

FEDERAL AGENCY OBLIGATIONS

30
31
32

Outright transactions
Gross purchases
Gross sales
Redemptions

33
34

Repurchase agreements
Gross purchases
Gross sales

35

Net change in federal agency obligations

1,192

-1,085

-554

256

-734

190

191

-595

-41

927

36

Total net change in System Open Market
Account

26,078

28,644

20,089

6,777

-6,231

4,703

3,918

-431

4,420

19,284

1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings.




Federal Reserve Banks
1.18 FEDERAL RESERVE BANKS

All

Condition and Federal Reserve Note Statements1

Millions of dollars
End of month

Wednesday
1993

Account
June 30

July 7

July 14

July 21

July 28

May 31

June 30

July 31

Consolidated condition statement
ASSETS

11,057
8,018
408

11,057
8,018
376

11,057
8,018
379

11,057
8,018
386

11,057
8,018
388

11,053
8,018
441

11,057
8,018
408

11,057
8,018
398

Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements .

1,534
0
0

394
0
0

214
0
0

237
0
0

229
0
0

129
0
0

1,534
0
0

234
0
0

Federal agency obligations
7 Bought outright
8 Held under repurchase agreements

5,032
949

5,032
712

5,013
200

5,013
846

4,964
0

5,054
0

5,032
949

4,964
0

1 Gold certificate account
2 Special drawing rights certificate account
3 Coin

328,199

321,667

318,994

321,666

312,990

309,841

328,199

314,614

10 Bought outright 2
11 Bills
12 Notes
13 Bonds
14 Held under repurchase agreements

313,143
151,796
123,870
37,477
15,056

313,556
152,209
123,870
37,477
8,111

313,142
151,795
123,870
37,477
5,852

312,748
151,699
123,572
37,477
8,918

312,990
151,941
123,572
37,477
0

304,494
143,148
123,870
37,477
5,347

313,143
151,796
123,870
37,477
15,056

314,614
153,366
123,772
37,477
0

15 Total loans and securities

335,714

327,805

324,422

327,762

318,183

315,025

335,714

319,813

5,522
1,041

9,393
1,041

5,953
1,041

5,438
1,041

5,006
1,043

4,473
1,039

5,522
1,041

4,958
1,043

22,334
9,614

22,352
8,777

22,370
8,761

22,398
8,924

22,416
8,257

23,143
7,820

22,334
9,614

22,352
8,336

393,709

388,819

382,001

385,026

374,368

371,013

393,709

375,975

9 Total U.S. Treasury securities

16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies
19 All other
20 Total assets
LIABILITIES

323,253

326,723

326,486

325,005

324,786

320,112

323,253

325,149

22 Total deposits

56,693

45,443

41,051

46,034

35,824

37,279

56,693

37,062

23
24
25
26

27,724
28,386
286
297

38,364
6,566
247
266

33,283
7,097
203
471

38,787
6,787
198
262

29,610
5,747
234
233

31,000
5,787
194
300

27,724
28,386
286
297

30,725
5,818
284
232

5,059
2,229

7,554
2,328

5,226
2,331

4,800
2,288

4,605
2,236

4,358
2,217

5,059
2,229

4,415
2,369

387,233

382,048

375,095

378,127

367,450

363,966

387,233

368,995

3,288
3,038
150

3,293
3,053
424

3,294
3,054
558

3,297
3,054
548

3,296
3,054
568

3,300
3,054
693

3,288
3,038
150

3,299
3,054
628

393,709

388,819

382,001

385,026

374,368

371,013

393,709

375,975

314,236

313,312

318,112

313,664

311,303

317,523

314,236

316,176

21 Federal Reserve notes

Depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other

27 Deferred credit items
28 Other liabilities and accrued dividends 5 .
29 Total liabilities.
CAPITAL ACCOUNTS

30 Capital paid in
31 Surplus
32 Other capital accounts.
33 Total liabilities and capital accounts
MEMO

34 Marketable U.S. Treasury securities held in custody for
foreign and international accounts

Federal Reserve note statement
35 Federal Reserve notes outstanding (issued to B a n k s ) —
36
LESS: Held by Federal Reserve Banks
37
Federal Reserve notes, net
38
39
40
41

Collateral held against notes, net:
Gold certificate account
Special drawing rights certificate account.
Other eligible assets
U.S. Treasury and agency securities

42 Total collateral.

385,553
62,301
323,253

386,680
59,957
326,723

387,881
61,395
326,486

388,872
63,867
325,005

389,104
64,319
324,786

382,009
61,897
320,112

385,553
62,301
323,253

389,182
64,034
325,149

11,057
8,018
0
304,178

11,057
8,018
0
307,647

11,057
8,018
0
307,411

11,057
8,018
0
305,930

11,057
8,018
0
305,710

11,053
8,018
0
301,040

11,057
8,018
0
304,178

11,057
8,018
0
306,073

323,253

326,723

326,486

325,005

324,786

320,112

323,253

325,149

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 loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.




3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within ninety days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign exchange commitments.

A12

DomesticNonfinancialStatistics • October 1993

1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holding
Millions of dollars
Wednesday
1993

Type of holding and maturity
June 30

July 7

End of month
1993

July 14

July 21

July 28

May 31

June 30

July 30

1 Total loans

1,534

394

214

237

229

129

1,534

234

2 Within fifteen days 1
3 Sixteen days to ninety days . . .
4 Ninety-one days to one year ..

1,447
87
0

238
156
0

52
162
0

207
31
0

210
19
0

82
47
0

1,447
87
0

103
132
0

5 Total acceptances

0

0

0

0

0

0

0

0

6 Within fifteen days 1
7 Sixteen days to ninety days . . .
8 Ninety-one days to one year . .

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

9 Total U.S. Treasury securities..

328,199

321,667

318,994

321,666

312,990

304,494

328,199

314,614

Within fifteen days 1
Sixteen days to ninety days . . .
Ninety-one days to one year ..
One year to five years
Five years to ten years
More than ten years

29,971
74,113
101,750
70,660
21,606
30,099

19,584
75,869
103,849
70,660
21,606
30,099

20,611
72,075
103,944
70,660
21,606
30,099

24,426
71,274
103,886
71,041
20,940
30,099

15,788
74,606
100,516
71,041
20,940
30,099

8,196
79,097
94,431
71,065
21,606
30,099

29,971
74,113
101,750
70,660
21,606
30,099

7,871
79,998
104,466
71,241
20,940
30,099

16 Total federal agency obligations

5,981

5,744

5,213

5,859

4,964

5,054

5,981

4,964

Within fifteen days 1
Sixteen days to ninety days . . .
Ninety-one days to one year ..
One year to five years
Five years to ten years
More than ten years

1,179
612
1,132
2,181
736
142

727
831
1,127
2,180
736
142

249
783
1,132
2,176
732
142

9%
682
1,132
2,176
732
142

101
747
1,087
2,156
732
142

301
527
1,136
2,237
711
142

1,179
612
1,132
2,181
736
142

101
747
1,087
2,156
732
142

10
11
12
13
14
15

17
18
19
20
21
22

1. Holdings under repurchase agreements are classified as maturing within
fifteen days in accordance with maximum maturity of the agreements.




Monetary and Credit Aggregates

A13

1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
1993

1992
Item

1989
Dec.

1990
Dec.

1991
Dec.

1992
Dec.
Dec.

Total reserves 3
.
Nonborrowed reserves
Nonborrowed reserves plus extended credit 3 .
Required reserves
Monetary base

Feb.

Mar.

Apr.

May

June

July

Seasonally adjusted

ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS:

1
2
3
4
5

Jan.

40.49
40.23
40.25
39.57
267.73

41.77
41.44
41.46
40.10
293.19

45.53
45.34
45.34
44.56
317.17

54.35
54.23
54.23
53.20
350.80

54.35
54.23
54.23
53.20
350.80

54.67
54.50
54.50
53.41
353.22

54.92
54.88
54.88
53.82
355.73

55.17
55.07
55.07
53.95
358.37

55.20
56.88
57.12
55.12
56.76
56.94
56.94
55.12
56.76
55.88
56.21
54.10
r
r
360.63 364.77 368.07r

57.57
57.32
57.32
56.48
370.98

Not seasonally adjusted
6
7
8
9
10

Total reserves'
Nonborrowed reserves
Nonborrowed reserves plus extended credit .
Required reserves
Monetary base 9

41.77
41.51
41.53
40.85
271.18

43.07
42.74
42.77
41.40
296.68

46.98
46.78
46.78
46.00
321.07

56.06
55.93
55.93
54.90
354.55

56.06
55.93
55.93
54.90
354.55

55.97
55.80
55.80
54.71
354.41

53.81
53.77
53.77
52.71
353.18

54.18
54.09
54.09
52.96
356.00

56.37
56.29
56.29
55.27
361.64

55.88
56.96
55.76
56.78
55.76
56.78
54.88
56.05
364.08r 368.73r

57.42
57.17
57.17
56.33
372.02

62.81
62.54
62.56
61.89
292.55
.92
.27

59.12
58.80
58.82
57.46
313.70
1.66
.33

55.53
55.34
55.34
54.55
333.61
.98
.19

56.54
56.42
56.42
55.39
360.90
1.16
.12

56.54
56.42
56.42
55.39
360.90
1.16
.12

56.00
55.84
55.84
54.74
360.88
1.26
.17

53.88
53.84
53.84
52.78
359.56
1.10
.05

54.30
54.20
54.20
53.08
362.59
1.21
.09

56.54
56.47
56.47
55.45
368.18
1.10
.07

56.10
57.24
55.98
57.06
55.98
57.06
55.10
56.33
370.46r yis.w

57.75
57.51
57.51
56.66
378.48
1.09
.24

NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS'

11
12
13
14
15
16
17

Total reserves 11
Nonborrowed reserves
Nonborrowed reserves plus extended credit 5 .
Required reserves
Monetary base 1 2 ,
Excess reserves 1
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 and estimates of the impact on required
reserves of changes in reserve requirements are available from the Monetary and
Reserves Projections Section, Division of Monetary Affairs, Board of Governors
of the Federal Reserve System, Washington, 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, break-adjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally
adjusted, break-adjusted total reserves (line 1) less total borrowings of depository
institutions from the Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under
the terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as with traditional shortterm adjustment credit, the money market impact of extended credit is similar to
that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1)
seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9)
plus excess reserves (line 16).
8. To adjust required reserves for discontinuities that are due to regulatory
changes in reserve requirements, a multiplicative procedure is used to estimate




1.00

.91

.12

.18

what required reserves would have been in past periods had current reserve
requirements been in effect. Break-adjusted required reserves include required
reserves against transactions deposits and nonpersonal time and savings deposits
(but not reservable nondeposit liabilities).
9. The break-adjusted monetary base equals (1) break-adjusted total reserves
(line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3)
(for all quarterly reporters on the "Report of Transaction Accounts, Other
Deposits and Vault Cash" and for all those weekly reporters whose vault cash
exceeds their required reserves) the break-adjusted difference between current
vault cash and the amount applied to satisfy current reserve requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with changes in reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to
satisfy reserve requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted,
consists of (1) total reserves (line 11), plus (2) required clearing balances and
adjustments to compensate for float at Federal Reserve Banks, plus (3) the
currency component of the money stock, plus (4) (for all quarterly reporters on
the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current
reserve requirements. Since the introduction of changes in reserve requirements
(CRR), currency and vault cash figures have been measured over the computation
periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).

A14

DomesticNonfinancialStatistics • October 1993

1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1
Billions of dollars, averages of daily figures
1993
Item

1989
Dec.

1990
Dec.

1991
Dec.

1992
Dec.

Apr. r

May r

June r

July

Seasonally adjusted

1
2
3
4
5

Measures
Ml
M2
M3
L
Debt

6
7
8
9

Ml components
Currency
Travelers checks
Demand deposits 5
Other checkable deposits 6

794.6
3,233.3
4,056.1
4,886.1
10,086.5

827.2
3.345.5
4,116.7
4.966.6
10,755.3

899.3
3,445.8
4.168.1
4.982.2
11,219.3

1,026.6
3,496.8r
4,166.4
5,043.6
11,779.7

1,043.0
3,475.0
4,142.5
5,028.7
11,952.5

1,066.8
3,504.8
4,171.1
5,069.4
12,009.5

1,073.3
3.511.8
4.166.9
5,074.2
12,073.1

1,085.5
3,517.2
4,159.2
n.a.
n.a.

222.7
6.9
279.8
285.3

246.7
7.8
278.2
294.5

267.2
7.8
290.5
333.8

292.3
8.1
340.9
385.2

301.4
8.1
347.3
386.2

304.0
8.2
359.1
395.5

306.8
8.0
360.6
397.9

309.6
7.9
365.8
402.3

2,438.7
822.8

2,518.3
771.2

2,546.6
722.3

2,470.2
669.6

2,432.0
667.5

2,437.9
666.3

2,438.5
655.1

2,431.7
642.1

Commercial banks
12 Savings deposits, including MMDAs
13 Small time deposits
14 Large time deposits 10 ' 11

541.4
534.9
387.7

582.2
610.3
368.7

666.2
601.5
341.3

756.1
506.9
290.2

756.1
497.1
280.9

764.9
492.7
281.6

769.0
488.4
278.8

769.5
483.2
274.1

Thrift institutions
15 Savings deposits, including MMDAs
16 Small time deposits 9 .
17 Large time deposits 10

349.6
617.8
161.1

338.6
562.0
120.9

376.3
463.2
83.4

429.9
363.2
67.3

425.5
347.1
65.1

428.7
344.7
64.3

429.7
341.4
63.8

430.6
338.0
63.7

Money market mutual funds
18 General purpose and broker-dealer .
19 Institution-only

317.4
108.8

350.5
135.9

363.9
182.1

342.3
202.3

331.8
200.4

336.8
202.8

336.5
198.1

336.3
195.0

2,249.5
7,837.0

2,493.4
8,261.9

2,764.8
8,454.5

3,069.0
8,710.7

3,156.8
8,795.7

3,185.5
8,824.0

3.220.5
8.852.6

Nontransaction
10 In M2
11 In M38

components

Debt components
20 Federal debt
21 Nonfederal debt

n.a.
n.a.

Not seasonally adjusted

22
23
24
25
26

Measures
Ml
M2
M3
L
Debt

27
28
29
30

Ml components
Currency 3
Travelers checks
Demand deposits 5
Other checkable deposits

811.5
3,245.1
4,066.4
4,906.0
10,073.4

843.7
3,357.0
4,126.3
4,988.0
10,743.9

916.4
3,457.9
4.178.1
5.004.2
11,209.4

1,045.8
3,511.1
4,178.5
5,068.1
11,771.3

1,058.2
3.498.5
4.161.6
5,046.5
11,910.7

1,057.6
3,489.2
4,157.6
5,044.1
11,962.5

1,072.7
3,507.4
4.162.0
5.061.1
12,025.4

1,084.2
3.513.7
4.152.8
n.a.
n.a.

225.3
6.5
291.5
288.1

249.5
7.4
289.9
296.9

269.9
7.4
302.9
336.3

295.0
7.8
355.3
387.7

301.4
7.8
350.6
398.5

304.4
7.9
352.0
393.2

307.4
8.2
359.5
397.6

311.1
8.4
365.5
399.2

2,433.6
821.4

2,513.2
769.3

2,541.5
720.1

2,465.3
667.4

2,440.3
663.0

2,431.6
668.4

2,434.7
654.7

2,429.5
639.1

Commercial banks
33 Savings deposits, including MMDAs
34 Small time deposits 9
35 Large time deposits 10- u

543.0
533.8
386.9

580.1
610.5
367.7

663.3
602.0
340.1

752.3
507.7
289.1

760.9
495.9
280.1

766.0
490.5
283.3

772.3
486.5
280.4

772.2
483.1
273.7

Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits 9 .
38 Large time deposits

347.4
616.2
162.0

337.3
562.1
120.6

374.7
463.6
83.1

427.8
363.8
67.1

428.2
346.2
64.9

429.3
343.1
64.7

431.5
340.1
64.2

432.1
337.9
63.7

Money market mutual funds
39 General purpose and broker-dealer
40 Institution-only

315.7
109.1

348.4
136.2

361.5
182.4

340.0
202.4

338.1
199.5

335.1
203.0

333.3
194.3

332.0
191.8

Repurchase agreements and Eurodollars
41 Overnight
42 Term

77.5
178.4

74.7
158.3

76.3
130.1

73.9
126.3

71.0
138.6

67.6
139.8

70.8
139.2

72.1
138.2

2,247.5
7,826.0

2,491.3
8,252.5

2,765.0
8,444.4

3,069.8
8,701.5

3,142.9
8,767.8

3,161.1
8,801.4

3,188.9
8,836.5

Nontransaction
31 In M2
32 In M3 8

components

Debt components
43 Federal debt
44 Nonfederal debt
Footnotes appear on following page.




n.a.
n.a.

Monetary and Credit Aggregates

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 are available from the Money and
Reserves Projection Section, Division of Monetary Affairs, Board of Governors of
the Federal Reserve System, Washington, DC 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (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) overnight (and continuing-contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, (2) savings (including MMDAs) and small time deposits (time deposits—including retail RPs—in
amounts of less than $100,000), and (3) balances in both taxable and tax-exempt
general-purpose and broker-dealer money market funds. Excludes individual
retirement accounts (IRAs) and Keogh balances at depository institutions and
money market funds. Also excludes all balances held by U.S. commercial banks,
money market funds (general purpose and broker-deader), foreign governments
and commercial banks, and the U.S. government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this
result to seasonally adjusted M l .
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) term Eurodollars held
by U.S. residents at foreign branches of U.S. banks worldwide and at all banking
offices in the United Kingdom and Canada, and (3) balances in both taxable and
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, net of money




A15

market fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Debt data are based on monthly
averages. This sum is seasonally adjusted as a whole.
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those owed to depository institutions, the U.S. government, and foreign
banks and official institutions, less cash items in the process of collection and
Federal Reserve float.
6. Consists of 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) overnight RPs and overnight Eurodollars, (2) money market fund
balances (general purpose and broker-dealer), (3) savings deposits (including
MMDAs), and (4) small time deposits.
8. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S.
residents, and (4) money market ftind balances (institution-only), less (5) a
consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market funds.
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, U.S. government, and foreign banks and official
institutions.

A16

DomesticNonfinancialStatistics • October 1993

1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING

Commercial and BIF-insured saving banks1

1992

1993

Item
Nov.

Dec.

Jan.

Feb.

Mar. r

Apr/

May r

June r

July

Interest rates (annual effective yields)
INSURED COMMERCIAL BANKS

1 Negotiable order of withdrawal accounts . . .
2 Savings deposits

4.89
5.84

3.76
4.30

2.36
2.90

2.33
2.88

2.32
2.85

2.27
2.80

2.21
2.73

2.15
2.68

2.12
2.65

2.09
2.61

2.06
2.59

Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
4 92 to 182 days
I 183 days to 1 year
6 More than 1 year to 2Vi years
7 More than 2Vi years

6.94
7.19
7.33
7.42
7.53

4.18
4.41
4.59
4.95
5.52

2.91
3.14
3.34
3.83
4.70

2.90
3.16
3.37
3.88
4.77

2.86
3.13
3.35
3.88
4.72

2.81
3.08
3.29
3.83
4.59

2.75
3.03
3.22
3.74
4.52

2.72
2.99
3.19
3.66
4.47

2.70
2.98
3.18
3.64
4.47

2.68
2.98
3.18
3.64
4.44

2.67
2.97
3.18
3.64
4.43

8 Negotiable order of withdrawal accounts . . .
9 Savings deposits 2

5.38
6.01

4.44
4.97

2.52
3.22

2.45
3.20

2.40
3.17

2.37
3.14

2.32
3.05

2.25
2.98

2.21
2.93

2.14
2.88

2.09
2.83

Interest-bearing time deposits with balances
of less than $100,000, by maturity
1 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2 Vi years

7.64
7.69
7.85
7.91
7.99

4.68
4.92
4.99
5.23
5.98

3.10
3.42
3.59
3.93
4.88

3.13
3.44
3.61
4.02
5.00

3.06
3.38
3.58
3.94
5.02

3.01
3.35
3.57
3.89
4.97

2.95
3.28
3.52
3.83
4.89

2.91
3.23
3.48
3.86
4.84

2.87
3.19
3.45
3.76
4.78

2.86
3.17
3.43
3.79
4.74

2.80
3.15
3.40
3.75
4.73

3

BIF-INSURED SAVINGS BANKS 3

10
11
12
13
14

Amounts outstanding (millions of dollars)
INSURED COMMERCIAL BANKS

15 Negotiable order of withdrawal accounts . . .
16 Savings deposits 2
17 Personal
18 Nonpersonal

209,855
570,270
n.a.
n.a.

244,637
652,058
508,191
143,867

275,465
740,841
575,399
165,442

286,541
738,253
578,757
159,4%

277,271
733,836
579,701
154,135

279,944
742,952
585,189
157,764

287,811
747,809
591,388
156,422

280,073
745,038
586,863
158,175

283,863
753,441
591,211
162,230

287,325
754,756
592,508
162,247

284,366
757,664
593,478
164,185

Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2Vl years

50,189
168,044
221,007
150,188
139,420

47,094
158,605
209,672
171,721
158,078

38,985
127,636
166,995
153,784
168,586

38,474
127,831
163,098
152,977
169,708

38,256
128,083
160,630
151,905
169,371

36,738
128,209
159,631
151,798
172,362

35,459
125,630
158,173
147,798
177,558

34,675
122,136
156,957
146,830
178,657

33,304
119,281
156,851
144,870
179,994

31,783
115,441
155,686
145,080
179,122

30,733
112,573
155,988
143,575
180,9%

131,006

147,266

147,319

147,350

147,069

146,841

148,515

147,463

146,670

146,888

147,020

8,404
64,456
n.a.
n.a.

9,624
71,215
68,638
2,577

10,642
82,919
79,667
3,252

10,871
81,786
78,695
3,091

9,858
79,271
76,337
2,934

9,821
79,649
76,634
3,016

10,199
77,390
74,430
2,961

9,876
76,970
74,077
2,893

10,017
77,542
74,554
2,987

10,407
77,607
74,674
2,932

10,512
78,434
75,093
3,341

5,724
25,864
37,929
26,103
20,243

4,146
21,686
29,715
25,379
18,665

3,895
17,632
22,888
19,258
19,543

3,867
17,345
21,780
18,442
18,845

3,541
16,088
20,627
17,524
18,461

3,468
15,857
20,301
17,387
18,759

3,201
14,468
19,074
16,842
18,564

3,167
14,328
18,778
16,433
18,646

3,120
14,174
18,571
16,281
18,798

3,029
13,840
18,463
16,0%
19,041

2,870
13,758
18,419
16,319
19,246

23,535

23,007

22,265

21,713

21,320

21,260

20,089

19,%9

19,8%

19,870

19,937

19
20
21
22
23

24 IRA/Keogh Plan deposits
BIF-INSURED SAVINGS BANKS 3

25 Negotiable order of withdrawal accounts
26 Savings deposits 2
Personal
27
Nonpersonal
28

29
30
31
32
33

Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2>/5 years
More than 2Vl years

34 IRA/Keogh Plan accounts

1. BIF, Bank Insurance Fund. Data in this table also appear in the Board's H.6
(508) Special Supplementary Table monthly statistical release. For ordering
address, see inside front cover. Estimates are based on data collected by the
Federal Reserve System from a stratified random sample of about 460 commercial
banks and 80 savings banks on the last Wednesday of each period. Data are not




seasonally adjusted and include IRA/Keogh deposits and foriegn currency denominated deposits. Data exclude retail repurchase agreements and deposits held in
U.S. branches and agencies of foreign banks.
2. Includes personal and nonpersonal money market deposits.
3. BIF-insured savings banks include both mutual and federal savings banks.

Monetary and Credit Aggregates
1.23

A17

B A N K DEBITS A N D DEPOSIT TURNOVER1
Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates
1992
19902

19912

1993

19922
Dec.

4 Other checkable deposits 4
5 Savings deposits (including MMDAs)

Mar.

Apr. r

May

Seasonally adjusted

DEBITS

Demand deposits3
1 All insured banks
2
Major New York City banks
3
Other banks

Feb.

Jan.

277,157.5
131,699.1
145,458.4

277,758.0
137,352.3
140,405.7

315,806.1
165,572.7
150,233.5

331,038.8
176,089.1
154,949.8

300,602.9
159,191.7
141,411.3

331,126.3
176,683.2
154,443.1

331,026.3
166,866.6
164,159.7

324,610.6
163,539.8
161,070.8

306,616.7
155,494.9
151,121.8

3,349.0
3,483.3

3,645.5
3,266.1

3,788.1
3,331.3

3,683.9
3,407.3

3,292.5
3,032.3

3,601.4
3,363.3

3,572.6
3,562.8

3,586.6
3,523.3

3,328.1
3,436.1

797.8
3,819.8
464.9

803.5
4,270.8
447.9

832.4
4,797.9
435.9

830.5
4,693.3
429.1

746.5
4,154.7
388.1

817.3
4,525.8
421.9

811.3
4,129.1
446.6

791.6
4,120.9
434.9

722.2
3,852.8
393.4

16.5
6.2

16.2
5.3

14.4
4.7

13.1
4.6

11.6
4.1

12.6
4.5

12.5
4.8

12.7
4,7

11.4
4.5

DEPOSIT TURNOVER

Demand deposits3
6 All insured banks
7
Major New York City banks
Other banks
8
9 Other checkable deposits 4
10 Savings deposits (including MMDAs)

Not seasonally adjusted

DEBITS

Demand deposits3
11 All insured banks
12 Major New York City banks
13 Other banks
14 Other checkable deposits 4
^
15 Savings deposits, (including MMDAs)

277,290.5
131,784.7
145,505.8

277,715.4
137,307.2
140,408.3

315,808.2
165,595.0
150,213.3

340,982.1
179,987.6
160,994.5

304,760.9
159,198.8
145,562.0

303,619.8
161,174.1
142,445.7

339,172.4
170,855.0
168,317.4

324,502.1
161,923.2
162,578.9

306,719.9
154,606.6
152,113.3

3,346.7
3,483.0

3,645.6
3,267.7

3,788.1
3,329.0

3,849.3
3,588.0

3,596.2
3,248.8

3,296.7
3,080.3

3,630.2
3,529.2

3,807.3
3,741.2

3,243.3
3,445.0

798.2
3,825.9
465.0

803.4
4,274.3
447.9

832.5
4,803.5
436.0

815.2
4,418.1
426.5

738.2
3,936.3
390.9

771.7
4,213.4
401.1

854.5
4,385.4
470.2

786.4
4,108.4
435.6

737.6
3,948.9
403.8

16.4
6.2

16.2
5.3

14.4
4.7

13.5
4.8

12.4
4.4

11.6
4.1

12.6
4.7

13.0
5.0

11.2
4.5

DEPOSIT TURNOVER

Demand deposits3
16 All insured banks
17 Major New York City banks
18 Other banks
19 Other checkable deposits 4
20 Savings deposits (including MMDAs)

1. Historical tables containing revised data for earlier periods can be obtained
from the Banking and Money Market Statistics Section, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System, Washington, DC
20551.
Data in this table also appear in the Board's G.6 (406) monthly statistical
release. For ordering address, see inside front cover.




2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOWs) and
accounts authorized for automatic transfer to demand deposits (ATSs).
5. Money market deposit accounts.

A18

DomesticNonfinancialStatistics • October 1993

1.24 LOANS AND SECURITIES

All Commercial Banks1

Billions of dollars, averages of Wednesday figures
1993r

1992
Item
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Seasonally adjusted
1 Total loans, leases, and securities2 .

2,902.2

2,917.4

2,926.0

2,932.4

2,937.6

2,935.3

2,943.9

2,959.7

2,969.3

2,990.5

3,013.6

3,038.3

2 U.S. government securities
3 Other securities
4 Total loans and leases 2
5
Commercial and industrial . . . . .
6
Bankers acceptances held . . .
7
Other commercial and
industrial
8
U.S. addressees 4
9
Non-U.S. addressees
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15
State and political
subdivisions
16 Foreign banks
17 Foreign official institutions
18 Lease-financing receivables
19 All other loans

632.6
178.2
2,091.4
601.4
6.5

640.6
178.2
2,098.6
601.2
6.3

647.3
178.8
2,099.8
600.8
7.5

651.4
177.3
2,103.8
600.5
7.9

657.1
176.0
2,104.6
597.6
7.7r

656.5
174.5
2,104.4
598.0
7.3

666.2
176.4
2,101.3
596.7
8.4

680.0
178.7
2,101.1
593.3
8.5

690.0
179.7
2,099.5
588.9
8.5

692.6
180.3
2,117.6
591.9
9.1

702.8
179.4
2,131.5
593.5
9.1

707.6
181.5
2,149.2
592.5
9.7

594.9
584.3
10.6
883.1
357.4
61.6

594.9
583.6
11.3
886.8
357.0
64.0

593.3
582.6
10.7
890.7
355.8
64.7

592.6
582.3
10.3
892.5
355.4
64.2

589.9
580.2
9.7
892.4
355.5
64.8

590.7
581.2
9.6
890.8
358.4
63.5

588.3
578.8
9.5
890.1
361.9
62.8

584.8
575.1
9.7
891.7
362.3
64.3

580.3
571.2
9.1
891.3
364.4
62.6

582.8
573.5
9.3
897.1
367.2
69.0

584.5
575.8
8.7
902.8
368.4
71.9

582.8
573.8
9.0
906.6
371.9
82.1

42.0
35.3

44.0
35.2

43.9
35.1

44.7
35.2

43.6
35.0

45.1
34.5

44.6
34.3

44.2
34.0

44.8
34.0

45.5
34.2

45.4
34.0

46.1
34.5

25.9
7.2
2.3
30.8
44.3

25.8
7.9
2.5
31.0
43.2

25.4
7.6
2.4
30.8
42.6

25.1
7.5
2.8
30.9
45.0

24.8
7.7
2.8
30.9
49.5

24.2
7.7
2.9
30.4
48.8

23.8
8.8
3.2
30.6
44.5

23.7
8.5
3.2
30.6
45.3

23.4
8.4
3.2
30.7
48.0

23.5
8.5
3.1
31.0
46.6

23.5
8.6
3.3
31.3
48.7

23.7
9.1
3.3
31.7
47.9

Not seasonally adjusted
20 Total loans, leases, and securities2 .

2,894.5

2,914.9

2,925.2

2,939.0

2,947.4

2,937.4

2,946.7

2,963.4

2,970.8

2,985.4

3,013.4

3,026.5

21 U.S. government securities
22 Other securities
23 Total loans and leases
24
Commercial and industrial . . . . .
25
Bankers acceptances held . . .
Other commercial and
26
industrial
27
U.S. addressees 4
28
Non-U.S. addressees 4
29 Real estate
Individual
30
Security
31
32
Nonbank financial
institutions
33
Agricultural
34
State and political
subdivisions
Foreign banks
35
Foreign official institutions
36
37
Lease-financing receivables
All other loans
38

631.3
178.1
2,085.0
597.6
6.3

638.7
177.9
2,098.3
597.6
6.2

645.1
179.2
2,100.9
598.4
7.4

654.1
178.3
2,106.6
600.8
8.2

655.8
176.2
2,115.4
600.6
8.0

656.9
175.0
2,105.5
596.4
7.4

669.8
176.6
2,100.3
595.9
8.8

685.6
178.4
2,099.4
596.5
8.6

691.8
179.1
2,099.9
591.8
8.4

691.5
179.8
2,114.1
593.6
9.0

700.5
178.9
2,134.0
595.3
8.9

702.9
180.4
2,143.2
591.4
9.4

591.4
580.5
10.8
883.7
356.9
59.4

591.4
580.3
11.1
887.6
358.6
62.5

591.0
580.7
10.3
891.5
356.2
64.2

592.6
582.8
9.8
893.9
356.3
63.5

592.5
583.0
9.5
893.7
360.0
65.6r

589.0
579.5
9.5
890.5
362.5
65.0

587.1
577.5
9.5
888.3
361.9
65.8

587.9
578.4
9.5
889.1
359.9
66.4

583.4
574.2
9.2
890.1
361.7
66.0

584.6
575.4
9.2
897.2
365.4
65.9

586.4
576.9
9.5
903.2
366.5
71.2

582.1
572.7
9.3
906.8
369.6
78.0

41.8
36.5

43.5
36.7

43.5
36.1

45.0
35.2

45.6
34.8

45.3
33.6

44.5
32.9

43.9
32.6

44.2
33.2

44.9
33.8

46.0
34.5

45.8
35.3

25.9
7.0
2.3
30.6
43.2

25.9
8.1
2.5
30.8
44.6

25.5
7.8
2.4
30.8
44.4

25.2
7.8
2.8
30.8
45.4

24.8
8.2
2.8
30.9
48.6

24.0
7.8
2.9
30.8
46.6

23.7
8.6
3.2
30.8
44.6

23.7
8.2
3.2
30.8
45.0

23.4
8.1
3.2
30.8
47.4

23.5
8.3
3.1
31.0
47.3

23.5
8.4
3.3
31.2
50.8

23.6
9.2
3.3
31.4
48.9

1. All commercial banks include domestically chartered insured banks, U.S.
branches and agencies of foreign banks, New York state investment companies
majority owned by foreign bainks, and Edge Act and agreement corporations
owned by domestically chartered foreign banks. Data are prorated averages of
Wednesday estimates for domestically chartered and foreign related institutions,
based on weekly reports of a sample of domestically chartered insured banks and




large branches and agencies and quarterly reports of all domestically chartered
insured banks and all agencies, branches, investment companies, and Edge Act
and agreement corporation engaged in banking.
2. Adjusted to exclude loans to commercial banks in the United States.
3. Includes nonfinancial commercial paper held.
4. United States includes the fifty states and the District of Columbia.

Commercial Banking Institutions

A19

1.25 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Billions of dollars, monthly averages
1993r

1992
Source of funds
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Mar.

Feb.

Apr.

May

June

July

Seasonally adjusted
1 Total nondeposit funds 2
2 Net balances owed to related foreign offices . .
3 Borrowings from other than commercial banks
in United States
4
Domestically chartered banks
Foreign-related banks
5

302.3
61.5

309.3
63.9

303.2r
62.6

306.8r
67.3

310.3r
71.1

312.8
74.2

316.0
73.6

330.8
79.5

341.3
89.5

337.2
84.4

345.8
86.3

369.6
100.8

240.8
151.7
89.2

245.4
153.4
91.9

240.5r
154.6
85. Sf

239.5r
153.9
85.6r

239.2r
154.8
84.4r

238.6
155.5
83.1

242.5
155.8
86.6

251.4
160.6
90.8

251.8
164.4
87.4

252.8
162.4
90.3

259.5
168.6
90.9

268.8
178.1
90.7

Not seasonally adjusted
6 Total nondeposit funds 2
7 Net balances owed to related foreign offices ..
8
Domestically chartered banks
Foreign-related banks
9
10 Borrowings from other than commercial banks
in United States 4
11 Domestically chartered banks
12
Federal funds and security RP
borrowings
13
Other 6
14 Foreign-related banks 6

297.3
57.7
-9.2
66.9

303.8
61.6
-11.2
72.7

305.4r
63.8
-13.4
77.2

312.1r
68.9
-12.4
81.4

310.3r
75.2
-15.0
90.2

311.7
76.8
-15.8
92.6

320.4
75.4
-10.6
86.0

335.8
80.2
-7.0
87.2

337.7
86.6
-9.5
96.1

342.0
86.6
-9.8
96.4

345.0
84.3
-15.4
99.7

363.5
97.5
-15.3
112.8

239.6
150.5

242.3
152.3

241.6r
155.8

243.2r
158.3

235.l r
153.8

234.9
152.4

245.0
157.6

255.6
163.4

251.1
162.4

255.4
164.0

260.7
168.4

266.0
174.4

146.7
3.9
89.1

148.4
3.8
90.0

152.2
3.6
85.9"

154.2
4.1
84.8r

149.9
4.0
81.2r

148.8
3.6
82.4

154.3
3.2
87.4

160.1
3.3
92.2

158.9
3.5
88.7

160.2
3.8
91.4

164.6
3.8
92.3

170.2
4.2
91.6

385.8
387.1

383.2
383.6

375.7
374.9

371.3
371.1

366.5
365.5

359.9
358.0

358.4
358.0

355.7
356.5

355.0
354.2

356.3
357.9

352.6
354.1

344.6
344.2

28.0
22.4

24.1
28.6

21.5
21.9

20.7
16.5

20.4
19.5

25.6
33.1

23.6
29.5

18.8
17.4

24.2
20.3

19.1
20.3

26.1
26.5

30.1
25.6

MEMO

Gross large time deposits'
15 Seasonally adjusted
16 Not seasonally adjusted
U.S. Treasury demand balances at
commercial banks
17 Seasonally adjusted
18 Not seasonally adjusted

1. Commercial banks are nationally and state-chartered banks in the fifty states
and the District of Columbia, agencies and branches of foreign banks, New York
State investment companies majority owned by foreign banks, and Edge Act and
agreement corporations owned by domestically chartered and foreign banks.
Data in this table also appear in the Board's G.10 (411) monthly statistical
release. For ordering address, see inside front cover.
2. Includes federal funds, repurchase agreements (RPs), and other borrowing
from nonbanks and net balances due to related foreign offices.
3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and
U.S. branches and agencies of foreign banks with related foreign offices plus net
positions with own international banking facilities (IBFs).
4. Borrowings through any instrument, such as a promissory note or due bill,
given for the purpose of borrowing money for the banking business. This includes




borrowings from Federal Reserve Banks and from foreign banks, term federal
funds, loan RPs, and sales of participations in pooled loans.
5. Figures are based on averages of daily data reported weekly by approximately 120 large banks and on quarterly or annual data reported by other banks.
6. Figures are partly averages of daily data and partly averages of Wednesday
data.
7. Time deposits in denominations of $100,000 or more. Estimated averages of
daily data.
8. U.S. Treasury demand deposits and Treasury tax and loan notes at commercial banks. Averages of daily data.

A20

DomesticNonfinancialStatistics • October 1993

1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS 1

Wednesday figures

Millions of dollars
1993
Account
June 2r

June 9 r

June 16r

June 23r

June 30r

July 7

July 14

July 21

July 28

3,159,843
837,591
673,820
163,770
44,482
28,947
2,362
13,173
2,277,770
150,640
2,127,130
596,819
900,603
74,547
826,056
366,864
262,844
238,178
27,734
32,911
35,037
101,256
41,240
298,946

3,167,964
838,364
675,392
162,972
43,420
27,541
2,450
13,429
2,286,180
159,573
2,126,608
593,022
902,630
74,477
828,153
365,823
265,133
211,194
27,179
32,359
31,177
79,347
41,133
288,598

3,180,352
834,699
673,028
161,670
43,349
27,763
2,244
13,342
2,302,304
158,957
2,143,347
596,575
903,518
74,897
828,621
365,644
277,610
214,249
26,628
32,304
30,803
82,798
41,716
292,317

3,150,868
834,199
671,985
162,214
45,636
29,290
2,564
13,782
2,271,033
144,920
2,126,114
594,656
900,624
74,802
825,823
366,612
264,222
208,369
33,010
32,536
28,893
72,972
40,959
281,943

3,170,514
841,761
676,514
165,246
34,546
19,213
2,677
12,656
2,294,208
152,271
2,141,937
596,849
906,206
74,927
831,279
368,158
270,724
216,566
23,923
33,247
29,493
86,139
43,764
288,030

3,193,365
838,676
673,594
165,082
43,278
28,008
2,883
12,387
2,311,411
163,066
2,148,345
596,018
906,802
74,965
831,837
367,499
278,027
241,105
33,767
32,461
34,056
99,198
41,622
284,817

3,174,216
838,726
673,189
165,537
42,597
28,208
2,854
11,536
2,292,893
151,521
2,141,371
590,232
907,353
74,742
832,611
368,287
275,500
211,939
29,592
33,930
30,040
78,044
40,333
290,805

3,172,700
840,703
674,086
166,617
41,384
27,225
2,578
11,581
2,290,613
150,714
2,139,899
590,826
905,469
74,744
830,724
369,871
273,733
207,498
34,610
32,895
29,106
72,527
38,361
278,962

3,165,561
839,173
674,301
164,872
41,981
27,181
2,983
11,817
2,284,407
145,393
2,139,015
588,095
906,122
74,665
831,457
371,620
273,178
202,843
26,278
33,287
29,811
72,903
40,564
270,828

3,696,967

3,667,756

3,686,917

3,641,180

3,675,110

3,719,287

3,676,959

3,659,160

3,639,232

2,556,940
806,775
4,165
45,326
757,284
771,104
619,252
359,810
507,738
18,775
488,963
347,146

2,527,682
777,445
3,442
38,891
735,113
774,849
617,846
357,541
513,668
4,879
508,789
340,374

2,538,834
790,116
7,428
39,565
743,123
772,381
618,065
358,273
530,461
30,666
499,795
333,376

2,479,874
745,901
3,102
37,271
705,529
762,673
616,378
354,922
529,648
35,230
494,418
346,769

2,515,498
794,005
4,223
38,069
751,713
761,000
617,183
343,310
510,794
31,232
479,562
361,485

2,554,756
817,542
3,052
44,753
769,737
772,764
617,505
346,945
532,502
20,386
512,116
345,098

2,518,173
783,887
3,373
37,574
742,940
772,876
615,594
345,815
523,390
21,342
502,048
347,538

2,479,775
758,020
2,570
38,461
716,989
765,388
614,274
342,093
526,873
18,165
508,708
362,875

2,477,392
759,468
2,669
39,023
717,776
763,870
613,473
340,581
502,663
22,368
480,295
369,135

3,411,824

3,381,723

3,402,672

3,356,291

3,387,776

3,432,355

3,389,100

3,369,523

3,349,190

285,143

286,034

284,246

284,889

287,333

286,931

287,859

289,637

290,043

ALL COMMERCIAL BANKING INSTITUTIONS 2

1
2
4
5
6
7
8
9
10
11
1?
N
14
N
16
17

18
19
20
21
22
73
24

Assets
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
U.S. government securities
Other securities
Other trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Revolving home equity
Other
Individual
All other
Total cash assets
Balances with Federal Reserve Banks
Cash in vault
Demand balances at U.S. depository institutions ..
Cash items
Other cash assets
Other assets

25 Total assets
?.6
7.7

28
29
30
31
37

33
34
35
36
37

Liabilities
Total deposits
Transaction accounts
Demand, U.S. government
Demand, depository institutions
Other demand and all checkable deposits
Savings deposits (excluding checkable)
Small time deposits
Time deposits over $100,000
Borrowings
Treasury tax and loan notes
Other
Other liabilities

38 Total liabilities
39 Residual (assets less liabilities)3
Footnotes appear on following page.




Commercial Banking Institutions
1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS 1

A21

Wednesday figures—Continued

Millions of dollars

Account
June 2 r

June 9 r

June 16r

June 23 r

June 301

July 7

July 14

July 21

July 28

Assets
40 Loans and securities
41
Investment securities
42
U.S. government securities
43
Other
44
Trading account assets
45
U.S. government securities
46
Other securities
47
Other trading account assets
48
Total loans
49
Interbank loans
50
Loans excluding interbank
51
Commercial and industrial
52
Real estate
53
Revolving home equity
54
Other
55
Individual
56
All other
57 Total cash assets
58
Balances with Federal Reserve Banks
59
Cash in vault
60
Demand balances at U.S. depository institutions .
61
Cash items
62
Other cash assets
63 Other assets

2,806,597
766,563
625,973
140,590
44,482
28,947
2,362
13,173
1,995,552
131,511
1,864,041
439,587
852,153
74,547
777,606
366,864
205,437
211,647
27,163
32,878
33,597
98,933
19,076
185,923

2,812,884
768,601
627,617
140.984
43,420
27,541
2,450
13,429
2,000,863
135,901
1,864,963
437,102
854,089
74,477
779,612
365,823
207,949
182.985
26,338
32,327
29,761
76,613
17,946
177,413

2,823,336
765,521
624,562
140,959
43,349
27,763
2,244
13,342
2,014,466
141,880
1,872,586
438,663
854,682
74,897
779,785
365,644
213,598
186,832
25,983
32,272
29,561
80,877
18,138
182,961

2,789,544
765,616
624,811
140,806
45,636
29,290
2,564
13,782
1,978,292
121,330
1,856,962
436,978
852,306
74,802
777,505
366,612
201,066
179,834
31,974
32,500
27,668
70,793
16,899
181,538

2,803,803
769,373
627,917
141,456
34,546
19.213
2,677
12,656
1,999,884
128,125
1,871,759
438,776
858,073
74,927
783,146
368,158
206,753
186,817
22,952
33.214
28,141
83,399
19,112
181,902

2,826,644
767,324
625,978
141,346
43,278
28,008
2,883
12,387
2,016,042
140,111
1,875,931
437,016
858,770
74,%5
783,805
367,499
212,647
212,129
32,838
32,426
32,5%
%,260
18,010
183,334

2,816,532
766,959
625,394
141,565
42,597
28,208
2,854
11,536
2,006,976
131,575
1,875,401
432,800
859,934
74,742
785,192
368,287
214,381
185,462
28,941
33,8%
28,658
75,878
18,089
184,764

2,807,149
764,388
622,161
142,227
41,384
27,225
2,578
11,581
2,001,377
130,482
1,870,895
432,350
857,958
74,744
783,214
369,871
210,716
180,950
33,443
32,861
27,780
70,399
16,467
179,6%

2,803,860
763,2%
622,358
140,938
41,981
27,181
2,983
11,817
1,998,583
126,163
1,872,420
430,301
858,559
74,665
783,894
371,620
211,941
176,680
25,697
33,255
28,579
70,941

64 Total assets

3,204,167

3,173,282

3,193,129

3,150,915

3,172,522

3,222,107

3,186,758

3,167,795

3,157,487

2,396,111
795,949
4,165
42,837
748,946
766,568
616,783
385,527
18,775
366,752
140,415

2,369,027
765,975
3,441
36,296
726,238
770,382
615,403
217,266
383,054
4,879
378,175
138,197

2,377,927
779,669
7,428
37,027
735.215
767,746
615,620
214,893
400,439
30,666
369,773
133,547

2,319,653
735,811
3,101
34,829
697,880
758,214
613,933
211,6%
414,063
35,230
378,833
135,340

2,356,825
781,869
4,222
35,352
742,295
756,582
614,753
203,622
386,391
31,232
355,159
145,002

2,399,%2
804,609
3,052
41,767
759,791
768,266
615,082
212,005
399,917
20,386
379,531
138,327

2,366,855
772,717
3,372
35,174
734,171
768,343
613,176
212,620
398,304
21,342
376,%2
136,769

2,330,258
746,427
2,569
35,669
708,189
760,933
611,851
211,047
411,350
18,165
393,185
139,579

2,330,960
749,3%
2,669
36,490
710,236
759,495
611,062
211,008
398,968
22,368
376,600
140,545

2,922,053

2,890,278

2,911,913

2,869,056

2,888,219

2,938,206

2,901,928

2,881,187

2,870,474

282,113

283,004

281.216

281,860

284,304

283,902

284,830

286,608

287,013

DOMESTICALLY CHARTERED COMMERCIAL BANKS 4

Liabilities
65 Total deposits
66
Transaction accounts
67
Demand, U.S. government
68
Demand, depository institutions
69
Other demand and all checkable deposits
70
Savings deposits (excluding checkable)
71
Small time deposits
72
Time deposits over $100,000
73 Borrowings
74
Treasury tax and loan notes
75
Other
76 Other liabilities
77 Total liabilities
78

Residual (assets less liabilities) 3

216,812

1. Excludes assets and liabilities of international banking facilities.
2. Includes insured domestically chartered commercial banks, agencies and
branches of foreign banks, Edge Act and agreement corporations, and New York
State investment corporations majority owned by foreign banks. Data are estimates
for the last Wednesday of the month based on a sample of weekly reporting
foreign-related and domestic institutions and quarter-end condition reports.




18,208

176,947

3. This balancing item is not intended as a measure of equity capital for use in
capital-adequacy analysis.
4. Includes all member banks and insured nonmember banks. Loans and
securities data are estimates for the last Wednesday of the month based on a
sample of weekly reporting banks and quarter-end condition reports.

A22

DomesticNonfinancialStatistics • October 1993

1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures
1993
Account
June 2 r

June 9

June 16r

June 23 r

June 30 r

July 7

July 14

July 21

July 28

ASSETS

1 Cash and balances due from depository institutions
2 U.S. Treasury and government securities
3
Trading account
4
Investment account
5
Mortgage-backed securities'
All others, by maturity
6
One year or less
7
One year through five years
8
More than five years
9 Other securities
10
Trading account
11
Investment account
12
State and political subdivisions, by maturity
13
One year or less
14
More than one year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44

Federal funds sold 2
To commercial banks in the United States
To nonbank brokers and dealers
To others 3
Other loans and leases, gross
Commercial and industrial
Bankers acceptances and commercial paper
Allother
U.S. addressees
Non-U.S. addressees
Real estate loans
Revolving, home equity
All other
To individuals for personal expenditures
To financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other loans 4
Lease-financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
Other assets

45 Total assets

Footnotes appear on the following page.




124,459
299,158
26,418
272,740
83,385

108,284
297,848
25,254
272,594
83,563

109,988
295,021
24,990
270,031
83,316

106,588
295,945
26,847
269,098
83,277

106,671
287,477
17,026
270,451
84,402

126,447
294,901
24,853
270,048
86,119

107,898
295,033
25,856
269,177
85,043

105,954
292,517
24,980
267,537
84,465

102,520
292,764
25,039
267,724
85,256

46,763
73,653
68,939
55,669
2,267
53,402
19,699
3,366
16,332
33,703
12,590

47,529
73,554
67,948
55,930
2,355
53,575
19,754
3,428
16,326
33,820
12,837

48,436
71,085
67,195
55,861
2,149
53,711
19,780
3,455
16,325
33,932
12,715

47,478
71,154
67,188
56,105
2,470
53,635
19,800
3,471
16,329
33,835
12,893

45,456
70,073
70,519
56,239
2,580
53,659
19,387
3,205
16,181
34,273
11,848

44,736
71,094
68,099
56,441
2,787
53,654
19,292
3,253
16,038
34,363
11,561

46,548
70,125
67,461
56,630
2,758
53,872
19,311
3,313
15,998
34,561
10,880

46,269
71,294
65,509
56,539
2,482
54,057
19,314
3,326
15,988
34,743
10,902

46,471
71,832
64,166
55,771
2,887
52,884
19,406
3,407
15,999
33,478
11,231

86,571
56,298
24,309
5,965
987,040
277,101
3,150
273,951
272,294
1,657
397,907
43,763
354,145
186,678
39,574
14,641
3,358
21,574
14,813
5,756
14,044
1,550
24,877
24,738
2,037
36,586
948,417
169,021

92,486
58,088
27,353
7,045
983,175
274,731
3,238
271,493
269,751
1,742
400,034
43,6%
356,338
185,406
38,385
14,428
2,224
21,733
15,441
5,737
13,911
1,430
23,327
24,772
2,057
36,665
944,453
164,403

103,490
64,049
31,870
7,571
986,174
276,360
3,198
273,162
271,321
1,841
399,903
44,018
355,885
186,536
37,161
14,594
2,220
20,347
16,220
5,743
13,905
1,350
24,222
24,773
2,057
36,642
947,475
171,555

84,676
53,995
23,612
7,068
980,542
275,085
2,801
272,284
270,464
1,820
397,969
43,942
354,027
187,454
35,384
13,412
2,240
19,733
16,136
5,750
13,752
1,339
22,912
24,760
2,048
36,373
942,121
169,256

83,827
57,399
20,459
5,969
995,092
276,669
3,003
273,666
271,839
1,827
400,793
43,973
356,820
188,283
37,791
14,244
2,657
20,890
19,267
5,797
13,742
1,451
26,385
24,916
2,114
35,575
957,404
167,305

98,575
64,614
27,231
6,730
992,640
275,620
3,392
272,228
270,572
1,656
402,142
44,018
358,123
187,965
38,588
14,102
2,945
21,540
16,839
5,827
13,764
1,498
25,532
24,865
2,121
35,347
955,172
168,304

96,085
57,249
31,263
7,573
986,307
272,133
3,246
268,887
267,254
1,633
402,190
43,730
358,460
188,293
37,851
13,941
2,828
21,082
17,128
5,859
13,670
1,419
22,895
24,871
2,140
35,468
948,699
173,173

96,341
59,008
31,704
5,630
983,472
272,237
3,238
268,998
267,409
1,590
400,133
43,743
356,390
188,911
36,770
14,295
2,618
19,857
16,311
5,857
13,738
1,386
23,235
24,893
2,150
35,428
945,894
167,453

91,724
54,445
31,664
5,615
983,371
270,459
3,211
267,248
265,705
1,544
400,268
43,747
356,521
189,599
36,243
14,375
2,343
19,524
17,241
5,856
13,877
1,381
23,517
24,929
2,150
35,371
945,851
165,065

1,695,885

1,676,241

1,696,105

1,667,584

1,670,771

1,711,400

1,688,398

1,675,599

1,664,927

Weekly Reporting Commercial

Banks

A23

1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures

June 2r

June 9 r

June 16r

June 23r

June 30"

July 7

July 14

July 21

July 28

1,142,563
296,266
239,399
56,867
9,553
2,572
27,018
5,940
852
10,932
121,246
725,051
698,485
26,566
21,353
2,653
2,235
325

1,125,736
278,324
226,877
51,447
8,407
2,275
23,411
4,658
550
12,146
120,320
727,093
700,545
26,548
21,368
2,635
2,218
327

1,135,700
289,923
234,697
55,226
9,195
5,414
23,439
5,199
658
11,321
120,711
725,066
699,230
25,835
20,573
2,678
2,260
325

1,092,235
262,675
212,788
49,887
9,559
2,016
21,876
4,962
597
10,876
116,093
713,467
688,293
25,174
20,270
2,687
1,894
324

1,113,843
290,199
239,479
50,720
9,072
2,461
21,902
5,451
769
11,065
118,542
705,102
684,612
20,490
18,178
497
1,488
326

1,143,770
301,635
243,769
57,865
8,329
1,827
26,166
5,730
2,692
13,122
121,879
720,256
696,495
23,761
19,060
2,666
1,719
317

1,122,307
283,657
236,030
47,627
8,243
2,056
21,154
5,404
581
10,190
118,640
720,011
696,278
23,732
18,800
2,665
1,944
322

1,094,489
265,984
218,737
47,247
8,253
1,486
21,440
5,455
684
9,929
117,770
710,736
686,883
23,853
18,792
2,660
2,082
319

1,095,298
269,608
219,858
49,749
8,384
1,613
22,569
5,241
615
11,326
116,717
708,972
684,981
23,992
18,786
2,661
2,230
315

295,233
0
16,728
278,505

294,564
0
3,677
290,888

308,436
0
27,520
280,916

320,995
0
31,459
289,536

292,620
1,260
27,483
263,877

309,091
157
17,984
290,950

309,145
0
18,564
290,581

320,826
0
15,350
305,477

308,594
0
19,190
289,405

109,661

107,369

103,193

104,750

114,128

107,834

106,199

108,662

109,646
1,513,538

LIABILITIES

46 Deposits
47
Demand deposits
48
Individuals, partnerships, and corporations
49
Other holders
50
States and political subdivisions
51
U.S. government
52
Depository institutions in the United States . . .
53
Banks in foreign countries
54
Foreign governments and official institutions ..
55
Certified and officers' checks
56 Transaction balances other than demand deposits 4 .
57
Nontransaction balances
58
Individuals, partnerships, and corporations
59
Other holders
60
States and political subdivisions
61
U.S. government
62
Depository institutions in the United States . . .
63
Foreign governments, official institutions, and banks .
64 Liabilities for borrowed money 5
65
Borrowings from Federal Reserve Banks
66
Treasury tax and loan notes
67
Other liabilities for borrowed money 6
68 Other liabilities (including subordinated notes and
debentures)
69 Total liabilities
70 Residual (total assets less total liabilities)7

1,547,457

1,527,670

1,547,329

1,517,979

1,520,592

1,560,695

1,537,650

1,523,978

148,428

148,571

148,776

149,605

150,179

150,705

150,748

151,621

151,388

1,370,088
107,855
862
437
425
23,715
-15,779

1,369,759
108,311
863
437
426
23,320
-15,072

1,374,618
106,268
854
430
425
23,026
-23,926

1,362,754
103,603
853
428
425
22,929
-20,377

1,362,840
96,623
813
411
402
22,643
-9,667

1,375,401
103,718
823
425
398
22,319
-14,939

1,373,744
104,411
825
404
421
22,454
-22,413

1,366,467
102,867
823
402
421
22,382
-15,817

1,366,041
102,801
821
402
419
22,382
-15,817

MEMO

71
72
73
74
75
76
77

Total loans and leases, gross, adjusted, plus securities
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates9
Commercial and industrial
Other
Foreign branch credit extended to U.S. residents'"...
Net owed to related institutions abroad

1. Includes certificates of participation, issued or guaranteed by agencies of the
U.S. government, in pools of residential mortgages.
2. Includes securities purchased under agreements to resell.
3. Includes allocated transfer risk reserve.
4. Includes negotiable order of withdrawal accounts (NOWs), automatic transfer service (ATS), and telephone and preauthorized transfers of savings deposits.
5. Includes borrowings only from other than directly related institutions.
6. Includes federal funds purchased and securities sold under agreements to
repurchase.
7. This balancing item is not intended as a measure of equity capital for use in
capital-adequacy analysis.
8. Excludes loans to and federal funds transactions with commercial banks in
the United States.




9. Affiliates include a bank's own foreign branches, nonconsolidated nonbank
affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
10. Credit extended by foreign branches of domestically chartered weekly
reporting banks to nonbank U.S. residents. Consists mainly of commercial and
industrial loans, but includes an unknown amount of credit extended to other than
nonfinancial businesses.
NOTE. Data that formerly appeared in table 1.28, Assets and Liabilities of Large
Weekly Reporting Commercial Banks in New York City, can be obtained from the
Board's H.4.2 (504) weekly statistical release. For ordering address, see inside
front cover.

A24

DomesticNonfinancialStatistics • October 1993

1.28 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS
Liabilities1

Assets and

Millions of dollars, Wednesday figures
1993
Account
June 2

June 9

June 16

June 23

June 30

July 7

July 14

July 21

July 28

ASSETS

1 Cash and balances due from depository
institutions
2 U.S. Treasury and government agency
securities
3 Other securities
4 Federal funds sold
5 To commercial banks in the United States . . .
6 To others 2
7 Other loans and leases, gross
8
Commercial and industrial
9
Bankers acceptances and commercial
paper
10
All other
11
U.S. addressees
12
Non-U.S. addressees
13 Loans secured by real estate
14 To financial institutions
15
Commercial banks in the United States..
16
Banks in foreign countries
17
Nonbank financial institutions
18 For purchasing and carrying securities
19 To foreign governments and official
institutions
20 All other
21 Other assets (claims on nonrelated parties) ..

18,839

18,181

18,974

19,843

19,276

17,617

17,608

17,314

31,131
8,001
24,960
7,740
17,220
160,545
96,936r

31,405
7,470
25,446
3,592
21,854
162,054
97,570r

30,592
7,740
28,861
7,436
21,426
161,073
97,447r

31,572
8,665
27,808
7,570
20,238
163,754r
97,891r

30,861
8,622
29,773
6,645
23,129
162,253
98,219

31,093
8,745
26,116
4,868
21,248
160,199
97,631

33,698
8,885
27,996
5,679
22,317
160,098
98,062

33,644
8,695
25,871
5,345
20,526
159,684
97,467

2,718
95,195r
91,878r
3,317
31,847
25,860r
5,205
1,920
18,734r
3,299

2,574
94,362r
91,084r
3,277
31,858
25,414r
5,417
1,788
18,lO^
3,332

2,525
95,045r
91,676r
3,368
31,889
26,454r
5,602
1,901
18,95lr
3,130

2,463
94,984r
91,631r
3,353
S l ^
25,781r
5,618
1,997
18,167r
3,105

2,520
95,372r
92,003r
3,369r
31,513r
26,863r
5,836r
2,026
19,001r
4,574

2,499
95,720
92,290
3,430
31,366
26,677
5,974
2,059
18,644
2,910

2,592
95,040
91,667
3,373
31,099
26,620
6,034
1,979
18,607
2,172

2,727
95,335
91,923
3,412
31,106
25,772
5,375
2,136
18,261
2,425

2,675
94,792
91,561
3,231
31,085
25,753
5,171
2,067
18,514
2,692

372
2,619
31,293

372
2,632
31,698

378
2,633
30,654

459
2,702
30,558

401
2,511r
31,215r

385
2,695
31,473

392
2,284
30,869

433
2,301
31,182

382
2,306
31,186

308,469

22 Total assets3

17,694
31,226r
8,469r
22,070
5,269
16,802
161,910r
97,913r

309,608

309,015

306,735

314,580'

311,100

306,679

307,421

301,318

103,745r
4,149

101,773r
4,359

103,491
3,956

103,969
3,849

102,618r
4,953r

99,172
5,138

97,513
4,421

96,819
4,557

95,563
3,869

r

3,575
1,563
94,034

3,605
815
93,092

3,345
1,211
92,262

3,046
822
91,695

LIABILITIES

23 Deposits or credit balances owed to other
than directly-related institutions
24 Demand deposits
25 Individuals, partnerships, and
corporations
26
Other
27 Nontransaction accounts
28
Individuals, partnerships, and
corporations
29
Other
30 Borrowings from other than directlyrelated institutions
31 Federal funds purchased
32
From commercial banks in the
United States
33
From others
34 Other liabilities for borrowed money
35
To commercial banks in the
United States
36 To others
37 Other liabilities to nonrelated parties
38 Total liabilities6
MEMO

39 Total loans (gross) and securities, adjusted 7 ..
40 Net owed to related institutions abroad

3,088
1,061
99,596r

2,915
1,444
97,414r

2,968
987
99,536

3,060
789
100,121

4,059
895
97,665

69,270"
30,327

67,651r
29,763

68,720
30,816

69,144
30,977

67,650
30,016

64,839
29,195

64,408
28,684

64,241
28,022

63,978
27,717

87,336r
42,527

93,133r
45,760

92,669
51,026

82,619
41,608

88,518
50,151

95,373
54,351

90,194
48,539

83,910
46,998

75,091
41,730

14,494
28,033
44,809"

16,449
29,311
47,373r

18,569
32,457
41,643

10,884
30,724
41,011

18,568
31,582
38,367

20,072
34,279
41,022

15,175
33,364
41,655

11,620
35,378
36,912

12,013
29,716
33,361

7,848
36,961r
30,358

8,125
39,248r
30,158

8,000
33,643
28,643

7,954
33,057
29,430

8,464
29,903
31,623r

7,705
33,318
28,860

7,477
34,177
28,751

7,180
29,731
28,757

6,880
26,481
30,126

308,469

309,608

309,015

306,735

314,580 R

311,100

306,679

307,421

301,318

213,201r
51,223r

211,480
50,110

217,183
50,408

215,212
61,780

218,392r
60,097r

218,890
58,853

215,252
58,183

219,623
69,981

217,378
75,614

1. Includes securities purchased under agreements to resell.
2. Includes transactions with nonbank brokers and dealers in securities.
3. Includes net due from related institutions abroad for U.S. branches and
agencies of foreign banks having a net "due from" position.
4. Includes other transaction deposits.




5. Includes securities sold under agreements to repurchase.
6. Includes net owed to related institutions abroad for U.S. branches and
agencies of foreign banks having a net "due t o " position.
7. Excludes loans to and federal funds transactions with commercial banks in
the United States.

Financial Markets

A25

1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
Year ending December

1993

Item
1989

1988

1990

1991

1992

Jan.

Feb.

Mar.

Apr.

May r

June

Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers

2
3
4
5

458,464

525,831

562,656

531,724

549,433

540,198

527,531

534,118

535,966

541,761

544,107

159,777

Financial companies 1
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper
Total
Bank-related (not seasonally
adjusted) 3

183,622

214,706

213,823

228,260

212,682

202,046

218,925

210,230

214,558

221,834

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

210,930

200,036

183,379

172,813

181,264

177,370

171,959

175,384

174,558

171,479

1,248
194,931
43,155

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

103,756

6 Nonfinancial companies 5

131,279

147,914

134,522

148,360

146,252

148,115

143,234

150,352

152,645

150,794

Bankers dollar acceptances (not seasonally adjusted) 6
66,631

8
9
10
11
12

43,770

38,200

36,001

35,221

34,939

35,317

34,927

34,149

9,433
8,510
924

9,017
7,930
1,087

11,017
9,347
1,670

10,561
9,103
1,458

9,121
7,927
1,193

9,878
8,361
1,516

11,036
9,162
1,873

10,688
9,315
1,372

11,096
9,786
1,310

11,568
10,236
1,333

1,066
52,473

918
44,836

1,739
31,014

1,276
26,364

1,317
25,563

1,169
24,175

1,108
22,795

909
23,720

690
23,141

613
21,967

14,984
14,410
37,237

By basis
13 Imports into United States
14 Exports from United States
15 All other

54,771

1,493
56,052

By holder
Accepting banks
Own bills
Bills bought from other banks
Federal Reserve Banks
Foreign correspondents
Others

62,972

9,086
8,022
1,064

7 Total

15,651
13,683
33,638

13,095
12,703
28,973

12,843
10,351
20,577

12,212
8,096
17,893

11,148
7,740
17,112

11,126
7,547
16,548

11,129
7,304
16,506

10,746
7,629
16,942

10,274
7,809
16,844

10,066
7,650
16,433

1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other
business lending; insurance underwriting; and other investment activities.
2. Includes all financial-company paper sold by dealers in the open market.
3. Series were discontinued in January 1989.
4. As reported by financial companies that place their paper directly with
investors.

1.33 PRIME RATE CHARGED BY BANKS

5. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
6. Data on bankers dollar acceptances are gathered from approximately 100
institutions. The reporting group is revised every January.
7. In 1977 the Federal Reserve discontinued operations in bankers dollar
acceptances for its own account.

Short-Term Business Loans1

Percent per year
Period

Rate

10.50
10.00
9.50
9.00
8.50
8.00
7.50
6.50
6.00

Average
rate

1990
1991
1992

10.01
8.46
6.25

1990-

10.11
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00

Feb.
Mar.
Apr.
May .
June
July .
Aug.
Sept.
Oct. .
Nov.
Dec.

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 twenty-nine large banks, rather than the




Period

1991—
Feb. .
Mar. ..

July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec. ..
1992— Jan.
Feb.
Mar.
Apr.

...
..
..
..

Average
rate

9.52
9.05
9.00
9.00
8.50
8.50
8.50
8.50
8.20
8.00
7.58
7.21
6.50
6.50
6.50
6.50

Period

1992— May ...
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec. ..
1993— Jan. ...
Feb. ..
Mar. ,,
May
June
July
Aug.

...
..
...
..

date on which the first bank made a change in the rate. 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.

A26
1.35

DomesticNonfinancialStatistics • October 1993
INTEREST RATES

M o n e y and Capital Markets

Averages, percent per year; figures are averages of business day data unless otherwise noted
1993
Item

1990

1991

1993, week ending

1992
Apr.

May

June

July

July 2

July 9

July 16

July 23

July 30

MONEY MARKET INSTRUMENTS

1 Federal funds 1-2,3
2 Discount window borrowing •

8.10
6.98

5.69
5.45

3.52
3.25

2.%
3.00

3.00
3.00

3.04
3.00

3.06
3.00

3.13
3.00

3.10
3.00

3.01
3.00

3.09
3.00

3.03
3.00

8.15
8.06
7.95

5.89
5.87
5.85

3.71
3.75
3.80

3.13
3.14
3.19

3.11
3.14
3.20

3.19
3.25
3.38

3.15
3.20
3.35

3.20
3.25
3.38

3.16
3.19
3.33

3.13
3.18
3.31

3.14
3.19
3.34

3.15
3.22
3.39

8.00
7.87
7.53

5.73
5.71
5.60

3.62
3.65
3.63

3.06
3.06
3.07

3.05
3.07
3.07

3.12
3.16
3.16

3.08
3.12
3.15

3.13
3.15
3.18

3.08
3.11
3.11

3.08
3.11
3.14

3.07
3.12
3.16

3.09
3.14
3.19

7.93
7.80

5.70
5.67

3.62
3.67

3.05
3.10

3.06
3.13

3.16
3.28

3.12
3.26

3.13
3.25

3.12
3.24

3.10
3.23

3.14
3.29

3.13
3.29

8.15
8.15
8.17

5.82
5.83
5.91

3.64
3.68
3.76

3.08
3.09
3.16

3.07
3.10
3.20

3.13
3.21
3.36

3.10
3.16
3.34

3.12
3.18
3.34

3.11
3.16
3.32

3.09
3.14
3.30

3.10
3.16
3.35

3.10
3.17
3.39

8.16

5.86

3.70

3.10

3.12

3.21

3.17

3.19

3.14

3.18

3.15

3.19

7.50
7.46
7.35

5.38
5.44
5.52

3.43
3.54
3.71

2.87
2.97
3.11

2.96
3.07
3.23

3.07
3.20
3.39

3.04
3.16
3.33

3.01
3.11
3.29

3.02
3.11
3.28

3.02
3.13
3.27

3.07
3.20
3.37

3.06
3.21
3.43

7.51
7.47
7.36

5.42
5.49
5.54

3.45
3.57
3.75

2.89
3.00
3.24

2.96
3.07
3.13

3.10
3.23
3.40

3.05
3.15
3.42

3.05
3.14
3.40

3.01
3.10
n.a.

3.04
3.14
n.a.

3.05
3.15
n.a.

3.10
3.24
3.44

7.89
8.16
8.26
8.37
8.52
8.55
8.61

5.86
6.49
6.82
7.37
7.68
7.86
8.14

3.89
4.77
5.30
6.19
6.63
7.01
7.67

3.24
3.84
4.30
5.13
5.59
5.97
6.85

3.36
3.98
4.40
5.20
5.66
6.04
6.92

3.54
4.16
4.53
5.22
5.61
5.96
6.81

3.47
4.07
4.43
5.09
5.48
5.81
6.63

3.42
4.01
4.37
5.04
5.45
5.79
6.68

3.42
4.00
4.36
5.03
5.45
5.79
6.67

3.41
4.00
4.34
5.00
5.39
5.74
6.58

3.53
4.14
4.49
5.15
5.52
5.83
6.61

3.57
4.19
4.54
5.21
5.56
5.88
6.63

8.74

8.16

7.52

6.64

6.68

6.55

6.34

6.38

6.37

6.28

6.33

6.37

6.96
7.29
7.27

6.56
6.99
6.92

6.09
6.48
6.44

5.47
5.88
5.76

5.47
5.88
5.73

5.35
5.80
5.63

5.27
5.74
5.57

5.25
5.72
5.55

5.25
5.72
5.55

5.28
5.76
5.50

5.23
5.70
5.61

5.34
5.80
5.65

9.77

9.23

8.55

7.76

7.78

7.66

7.50

7.55

7.53

7.46

7.49

7.50

33
34 Aa
35 A
36 Baa

9.32
9.56
9.82
10.36

8.77
9.05
9.30
9.80

8.14
8.46
8.62
8.98

7.46
7.62
7.80
8.14

7.43
7.61
7.85
8.21

7.33
7.51
7.74
8.07

7.17
7.35
7.53
7.93

7.24
7.40
7.59
7.96

7.22
7.38
7.56
7.96

7.16
7.31
7.49
7.90

7.17
7.34
7.52
7.93

7.14
7.37
7.54
7.95

37 A-rated, recently offered utility bonds' 6

10.01

9.32

8.52

7.66

7.75

7.59

7.43

7.46

7.44

7.36

7.48

7.37

8.96
3.61

8.17
3.24

7.46
2.99

6.69
2.82

6.65
2.77

6.97
2.81

6.89
2.81

7.00
2.80

6.88
2.84

6.92
2.79

6.88
2.82

6.89
2.80

3
4
5

Commercial paper3,5
1-month
3-month
6-month

6

6
7
8

Finance paper, directly placed*
1-month
3-month
6-month

9
10

Bankers acceptances15
3-month
6-month

11
12
13

Certificates of deposit,
market
1-month
3-month
6-month

51

*

secondary

14 Eurodollar deposits, 3-month 3 1 0

18
19
20

U.S. Treasury bills
Secondary market ,5
3-month
6-month
1-year
Auction average • 1
3-month
6-month
1-year

21
22
23
24
25
26
27

Constant maturities12
1-year
2-year
3-year
5-year
7-year
10-year
30-year

15
16
17

U . S . TREASURY NOTES AND BONDS

Composite
28 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS

Moody's series13
29
30 Baa
31 Bond Buyer series 14
CORPORATE BONDS

32 Seasoned issues, all industries 15
Rating group

MEMO

Dividend-price ratio
38 Preferred stocks
39 Common stocks

1. The daily effective federal funds rate is a weighted average of rates on
trades through New York brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday
of the current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. An average of offering rates on commercial paper placed by several leading
dealers for firms whose bond rating is AA or the equivalent.
7. An average of offering rates on paper directly placed by finance companies.
8. Representative closing yields for acceptances of the highest-rated money
center banks.
9. An average of dealer offering rates on nationally traded certificates of
deposit.
10. Bid rates for Eurodollar deposits at 11 a.m. London time. Data are for
indication purposes only.
11. Auction date for daily data; weekly and monthly averages computed on an
issue-date basis.




12. Yields on actively traded issues adjusted to constant maturities. Source:
U.S. Treasury.
13. General obligations based on Thursday figures; Moody's Investors Service.
14. General obligations only, with twenty years to maturity, issued by twenty
state and local governmental units of mixed quality. Based on figures for
Thursday.
15. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
16. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently offered, A-rated utility bonds with a thirty-year maturity and five
years of call protection. Weekly data are based on Friday quotations.
17. Standard & Poor's corporate series. Preferred stock ratio is based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratio is based on the 500 stocks in the price index.
NOTE. 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 A115
1.36 STOCK MARKET

Selected Statistics
1992

Indicator

1991

1990

1993

1992
Nov.

Jan.

Dec.

Mar.

Feb.

May

Apr.

June

July

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
Finance
5

183.66
226.06
158.80
90.72
133.21

206.35
258.16
173.97
92.64
150.84

229.00
284.26
201.02
99.48
179.29

232.84
287.80
204.63
101.13
189.27

239.47
290.77
212.35
103.85
196.87

239.75
292.11
221.00
105.52
203.38

243.41
294.40
226.96
109.45
209.93

248.12
298.75
229.42
112.53
217.01

244.72
292.19
237.97
113.78
216.02

246.02
297.83
237.80
111.21
209.40

247.16
298.78
234.30
113.27
209.75

247.85
295.34
238.30
116.27
218.89

6 Standard & Poor's Corporation
(1941-43 = 10)'

335.01

376.20

415.75

422.84

435.64

435.40

441.76

450.15

443.08

445.25

448.06

447.29

7 American Stock Exchange
(Aug. 31, 1973 = 50?

338.32

360.32

391.28

387.75

392.69

402.75

409.39

418.56

418.54

429.72

436.13

434.99

156,359
13,155

179,411
12,486

202,558
14,171

208,221
14,925

222,736
16,523

266,011
17,184

288,540
18,154

251,170
16,150

279,778
15,521

255,843
20,433

250,230
17,753

247,574
17,766

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-dealers3

28,210

36,660

43,990

43,630

43,990

44,020

44,290

45,160

47,420

48,630

49,550

49,080

Free credit balances at brokers4
11 Margin accounts
12 Cash accounts

8,050
19,285

8,290
19,255

8,970
22,510

8,500
19,310

8,970
22,510

8,980
20,360

9,790
22,190

9,650
21,395

9,805
21,450

9,560
21,610

9,820
22,625

9,585
21,475

Margin requirements (percent of market value and effective date) 5
Mar. 11, 1968
13 Margin stocks
14 Convertible bonds
15 Short sales

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. On July 5, 1983, the American Stock Exchange rebased its index, effectively
cutting previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at brokerdealers has included credit extended against stocks, convertible bonds, stocks
acquired through the exercise of subscription rights, corporate bonds, and
government securities. Separate reporting of data for margin stocks, convertible
bonds, and subscription issues was discontinued in April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to brokers and are subject to withdrawal by customers on demand.
5. New series since June 1984.
6. These requirements, stated in regulations adopted by the Board of Governors pursuant to the Securities Exchange Act of 1934, limit the amount of credit
that can be used to purchase and carry "margin securities" (as defined in the
regulations) when such credit is collateralized by securities. Margin requirements




Jan. 3, 1974
50
50
50

on securities other than options are the difference between the market value (100
percent) and the maximum loan value of collateral as prescribed by the Board.
Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1,
1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1,
1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market value of the stock underlying the option. On
Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
Effective June 8, 1988, margins were set to be the price of the option plus 20
percent of the market value of the stock underlying the option (or 15 percent in the
case of stock-index options).

A28 Domestic Financial Statistics • October 1993
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year

Fiscal year

1993

Type of account or operation
1990

1991

1992r
Feb.

U.S. budget1
1 Receipts, total
2 On-budget
3 Off-budget
4 Outlays, total
5 On-budget
6 Off-budget
7 Surplus or deficit ( - ) , total
8 On-budget
9 Off-budget
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase (-)) . . .
12 O t h e r T

Mar.

Apr.

May

June

July

1,031,308
749,652r
281,656r
1,252,691
1,027,626
225,065r
-221,384
-277,974
56,590

l,054,264r
760,380*
293,885r
1,323,785
1,082,098
241,687r
-269,521
-321,719
52,198

1,090,449
788,023
302,426
1,380,637
1,128,321
252,316
-290,188
-340,298
50,110

66,133r
41,033r
25,100
r
114,330r
89,874
24,456
-48,197 r
-48,842 r
644

83,447r
57,253r
26,194
127,422r
103,184r
24,237
-43,974 r
-45,931 r
1,957

132,117r
96,408r
35,709
124,026r
101,852r
22,174
8,091r
-5,445 r
13,535

70,753r
44,63l r
26,122
107,717r
83,322r
24,395
-36,963 r
-38,690"
1,727

128,586r
98,68c
29,906
117,487r
103,493r
13,994
11,099""
-4,813 r
15,912

80,639
57,152
23,487
120,216
96,252
23,964
-39,577
-39,099
-478

220,101
818
465r

276,802
-1,329
-5,952 r

310,918
-17,305
-3,425 r

30,689
27,227
—9,719""

37,727
-2,452
8,699r

5,464
-18,945
5,39c

30,832
20,196
-14,065 r

24,757
-40,288
4,432r

1,055
32,447
6,075

40,155
7,638
32,517

41,484
7,928
33,556

58,789
24,586
34,203

19,099
5,350
13,749

21,551
6,752
14,799

40,496
7,273
33,223r

20,300
5,787
14,514

60,588
28,386
32,202

28,141
5,818
22,324

MEMO

13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts

1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. Tne act has also moved two
social security trust funds, (federal old-age survivors insurance and federal
disability insurance) oflf-budget. The Postal Service is included as an off-budget
item in the Monthly Treasury Statement beginning in 1990.
2. Includes special drawing rights (SDRs); reserve position on the U.S. quota
in the International Monetary Fund (IMF); loans to the IMF; other cash and




monetary assets; accrued interest payable to the public; allocations of SDRs;
deposit funds; miscellaneous liability (including checks outstanding) and asset
accounts; seigniorage; increment on gold; net gain or loss for U.S. currency
valuation adjustment; net gain or loss for IMF loan-valuation adjustment; and
profit on sale of gold.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government and Office of Management and
Budget, Budget of the U.S. Government.

Federal Finance

A29

1.39 U.S. B UDGET RECEIPTS AND OUTLAYS 1
Millions of dollars
Calendar year

Fiscal year

1991

1993

1993

1992

1991

Source or type
1992

H2

HI

H2

HI

May

June

July

RECEIPTS

l,054,264 r

1 All sources
2 Individual income taxes, net
3
Withheld
4
Presidential Election Campaign Fund .
Nonwithheld
5
Refunds
6
Corporation income taxes
7
Gross receipts
8
Refunds
9 Social insurance taxes and contributions
net
10 Employment taxes and
contributions
11
Self-employment taxes and
contributions 3
12 Unemployment insurance
13 Other net receipts 4
14
15
16
17

Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 5

l,090,449 r

519,165r

560,318'

540,474'

593,749'

70,753'

128,586'

80,639

467,827
404,152
32
142,693
79,050

475,979
408,352
30
149,430
81,834

234,939
210,552
1
33,296
8,910

236,576
198,868
20
110,995
73,308

246,954'
215,591
10
39,284'
7,929'

256,105
210,066
25
113,482
67,468

17,919
31,264
5
2,281
15,631

56,463
36,198
4
21,774
1,512

37,489
36,396
2
2,759
1,668

113,599
15,513

117,949
17,679

54,016
8,649

61,682
9,403

58,022
7,219

69,044
7,198

3,022
646

25,627
678

3,848
1,154

396,011

413,689

186,839

224,569

192,599

227,177

42,277

38,405

32,284

33,062

37,738

30,156
104
1,709
419

370,526

385,491

175,802

208,110

180,758

208,776

25,457
20,922
4,563

24,421
23,410
4,788

3,306
8,721
2,317

20,434
14,070
2,389

3,988
9,397
2,445

16,270
16,074
2,326

1,620
8,849
365

3,139
301
366

42,430
15,921
11,138
22,852

45,570
17,359
11,143
26,453r

24,429
8,694
5,507
13,390r

22,389
8,146
5,701
10,658r

23,456
9,497
5,733
l l ^

23,398
8,860
6,494
9,867'

3,502
1,419
1,009
2,252'

4,565
1,642
900
1,662'

4,214
1,761
944
1,252

1,323,785'

1,380,637r

694,345r

704,266'

723,365'

673,878'

107,717'

117,487'

120,216

298,361
16,106
16,409
4,509
20,017
14,997

147,669
7,691
8,472
1,698
11,130
7,418

147,065
8,540
7,951
1,442
8,594
7,526

155,501
9,911
8,521
3,109
11,601'
8,881

140,535
6,565
7,996
2,462
8,588
11,824

20,460
1,410
1,382
453
1,071
1,739

24,786
1,024
1,347
604
1,605
824

25,916
1,241
1,521
198
1,421
206

-2,523
3,273'
986

-2,014
3,250
962

OUTLAYS

18 All types
19
20
21
22
23
24

National defense
International affairs
General science, space, and technology .
Energy
Natural resources and environment
Agriculture

272,514
16,167
15,946
2,511
18,708
14,864

25
26
27
28

Commerce and housing credit
Transportation
Community and regional development ..
Education, training, employment, and
social services

75,639
31,531
7,432

9,753
33,759
7,923

36,534
17,074r
3,783

15,615
15,651r
3,903

-7,846'
18,464'
4,540

-15,112
16,077'
4,935

-1,896
2,399'
862

41,479

45,248

21,114

23,767

20,975'

23,983

3,433

3,820

3,113
8,023
37,670
18,665
4,289
1,350
340
17,159
-3,094

29 Health
30 Social security and Medicare
31 Income security

71,183
373,495
171,618

89,570
406,569
197,867

41,459
193,098
87,693

44,164
205,500
104,537

47,229'
232,109
98,632'

49,882
195,933
108,559

7,758
35,020
15,900

8,981
41,061
13,801

32
33
34
35
36

31,344
12,295
11,358
195,012
-39,356

34,133
14,450
12,939
199,429
-39,280

17,425
6,574
6,794
99,149
-20,436

15,597
7,435
5,050
100,161
-18,229

18,561
7,243'
8,183'
98,575'
-20,914

16,384
7,463
5,205
99,635
-17,035

801
1,199
886
17,420
-2,579

2,871
1,131
1,497
15,464
-3,065

Veterans benefits and services
Administration of justice
General government
Net interest 6
Undistributed offsetting receipts'

1. Functional details do not sum to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year
t o t i for outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.




5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Includes interest received by trust funds.
7. Consists of rents and royalties for the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1994.

A30 Domestic Financial Statistics • October 1993
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1991

1992

1993

Item
June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

1 Federal debt outstanding

3,563

3,683

3,820

3,897

4,001

4,083

4,196

4,250

n.a.

2 Public debt securities
3
Held by public
Held by agencies
4

3,538
2,643
895

3,665
2,746
920

3,802
2,833
969

3,881
2,918
964

3,985
2,977
1,008

4,065
3,048
1,016

4,177
3,129
1,048

4,231
3,188
1,043

4,352
n.a.
n.a.

25
25
0

18
18
0

19
19
0

16
16
0

16
16
0

18
18
0

19
19
0

20
20
0

3,450

3,569

3,707

3,784

3,891

3,973

4,086

4,140

4,256

3,450
0

3,569
0

3,706
0

3,783
0

3,890
0

3,972
0

4,085
0

4,139
0

4,256
0

4,145

4,145

4,145

4,145

4,145

4,145

4,145

4,145

4,370

5 Agency securities
6
Held by public
Held by agencies
7
8 Debt subject to statutory limit
9 Public debt securities
10 Other debt 1

n.a.
n.a.
n.a.

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

SOURCES. U.S. Department of the Treasury, Monthly Statement of the Public
Debt of the United States and Treasury Bulletin.

Types and Ownership

Billions of dollars, end of period
1992
Type and holder

1989

1990

1991

1993

1992
Q3

1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14

By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues
Government
Public
Savings bonds and notes..
Government account series
Non-interest-bearing

By holder 4
15 U.S. Treasury and other federal agencies and trust funds.
16 Federal Reserve Banks
17 Private investors
18 Commercial banks
19 Money market funds
20
Insurance companies
21
Other companies
22
State and local treasuries
Individuals
23
Savings bonds
24
Other securities

25

Foreign and international ..

26

Other miscellaneous investors

Q1

Q2

2,953.0

3,364.8

3,801.7

4,177.0

4,064.6

4,177.0

4,230.6

4,352.0

2,931.8
1,945.4
430.6
1,151.5
348.2
986.4
163.3
6.8
6.8
.0
115.7
695.6
21.2

3,362.0
2,195.8
527.4
1,265.2
388.2
1,166.2
160.8
43.5
43.5
.0
124.1
813.8
2.8

3,798.9
2,471.6
590.4
1,430.8
435.5
1,327.2
159.7
41.9
41.9
.0
135.9
959.2
2.8

4,173.9
2,754.1
657.7
1,608.9
472.5
1,419.8
153.5
37.4
37.4
.0
155.0
1,043.5
3.1

4,061.8
2,677.5
634.3
1,566.4
461.8
1,384.3
157.6
37.0
37.0
.0
148.3
1,011.0
2.8

4,173.9
2,754.1
657.7
1,608.9
472.5
1,419.8
153.5
37.4
37.4
.0
155.0
1,043.5
3.1

4,227.6
2,807.1
659.9
1,652.1
480.2
1,420.5
151.6
37.0
37.0
.0
161.4
1,040.0
3.0

4,349.0
2,860.6
659.3
1,698.7
487.6
1,488.4
152.8
43.0
43.0
.0
164.4
1,097.8
2.9

707.8
228.4
2,015.8
164.9
14.9
125.1
93.4
487.5

828.3
259.8
2,288.3
171.5
45.4
142.0
108.9
490.4

968.7
281.8
2,563.2
233.4
80.0
168.7
150.8
520.3

1,047.8
302.5
2,839.9
293.4
80.6
190.3
192.5
534.8

1,016.3
296.4
2,765.5
287.4
79.8
185.6
180.8
529.5

1,047.8
302.5
2,839.9
293.4
80.6
190.3
192.5
534.8

1,043.2
305.2
2,895.0
296.0
77.6
194.0
199.3
536.0

117.7
98.7
392.9
520.7

126.2
107.6
421.7
674.5

138.1
125.8
455.0
691.1

157.3
131.9
512.5
746.6

150.3
130.9
499.0
722.1

157.3
131.9
512.5
746.6

163.6
134.1
528.4
766.0

1. Includes (not shown separately) securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
2. Nonmarketable series denominated in dollars, and series denominated in
foreign currency held by foreigners.
3. Held almost entirely by U.S. Treasury and other federal agencies and trust
funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.




Q4

n.a.

5. Consists of investments of foreign balances and international accounts in the
United States.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally sponsored agencies.
SOURCES. U.S. Treasury Department, data by type of security, Monthly
Statement of the Public Debt of the United States; data by holder, Treasury
Bulletin.

Federal Finance
1.42

U.S. G O V E R N M E N T SECURITIES DEALERS

A31

Transactions 1

Millions of dollars, daily averages
1993, week ending

1993
Item

July 21

July 28

36,212

34,723

42,280
51,734
47,445
20,233
16,730

May"

Apr.

June

June 2

June 9

June 16

June 23

June 30

July 7

July 14

41,652

44,237

55,862"

44,212

44,523

35,942

47,620

41,568

IMMEDIATE TRANSACTIONS2

By type of security
U.S. Treasury securities
1 Bills
Coupon securities, by maturity
2
Less than 3.5 years
3 3.5 to 7.5 years
4
7.5 to 15 years
15 years or more
5
Federal agency securities
Debt, by maturity
6
Less than 3.5 years
7
3.5 to 7.5 years
8
7.5 years or more
Mortgage-backed
Pass-throughs
9
All others .
10

11
12
13
14
15
16

By type of counterparty
Primary dealers and brokers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
Customers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed

41,054r
r

36,657
42,456r
18,335r
15,130"

53,473
44,120
21,112
16,130

44,081
39,727
19,269
15,935

47,800
40,879
16,586
16,757

39,242
35,809
17,800
13,139

45,023
43,317
21,350
18,306

48,194
38,002
17,810
15,826

42,376
41,320
21,189
16,141

39,191
32,899
19,449
14,652

32,744
31,233
21,097
17,744

39,286
42,160
22,148
19,494

5,715
640
578

6,095
583
356

7,202
623
428

6,371
358
220

5,616
772
522

7,154
646
368

6,946
620
375

9,425
559
529

6,759
541
488

6,894
636
743

5,694
789
473

6,761
492
1,083

17,293
3,010r

18,498
3,073

17,147
2,949

14,214
2,302

19,781
2,776

22,913
2,752

12,933
2,861

14,136
3,664

15,048
2,697

28,818
4,057

19,670
3,044

17,026
3,463

95,038r

110,416

100,166

110,082"

93,090

106,410

96,279

100,919

89,398

84,300

97,930

113,877

1,155
8,855

1,019
9,560

1,143
8,997

1,035
7,970

1,005
9,713

1,147
12,487

907
7,053

1,554
7,145

979
7,984

1,247
14,663

949
11,065

924
9,106

58,594r

66,070

63,083

67,801

57,113

66,108

59,495

67,728

58,360

54,731

59,880

64,544

5,778
11,449"

6,015
12,012

7,110
11,099

5,914
8,547

5,905
12,844

7,020
13,178

7,033
8,741

8,959
10,655

6,809
9,761

7,026
18,213

6,007
11,648

7,412
11,383

2,378

2,594

3,179

2,434

3,636

3,331

3,779

2,268

2,650

2,270

3,007

2,368

1,942
1,384
2,377
9,025

1,929
1,749
3,054
10,425

1,931
1,940
2,990
9,234

2,100
2,793
3,318
10,012

2,113
2,366
3,280
9,236

1,785
1,744
3,408
10,820

2,121
1,806
2,471
8,247

1,638
1,502
2,670
8,320

2,124
1,114
2,501
9,928

1,885
1,123
2,268
10,453

2,286
1,185
2,966
12,465

2,075
1,746
2,908
12,746

102
128
33

149
75
15

222
54
84

219
20
9

112
34
10

340
51
175

236
42
85

199
104
98

26
113
7

208
34
17

54
134
14

53
130
23

21,378
1,463

19,570
1,753

23,633
1,456

17,298
1,551

26,016
1,434

27,446
1,280

21,243
1,068

22,362
2,003

23,177
1,644

28,714
1,403

21,086
2,845

21,447
2,353

1,611
564
507
1,084

1,127
685
522
1,202

1,003
438
570
799

733
325
562
804

783
420
288
814

1,426
677
903
859

1,117
482
421
767

793
220
673
752

1,598
808
1,013
1,816

1,551
812
1,042
3,512

1,721
775
828
1,343

1,311
884
1,239
2,981

664

460

600

569

871

461

411

671

853

533

479

344

FUTURES AND FORWARD
TRANSACTIONS4

By type of deliverable security
U.S. Treasury securities
17 Bills
Coupon securities, by maturity
18 Less than 3.5 years
19 3.5 to 7.5 years
7.5 to 15 years
20
15 years or more
21
Federal agency securities
Debt, by maturity
22
Less than 3.5 years
3.5 to 7.5 years
23
24
7.5 years or more
Mortgage-backed
Pass-throughs
25
Others 3
26
OPTIONS TRANSACTIONS5

27
28
29
30
31

By type of underlying security
U.S. Treasury, coupon
securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency, mortgagebacked securities
Pass-throughs

1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Averages are based on the number of trading
days in the period. Immediate, forward, and futures transactions are reported at
principal value, which does not include accrued interest; options transactions are
reported at the face value of the underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Transactions for immediate delivery include purchases or sales of securities
(other than mortgage-backed agency securities) for which delivery is scheduled in
five business days or less and "when-issued" securities that settle on the issue
date of offering. Transactions for immediate delivery of mortgage-backed agency
securities include purchases and sales for which delivery is scheduled in thirty business
days or less. Stripped securities are reported at market value by maturity of coupon or
corpus.
3. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest-only securities (IOs),




and principal-only securities (POs).
4. Futures transactions are standardized agreements arranged on an exchange.
Forward transactions are agreements made in the over-the-counter market that
specify delayed delivery. All futures transactions are included regardless of time
to delivery. Forward contracts for U.S. Treasury securities and federal agency
debt securities are included when the time to delivery is more than five business
days. Forward contracts for mortgage-backed agency securities are included
when the time to delivery is more than thirty business days.
5. Options transactions are purchases or sales of put-and-call options, whether
arranged on an organized exchange or in the over-the-counter market, and include
options on futures contracts on U.S. Treasury and federal agency securities.
NOTE. In tables 1.42 and 1.43, " n . a . " indicates that data are not published
because of insufficient activity.
Data for several types of options transactions—U.S. Treasury securities, bills;
Federal agency securities, debt; and federal agency securities, mortgage-backed,
other than pass-throughs—are no longer available because activity is insufficient.

A32

DomesticNonfinancialStatistics • October 1993

1.43 U.S. GOVERNMENT SECURITIES DEALERS

Positions and Financing1

Millions of dollars
1993

1993, week ending

item
Apr.

May

June

June 2

June 9

June 16

June 23

June 30

July 7

July 14

July 21

Positions 2
N E T IMMEDIATE POSITIONS 3

1

2
3
4
5
6
7
8
9
10
11
12
13

By type of security
U.S. Treasury securities
Bills
Coupon securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency securities
Debt, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 years or more
Mortgage-backed
Pass-throughs
All others
Other money market instruments
Certificates of deposit
Commercial paper
Bankers acceptances

18,483

7,999

5,000

10,408

-266

3,776

7,002

7,941

8,968

4,170

2,652

2,928
-17,023
-12,805
9,248

10,275
-19,900
-10,222
8,228

10,982
-16,778
-10,051
11,948

11,734
-20,726
-13,127
10,600

9,691
-20,498
-11,570
11,233

8,957
-16,896
-12,150
12,062

14,549
-14,357
-10,155
11,268

10,515
-14,235
-5,448
13,613

13,202
-14,839
-5,764
11,248

11,217
-17,558
-4,115
13,652

6,778
-18,842
-6,350
10,276

6,342
3,178
3,958

5,389
2,798
2,957

6,554
2,197
2,921

5,954
2,370
2,678

6,085
1,610
2,754

6,697
2,233
2,853

7,794
2,303
2,825

5,813
2,591
3,321

7,203
2,921
3,602

8,555
2,969
3,644

7,155
3,165
3,455

34,056
25,866

29,356
27,158

36,731
26,354

21,660
29,135

36,490
26,877

44,287
24,848

39,859
24,899

30,596
27,997

27,987
27,817

40,975
25,601

42,297
24,298

3,203
5,145
972

3,681
6,066
862

3,280
6,950
1,048

4,357
7,687
1,159

3,247
6,504
1,024

3,386
7,998
989

2,555
5,721
994

3,625
7,368
1,152

2,727
6,763
1,286

2,488
6,909
1,273

2,337
5,967
940

-7,951

-5,222

-5,751

-2,610

-2,373

-4,896

-8,102

-8,531

-6,953

-6,306

-6,912

-1,433
4,857
4,385
-5,103

-1,556
4,626
4,410
-4,613

-3,242
3,462
2,013
-6,175

-2,993
3,627
3,858
-5,101

-3,388
3,747
3,400
-5,277

-4,597
3,441
1,789
-6,256

-2,900
3,515
1,148
-6,188

-2,154
3,098
1,187
-7,285

-1,714
3,033
887
-5,065

-1,926
4,348
1,469
-7,885

-1,770
4,212
6,635
-5,054

-285
-50
-74

-209
-111
-85

38
-33
85

38
-133
-21

403
-102
-45

81
60
93

-104
-65
131

-229
3
190

30
-11
-28

122
19
27

56
-236

-12,900
4,770
-160,960

-6,916 r
1,773
-155,044

-15,024
1,764
- 149,623r

1,459
-837
-148,775

-13,453
977
-152,557

-20,674
1,930
-144,525

-17,761
2,615
-145,753

-12,916
2,278
-155,901

-9,915
1,565
-169,169

-24,769
756
-173,639

-25,928
4,754
-179,462

FUTURES AND FORWARD POSITIONS5

By type of deliverable security
U.S. Treasury securities
14 Bills
Coupon securities, by maturity
Less than 3.5 years
15
3.5 to 7.5 years
16
7.5 to 15 years
17
15 years or more
18
Federal agency securities
Debt, by maturity
Less than 3.5 years
19
3.5 to 7.5 years
20
7.5 years or more
21
Mortgage-backed
Pass-throughs
22
23
All others
24 Certificates of deposit

55

Financing6
Reverse repurchase agreements
25 Overnight and continuing
26 Term

223,214
393,238

223,931
373,495

221,171
370,986

229,404
342,400

223,498
375,852

228,081
394,328

217,109
392,882

213,645
329,050

235,842
383,677

247,901
414,509

248,270
404,744

Repurchase agreements
27 Overnight and continuing
28 Term

406,560
369,281

399,943
346,717

399,663
337,604

403,158
305,395

396,460
339,048

416,896
357,665

401,316
367,531

382,980
295,376

443,644
345,353

426,213
371,666

456,672
366,221

Securities borrowed
29 Overnight and continuing
30 Term

117,774
44,365

123,353
42,805

129,101
41,518

128,611
40,368

132,690
39,756

132,367
41,689

130,809
43,267

120,678
41,689

123,247
44,946

127,851
48,401

127,866
47,380

Securities loaned
31 Overnight and continuing
32 Term

4,762
587

5,055
938

4,774
639

5,007
518

4,311
360

4,997
793

4,662
665

5,058
772

5,200
806

4,721
561

4,937
752

Collateralized loans
33 Overnight and continuing

14,434

14,538

14,128r

12,630

14,508

16,428

14,579

11,427

13,600

18,267

16,190

MEMO: Matched book
Reverse repurchase agreements
34 Overnight and continuing
35 Term

148,137
341,856

146,741
321,698

149,942
317,835

156,812
293,069

152,901
320,084

155,918
339,480

152,407
336,714

136,578
282,136

151,832
335,783

157,774
362,514

168,241
350,445

Repurchase agreements
36 Overnight and continuing
37 Term

204,658
283,791

210,160
257,391

206,698
254,497

217,574
233,235

212,836
254,572

218,737
269,369

198,694
282,080

193,416
218,040

215,874
258,419

223,597
284,224

230,084
275,200

7

1. Data for positions and financing are obtained from reports submitted to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Weekly figures are close-of-business Wednesday data; monthly figures are averages of weekly data.
2. Securities positions are reported at market value.
3. Net immediate positions include securities purchased or sold (other than
mortgage-backed agency securities) that have been delivered or are scheduled to
be delivered in five business days or less and "when-issued" securities that settle
on the issue date of offering. Net immediate positions of mortgage-backed agency
securities include securities purchased or sold that have been delivered or are
scheduled to be delivered in thirty business days or less.
4. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest-only securities (IOs),
and principal-only securities (POs).
5. Futures positions reflect standardized agreements arranged on an exchange.
Forward positions reflect agreements made in the over-the-counter market that
specify delayed delivery. All futures positions are included regardless of time to




delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days.
Forward contracts for mortgage-backed agency securities are included when the
time to delivery is more than thirty business days.
6. Overnight financing refers to agreements made on one business day that
mature on the next business day; continuing contracts are agreements that remain
in effect for more than one business day but have no specific maturity and can be
terminated without advance notice by either party; term agreements have a fixed
maturity of more than one business day.
7. Matched-book data reflect financial intermediation activity in which the
borrowing and lending transactions are matched. Matched-book data are included
in the financing breakdowns given above. The reverse repurchase and repurchase
numbers are not always equal because of the "matching" of securities of different
values or different types of collateralization.
NOTE. Data for futures and forward commercial paper and bankers acceptances and
for term financing of collateralized loans are no longer available because of insufficient
activity.

Federal Finance
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES

A33

Debt Outstanding

Millions of dollars, end of period
1993
Agency

1988

1989

1990

1991
Jan.

1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department 1
Export-Import Bank 3
4
Federal Housing Administration 4
5
Government National Mortgage Association certificates of
6
participation
7
Postal Service 6
8 Tennessee Valley Authority
United States Railway Association 6
9
10 Federally sponsored agencies 7
Federal Home Loan Banks
11
Federal Home Loan Mortgage Corporation
12
Federal National Mortgage Association
13
14
Farm Credit Banks 8
Student Loan Marketing Association 9
15
16 Financing Corporation 10
Farm Credit Financial Assistance Corporation"
17
12
18 Resolution Funding Corporation

Feb.

Mar.

Apr.

May

381,498

411,805

434,668

442,772

487,331

494,739

494,656

0

0

35,668
8
11,033
150

35,664
7
10,985
328

42,159
7
11,376
393

41,035
7
9,809
397

41,641
7
7,208
231

42,115
7
7,208
237

42,051
7
6,749
259

42,619
7
6,749
263

42,738
7
6,749
271

0
6,142
18,335
0

0
6,445
17,899
0

0
6,948
23,435
0

0
8,421
22,401
0

0
10,660
23,535
0

0
10,660
24,003
0

0
10,440
24,5%
0

0
10,440
25,160
0

0
10,440
25,271
0

345,832
135,836
22,797
105,459
53,127
22,073
5,850
690
0

375,428
136,108
26,148
116,064
54,864
28,705
8,170
847
4,522

392,509
117,895
30,941
123,403
53,590
34,194
8,170
1,261
23,055

401,737
107,543
30,262
133,937
52,199
38,319
8,170
1,261
29,996

445,690
113,253
34,479
165,958
52,264
39,812
8,170
1,261
29,996

452,624
113,347
44,490
163,538
51,502
39,822
8,170
1,261
29,996

452,605
115,272
41,183
165,818
51,630
38,776
8,170
1,261
29,996

0
117,363
47,903
165,135
51,210
0
8,170
1,261
29,9%

0
120,172
46,555
170,768
51,538
0
0
0
0

142,850

134,873

179,083

185,576

151,059

147,464

146,097

140,807

137,215

11,027
5,892
4,910
16,955
0

10,979
6,195
4,880
16,519
0

11,370
6,698
4,850
14,055
0

9,803
8,201
4,820
10,725
0

7,202
10,440
4,790
6,825
0

7,202
10,440
4,790
6,825
0

6,743
10,440
4,790
6,675
0

6,743
10,440
4,790
6,675
0

6,743
10,440
4,790
6,575
0

58,496
19,246
26,324

53,311
19,265
23,724

52,324
18,890
70,896

48,534
18,562
84,931

42,979
18,037
60,786

42,979
18,036
57,192

42,979
17,966
56,504

41,629
18,008
52,522

40,379
17,970
50,318

MEMO

19 Federal Financing Bank debt13
20
21
22
23
24

Lending to federal and federally sponsored agencies
Export-Import Bank 3
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6

Other lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other

1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. On-budget since Sept. 30, 1976.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal year 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration, the Department of Health, Education, and Welfare, the Department of
Housing and Urban Development, the Small Business Administration, and the
Veterans' Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown on line 17.
9. Before late 1982, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 22.




10. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January
1988 to provide assistance to the Farm Credit System, undertook its first
borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform, Recovery and Enforcement Act of 1989, undertook its first
borrowing in October 1989.
13. The FFB, which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Because FFB
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
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.

A34

DomesticNonfinancialStatistics • October 1993

1.45 NEW SECURITY ISSUES

Tax-Exempt State and Local Governments

Millions of dollars
1992
Type of issue or issuer,
or use

1990

1991

1993

1992
Dec.

1 All issues, new and refunding'

120,339

Feb.

Mar.

Apr.

May

June

July

19,577

154,402 215,191

Jan.
18,039

18,285

28,920

20,956

27,178

28,529

21,603

By type of issue
2 General obligation
3 Revenue

39,610
81,295

55,100
99,302

78,611
136,580

6,024
13,553

4,840
13,199*

6,963
ll,322 r

8,254
20,666r

8,272
12,684r

9,452
17,726r

8,415
20,114r

7,713
13,890

By type of issuer
4 State
5 Special district or statutory authority 2
6 Municipality, county, or township

15,149
72,661
32,510

24,939
80,614
48,849

25,295
129,686r
60,210

2,339
11,159
6,079

1,339
12,706r
3,994

3,485
10,146r
4,654

2,139
19,804r
6,977

1,463
9,923r
9,570

2,910
15,441r
8,827

3,562
18,132r
6,835

2,944
10,043
8,616

116,953 120,272

8,010

l,734 r

2,270r

3,289r

l,527 r

2,960r

3,484r

7,737

1,658
831
1,258
1,121
339
2,803

1,033
829
894
777
337
2,005

1,264
131
423
618
69
2,131

1,482
2,111
538
1,556
765
3,264

833
699
806
942
134
1,971

1,596
813
955
1,756
601
3,665

2,208
772
1,629
2,073
1,042
3,046

1,723
653
922
1,555
492
2,455

7 Issues for new capital
8
9
10
11
12
13

103,235

By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes

17,042
11,650
11,739
23,099
6,117
34,607

21,121
13,395
21,039
25,648
8,376
30,275

22,071
17,334
20,058
21,796
5,424
33,589

1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.

1.46 NEW SECURITY ISSUES

SOURCES. Securities Data Company beginning January 1993;
Dealer's Digest before then.

Investment

U.S. Corporations

Millions of dollars
1992
Type of issue, offering,
or issuer

1990

1991

1993

1992
Nov.

1 All issues'
2 Bonds

2

340,049

465,243

n.a.

Dec.

Jan.

Feb.

Mar.

35,525

39,424

50,692

59,427

56,284r
r

Apr.

May

June

40,173r

42,951r

65,440

r

34,253r

55,646

299,884

389,822

471,125

31,026

33,375

45,458

49,367

47,446

188,848
86,982
23,054

286,930
74,930
27,962

377,681
65,853
27,591

28,774
n.a.
2,252

31,835
n.a.
1,540

41,575
n.a.
3,884

47,084
n.a.
2,283

42,243r
n.a.
5,203

30,718r
n.a.
3,204r

30,924r
n.a.
3,329r

51,146
n.a.
4,500

51,779
40,733
12,776
17,621
6,687
170,288

86,628
36,666
13,598
23,945
9,431
219,750

81,998
42,869
9,979
48,055
15,394
272,830

3,467
2,396
0
1,289
374
23,499

4,232
2,176
611
2,867
516
22,973

9,393
3,074
316
4,282
3,019
25,374

8,150
2,268
248
5,624
2,890
30,187

8,137r
2,695
1,067
7,058
3,270
25,220r

6,234
2,194
123
5,767r
2,015
17,588r

3,690r
3,015r
685r
2,857r
1,820*
22,186r

8,292
2,505
948
5,812
2,473
35,616

12 Stocks2

40,175

75,424

n.a.

4,499

6,049

5,234

10,060

8,838

6,251

8,698

9,794

By type of offering
13 Public preferred
14 Common
15 Private placement 3

3,998
19,442
16,736

17,085
48,230
10,109

21,332
57,099
n.a.

1,540
2,958
n.a.

1,608
4,441
n.a.

1,112
4,122
n.a.

1,898
8,161
n.a.

1,647
7,191
n.a.

702
5,549
n.a.

3,124
5,574
n.a.

876
8,918
n.a.

5,649
10,171
369
416
3,822
19,738

24,111
19,418
2,439
3,474
475
25,507

n.a.
n.a.
n.a.
n.a.
n.a.
n.a.

288
1,366
304
150
22
2,369

1,468
2,226
118
92
126
2,019

722
1,688
65
310
0
2,438

2,616
2,021
64
350
0
5,009

1,741
2,488
336
743
7
3,522

1,387
1,564
250
412
30
2,579

1,413
2,836
111
753
279
3,307

1,982
2,025
168
893
65
4,660

By type of offering
3 Public, domestic
4 Private placement, domestic 3
5 Sold abroad
6
7
8
9
10
11

16
17
18
19
20
21

By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial

By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial

1. Figures represent gross proceeds of issues maturing in more than one year;
they are the principal amount or number of units calculated by multiplying by the
offering price. Figures exclude secondary offerings, employee stock plans,
investment companies other than closed-end, intracorporate transactions, equities sold abroad, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.




33,922

2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCES. IDD Information Services, Inc., Securities Data Company, and the
Board of Governors of the Federal Reserve System.

Securities Market and Corporate Finance

A35

Net Sales and Assets 1

1.47 OPEN-END INVESTMENT COMPANIES
Millions of dollars

1992
Item

1991

1993

1992
Nov.

Dec.

Jan.

Feb.

Apr.

Mar.

May r

June

1 Sales of own shares 2

463,645

647,055

52,019

70,618

71,607

60,676

69,080

66,766

60,504

68,371

2 Redemptions of own shares
3 Net sales

342,547
121,098

447,140
199,915

34,126
17,893

51,993
18,625

46,545
25,062

39,684
20,992

47,414
21,666

46,518
20,248

38,752
21,759

46,794
21,577

4 Assets4

808,582

1,056,310

1,019,618

1,056,310

1,082,653

1,116,784

1,154,445

1,178,663

1,219,863

1,253,476

5 Cash 5
6 Other

60,292
748,290

73,999
982,311

80,247
939,371

73,999
982,311

76,764
1,005,889

79,763
1,037,021

81,536
1,072,910

87,140
1,091,523

85,677
1,134,186

84,419
1,169,051

1. Data on sales and redemptions exclude money market mutual funds but
include limited-maturity municipal bond funds. Data on asset positions exclude
both money market mutual funds and limited-maturity municipal bond funds.
2. Includes reinvestment of net income dividends. Excludes reinvestment of
capital gains distributions and share issue of conversions from one fund to another
in the same group.
3. Excludes sales and redemptions resulting from transfers of shares into or out
of money market mutual funds within the same fund family.

4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership,
which comprises substantially all open-end investment companies registered with
the Securities and Exchange Commission. Data reflect underwritings of new
companies.

1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1991
Account

1990

1991

1993

1992

1992
Q3

Q4

Q1

Q2

Q3

Q4

Ql

Q2

1 Profits with inventory valuation and
capital consumption adjustment
2 Profits before taxes
3 Profits tax liability
4 Profits after taxes
5
Dividends
6
Undistributed profits

361.7
355.4
136.7
218.7
149.3
69.4

346.3
334.7
124.0
210.7
146.5
64.2

393.8
371.6
140.2
231.4
149.3
82.1

341.2
336.7
127.0
209.6
145.1
64.5

347.1
332.3
125.0
207.4
143.9
63.4

384.0
366.1
136.4
229.7
143.6
86.2

388.4
376.8
144.1
232.7
146.6
86.1

374.1
354.1
131.8
222.2
151.1
71.1

428.5
389.4
148.5
241.0
155.9
85.0

424.2
393.0
147.2
245.7
160.2
85.5

n.a.
n.a.
n.a.
n.a.
161.1
n.a.

7 Inventory valuation
8 Capital consumption adjustment

-14.2
20.5

3.1
8.4

-7.4
29.5

-4.8
9.3

.7
14.1

-5.4
23.3

-15.5
27.0

-9.7
29.7

1.0
38.1

-9.4
40.6

-16.6
42.6

SOURCE. U.S. Department of Commerce, Survey of Current Business.

1.50 NONFARM BUSINESS EXPENDITURES

New Plant and Equipment

Billions of dollars; quarterly data at seasonally adjusted annual rates
1991
Industry

1991

1992

1992

1993

19931
Q4

Ql

Q2

Q3

Q4

Ql

Q2

Q31

1 Total nonfarm business

528.39

546.08

581.12

529.87

535.72

540.91

547.53

560.16

564.81

587.29

587.05

Manufacturing
2 Durable goods industries
3 Nondurable goods industries

77.64
105.17

73.41
100.50

77.49
100.74

76.40
102.66

74.19
99.79

74.26
97.52

71.84
100.39

73.34
104.28

79.32
95.85

78.06
104.73

75.01
102.17

10.02

8.90

9.51

9.99

8.87

9.18

9.09

8.44

8.84

10.10

10.15

5.95
10.17
6.54

6.77
8.97
7.04

6.71
7.50
9.12

5.44
10.41
6.45

6.65
8.86
6.37

6.50
9.75
7.27

6.87
10.13
7.69

7.08
7.13
6.84

6.01
7.43
9.06

6.68
8.89
8.42

6.87
7.59
9.09

43.76
22.82
246.32

48.05
23.91
268.54

52.75
22.99
294.32

44.75
22.67
251.11

46.06
22.75
262.17

48.45
24.19
263.80

47.73
23.92
269.86

49.95
24.78
278.32

49.87
23.44
284.99

54.11
23.58
292.72

53.66
22.54
299.96

Nonmanufacturing
4 Mining
Transportation
Railroad
5
6
Air
Other
7
Public utilities
8
Electric
9
Gas and other
10 Commercial and o t h e r

1. Figures are amounts anticipated by business.
2. "Other" consists of construction, wholesale and retail trade, finance and




insurance, personal and business services, and communication.
SOURCE. U.S. Department of Commerce, Survey of Current Business.

A36

DomesticNonfinancialStatistics • October 1993

1.51

DOMESTIC FINANCE COMPANIES

A s s e t s and Liabilities 1

Billions of dollars, end of period; not seasonally adjusted
1991
Account

1990

1991

1992

1993

1992
Q3

Q4

Ql

Q2

Q3

Q4

Qlr

ASSETS

1 Accounts receivable, gross 2
2
Consumer
3
Business
4
Real estate

492.3
133.3
293.6
65.5

480.6
121.9
292.9
65.8

482.1
117.1
296.5
68.4

485.2
125.3
293.7
66.2

480.6
121.9
292.9
65.8

475.6
118.4
290.8
66.4

476.7
116.7
293.2
66.8

473.9
116.7
288.5
68.8

482.1
117.1
296.5
68.4

469.6
111.9
289.6
68.1

57.6
9.6

55.1
12.9

50.8
15.8

57.6
13.1

55.1
12.9

53.6
13.0

51.2
12.3

50.8
12.0

50.8
15.8

47.4
15.5

7 Accounts receivable, net
8 All other

425.1
113.9

412.6
149.0

415.5
150.6

414.6
136.4

412.6
149.0

409.0
145.5

413.2
139.4

411.1
146.5

415.5
150.6

406.6
155.0

9 Total assets

539.0

561.6

566.1

551.1

561.6

554.5

552.6

557.6

566.1

561.6

31.0
165.3

42.3
159.5

37.6
156.4

39.6
156.8

42.3
159.5

38.0
154.4

37.8
147.7

38.1
153.2

37.6
156.4

34.1
149.8

n.a.
n.a.
37.5
178.2
63.9
63.7

n.a.
n.a.
34.5
191.3
69.0
64.8

n.a.
n.a.
37.8
195.3
71.2
67.8

n.a.
n.a.
36.5
185.0
68.8
63.8

n.a.
n.a.
34.5
191.3
69.0
64.8

n.a.
n.a.
34.5
189.8
72.0
66.0

n.a.
n.a.
34.8
191.9
73.4
67.1

n.a.
n.a.
34.9
191.4
73.7
68.1

n.a.
n.a.
37.8
195.3
71.2
67.8

n.a.
n.a.
41.9
195.1
74.2
66.6

539.6

561.2

566.1

550.5

561.2

554.6

552.7

559.4

566.1

561.7

Apr.

May

June

5 LESS: Reserves for unearned income
6
Reserves for losses

LIABILITIES AND CAPITAL

10 Bank loans
11 Commercial paper
12
13
14
15
16
17

Debt
Other short-term
Long-term
Owed to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits

18 Total liabilities and capital

1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are amounts carried on the balance sheets of finance
companies; securitized pools are not shown, as they are not on the books.

1.52

DOMESTIC F I N A N C E COMPANIES

2. Before deduction for unearned income and losses,

Consumer, Real Estate, and Business Credit 1

Millions of dollars, amounts outstanding, end of period
1993
Type of credit

1990

1991

1992
Jan.

Feb.

Mar.

Seasonally adjusted
1 Total

522,474

519,910

534,845

529,256

531,398

528,046 r

529,552 r

523,111

522,981

2 Consumer
3 Real estate 2
4 Business

160,468
65,147
296,858

154,822
65,383
299,705

157,707
68,011
309,127

156,551
68,942
303,763

157,733
70,016
303,649

156,257r
68,726
303,062 r

156,441r
69,803
303,308 r

153,275
66,396
303,440

152,979
67,223
302,778

Not seasonally adjusted
5 Total
6 Consumer
7
Motor vehicles
8
Other c o n s u m e r
9
Securitized motor vehicles 4
10
Securitized other consumer 4
11 Real estate 2
12 Business
13
Motor vehicles
14
Retail5...,
15
Wholesale 6
16
Leasing
17
Equipment
18
Retail
19
Wholesale 6
20
Leasing
21
Other business 7
22
Securitized business assets 4
23
Retail
24
Wholesale
25
Leasing

525,888

523,192

538,158

528,847

528,490

528,172 r

531,380'

524,180

161,360
75,045
58,213
19,837
8,265
65,509
299,019
92,125
26,454
33,573
32,098
137,654
31,968
11,101
94,585
63,773
5,467
667
3,281
1,519

155,713
63,415
58,522
23,166
10,610
65,760
301,719
90,613
22,957
31,216
36,440
141,399
30,962
9,671
100,766
60,900
8,807
576
5,285
2,946

158,631
57,605
59,522
29,775
11,729
68.410
311,118
87,456
19,303
29,962
38,191
151,607
32,212
8,669
110,726
57,464
14,590
1,118
8,756
4,716

156,430
57,165
58,844
28,894
11,527
68,889
303,527
86,491
19,124
28,727
38,640
146,820
32,458
8,582
105,780
55,760
14,457
1,036
8,582
4,839

155,929
54,036
58,651
32,860
10,383
69,216
303,345
86,412
17,881
30,059
38,472
145,886
32,430
8,318
105,138
55,962
15,085
973
9,408
4,704

154,913r
53,508
58,346
32,904 r
10,155r
68,135
305,123 r
87,542 r
16,961
31,788 r
38,792
145,878
32,560
8,656
104,662
56,153
15,551r
904
9,824
4,823 r

155,440r
53,977
58,546
32,527 r
10,390r
69,356
306,584 r
88,692 r
17,228
32,064 r
39,400
145,877
32,170
8,642
105,066
56,144
15,870
1,434
9,745
4,691

152,708
53,878
55,433
33,174
10,223
66,150
305,322
89,317
16,513
32,242
40,562
145,237
32,384
8,556
104,297
54,487

1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are before deductions for unearned income and losses.
Data in this table also appear in the Board's G.20 (422) monthly statistical release.
For ordering address, see inside front cover.
2. Includes all loans secured by liens on any type of real estate, for example,
first and junior mortgages and home equity loans.
3. Includes personal cash loans, mobile home loans, and loans to purchase other
types of consumer goods such as appliances, apparel, general merchandise, and
recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these
forbalances are no longer carried on the balance sheets of the loan originator.
FRASER

Digitized


16,281

1,375
9,590
5,316

5. Passenger car fleets and commercial land vehicles for which licenses are
required.
6. Credit arising from transactions between manufacturers and dealers, that is,
floor plan financing.
7. Includes loans on commercial accounts receivable, factored commercial
accounts, and receivable dealer capital; small loans used primarily for business or
farm purposes; and wholesale and lease paper for mobile homes, campers, and
travel trailers.

Real Estate
1.53 MORTGAGE MARKETS

A37

Mortgages on New Homes

Millions of dollars except as noted
1993
1990

1991
Apr.

May

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)'

155.0
114.0
75.0
26.8
1.71

158.1
118.1
76.6
25.6
1.60

158.6
119.5
76.8
25.7
1.49

159.7
114.5
75.4
23.8
1.43

156.2
121.5
79.3
26.9
1.50

150.9
115.0
78.5
24.9
1.23

153.1
118.8
79.5
26.9
1.43

185.6
125.3
75.3
25.4
1.32

168.7
127.4
77.8
26.2
1.28

9.68
10.01
10.08

9.02
9.30
9.20

7.98
8.25
8.43

7.57
7.82
7.93

7.52
7.77
7.63

7.22
7.46
7.59

7.26
7.46
7.51

7.14
7.37
7.59

7.02
7.23
7.33r

6.99
7.20
7.31

10.17
9.51

Yield (percent per year)
6 Contract rate 1 ,
7 Effective rate 1 ' 3
8 Contract rate (HUD series) 4

153.2
112.4
74.8
27.3
1.93

9.25
8.59

8.46
7.77

8.04
7.39

7.55
7.02

7.57
6.79

7.56
6.77

7.59
6.79

7.52r
6.75

7.51
6.55

SECONDARY MARKETS

Yield (percent per year)
9 FHA mortgages (Section 203)5
10 GNMA securities 6

Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION

Mortgage holdings (end of period)
11 Total

113,329
21,028
92,302

122,837
21,702
101,135

142,833
22,168
120,664

159,204
22,640
136,564

159,766
22,573
137,193

161,147
22,700
138,447

163,719
22,682
141,037

166,849
22,691
144,158

171,232
22,656
148,576

174,674
22,761
151,913

Mortgage transactions (during period)
14 Purchases

23,959

37,202

75,905

4,993

4,118

4,730

6,761

7,526

9,131

7,854

Mortgage commitments (during period)
15 Issued 7 ,
16 To sell 8

23,689
5,270

40,010
7,608

74,970
10,493

4,189
1,159

4,177
221

6,644
0

7,764
112

7,791
30

8,697
323

7,760
458

20,419
547
19,871

24,131
484
23,283

29,959
408
29,552

32,370
347
32,023

32,454
343
32,112

35,421
337
35,084

38,361
330
38,031

39,960
325
39,635

42,477
319
42,158

43,119
314
42,805

75,517
73,817

99,965r
92,478

191,125
179,208

15,512
16,536

12,063
12,105

12,587
10,286

15,885
13,807

18,842
17,532

21,529
18,968r

19,700
18,631

102,401

114,031

261,637

17,591

23,366

21,103

20,731

18,908

28,831

21,722

12

F H A / V A insured

13

Conventional

'

FEDERAL HOME LOAN MORTGAGE CORPORATION

Mortgage holdings (end of period)*
17 Total
18

F H A / V A insured

19

Conventional

Mortgage transactions (during period)
20 Purchases
21 Sales
Mortgage commitments (during period)9
22 Contracted

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 thirtyyear mortgages insured by the Federal Housing Administration or guaranteed by
the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal
Home Loan Mortgage Corporation's mortgage commitments and mortgage transactions include activity under mortgage securities swap programs, whereas the
corresponding data for FNMA exclude swap activity.

A38

DomesticNonfinancialStatistics • October 1993

1.54 MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1992
Type of holder and property

1989

1990

1993

1991
Ql

Q2

Q3

Q4

Qlp

1 All holders

3,537,301

3,751,476

3,890,830

3,933,754

3,967,017

4,003,714

4,035,405

4,059,391

By type of property
2 One- to four-family residences
3 Multifamily residences
4 Commercial
5

2,392,742
307,045
757,038
80,476

2,597,175
310,095
765,458
78,748

2,741,824
307,944
761,782
79,281

2,788,987
308,514
753,578
82,676

2,833,318
304,104
746,357
83,237

2,887,877
300,728
731,407
83,702

2,940,165
293,376
718,910
82,953

2,976,623
289,202
710,208
83,359

1,931,537
767,069
389,632
38,876
321,906
16,656
910,254
669,220
106,014
134,370
650
254,214
12,231
26,907
205,472
9,604

1,914,315
844,826
455,931
37,015
334,648
17,231
801,628
600,154
91,806
109,168
500
267,861
13,005
28,979
215,121
10,756

1,846,910
876,284
486,572
37,424
333,852
18,436
705,367
538,358
79,881
86,741
388
265,258
11,547
29,562
214,105
10,044

1,825,983
880,377
492,910
37,710
330,837
18,919
682,338
524,536
77,166
80,278
358
263,269
11,214
29,693
212,865
9,497

1,803,488
884,598
496,518
38,314
330,229
19,538
659,624
508,545
74,788
75,947
345
259,266
10,676
29,425
210,139
9,026

1,793,505
891,484
506,658
38,985
325,934
19,906
648,178
501,604
73,723
72,517
334
253,843
10,451
28,804
205,709
8,878

1,769,058
894,549
511,976
38,011
324,681
19,882
627,972
489,622
69,791
68,235
324
246,537
10,158
27,997
199,943
8,439

1,750,365
888,395
508,4%
37,814
322,166
19,919
620,755
486,126
67,491
66,812
327
241,214
9,830
27,454
195,816
8,114

22 Federal and related agencies
23
Government National Mortgage Association
24
One- to four-family
25
Multifamily
26
Farmers Home Administration
27
One- to four-family
28
Multifamily
29
Commercial
30
Farm
31
Federal Housing and Veterans' Administrations
32
One- to four-family
33
Multifamily
34
Resolution Trust Corporation
35
One- to four-family
36
Multifamily
37
Commercial
38
Farm
39
Federal National Mortgage Association
40
One- to four-family
41
Multifamily
42
Federal Land Banks
43
One- to four-family
44
Farm
45
Federal Home Loan Mortgage Corporation
46
One- to four-family
47
Multifamily

197,778
23
23
0
41,176
18,422
9,054
4,443
9,257
6,087
2,875
3,212
0
0
0
0
0
99,001
90,575
8,426
29,640
1,210
28,430
21,851
18,248
3,603

239,003
20
20
0
41,439
18,527
9,640
4,690
8,582
8,801
3,593
5,208
32,600
15,800
8,064
8,736
0
104,870
94,323
10,547
29,416
1,838
27,577
21,857
19,185
2,672

266,146
19
19
0
41,713
18,496
10,141
4,905
8,171
10,733
4,036
6,697
45,822
14,535
15,018
16,269
0
112,283
100,387
11,896
28,767
1,693
27,074
26,809
24,125
2,684

278,396
19
19
0
41,791
18,488
10,270
4,961
8,072
11,332
4,254
7,078
49,345
15,458
16,266
17,621
0
118,238
105,869
12,369
28,776
1,693
27,083
28,895
26,182
2,713

278,091
23
23
0
41,628
17,718
10,356
4,998
8,557
11,480
4,403
7,077
44,624
15,032
13,316
16,276
0
122,939
110,223
12,716
28,775
1,693
27,082
28,621
26,001
2,620

277,485
27
27
0
41,671
17,292
10,468
5,072
8,839
11,768
4,531
7,236
37,099
12,614
11,130
13,356
0
126,476
113,407
13,069
28,815
1,695
27,119
31,629
29,039
2,591

285,965
30
30
0
41,695
16,912
10,575
5,158
9,050
12,581
5,153
7,428
32,045
12,960
9,621
9,464
0
137,584
124,016
13,568
28,365
1,669
26,696
33,665
31,032
2,633

288,199
45
37
8
41,724
16,418
10,679
5,226
9,402
13,950
6,159
7,791
27,331
11,375
8,070
7,886
0
141,192
127,252
13,940
28,536
1,679
26,857
35,421
32,831
2,589

48 Mortgage pools or trusts 5
49 Government National Mortgage Association
50
One- to four-family
51
Multifamily
52
Federal Home Loan Mortgage Corporation
53
One- to four-family
54
Multifamily
55
Federal National Mortgage Association
56
One- to four-family
57
Multifamily
58
Farmers Home Administration
59
One- to four-family
60
Multifamily
61
Commercial
62
Farm
63
Private mortgage conduits
64
One- to four-family
65
Multifamily
66
Commercial
67
Farm

917,848
368,367
358,142
10,225
272,870
266,060
6,810
228,232
219,577
8,655
80
21
0
26
33
48,299
43,325
462
4,512
0

1,079,103
403,613
391,505
12,108
316,359
308,369
7,990
299,833
291,194
8,639
66
17
0
24
26
59,232
53,335
731
5,166
0

1,250,666
425,295
415,767
9,528
359,163
351,906
7,257
371,984
362,667
9,317
47
11
0
19
17
94,177
84,000
3,698
6,479
0

1,288,823
421,977
412,574
9,404
367,878
360,887
6,991
389,853
380,617
9,236
43
10
0
18
16
109,071
95,600
4,686
8,784
0

1,341,338
422,922
413,828
9,094
382,797
376,177
6,620
413,226
403,940
9,286
43
9
0
18
15
122,350
105,700
5,796
10,855
0

1,385,460
422,255
413,063
9,192
391,762
385,400
6,362
429,935
420,835
9,100
41
9
0
18
14
141,468
123,000
5,796
12,673
0

1,425,546
419,516
410,675
8,841
407,514
401,525
5,989
444,979
435,979
9,000
38
8
0
17
13
153,499
132,000
6,305
15,194
0

1,459,899
421,514
412,798
8,716
420,932
415,279
5,654
457,316
448,483
8,833
36
7
0
17
13
160,100
137,000
6,858
16,242
0

68 Individuals and others 6
69
One- to four-family
70
Multifamily
Commercial
71
72
Farm

490,138
303,181
84,800
86,310
15,846

519,055
330,378
86,695
87,905
14,077

527,108
327,704
84,842
99,411
15,150

540,552
338,676
84,932
98,213
18,732

544,100
342,832
84,698
97,896
18,675

547,263
348,252
84,272
96,129
18,610

554,836
356,451
83,617
96,218
18,549

560,929
362,853
83,306
%,043
18,727

By type of holder
6 Major financial institutions
7 Commercial banks
8
One- to four-family
9
Multifamily
10
Commercial
11
Farm
12 Savings institutions
One- to four-family
13
14
Multifamily
15
Commercial
16
Farm
17 Life insurance companies
18
One- to four-family
19
Multifamily
20
Commercial
21
Farm

1. Based on data from various institutional and governmental sources; figures
for some quarters estimated in part by the Federal Reserve. Multifamily debt
refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by
bank trust departments.
3. Includes savings banks and savings and loan associations.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were
reallocated from 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.




6. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and finance companies.
SOURCES. Based on data from various institutional and government sources,
with figures for some quarters estimated in part by the Federal Reserve in
conjunction with the Federal Home Loan Bank Board and the U.S. Department
of Commerce. Separation of nonfarm mortgage debt by type of property, if not
reported directly, and interpolations and extrapolations, when required, are
estimated mainly by the Federal Reserve. Line 64, from Inside Mortgage Securities.

Consumer Installment

Credit

A39

1.55 CONSUMER INSTALLMENT CREDIT1
Millions of dollars, amounts outstanding, end of period
1993
Holder and type of credit

1990

1991

1992
Jan.

Mar.

Feb.

May r

Apr.

June

Seasonally adjusted
1 Total

738,765

733,510

741,093

743,584r

747,228r

750,151"

751,619r

750,867

758,537

2 Automobile
3 Revolving
4 Other

284,739
222,552
231,474

260,898
243,564
229,048

259,627
254,299
227,167

258,737"
255,984"
228,863"

261,434"
258,384"
227,410"

262,324"
259,661"
228,166"

261,826
260,968"
228,824"

264,008
261,520
225,338

266,209
264,379
227,949

Not seasonally adjusted
752,883

749,052

756,944

748,530r

745,374"

743,153"

745,882"

745,356

754,907

By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
Pools of securitized assets

347,087
133,258
93,057
43,464
52,164
4,822
79,030

340,713
121,937
92,681
39,832
45,965
4,362
103,562

331,869
117,127
97,641
42,079
43,461
4,365
120,402

330,355
116,009
98,261
40,057
42,805"
4,366
116,677

330,060
112,686
98,785
38,462
41,976"
4,148
119,257

329,764
111,854
99,778
38,030
41,695"
4,080
117,952

331,649
112,523
101,534
38,218
40,378"
4,280
117,300

333,314
109,311
103,019
38,681
40,079
4,486
116,466

339,215
111,330
104,766
38,813
39,864
4,614
116,305

By major type of credit3
13 Automobile
14 Commercial banks
15
Finance companies
16 Pools of securitized assets 2

284,903
124,913
75,045
24,620

261,219
112,666
63,415
28,915

259,964
109,743
57,605
33,878

258,017"
109,671
57,165
32,388

259,830"
111,005
54,036
36,031

259,956"
111,287
53,508
36,096

260,224
111,351
53,977
36,178

262,861
113,322
53,878
36,431

266,166
116,006
55,592
34,701

17 Revolving
18 Commercial banks
19 Retailers
20
Gasoline companies
Pools of securitized assets 2
21

234,801
133,385
38,448
4,822
45,637

256,876
138,005
34,712
4,362
63,595

267,949
132,582
36,629
4,365
74,243

260,758"
129,567
34,666
4,366
71,927

257,440"
127,877
33,110
4,148
72,024

256,233"
128,079
32,681
4,080
70,890

257,308"
129,464
32,838
4,280
69,919

258,410
130,531
33,254
4,486
69,054

262,024
131,824
33,328
4,614
70,842

22 Other
Commercial banks
23
24
Finance companies
25
Retailers
Pools of securitized assets 2
26

233,178
88,789
58,213
5,016
8,773

230,957
90,042
58,522
5,120
11,052

229,031
89,544
59,522
5,450
12,281

229,755"
91,117
58,844
5,391
12,362

228,105"
91,178
58,651
5,352
11,202

226,964"
90,398
58,346
5,349
10,966

228,350"
90,834
58,546
5,380
11,203

224,085
89,461
55,433
5,427
10,981

226,716
91,385
55,737
5,485
10,762

5 Total
6
7
8
9
10
11
12

1. The Board's series on amounts of credit covers most short- and
intermediate-term credit extended to individuals that is scheduled to be repaid (or
has the option of repayment) in two or more installments.
Data in this table also appear in the Board's G.19 (421) monthly statistical
release. For ordering address, see inside front cover.

2. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit
totals are available.

1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent per year except as noted
1992
Item

1990

1991

1993

1992
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

INTEREST RATES

Commercial banks2
48-month new car
24-month personal
120-month mobile home
Credit card

11.78
15.46
14.02
18.17

11.14
15.18
13.70
18.23

9.29
14.04
12.67
17.78

n.a.
n.a.
n.a.
n.a.

n.a.
n.a.
n.a.
n.a.

8.57
13.57
12.38
17.26

n.a.
n.a.
n.a.
n.a.

n.a.
n.a.
n.a.
n.a.

8.17
13.63
12.00
17.15

n.a.
n.a.
n.a.
n.a.

Auto finance companies
5 New car
6 Used car

12.54
15.99

12.41
15.60

9.93
13.80

9.65
13.66

10.08
13.72

10.32
13.90

9.95
13.21

9.61
12.74

9.51
12.61

9.45
12.55

54.6
46.0

55.1
47.2

54.0
47.9

53.6
47.7

53.9
49.2

54.3
49.0

54.6
49.0

54.5
48.9

54.4
48.9

54.6
49.0

87
95

88
96

89
97

90
97

90
97

91
98

90
98

90
98

91
98

91
98

12,071
8,289

12,494
8,884

13,584
9,119

14,315
9,464

13,975
9,472

13,849
9,457

14,013
14,021
9,641 • 9,731

14,146
9,829

14,296
9,912

1
2
3
4

OTHER TERMS 3

Maturity (months)
7 New car
8 Used car
Loan-to-value ratio
9 New car
10 Used car
Amount financed (dollars)
11 New car
12 Used car

1. The Board's series on amounts of credit covers most short- and intermediate-term credit extended to individuals that is scheduled to be repaid (or has the
option of repayment) in two or more installments. Data in this table also appear in
the Board's G.19 (421) monthly statistical release. For ordering address, see
inside front cover.




2. Data are available for only the second month of each quarter,
3. At auto finance companies,

A40
1.57

DomesticNonfinancialStatistics • October 1993
F U N D S R A I S E D I N U . S . CREDIT M A R K E T S 1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1991
Transarfinn rafppnrv nr sprtnr

1993

1992

1988
Q3

Q4

Q1

Q2

Q3

Q4

Q1

Nonfinancial sectors

1 Total net borrowing by domestic nonfinancial sectors . . 775.8

740.8

665.0

461.0

574.4

411.5

403.8

672.2

560.3

486.7

578.2

539.2

By sector and instrument
2 U.S. government
Treasury securities
3
4
Agency issues and mortgages

155.1
137.7
17.4

146.4
144.7
1.6

246.9
238.7
8.2

278.2
292.0
-13.8

304.0
303.8
.2

288.4
317.2
-28.8

320.4
316.6
3.8

368.9
380.1
-11.2

351.9
351.5
.4

193.4
184.4
9.0

301.7
299.1
2.7

274.7
271.6
3.2

5 Private

620.7

594.4

418.2

182.8

270.4

123.1

83.4

303.3

208.5

293.2

276.5

264.4

6
7
8
9
10
11
12
13
14
15
16

By instrument
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit
Bank loans n.e.c
Open market paper
Other

53.7
103.1
317.3
241.8
16.7
60.8
-2.1
50.1
41.0
11.9
43.6

65.0
73.8
303.0
245.3
16.4
42.7
-1.5
41.7
40.2
21.4
49.3

51.2
47.1
244.0
219.4
3.7
21.0
-.1
17.5
4.4
9.7
44.2

45.8
78.8
138.5
144.6
-2.4
-4.3
.5
-13.1
-33.3
-18.4
-15.6

53.3
67.3
140.9
198.3
-14.6
-42.9
.1
9.3
-17.7
8.6
8.6

53.5
81.6
53.3
135.4
-36.3
-45.3
-.4
-24.8
-18.2
-36.3
13.8

45.5
60.2
106.3
128.4
10.2
-32.4
.0
-11.9
-65.3
-7.0
-44.3

52.0
76.3
194.1
225.0
2.4
-32.5
-.8
-2.0
-22.9
13.3
-7.5

73.0
77.8
96.5
140.9
-17.7
-28.9
2.2
-15.5
-22.9
-3.1
2.7

52.3
61.3
140.9
212.6
-13.6
-60.0
1.9
9.2
-4.5
.5
33.5

35.9
53.7
132.3
214.9
-29.5
-50.1
-3.0
45.6
-20.6
23.8
5.8

50.8
75.0
130.8
180.6
-16.7
-34.7
1.6
27.8
-5.4
-9.6
-5.0

17
18
19
20
21
22

By borrowing sector
State and local government
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate

48.9
318.6
253.1
-7.5
61.8
198.8

63.2
305.6
225.6
1.6
50.4
173.6

48.3
254.2
115.6
2.5
26.7
86.4

38.5
160.2
-15.9
2.2
-23.4
5.3

47.0
222.6
.8
.0
-40.1
40.9

37.6
148.3
-62.8
1.9
-65.8
1.2

41.9
136.5
-95.0
-2.2
-51.9
-40.9

46.1
231.5
25.8
-1.4
-22.9
50.0

63.4
157.9
-12.9
6.6
-49.9
30.5

50.0
238.0
5.2
1.0
-38.6
42.8

28.6
262.8
-14.9
-6.2
-49.0
40.3

58.8
224.1
-18.4
2.3
-36.9
16.2

23 Foreign net borrowing in United States
24
Bonds
25
Bank loans n.e.c
Open market paper
26
27
U.S. government loans

6.4
6.9
-1.8
8.7
-7.5

10.2
4.9
-.1
13.1
-7.6

23.9
21.4
-2.9
12.3
-6.9

14.1
14.9
3.1
6.4
-10.2

23.9
17.8
2.3
5.2
-1.4

15.6
15.5
1.4
16.0
-17.2

41.0
22.3
6.5
14.9
-2.7

9.7
4.9
1.5
-8.0
11.4

55.2
21.9
14.1
27.8
-8.5

29.5
21.0
3.9
13.1
-8.6

1.1
23.5
-10.3
-12.1
.0

64.4
76.2
1.8
-21.7
8.0

28 Total domestic plus foreign

782.2

750.9

688.9

475.1

598.2

427.1

444.8

681.8

615.5

516.2

579.3

603.5

Financial sectors
211.4

220.1

187.1

138.4

226.0

146.0

170.0

155.9

233.8

277.7

236.4

228.5

119.8
44.9
74.9
.0

151.0
25.2
125.8
.0

167.4
17.1
150.3
-.1

150.0
9.2
140.9
.0

167.1
40.2
126.9
.0

156.0
20.6
135.5
.0

158.5
32.6
125.9
-.1

137.4
11.5
125.9
.0

222.8
48.3
174.4
.0

165.6
67.7
97.9
.0

142.7
33.5
109.2
.0

172.3
35.4
137.0
.0

34 Private
35
Corporate bonds
Mortgages
36
37
Bank loans n.e.c
38
Open market paper
39
Loans from Federal Home Loan Banks

91.7
16.2
.3
.6
54.8
19.7

69.1
46.8
.0
1.9
31.3
-11.0

19.7
34.4
.3
1.2
8.6
-24.7

-11.6
54.3
.9
3.2
-32.0
-38.0

58.8
51.5
.0
7.2
-.7
.8

-10.0
31.8
.4
10.2
-16.7
-35.7

11.6
50.6
2.1
4.5
-12.7
-33.0

18.5
11.4
-.4
8.2
8.8
-9.5

11.0
14.9
.1
3.9
-13.4
5.7

112.1
73.5
.3
5.4
11.6
21.3

93.7
106.1
.2
11.3
-9.7
-14.2

56.2
98.0
-.1
3.1
-64.4
19.6

By borrowing sector
40 Sponsored credit agencies
41 Mortgage pools
42 Private
Commercial banks
43
44
Bank affiliates
45
Savings and loan associations
Mutual savings banks
46
47
Finance companies
48
Real estate investment trusts (REITs)
49
Securitized credit obligation (SCO) issuers

44.9
74.9
91.7
-3.0
5.2
19.9
1.9
31.5
3.6
32.5

25.2
125.8
69.1
-1.4
6.2
-14.1
-1.4
59.7
-1.9
22.0

17.0
150.3
19.7
-1.1
-27.7
-29.9
-.5
35.6
-1.9
45.2

9.1
140.9
-11.6
-13.3
-2.5
-39.5
-3.5
7.8
.9
38.5

40.2
126.9
58.8
4.5
2.3
-4.7
1.8
16.4
.6
38.0

20.6
135.5
-10.0
-9.2
-6.8
-41.1
-5.5
11.8
-.3
41.1

32.5
125.9
11.6
-14.1
9.6
-25.1
-8.7
12.8
3.6
33.3

11.5
125.9
18.5
7.2
2.7
-20.3
4.3
1.1
1.1
22.4

48.3
174.4

67.7
97.9
112.1
1.6
10.5
10.0
8.3
28.6
1.3
52.0

33.5
109.2
93.7
8.3
4.0
-11.2
-5.6
55.9
-.9
43.2

35.4
137.0
56.2
6.4
8.1
10.0
6.1
-12.6
1.0
37.1

29 Total net borrowing by financial sectors
30
31
32
33

By instrument
U.S. government-related
Sponsored-credit-agency securities
Mortgage pool securities
Loans from U.S. government




11.0

.8
-8.2
2.7
.3
-20.0
.9
34.5

Flow of Funds

A41

1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued
1991

Transaction category or sector

1988

1989

1990

1991

1993

1992

1992
Q3

Q4

Q1

Q2

Q3

Q4

QL

All sectors
50 Total net borrowing, all sectors

993.6

971.0

876.0

613.5

824.2

573.1

614.8

837.8

849.4

793.9

815.7

832.0

51
52
53
54
55
56
57
58

274.9
53.7
126.3
317.5
50.1
39.9
75.4
55.8

297.3
65.0
125.5
303.0
41.7
41.9
65.9
30.6

414.4
51.2
102.9
244.3
17.5
2.8
30.7
12.4

428.3
45.8
147.9
139.4
-13.1
-26.9
-44.0
-63.9

471.1
53.3
136.6
141.0
9.3
-8.2
13.1
8.0

444.4
53.5
128.9
53.7
-24.8
-6.7
-37.0
-39.0

479.0
45.5
133.2
108.4
-11.9
-54.3
-4.9
-80.1

506.3
52.0
92.6
193.6
-2.0
-13.2
14.1
-5.6

574.7
73.0
114.5
96.6
-15.5
-4.9
11.2
-.2

359.0
52.3
155.8
141.1
9.2
4.9
25.2
46.3

444.4
35.9
183.3
132.5
45.6
-19.6
2.0
-8.4

447.1
50.8
249.2
130.7
27.8
-.5
-95.7
22.5

U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans

External corporate equity funds raised in United States
59 Total net share issues

-118.4

-65.7

22.1

198.9

279.6

232.5

268.5

263.6

291.7

286.8

276.5

342.8

60 Mutual funds
61 All other
Nonfinancial corporations
62
Financial corporations
63
64
Foreign shares purchased in United States

6.1
-124.5
-129.5
4.1
.9

38.5
-104.2
-124.2
2.7
17.2

67.9
-45.8
-63.0
9.8
7.4

150.5
48.4
18.3
.0
30.2

215.4
64.3
26.8
6.4
31.2

182.5
50.0
19.0
-3.2
34.1

195.9
72.6
48.0
1.7
22.9

183.5
80.1
46.0
4.1
29.9

236.2
55.5
36.0
8.5
11.0

233.3
53.6
11.0
7.9
34.7

208.4
68.1
14.0
5.0
49.1

274.4
68.4
27.0
7.8
33.6

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables F.2 through F.5. For ordering address, see inside front cover.




A42
1.58

DomesticNonfinancialStatistics • October 1993
SUMMARY OF FINANCIAL TRANSACTIONS1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
1991
Transaction category or sector

1988

1989

1990

1991

1992

1993

1992
Q4

Q3

Ql

Q2

Q3

Q4

Ql

NET LENDING IN CREDIT MARKETS 2

1 Total net lending in credit markets
2 Private domestic nonfinancial sectors
3 Households
4
Nonfarm noncorporate business
5 Nonfinancial corporate business
State and local governments
6
7 U.S. government
8 Foreign
9 Financial sectors
10 Sponsored credit agencies
11 Mortgage pools
12 Monetary authority
13 Commercial banking
14
U.S. commercial banks
15
Foreign banking offices
16
Bank affiliates
17
Banks in U.S. possession
18 Private nonbank finance
Thrift institutions
19
Savings and loan associations
20
Mutual savings banks
21
Credit unions
22
Insurance
23
24
Life insurance companies
25
Other insurance companies
Private pension funds
26
27
State and local government retirement funds . . . .
28
Finance n.e.c
29
Finance companies
Mutual funds
30
31
Money market funds
32
Real estate investment trusts (REITs)
Brokers and dealers
33
34
Securitized credit obligation (SCOs) issuers . . .

993.6

971.0

876.0

613.5

824.2

573.1

614.8

837.8

849.4

793.9

815.7

832.0

226.2
198.9
3.1
5.7
18.6
-10.6
96.3
681.8
37.1
74.9
10.5
157.1
127.1
29.4
-.1
.7
402.2
119.0
87.4
15.3
16.3
186.2
103.8
29.2
18.1
35.1
96.9
49.2
11.9
10.7
.9
-8.2
32.5

209.6
179.5
-.8
12.9
17.9
74.1
690.4
-.5
125.8
-7.3
176.8
145.7
26.7
2.8
1.6
395.7
-91.0
-93.9
-4.8
7.7
207.7
93.1
29.7
36.2
48.7
278.9
69.3
23.8
67.1
.5
96.3
22.0

203.8
172.3
-1.4
6.6
26.2
33.7
58.4
580.2
16.4
150.3
8.1
125.4
95.2
28.4
-2.8
4.5
279.9
-151.9
-143.9
-16.5
8.5
188.5
94.4
26.5
16.6
51.0
243.3
41.6
41.4
80.9
-.7
34.9
45.2

31.8
.4
-2.3
17.5
16.3
10.0
42.6
529.1

75.0
79.9
-2.2
8.8
-11.5
-12.7
95.3
666.5
68.7
126.9
27.9
91.9
69.5
16.5
5.7
.3
351.1
-61.7
-76.7

-131.1
-170.1
-1.9
28.8
12.1
-2.1
37.3
669.0

-25.9
-67.8
-2.8
26.6
18.2
-17.9
71.0
587.6
19.7
125.9
22.3
104.3
45.6
61.3
-1.1
-1.5
315.3
-49.5
-83.3
11.5
22.3
159.2

162.4
181.9
-1.9
-1.4
-16.1
13.9
88.4
573.0
93.1
125.9
33.2
98.9
91.9
.6
6.4
.0
222.0

-166.4
-159.0
-2.2
10.6
-15.9
-27.0
63.4
924.0
76.5
97.9
10.8
157.4

186.1
191.5
-2.2
14.3
-17.6
-12.8
90.3
552.1
65.3
109.2
57.8
53.1
53.4
.4
-1.6
.8
266.8
-11.8
-38.1
7.4
18.9

-20.4
-1.5
-2.0
-9.2
-7.7
-16.7
86.1
783.1
16.9
137.0
49.6

174.0

192.8
74.3
9.4
60.6
48.5
269.8

41.1

205.6
-54.9
124.8
53.8
-1.9
50.5
33.3

110.7
80.6
33.1
-32.2
29.2
224.4
39.2
99.1
65.8
.3
-2.4
22.4

118.0
105.3
-2.6
11.8
3.4
-24.9
139.2
617.0
39.9
174.4
9.8
58.4
.5
58.6
-.6
-.1
334.5
-81.4
-92.4
-7.4
18.5
183.9
81.9
22.2
49.7
30.0
232.0
-22.3
169.0
-24.8
2.6
73.0
34.5

993.6

971.0

4.0

24.8
4.1
28.8
221.4
-16.5
290.0
6.1
96.7
17.6
90.1
78.3
1.1
38.5

-3.1

14.2

140.9
31.1
84.0
38.9
48.5
-1.5
-1.9
259.0
-144.9
-140.9
-15.5
11.5
219.5
83.2
34.7
64.7
37.0
184.4
-22.5
90.3
30.1

-1.4

16.4
178.9
89.7
17.3

36.9
35.0
233.9
21.5
132.3
1.3

31.7

135.5
48.1
82.4
26.5
56.7
2.4
-3.3
371.3
-176.8
-156.3
-30.8
10.3
259.0
73.8
36.8
115.0
33.4
289.2
-5.4
117.1
1.1
-.6
135.8

13.2
32.1

96.9
17.0

-113.1

-137.9
7.6
17.2

132.0

6.5
18.5
.4
581.3
-40.5
-38.5
-13.0
11.0
247.1
96.5
2.5
109.8
38.2
374.8
8.5
150.7
-16.3
-.3
180.3
52.0

99.9
11.2
20.3
42.6
104.5
60.5
110.4
-19.2

131.7

103.9
27.9
-1.2

1.1
447.9
-14.7
-32.5
-9.5
27.3

11.1

161.0
-16.8
.8
76.5

49.0
38.5

.6
40.2
38.0

876.0

613.5

824.2

573.1

614.8

837.8

849.4

793.9

815.7

832.0

2.0
2.5
25.7
186.8
34.2

-5.9
.0
24.5
268.6
-3.7

-1.6
-1.8
29.9
232.9
50.5

-15.5

61.1

14.5

44.2
59.9
-66.7
70.3
-23.5
12.6
67.9
-45.8
3.5

75.8
16.7
-60.9

122.7
-61.1
-79.7
3.9

3.5
.1
30.5
125.5
55.4
73.5
88.6
-29.9
-78.8
110.2

-6.5
.3
28.4
178.6
22.1
-77.2
92.8
-89.3
-104.9
-42.3
118.9
-52.5
236.2
55.5
-5.3
38.8
9.4
10.7
260.8

-8.5
.2
33.3
325.8
118.0
194.2
202.7
-83.0
-54.8

5.1
-7.7
27.5
301.6
6.4

96.8

-5.0
.5
19.2
244.2
-32.5
47.8
114.4
13.0
-117.4
26.8
16.0
-5.0
195.9
72.6

7.6
.3
27.6
286.1
80.2
99.3
31.9

-1.0

-.1

-90.2
43.2

37.1

RELATION OF LIABILITIES
TO FINANCIAL ASSETS

35 Net flows through credit markets
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54

Other financial sources
Official foreign exchange
Treasury currency and special drawing rights
Life insurance reserves
Pension fund reserves
Interbank claims
Deposits at financial institutions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Corporate equities
Security credit
Trade debt
Taxes payable
Noncorporate proprietors' equity
Miscellaneous

55 Total financial sources
Floats not included in assets ( - )
56 U.S. government checking deposits
57 Other checkable deposits
58 Trade credit
59
60
61
62
63

Liabilities not identified as assets ( - )
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous

64 Total identified to sectors as assets

.5
25.3
193.6
2.9
259.9
43.2
120.8
53.6
21.9
23.5
-3.1
6.1
-124.5
3.0
89.2
5.3
-31.2
222.3

-104.2

15.6
60.0
2.0
-32.5
269.9

-16.4
4.6
150.5
48.4
51.4

34.1

44.1

10.4

-.5
-39.3
120.5

-9.0
-2.7
136.8

-5.5
215.4
64.3
4.2
52.5
7.8
-4.3
186.3

10.2

120.7

-26.9
183.5
80.1
-72.1

-7.3
-3.2
4.8
204.4

10.6
-16.7
181.9

71.1

1,650.2

1,772.7

1,374.3

1,343.9

1,674.7

1,506.5

1,477.1

1,564.6

1.6
.8
-.9

8.4
-3.2
.6

3.3
2.5
21.5

-13.1

.7
1.6
22.4

23.9
-2.1
23.8

-73.1

4.4
16.7
24.3

-3.0
-29.8
6.3
4.4

-.2
-4.4
23.9
2.3
-95.6

.2
1.6
-34.8
6.5
-13.8

-.6
26.2
5.6
-34.1

-.2
-5.5
11.5
14.4
-38.6

-.2
28.4
36.9
23.4
-195.7

1,670.7

1,841.0

1,387.5

1,332.5

1,668.5

1,568.1

-.1

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables F.6 and F.7. For ordering address, see inside front cover.




41.2

.4

19.4
344.1
99.9
27.3
104.5
-42.4
-78.1
4.0
36.3
3.0
182.5
50.0
82.4
47.6
13.1
43.2
39.0

2.0
15.0

10.4

-6.1
-7.1

-132.4

106.8
-42.1

-111.4
-3.7

65.2
233.3
53.6
84.9
64.8
-.6
-18.2
225.2

-80.4
-39.1
-69.7
-8.0
208.4
68.1
9.3
35.1
11.7
7.0
77.3

1,601.2 2,099.8

1,433.0

1,900.2
-6.2
-18.4

-13.0
77.1

-11.7
2.5
-7.8

-5.3
-13.9
55.3

15.3
1.1
17.7

33.4
152.2
-3.0
274.4
68.4
31.9
38.3
.1

-12.3
166.1

11.1

-.4

-.1

-15.1
86.3
24.5
-95.7

-.3
-2.6
26.1
15.3
27.6

-.1
-17.7

182.3

13.4
-46.5
1.6
-119.0

-19.8
16.3
32.8

-10.3
-92.5

1,325.7

1,670.2

1,618.4

1,997.7

1,387.6

1,883.4

-.1

.2
44.0
11.4

2. Excludes corporate equities and mutual fund shares,

-.1

10.8
122.4

Flow of Funds

A43

1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1
Billions of dollars, end of period

1989

1990

1991

1993

1992

1991
Transaction category or sector

1992
Q4

Q3

Q1

Q2

Q3

Q4

Ql

Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors

10,087.1

10,760.8

11,222.9

11,801.3

11,095.2

11,222.9

11,353.6

11,488.0

11,634.5

11,801.3

11,897.1

By lending sector and instrument
2 U.S. government
Treasury securities
3
4
Agency issues and mortgages

2,251.2
2,227.0
24.2

2,498.1
2,465.8
32.4

2,776.4
2,757.8
18.6

3,080.3
3,061.6
18.8

2,687.2
2,669.6
17.6

2,776.4
2,757.8
18.6

2,859.7
2,844.0
15.8

2,923.3
2,907.4
15.9

2,998.9
2,980.7
18.1

3,080.3
3,061.6
18.8

3,140.2
3,120.6
19.6

5 Private

7,835.9

8,262.6

8,446.6

8,720.9

8,408.0

8,446.6

8,493.9

8,564.7

8,635.6

8,720.9

8,756.9

6
7
8
9
10
11
12
13
14
15
16

By instrument
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit
Bank loans n.e.c
Open market paper
Other

1,004.4
926.1
3,647.5
2,515.1
304.4
742.6
85.3
791.8
760.7
107.1
598.4

1,055.6
973.2
3,907.3
2,760.0
305.8
757.6
84.0
809.3
758.0
116.9
642.6

1,101.4
1,051.9
4,045.7
2,904.6
303.3
753.3
84.5
799.9
724.7
98.5
624.5

1,154.7
1,119.2
4,190.2
3,102.9
288.7
710.4
88.2
809.2
707.0
107.1
633.5

1,089.3
1,036.9
4,020.3
2,873.6
300.8
761.4
84.5
790.1
734.1
107.0
630.3

1,101.4
1,051.9
4,045.7
2,904.6
303.3
753.3
84.5
799.9
724.7
98.5
624.5

1,111.5
1,071.0
4,088.7
2,951.8
303.9
745.2
87.9
777.6
713.7
110.4
620.8

1,128.6
1,090.4
4,122.0
2,996.1
299.5
737.9
88.5
776.9
710.3
112.0
624.5

1,145.6
1,105.8
4,158.6
3,050.7
296.1
722.9
88.9
784.5
705.7
108.2
627.3

1,154.7
1,119.2
4,190.2
3,102.9
288.7
710.4
88.2
809.2
707.0
107.1
633.5

1,164.8
1,138.0
4,214.3
3,139.4
284.6
701.7
88.6
794.0
700.9
114.9
630.2

17
18
19
20
21
22

By borrowing sector
State and local government
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate

815.7
3,508.2
3,512.0
139.2
1,177.5
2,195.3

864.0
3,780.6
3,618.0
140.5
1,204.2
2,273.4

902.5
3,944.5
3,599.6
140.1
1,180.7
2,278.7

949.6
4,167.0
3,604.3
143.8
1,140.6
2,319.9

891.4
3,897.0
3,619.6
141.7
1,191.3
2,286.7

902.5
3,944.5
3,599.6
140.1
1,180.7
2,278.7

911.3
3,970.3
3,612.3
141.3
1,174.5
2,296.5

925.9
4,023.0
3,615.8
145.1
1,163.5
2,307.2

942.3
4,087.8
3,605.5
146.2
1,150.8
2,308.5

949.6
4,167.0
3,604.3
143.8
1,140.6
2,319.9

961.6
4,191.5
3,603.8
142.3
1,130.7
2,330.8

254.8

278.6

292.7

307.3

282.2

292.7

282.3

298.3

306.6

307.3

319.5

88.0
21.4
63.0
82.4

109.4
18.5
75.3
75.4

124.2
21.6
81.8
65.2

142.0
23.9
77.7
63.7

118.6
20.0
78.0
65.6

124.2
21.6
81.8
65.2

125.4
22.0
70.5
64.4

130.9
25.5
77.4
64.5

136.2
26.5
80.7
63.3

142.0
23.9
77.7
63.7

161.1
24.4
72.3
61.8

10,341.9

11,039.4

11,515.7

12,108.6

11,377.5

11,515.7

11,635.9

11,786.3

11,941.1

12,108.6

12,216.6

23 Foreign credit market debt held in
United States
24
25
26
27

Bonds
Bank loans n.e.c
Open market paper
U.S. government loans

28 Total credit market debt owed by nonfiiiancial
sectors, domestic and foreign

Financial sectors
29 Total credit market debt owed by
financial sectors
30
31
32
33
34
35
36
37
38
39

By instrument
U.S. government-related
Sponsored credit-agency securities
Mortgage pool securities
Loans from U.S. government
Private
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks

By borrowing sector
40 Sponsored credit agencies
41 Mortgage pools
42 Private financial sectors
43 Commercial banks
44 Bank affiliates
45 Savings and loan associations
46 Mutual savings banks
47 Finance companies
48 Real estate investment trusts (REITs)
49 Securitized credit obligation (SCO) issuers...

2,333.0

2,524.2

2,670.3

2,897.0

2,618.4

2,670.3

2,701.2

2,758.1

2,828.6

2,897.0

2,946.6

1,249.3
373.3
871.0
5.0
1,083.7
491.9
3.4
37.5
409.1
141.8

1,418.4
393.7
1,019.9
4.9
1,105.8
528.2
4.2
38.6
417.7
117.1

1,574.3
402.9
1,166.7
4.8
1,095.9
584.2
5.1
41.8
385.7
79.1

1,741.5
443.1
1,293.5
4.8
1,155.6
627.2
5.1
49.0
394.3
79.9

1,531.1
394.7
1,131.5
4.9
1,087.3
572.8
4.6
39.0
387.0
83.9

1,574.3
402.9
1,166.7
4.8
1,095.9
584.2
5.1
41.8
385.7
79.1

1,603.8
405.7
1,193.2
4.8
1,097.4
581.3
5.0
41.6
393.2
76.3

1,658.3
417.8
1,235.6
4.8
1,099.8
583.7
5.0
43.7
390.5
76.9

1,702.0
434.7
1,262.5
4.8
1,126.6
602.3
5.1
44.5
394.6
80.2

1,741.5
443.1
1,293.5
4.8
1,155.6
627.2
5.1
49.0
394.3
79.9

1,779.7
451.9
1,322.9
4.8
1,167.0
650.0
5.1
47.6
379.3
85.0

378.3
871.0
1,083.7
77.4
142.5
145.2
17.2
504.2
10.1
187.1

398.5
1,019.9
1,105.8
76.3
114.8
115.3
16.7
539.8
10.6
232.3

407.7
1,166.7
1,095.9
63.0
112.3
75.9
13.2
547.5
12.3
271.9

447.9
1,293.5
1,155.6
67.4
114.6
71.1
15.1
563.8
13.6
309.9

399.5
1,131.5
1,087.3
64.6
110.6
79.0
15.2
543.3
11.2
263.6

407.7
1,166.7
1,095.9
63.0
112.3
75.9
13.2
547.5
12.3
271.9

410.5
1,193.2
1,097.4
60.8
115.0
71.2
13.5
546.7
12.7
277.5

422.6
1,235.6
1,099.8
61.7
112.7
70.3
14.3
541.6
13.2
286.1

439.5
1,262.5
1,126.6
63.3
114.4
70.9
16.2
549.1
13.7
299.1

447.9
1,293.5
1,155.6
67.4
114.6
71.1
15.1
563.8
13.6
309.9

456.8
1,322.9
1,167.0
64.8
118.7
74.8
15.7
559.8
14.1
319.2

All sectors
50 Total credit market debt, domestic and foreign..
51
52
53
54
55
56
57
58

U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans

12,674.9

13,563.6

14,186.0

15,005.6

13,995.8

14,186.0

14,337.1

14,544.4

14,769.7

15,005.6

15,163.3

3,495.6
1,004.4
1,506.0
3,650.9
791.8
819.6
579.2
827.5

3,911.7
1,055.6
1,610.7
3,911.5
809.3
815.1
609.9
839.9

4,345.9
1,101.4
1,760.4
4,050.8
799.9
788.2
565.9
773.5

4,817.0
1,154.7
1,888.5
4,195.4
809.2
780.0
579.0
781.9

4,213.5
1,089.3
1,728.3
4,024.9
790.1
793.2
572.0
784.7

4,345.9
1,101.4
1,760.4
4,050.8
799.9
788.2
565.9
773.5

4,458.7
1,111.5
1,777.8
4,093.8
777.6
777.3
574.1
766.3

4,576.8
1,128.6
1,805.0
4,127.0
776.9
779.5
579.9
770.7

4,696.0
1,145.6
1,844.2
4,163.7
784.5
776.6
583.6
775.5

4,817.0
1,154.7
1,888.5
4,195.4
809.2
780.0
579.0
781.9

4,915.0
1,164.8
1,949.0
4,219.4
794.0
772.8
566.4
781.8

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables L.2 through L.4. For ordering address, see inside front cover.




A44

Domestic Financial Statistics • October 1993

1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1
Billions of dollars except as noted, end of period
1991

Transaction category or sector

1989

1990

1991

1992

1993

1992
Q3

Q4

Q1

Q2

Q3

Q4

Q1

CREDIT MARKET DEBT OUTSTANDING 2
1

Total credit market assets

7 Private domestic nonfinancial sectors
4
6
7
8
9
10

It
12
N
14
15
16
17
18
19
2.0
71

77
73

74
25
26
27
28
29
30
31
32

33
34

Households
Nonfarm noncorporate business
Nonfinancial corporate business
State and local governments
U.S. government
Foreign
Financial sectors
Sponsored credit agencies
Mortgage pools
Monetary authority
Commercial banking
U.S. commercial banks
Foreign banking offices
Bank affiliates
Banks in U.S. possession
Private nonbank finance
Thrift institutions
Savings and loan associations
Mutual savings banks
Credit unions
Insurance
Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement funds...
Finance n.e.c
Finance companies
Mutual funds
Money market funds
Real estate investment trusts (REITs)
Brokers and dealers
Securitized credit obligation (SCOs) issuers . . .

12,674.9 13,563.6 14,186.0 15,005.6 13,995.8 14,186.0 14,337.1 14,544.4 14,769.7 15,005.6 15,163.3
2,440.5
1,710.1
56.4
180.3
493.7
205.1
734.2
9,295.1
367.2
871.0
233.3
2,643.9
2,368.4
242.3
16.2
17.1
5,179.7
1,484.9
1,088.9
241.1
154.9
2,140.3
1,013.1
317.5
394.7
414.9
1,554.5
617.1
307.2
291.8
8.4
142.9
187.1

2,644.2
1,882.3
55.0
186.9
519.9
238.7
792.4
9,888.3
383.6
1,019.9
241.4
2,769.3
2,463.6
270.8
13.4
21.6
5,474.1
1,335.5
945.1
227.1
163.4
2,329.1
1,116.5
344.0
431.3
437.4
1,809.4
658.7
360.2
372.7
7.7
177.9
232.3

2,552.8
1,760.5
52.6
203.4
536.2
246.2
835.1
10,552.0
397.7
1,166.7
272.5
2,853.3
2,502.5
319.2
11.9
19.7
5,861.7
1,190.7
804.2
211.5
174.9
2,676.8
1,199.6
378.7
624.2
474.3
1,994.3
635.5
450.5
402.7
6.8
226.9
271.9

2,622.8
1,835.5
50.4
212.3
524.7
233.5
930.8
11,218.5
466.4
1,293.5
300.4
2,945.2
2,571.9
335.8
17.6
20.0
6,212.9
1,129.0
727.5
210.2
191.3
2,855.7
1,289.4
396.0
661.1
509.3
2,228.2
656.9
582.8
404.1
7.4
267.1
309.9

2,666.2
1,897.3
52.6
186.3
530.0
252.0
817.2
10,260.3
389.0
1,131.5
264.7
2,817.8
2,488.7
297.5
11.6
20.0
5,657.2
1,205.1
826.1
208.7
170.2
2,508.7
1,201.4
370.7
466.6
470.1
1,943.5
647.5
421.4
389.5
7.2
214.3
263.6

2,552.8
1,760.5
52.6
203.4
536.2
246.2
835.1
10,552.0
397.7
1,166.7
272.5
2,853.3
2,502.5
319.2
11.9
19.7
5,861.7
1,190.7
804.2
211.5
174.9
2,676.8
1,199.6
378.7
624.2
474.3
1,994.3
635.5
450.5
402.7
6.8
226.9
271.9

2,559.5
1,784.6
51.4
192.1
531.4
250.2
857.2
10,670.2
419.9
1,193.2
271.8
2,860.6
2,514.0
313.3
13.6
19.7
5,924.8
1,161.8
771.1
213.4
177.3
2,709.0
1,224.3
387.0
616.1
481.6
2,053.9
640.5
478.8
424.0
6.8
226.3
277.5

2,561.6
1,773.4
50.8
204.2
533.3
245.3
892.0
10,845.5
429.0
1,235.6
282.6
2,882.9
2,521.9
328.2
13.1
19.7
6,015.4
1,143.1
748.8
211.6
182.7
2,757.3
1,247.1
392.5
628.5
489.1
2,115.0
641.2
522.0
413.5
7.5
244.6
286.1

2,551.6
1,776.1
50.2
197.7
527.6
238.1
908.2
11,071.8
446.3
1,262.5
285.2
2,922.9
2,556.7
328.9
17.5
19.8
6,155.0
1,133.7
737.9
208.3
187.4
2,818.1
1,270.3
393.1
656.0
498.7
2,203.1
640.7
557.5
408.8
7.4
289.6
299.1

2,622.8
1,835.5
50.4
212.3
524.7
233.5
930.8
11,218.5
466.4
1,293.5
300.4
2,945.2
2,571.9
335.8
17.6
20.0
6,212.9
1,129.0
727.5
210.2
191.3
2,855.7
1,289.4
396.0
661.1
509.3
2,228.2
656.9
582.8
404.1
7.4

2,599.4
1,829.5
49.2
198.8
521.9
229.8
943.7
11,390.4
470.2
1,322.9
303.6
2,961.1
2,587.0
336.5
17.4
20.2
6,332.7
1,124.8
720.8
207.8
196.2
2,908.9
1,313.0
398.3
676.2
521.5
2,298.9
654.8

267.1

626.6
404.5
7.6
286.2

309.9

319.2

RELATION OF LIABILITIES
TO FINANCIAL ASSETS

35 Total credit market debt
36
37
38
39
40

41
42
43

44
45

46
47
48
49
50
51

52

Other liabilities
Official foreign exchange
Treasury currency and special drawing rights
certificates
Life insurance reserves
Pension fund reserves
Interbank claims
Deposits at financial institutions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Security credit
Trade debt
Taxes payable
Miscellaneous

53 Total liabilities

12,674.9 13,563.6 14,186.0 15,005.6 13,995.8 14,186.0 14,337.1 14,544.4 14,769.7 15,005.6 15,163.3
53.6

61.3

55.4

51.8

52.9

55.4

52.7

54.4

55.4

51.8

54.5

23.8

26.3

26.3

24.5

380.0
3,303.0
64.0
4,741.4
932.8
2,325.3
548.7
498.4
379.7
56.6
602.1
137.4
938.0
81.4
2,678.8

402.0
4,208.8
65.2
4,802.5
1,008.5
2,342.0
487.9
539.6
363.4
61.2
813.9
188.9
940.9
72.3
2,817.3

431.9
4,573.7
115.4
4,817.0
1,131.0
2,281.0
408.4
543.6
397.5
55.6
1,050.2
217.3
1,003.6
80.1
2,931.8

26.3
402.0
4,208.8
65.2
4,802.5
1,008.5
2,342.0
487.9
539.6
363.4
61.2
813.9
188.9
940.9
72.3
2,817.3

26.3
409.6
4,226.3
67.2
4,796.4
984.3
2,340.9
469.7
572.0
375.1
54.4
860.4
194.6
939.8
77.4
2,834.5

26.4
416.7
4,278.7
70.8
4,785.1
1,032.3
2,314.7
438.7
557.2
401.0
41.3
928.3
193.3
944.9
72.7
2,876.0

26.5
425.0
4,418.1
101.6
4,829.9
1,071.6
2,293.3
428.8
553.2
425.4
57.6
971.2
214.5
987.7
75.8
2,911.5

24.5

354.3
3,210.5

26.2
397.2
3,717.7
60.9
4,769.5
948.3
2,339.7
517.1
533.1
368.9
62.4
744.2
158.1
935.3
71.9
2,733.9

24.6
438.8
4,688.0
123.5
4,818.6
1,093.2
2,259.7
409.2
556.6
444.9
54.9
1,155.7
224.8
993.6
82.6
2,953.8

32.4

4,644.6
888.6
2,265.4
615.4
428.1
403.2
43.9
566.2
133.9
903.9
81.8
2,508.3

431.9
4,573.7
115.4
4,817.0
1,131.0
2,281.0
408.4
543.6
397.5
55.6
1,050.2
217.3
1,003.6
80.1
2,931.8

25,188.3 26,577.2 28,579.6 30,303.0 27,663.7 28,579.6 28,822.3 29,191.8 29,786.8 30,303.0 30,721.8

Financial assets not included in liabilities (+)
54 Gold and special drawing rights
55 Corporate equities
56 Household equity in noncorporate business

21.0
3,819.7
2,524.9

22.0
3,506.6
2,449.4

22.6
4,357.9
2,366.0

19.6
4,827.2
2,260.8

22.1
4,170.5
2,493.4

22.6
4,357.9
2,366.0

22.7
4,461.9
2,365.5

23.2
4,404.7
2,346.4

24.5
4,576.8
2,322.2

19.6
4,827.2
2,260.8

19.8
4,964.0
2,260.9

Floats not included in assets ( - )
57 U.S. government checking deposits
58 Other checkable deposits
59 Trade credit

6.1
26.5
-159.7

15.0
28.9
-148.0

3.8
30.9
-138.5

6.8
32.5
-105.9

19.8
23.6
-157.7

3.8
30.9
-138.5

.9
29.5
-135.3

1.4
32.6
-149.5

4.0
23.3
-131.3

6.8
32.5
-105.9

3.4
22.2
-104.0

Liabilities not identified as assets ( - )
60 Treasury currency
61 Interbank claims
62 Security repurchase agreements
6 3 Taxes payable
64 Miscellaneous

-4.3
-31.0
11.5
20.6
-251.1

-4.1
-32.0
-23.3
21.8
-247.3

-4.8
-4.2

-12.9
18.9
-458.5

-5.0
-9.9
-2.8
32.0
-558.3

-4.7
-4.7
-10.6
17.6
-300.6

-4.8
-4.2
-12.9
18.9
-458.5

-4.9
-1.8
-11.4
14.7
-458.1

-4.9
-4.0
5.8
20.9
-476.5

-5.0
-5.9
16.7
25.4
-527.9

-5.0
-9.9
-2.8
32.0
-558.3

-5.0
-7.5
41.4
29.2
-540.0

65 Total identified to sectors as assets

31,935.2 32,944.3 35,891.3 38,021.1 34,767.1 35,891.3 36,238.9 36,540.2 37,311.0 38,021.1 38,526.9

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables L.6 and L.7. For ordering address, see inside front cover.




2. Excludes corporate equities and mutual fund shares,

Selected Measures
2.10

N O N F I N A N C I A L B U S I N E S S ACTIVITY

A45

Selected Measures

Monthly data seasonally adjusted, and indexes 1987=100, except as noted
1993

1992
1990

Measure

1991

1992
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May r

June r

July

106.0

104.1

106.5

108.4

108.9

109.3

109.9

110.1

110.4

110.2

110.2

110.6

?
3
Final, total
Consumer goods
4
5
Equipment
Intermediate
6
7 Materials

105.5
107.0
103.4
112.1
101.2
106.8

103.1
105.3
102.8
108.9
96.5
105.5

105.6
108.2
105.2
112.7
97.6
107.9

107.8
111.0
107.1
116.7
98.1
109.3

108.2
111.5
107.5
117.2
98.3
110.0

108.5
111.9
107.6
118.1
98.2
110.4

109.2
112.4
108.5
118.0
99.3
110.9

109.5
112.7
108.6
118.7
99.6
110.9

109.6r
112.8
108. r
119.7r
100.0*
111.5r

109.4
112.5
107.5
119.8
99.6
111.5

109.1
112.3
107.1
119.7
99.2
111.8

109.5
112.5
107.4
119.9
100.1
112.3

Industry groupings
8 Manufacturing

106.1

103.7

106.9

108.9

109.2

109.9

110.5

110.8

111.4r

111.1

111.0

111.1

81.1

77.8

78.8

79.7

79.8

80.3

80.5

80.6

80.9

80.6

80.4

80.4

95.3

89.7

95. l r

92.0

90.0

100.0

95.0

94.0

94.0

91.0

104.0

98.0

107.3r
101.2
100.6
100.2
109.8
122.7
121.3
113.5
122.9
120.2

106.2
96.6
97.1
96.3
109.3
127.0
124.4
113.6
128.0
121.3

106.4
94.9
95.8
95.3
110.0
133.0
129.0
115.4
134.7
127.2r

106.8
93.2
94.3
94.0
111.2
135.3
131.2
116.0
136.8
130.5

107.0
93.2
94.3
94.1
111.4
136.6
132.3
118.0
138.2
131.9

107.1
93.2
94.4
94.3
111.6
137.4
133.1
117.2
138.8
132.0

107.4
93.5
94.5
94.5
111.9
137.5
132.9
117.8
139.0
131.9

107.5
93.3
94.4
94.4
112.0
138.4
132.8
117.8
140.0
130.5

107.7
93.1
94.0
94.0
112.4
138.6r
133.4r
118.3r
140.2 r
133.0

107.9
93.2
93.8
93.8
112.6
139.4
134.7
118.2
140.8
133.9

108.0
93.0
93.5
93.6
112.8
139.3
134.5
118.1
140.7
134.2

108.2
93.0
93.5
93.5
113.0
n.a.
n.a.
n.a.
n.a.
134.4

130.7
119.2

136.2
121.7

140.3
123.2

142.0
124.0

141.9
123.8

142.6
124.2

143.1
124.5

143.6
124.7r

144.0
125.3

144.2
125.7

144.4
125.6

144.4
125.3

1 Industrial production1
Market

groupings

9 Capacity utilization, manufacturing
(percent) 2
10 Construction contracts 3
11
1?
13
14
15
16
17
18
19
20

Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production workers . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
,
Disposable personal income 5
Retail sales 6

Prices7
71 Consumer (1982-84=100)
22 Producer finished goods (1982=100)

1. A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the
Federal Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other
sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Company, F.W. Dodge Division.
4. Based on data from U.S. Department of Labor, Employment and Earnings.
Series covers employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey of Current
Business.

2.11

6. Based on data from U.S. Department of Commerce, Survey of Current
Business.
7. Based on data not seasonally adjusted. Seasonally adjusted data for changes
in the price indexes can be obtained from the U.S. Department of Labor, Bureau
of Labor Statistics, Monthly Labor Review.
NOTE. Basic data (not indexes) for series mentioned in notes 4, 5,and 6, and
indexes for series mentioned in notes 3 and 7 can also be found in the Survey of
Current Business.
Figures for industrial production for the latest month are preliminary, and many
figures for the three months preceding the latest month have been revised. See
"Recent Developments in Industrial Capacity and Utilization," Federal Reserve
Bulletin, vol. 76 (June 1990), pp. 411-35. See also "Industrial Production Capacity
and Capacity Utilization since 1987," Federal Reserve Bulletin, vol. 79, (June
1993), p p . 5 9 0 - 6 0 5 .

LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted except as noted
1992
1990

Category

1991

1993

1992
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

HOUSEHOLD SURVEY DATA
1 Noninstitutional population

?
3

189,686

Nonagricultural industries
Agriculture
Unemployment
Number
6
7
Rate (percent of civilian labor force)
8 Not in labor force
4
5

—

193,142

194,026

194,159

194,298

194,456

194,618

194,767

194,933

195,104

126,867
125,303

128,548
126,982

129,108
127,591

128,598
127,083

128,839
127,327

128,926
127,429

128,833
127,341

129,615
128,131

129,604
128,127

129,541
128,070

114,728
3,186

Civilian labor force

191,329

126,424
124,787

1

114,644
3,233

114,391
3,207

115,049
3,262

114,879
3,191

115,335
3,116

115,483
3,082

115,356
3,060

116,203
3,070

116,195
3,024

116,262
3,039

6,874
5.5
63,262

8,426
6.7
64,462

9,384
7.4
64,594

9,280
7.3
64,918

9,013
7.1
65,561

8,876
7.0
65,459

8,864
7.0
65,530

8,925
7.0
65,785

8,858
6.9
65,152

8,908
7.0
65,329

8,769
6.8
65,563

109,419r

108,256r

108,519*

109,079

109,235

109,539

109,565

109,820

110,058*

110,102

110,264

19,117
709r
5,120 r
5,793 r
25,774 r
6,709*
27,934 r
4,305 r

18,455
689*
4,650*
5,762 r
25,365r
6,646 r
28,336*
4,355*

18,192
631*
4,471*
5,709*
25,391*
6,571*
29,053*
4,403*

17,913
613
4,459
5,707
25,522
. 6,575
29,524
18,766

17,936
611
4,454
5,719
25,609
6,578
29,573
18,755

17,954
600
4,515
5,725
25,726
6,577
29,665
18,777

17,935
600
4,481
5,724
25,707
6,574
29,756
18,788

17,863
600
4,517
5,720
25,758
6,585
29,977
18,800

17,827*
602
4,577*
5,719*
25,827*
6,588*
30,099*
18,819*

17,772
596
4,570
5,709
25,857
6,588
30,173
18,837

17,759
594
4,594
5,717
25,907
6,600
30,252
18,841

ESTABLISHMENT SURVEY DATA

9 Nonagricultural payroll employment 3
10 Manufacturing
11
1? Contract construction
N Transportation and public utilities
14 Trade
15
16
17 Government

1. Persons sixteen years of age and older, including Resident Armed Forces.
Monthly figures are based on sample data collected during the calendar week that
contains the twelfth day; annual data are averages of monthly figures. By
definition, seasonality does not exist in population figures.
2. Includes self-employed, unpaid family, and domestic service workers.
FRASER all full- and part-time employees who worked during, or received
3. Includes

Digitized for


pay for, the pay period that includes the twelfth day of the month; excludes
proprietors, self-employed persons, household and unpaid family workers, and
members of the armed forces. Data are adjusted to the March 1984 benchmark,
and only seasonally adjusted data are available at this time.
SOURCE. Based on data from U.S. Department of Labor, Employment and
Earnings.

A46

Domestic Nonfinancial Statistics • October 1993

2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
1992

1993

1992

1993

1992

1993

Series
Q3

Q4

Q1

Q2r

Output (1 987=100)

Q3

Q4

Q1

Q2

Capacity (percent of 1987 output)

Q3

Q4

Q1

Q2 r

Capacity utilization rate (percent) 2

1 Total industry

106.5

108.3

109.7

110.3

133.7

134.2

134.8

135.3

79.7

80.7

81.4

2 Manufacturing

107.0

108.7

110.4

111.2

136.0

136.6

137.2

137.8

78.7

79.6

80.5

80.7

Primary processing 3 .,
Advanced processing

103.7
108.5

104.7
110.6

106.4
112.3

107.0
113.1

126.4
140.6

126.6
141.3

126.8
142.1

127.1
142.9

82.1
77.2

82.7
78.3

83.9
79.0

84.2
79.2

5
6
7
8
9
10
11
12
13

Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment .

108.3
96.0
99.7
103.5
94.5
126.8
120.9
103.6

110.8
98.5
101.5
105.0
96.7
132.4
124.0
111.4

113.6
99.7
105.0
109.1
99.3
137.1
127.1
120.6

114.7
97.2
104.9
109.4
98.8
143.5
129.5
117.9

141.9
112.4
125.3
130.4
118.3
160.6
151.3
152.9

142.6
112.5
125.0
129.9
118.2
162.1
152.6
154.5

143.4
112.6
124.9
129.8
118.1
163.7
154.1
155.8

144.1
112.7
124.9
130.0
117.9
165.5
155.7
156.8

76.3
85.4
79.6
79.4
79.8
79.0
80.0
67.7

77.7
87.6
81.2
80.8
81.8
81.7
81.2
72.1

79.2
88.5
84.1
84.1
84.1
83.8
82.5
77.4

79.6
86.2
84.0
84.2
83.8
86.7
83.2
75.2

99.5

97.7

95.7

93.4

135.7

135.8

135.7

135.5

73.3

72.0

70.5

68.9

14
15
16
17
18
19

Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products

105.4
105.2
108.6
114.7
110.5
100.2

106.1
105.2
107.9
116.9
106.6
104.2

106.5
106.2
110.0
116.9
111.7
104.2

106.8
106.1
111.6
118.2

129.1
116.7
122.1
143.5
128.8
116.2

129.6
116.9
122.5
144.4
129.5
115.9

130.1
117.1
122.9
145.4

103.8

128.7
116.6
121.7
142.6
128.3
116.6

115.7

81.9
90.3
89.2
80.4
86.2
85.9

82.1
90.1
88.4
81.4
82.8
89.7

82.2
90.8
89.8
80.9
86.2
89.9

82.1
90.6
90.8
81.3
86.4
89.8

97.5
110.9
110.6

97.9
114.7
114.3

96.5
116.0
115.2

96.5
114.9
115.1

112.3
131.4
127.9

112.0
131.8
128.5

111.7
132.2
129.0

111.5
132.5
129.4

86.9
84.5
86.4

87.4
87.1
89.0

86.3
87.8
89.3

86.5
86.7
88.9

1973

1975

Previous cycle 2

High

Low

High

May r

June r

July"

3
4

20 Mining
21 Utilities
22
Electric

Low

Latest cycle 3
High

Low

1992
July

81.5

1993
Feb.

Mar.

Apr. r

Capacity utilization rate (percent) 2
1 Total industry

99.0

82.7

87.3

71.8

84.8

78.3

80.0

81.5

81.6

81.7

81.5

81.3

81.5

2 Manufacturing

99.0

82.7

87.3

70.0

85.1

76.6

78.9

80.5

80.6

80.9

80.6

80.4

80.4

Primary processing 3
Advanced processing

99.0
99.0

82.7
82.7

89.7
86.3

66.8
71.4

89.1
83.3

77.9
76.1

82.6
77.3

84.3
79.0

83.8
79.3

84.3
79.5

84.1
79.2

84.2
78.8

84.2
78.8

5
6
7
8
9
10
11
12
13

Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment.

99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0

82.7
82.7
82.7
82.7
82.7
82.7
82.7
82.7

86.9
87.6
102.4
110.4
90.5
92.1
89.4
93.0

65.0
60.9
46.8
38.3
62.2
64.9
71.1
44.5

83.9
93.3
92.9
95.7
88.9
83.7
84.9
84.5

73.8
76.8
74.3
72.3
75.9
73.0
76.8
57.9

76.4
86.0
80.2
80.2
80.3
78.5
80.0
67.7

79.4
90.4
86.5
87.0
85.9
83.5
82.5
77.5

79.5
87.0
83.4
82.9
84.3
85.0
83.1
76.9

79.9
87.1
83.6
83.4
83.9
86.6
83.1
77.0

79.7
86.6
83.3
83.2
83.6
86.9
83.3
75.3

79.2
84.9
85.2
86.0
84.0
86.7
83.0
73.3

79.3
85.7
85.1
86.2
83.4
87.7
84.2
70.4

99.0

82.7

81.1

66.9

88.3

78.1

73.5

70.6

69.8

69.5

69.1

68.1

68.0

14
15
16
17
18
19

Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products

99.0
99.0
99.0
99.0
99.0
99.0

82.7
82.7
82.7
82.7
82.7
82.7

87.0
91.7
94.2
85.1
90.9
89.5

76.9
73.8
82.0
70.1
63.4
68.2

86.8
92.1
94.9
85.9
97.0
88.5

80.4
78.7
86.0
78.5
75.5
84.2

82.2
91.8
89.7
80.5
87.6
86.9

82.1
90.8
90.1
80.4
85.3
90.3

82.2
90.1
90.6
81.3
87.4
90.4

82.3
89.0
92.2
81.2
87.7
90.1

81.9
91.2
90.3
81.3
85.7
89.6

82.0
91.6
90.0
81.5
85.9
89.6

81.9
91.0
89.9
81.8
86.5
89.0

99.0
99.0
99.0

82.7
82.7
82.7

96.6
88.3
88.3

80.6
76.2
78.7

87.0
92.6
94.8

86.8
83.4
87.4

87.6
84.8
86.7

85.8
88.9
90.3

85.3
89.0
90.0

86.4
86.4
88.6

86.9
86.3
88.3

86.3
87.5
89.8

86.1
90.3
93.3

3
4

20 Mining
21 Utilities
22
Electric

1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering address, see inside front cover. For a detailed description of
the series, see "Recent Developments in Industrial Capacity and Utilization,"
Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35. See also "Industrial
Production Capacity and Capacity Utilization Since 1987," Federal Reserve
Bulletin, vol. 79, (June 1993), pp. 590-605.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's
seasonally adjusted index of industrial production to the corresponding index of
capacity.




3. Primary processing includes textiles; lumber; paper; industrial chemicals;
petroleum refining; rubber and plastics; stone, clay, and glass; and primary and
fabricated metals.
4. Advanced processing includes food, tobacco, apparel, furniture, printing,
chemical products such as drugs and toiletries, leather and products, machinery,
transportation equipment, instruments, miscellaneous manufacturing, and ordnance.
5. Monthly highs, 1978 through 1980; monthly lows, 1982.
6. Monthly highs, 1988-89; monthly lows, 1990-91.

Selected Measures

A47

Indexes and Gross Value1

2.13 INDUSTRIAL PRODUCTION
Monthly data seasonally adjusted

Group

1987
proportion

1992
1992

avg.

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr. r

May r

June r

July"

Index (1987 = 100)
MAJOR MARKETS

1 Total index

100.0

106.5

106.8

106.6

106.2

107.5

108.4

108.9

109.3

109.9

110.1

110.4

110.2

110.2

110.6

107.8
111.0
107.1
105.7
104.1
102.9
79.6
143.3
106.0
107.1
110.8
103.7
107.1
107.5
105.2
95.9
123.3
100.9
112.0
107.7
113.6

108.2
111.5
107.5
107.9
108.7
111.7
86.9
154.6
103.8
107.2
110.5
105.4
106.6
107.4
104.8
96.0
121.7
100.9
114.4
106.1
117.5

108.5
111.9
107.6
110.9
112.7
116.8
86.6
169.1
105.8
109.3
116.0
105.5
108.0
106.7
104.6
95.7
122.4
100.2
109.5
106.5
110.7

109.2
112.4
108.5
111.3
111.9
114.6
90.2
156.9
107.4
110.7
117.6
106.7
109.5
107.7
105.5
95.0
121.1
101.8
115.5
108.9
118.0

109.5
112.7
108.6
111.5
111.2
113.4
90.5
153.1
107.5
111.7
125.0
104.5
108.9
107.7
104.3
94.6
123.7
102.1
116.0
107.1
119.5

109.6
112.8
108.1
112.2
112.1
114.3
90.2
155.9
108.5
112.3
124.3
106.2
109.6
106.9
103.9
94.9
123.1
101.7
111.5
106.6
113.4

109.4
112.5
107.5
110.9
109.7
110.1
86.5
150.9
109.1
111.9
121.9
108.8
108.3
106.6
103.6
94.4
123.0
101.8
110.9
106.5
112.6

109.1
112.3
107.1
108.0
105.9
105.0
83.5
142.3
107.3
109.9
116.1
108.1
107.6
106.9
104.1
94.2
122.8
102.2
111.9
105.8
114.2

109.5
112.5
107.4
108.0
103.6
100.2
78.1
138.6
109.3
111.8
122.3
108.6
107.9
107.3
104.3
93.7
124.3
100.5
114.3
105.6
117.7

108.3
104.7
109.6

105.7
108.1
104.9
102.8
98.8
95.3
81.2
119.8
104.6
106.3
109.7
101.7
107.4
105.5
105.0
95.1
117.3
100.1
106.3
104.1
107.2

105.9
108.9
105.1
101.9
99.5
96.0
77.0
128.8
105.3
104.0
111.0
97.7
104.1
106.0
107.0
94.0
116.5
100.2
105.6
98.9
108.2

105.3
108.1
104.4
100.9
97.3
93.5
77.9
120.4
103.7
104.1
112.9
98.2
102.9
105.3
104.9
94.3
118.5
100.4
104.6
103.5
105.1

107.1
110.1
106.4
104.1
103.1
101.5
78.5
141.3
105.9
104.9
110.8
98.5
105.8
107.1
105.9
94.5
121.1
100.1
111.1
109.8
111.6

1.9
5.4
.6
.2

112.7
123.2
134.7
168.3
108.5
137.1
117.9
104.7
85.9
78.3
99.7

112.7
123.7
137.4
171.8
109.1
135.3
114.2
100.2
85.1
73.8
101.3

114.3
126.1
138.5
173.7
109.2
143.3
117.3
105.6
84.5
75.6
96.9

113.5
125.0
138.2
178.3
109.6
134.5
114.7
107.3
84.4
76.3
100.9

115.4
127.5
142.2
183.1
110.1
137.4
121.7
108.8
83.5
82.7
110.4

116.7
129.0
142.9
184.5
112.0
140.4
123.9
110.7
83.2
86.4
118.5

117.2
129.6
143.2
186.4
112.3
144.1
131.4
109.2
82.5
91.2
128.6

118.1
131.2
144.4
192.0
113.1
146.7
136.7
112.6
82.0
89.0
129.4

118.0
131.7
146.1
198.0
112.2
146.5
136.8
113.4
81.5
77.9
127.1

118.7
133.4
149.1
203.3
113.7
145.0
135.8
114.9
80.7
71.1
116.2

119.7
134.8
150.6
209.5
115.0
145.0
136.2
117.5
80.5
72.4
114.9

119.8
135.2
152.9
214.7
115.0
142.5
133.1
116.2
79.7
75.1
112.1

119.7
135.1
154.2
219.0
114.9
137.9
127.2
116.9
78.6
82.4
113.6

119.9
135.4
156.2
222.7
115.7
133.1
118.8
116.2
78.4
81.0

Intermediate products, total
Construction supplies
Business supplies

14.7
6.0
8.7

97.6
93.8
100.1

98.6
94.3
101.4

97.0
94.1
99.0

96.9
93.0
99.5

97.8
94.7
99.9

98.1
95.1
100.0

98.3
94.5
100.8

98.2
94.8
100.5

99.3
97.5
100.5

99.6
96.4
101.8

100.0
96.4
102.5

99.6
97.7
100.9

99.2
96.4
101.1

100.1
97.1
102.1

37 Materials
38
Durable goods materials
39
Durable consumer parts
40
Equipment parts
41
Other
42
Basic metal materials
43
Nondurable goods materials
44
Textile materials
45
Pulp and paper materials
46
Chemical materials
47
Other
48
Energy materials
49
Primary energy
50
Converted fuel materials

39.2
19.4
4.2
7.3
7.9

107.9
108.9
101.5
116.5
106.0
108.3
110.9
102.8
109.9
114.2
110.4
103.4
99.7
110.6

108.5
109.3
100.6
117.7
106.3
108.7
111.5
107.7
110.3
114.1
110.0
104.4
100.4
112.3

107.6
108.9
101.4
117.1
105.5
107.7
110.7
101.6
108.7
114.5
110.5
102.5
99.4
108.7

107.4
107.6
98.5
116.2
104.6
105.8
111.7
103.3
112.3
114.5
110.5
103.6
99.6
111.4

108.1
109.7
101.8
118.3
106.2
108.3
110.7
102.7
109.1
114.4
109.7
103.0
99.4
110.0

109.3
111.1
104.3
119.3
107.4
109.8
112.0
103.4
110.2
115.6
112.0
103.9
100.2
111.1

110.0
111.9
107.5
119.7
107.5
108.8
111.5
102.9
110.7
114.6
111.3
105.1
101.3
112.4

110.4
113.3
110.8
120.4
108.6
110.4
112.4
104.2
110.7
114.9
114.1
103.4
100.4
109.1

110.9
114.2
111.8
121.0
109.7
113.2
112.1
103.2
111.9
114.6
112.5
103.8
98.3
114.6

110.9
114.1
112.2
121.3
108.9
109.9
112.8
104.2
112.8
115.6
112.6
103.5
97.4
115.4

111.5
114.9
112.6
122.7
109.5
110.3
113.8
102.7
115.3
116.1
114.2
103.4
99.9
110.3

111.5
114.8
111.6
123.3
109.3
110.9
113.5
104.3
112.4
116.8
113.7
103.5
101.2
108.2

111.8
115.1
111.7
124.2
109.1
111.8
114.2
105.7
112.2
118.2
113.3
103.6
100.7
109.2

112.3
115.4
110.4
125.5
109.4
111.9
114.1
104.4
112.1
118.5
113.2
104.9
101.4
111.8

106.6
106.6

107.0
107.0

106.7
106.7

106.3
106.4

107.4
107.5

108.4
108.4

108.6
108.6

108.9
108.7

109.5
109.3

109.7
109.6

110.1
109.9

110.0
109.8

110.1
109.9

110.7
110.6

105.0

105.3

105.0

104.5

105.7

106.6

107.1

107.3

107.8

107.8

108.0

107.7

107.5

107.9

105.7
104.8

105.5
104.7

105.7
105.0

105.1
104.3

106.8
105.9

107.4
106.6

107.3
106.8

107.0
107.4

108.1
107.7

108.2
107.7

107.6
107.6

107.4
107.1

107.3
106.6

108.0
106.7

2 Products
3
Final products
4
Consumer goods, total
Durable consumer goods
5
Automotive products
6
7
Autos and trucks
8
Autos, consumer
9
Trucks, consumer
10
Auto parts and allied goods..
11
Other
12
Appliances, A/C, and T V . . . .
13
Carpeting and furniture
14
Miscellaneous home goods ..
15
Nondurable consumer goods
16
Foods and tobacco
17
Clothing
18
Chemical products
19
Paper products
20
Energy
21
Fuels
22
Residential utilities

60.8
46.0
26.0
5.6
2.5
1.5
.9
.6

23
24
25
26
27
28
29
30
31
32
33

Equipment
Business equipment
Information processing and related .
Office and computing
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes

20.0
13.9
5.6
1.9
4.0
2.5

34
35
36

1.0

3.1
.8

.9
1.4
20.4
9.1
2.6

3.5
2.5
2.7
.7
2.0

1.2

2.8

9.0
1.2
1.9
3.8
2.1

10.9
7.2
3.7

105.6
108.2
105.2
102.5
99.4
96.9
79.0
127.9
103.7
105.2
110.4
99.9
105.6
105.9
104.7
95.0
118.7
100.8

SPECIAL AGGREGATES

51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts ..
53 Total excluding office and computing
machines
54 Consumer goods excluding autos and
trucks
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding office and
computing equipment
58 Materials excluding energy




97.3
95.3

24.5
23.3
12.7

123.7

124.5

126.9

125.9

128.0

129.5

129.5

130.7

131.3

133.2

134.6

135.3

135.8

136.8

12.0
28.4

115.7
109.5

115.6
110.0

118.1
109.4

116.1
108.8

118.1
110.0

119.7
111.4

120.1
111.8

121.0
113.0

120.6
113.6

121.6
113.7

122.2
114.6

121.8
114.4

121.0
114.8

120.7
115.0

A48

Domestic Nonfinancial Statistics • October 1993

2.13 INDUSTRIAL PRODUCTION

Group

SIC
code 2

1987
proportion

Indexes and Gross Value1—Continued
1992

1993

1992
avg.
July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr. r

May r

June r

July"

Index (1987 = 100)
MAJOR INDUSTRIES

59 Total index

100.0

106.5

106.8

106.6

106.2

107.5

108.4

108.9

109.3

109.9

110.1

110.4

110.2

110.2

110.6

84.3
27.1
57.1

106.9
103.8
108.3

107.1
104.3
108.4

107.0
103.5
108.7

106.8
103.3
108.4

108.0
104.1
109.9

108.9
105.1
110.7

109.2
105.0
111.3

109.9
105.8
111.9

110.5
106.9
112.2

110.8
106.4
112.9

111.4
107.1
113.4

111.1
106.9
113.1

111.0
107.1
112.8

111.1
107.2
113.0

Durable goods
Lumber and products...
"24
25
Furniture and fixtures...
Gay, glass, and stone
32
products
Primary metals
33
Iron and steel
331,2
Raw steel
Nonferrous
333-6,9
Fabricated metal
34
products
Industrial and commercial
machinery and
computer equipment .
35
Office and computing
357
machines
Electrical machinery
36
Transportation
equipment
37
Motor vehicles and
parts
371
Autos and light
trucks
Aerospace and miscellaneous transportation equipment... 372-6,9
38
Instruments
Miscellaneous
39

46.5
2.1
1.5

108.1
96.4
99.0

108.2
96.6
97.5

108.5
96.6
99.2

108.1
94.7
100.5

109.8
97.8
100.4

110.9
99.8
102.3

111.8
98.0
103.9

112.9
99.3
105.2

113.8
101.8
106.0

114.1
98.0
107.3

115.0
98.1
108.8

114.8
97.7
108.4

114.4
95.7
108.2

114.7
96.7
108.9

2.4
3.3
1.9
.1
1.4

96.0
101.1
104.7
101.2
96.1

96.8
100.6
104.7
101.7
95.0

95.7
100.5
103.8
99.1
96.1

96.5
98.0
102.0
98.9
92.4

96.8
100.5
104.1
99.8
95.6

97.6
101.6
103.6
102.8
98.7

98.0
102.4
107.4
104.6
95.7

97.0
102.8
107.0
103.4
97.1

98.9
108.0
112.9
105.9
101.4

98.6
104.2
107.6
102.0
99.4

99.8
104.4
108.4
102.6
98.9

100.1
104.1
108.1
105.1
98.5

100.4
106.4
111.8
106.8
99.0

100.4
106.2
112.1

5.4

96.7

97.0

97.0

96.5

97.5

97.6

97.8

99.8

99.7

100.3

101.4

100.6

100.2

100.2

Nondurable goods
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing..
Chemicals and products.
Petroleum products
Rubber and plastic
products
Leather and products . . .

60 Manufacturing
61 Primary processing
62 Advanced processing
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91

92 Mining
93 Metal
94 Coal
95 Oil and gas extraction
% Stone and earth minerals ..
97 Utilities
98 Electric
99 Gas

98^2

8.5

124.8

125.7

126.9

127.9

130.6

132.8

133.8

135.0

136.7

139.6

142.8

143.8

144.0

146.1

2.3
6.9

168.3
119.8

171.8
120.7

173.7
120.6

178.3
121.5

183.1
122.6

184.5
124.4

186.4
124.8

192.0
125.8

198.0
127.1

203.3
128.5

209.5
129.0

214.7
129.7

219.0
129.7

222.7
131.9

9.9

102.6

101.4

102.4

100.5

103.0

103.6

106.3

108.4

107.8

106.9

106.9

105.5

103.3

101.2

4.8

104.8

103.1

105.0

102.6

108.0

109.9

116.2

120.9

120.7

120.1

120.4

118.1

115.1

110.9

2.2

101.4

100.8

99.7

97.9

104.1

105.4

114.4

118.2

117.8

116.9

117.5

113.1

108.2

102.7

5.1
5.1
1.3

100.6
104.2
109.7

99.8
104.9
111.6

100.0
104.3
109.1

98.6
103.7
108.7

98.3
103.7
110.5

97.7
103.6
111.4

97.1
103.3
111.8

96.7
103.0
110.9

95.8
102.2
111.9

94.6
103.3
112.6

94.2
102.6
114.3

93.6
102.6
113.1

92.3
102.3
111.9

92.0
102.1
112.2

"20
21
22
23
26
27
28
29

37.8
8.8
1.0
1.8
2.3
3.6
6.5
8.8
1.3

105.4
106.0
99.2
104.7
92.3
108.2
95.0
115.0
102.0

105.7
105.9
101.5
107.0
92.7
109.1
95.7
114.6
101.5

105.2
106.3
115.5
103.5
91.3
107.1
93.5
114.4
98.0

105.2
105.6
101.7
105.1
91.5
109.5
94.1
115.2
101.1

105.8
106.8
102.4
103.5
91.7
107.3
94.5
116.2
105.3

106.4
106.4
101.9
106.0
92.9
108.2
94.2
117.7
103.9

106.0
106.2
96.1
106.0
92.7
108.3
94.7
116.7
103.4

106.4
105.9
100.5
106.9
93.1
108.6
94.7
116.8
103.2

106.4
106.9
99.3
106.2
92.5
110.4
94.0
116.2
104.7

106.6
106.7
92.4
105.4
92.1
111.1
94.7
117.6
104.7

106.9
106.7
90.2
104.2
92.0
113.1
95.6
117.8
104.3

106.6
106.0
91.7
106.8
91.3
111.0
94.5
118.1
103.6

106.8
106.4
92.3
107.4
91.1
110.8
94.7
118.7
103.6

106.8
106.4
90.9
106.7
91.0
110.8
94.2
119.4
102.8

30
31

3.2
.3

109.7
92.6

110.7
93.6

110.7
92.0

108.5
93.8

109.9
95.1

111.3
96.6

111.3
96.7

113.6
97.1

112.7
99.0

112.9
99.1

113.6
100.1

113.8
98.2

113.1
96.9

114.0
96.6

"lO
11,12
13
14

8.0
.3
1.2
5.8
.7

97.6
161.7
105.5
92.6
93.8

98.5
156.5
108.0
93.6
94.1

97.0
165.5
103.9
91.9
93.8

97.1
159.8
103.6
92.7
91.9

97.6
168.1
103.8
92.7
93.6

97.8
171.6
103.5
92.8
94.4

98.2
158.1
107.9
93.4
92.6

98.3
167.7
108.2
92.7
93.8

95.9
163.0
101.7
90.9
95.2

95.3
158.2
102.3
90.4
93.4

96.4
162.5
108.2
90.5
92.3

96.9
169.2
106.6
90.9
94.0

96.2
163.0
103.6
91.3
91.8

95.9
164.0
101.6
91.2
92.7

491,3PT
492,3PT

7.7
6.1
1.6

112.0
111.6
113.2

111.2
110.8
112.8

110.4
110.0
112.1

111.2
110.9
112.0

112.7
112.6
113.2

114.7
114.1
117.3

116.8
116.4
118.2

112.8
112.9
112.4

117.5
116.5
121.4

117.8
116.3
123.3

114.4
114.5
113.9

114.3
114.3
114.3

116.0
116.4
114.7

119.8
121.1
115.2

79.5

107.0

107.4

107.2

107.1

108.0

108.8

108.8

109.3

109.8

110.2

110.8

110.7

110.7

111.2

81.9

105.1

105.3

105.1

104.8

105.9

106.7

107.0

107.6

108.0

108.1

108.6

108.2

107.9

108.0

SPECIAL AGGREGATES

100 Manufacturing excluding
motor vehicles and
parts
101 Manufacturing excluding
office and computing
machines

Gross value (billions of 1987 dollars, annual rates)
MAJOR MARKETS

102 Products, total

1,707.0 1,806.4 1,806.8 1,802.7 1,799.9 1,835.6 1,846.7 1,857.5 1,864.9 1,880.2 1,880.3 1,882.8 1,874.8 1,870.0 1,870.2

103 Final
104 Consumer goods
105 Equipment
106 Intermediate

1,314.6 1,420.1 1,416.7 1,417.8 1,415.7 1,448.1 1,457.1 1,466.8 1,476.4 1,485.7 1,484.3 1,485.6 1,479.8 1,475.3 1,472.9
866.6 913.0 912.6 908.1 905.1 928.4 931.6 936.3 940.0 949.4
946.1 943.6 938.6 936.2 935.6
448.0 507.1 504.1 509.7 510.6 519.7 525.5 530.5 536.5 536.3 538.2 541.9 541.2 539.1 537.3
392.5 386.4 390.1 385.0 384.2 387.4 389.6 390.7 388.4 394.5
396.0 397.3 395.0 394.6 397.3

1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering address, see inside front cover.
A revision of the industrial production index and the capacity utilization rates




was released in May 1993. See "Industrial Production, Capacity, and Capacity
Utilization since 1987," Federal Reserve Bulletin, vol. 79 (June 1993), pp. 590-605.
2. Standard industrial classification.

Selected Measures
2.14

A49

HOUSING A N D CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1993

1992
Item

1990

1991

1992
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr."

May

June

Private residential real estate activity (thousands of units except as noted)
NEW UNITS

Permits authorized
One-family
Two-or-more-family
Started
One-family
Two-or-more-family
Under construction at end of period 1 ..
One-family
Two-or-more-family
Completed
One-family
Two-or-more-family
Mobile homes shipped

1,111
794
317
1,193
895
298
711
449
262
1,308
966
342
188

949
754
195
1,014
840
174
606
434
173
1,091
838
253
171

1,095
911
184
1,200
1,030
169
612
473
140
1,158
964
194
210

1,120
918
202
1,218
1,045
173
637
485
152
1,128
942
186
217

1,141
954
187
1,226
1,079
147
645
493
152
1,137
964
173
228

1,136
963
173
1,226
1,089
137
641
498
143
1,229
1,002
227
244

1,1%
1,037
159
1,286
1,133
153
644
501
143
1,227
1,016
211
266

1,157
972
185
1,171
1,051
120
641
506
135
1,136
980
156
267

1,141
957
184
1,180
1,036
144
641
508
133
1,241
1,049
192
262

1,034
871
163
1,124
987
137
635
502
133
1,108
995
113
247

1,101
925
176
1,206
1,059
147
637
506
131
1,222
1,075
147
241

1,121
919
202
1,248
1,107
141
644
513
131
1,136
998
138
230

1,115
925
190
1,246
1,078
168
648
517
131
1,145
976
169
237

Merchant builder activity in
one-family units
14 Number sold
15 Number for sale at end of period1 . . .

535
321

507
284

610
265

672
267

637
264

615
262

662
265

603
266

597
268

602r
270"

698
271

611
276

678
278

122.3
149.0

120.0
147.0

121.3
144.9

119.5
142.2

125.0
148.4

128.9
147.2

126.0
146.2

118.0
138.9

129.4
149.4

125.0
146.6"

127.0
148.1

129.0
153.2

122.3
145.7

3,211

3,219

3,520

3,380

3,710

3,860

4,040

3,780

3,460

3,370

3,450

3,620

3,680

95.2
118.3

99.7
127.4

103.6
130.8

103.5
131.0

103.4
129.3

102.7
128.8

104.2
131.0

103.1
129.4

103.6
129.6

105.1
131.5

105.8
133.0

106.5
132.8

109.3
137.4

1
7
3
4
5
6
7
8
9
10
II
1?
13

Price of units sold (thousands
16 Median
17 Average
EXISTING UNITS ( o n e - f a m i l y )

18 Number sold
Price of units sold (thousands
19 Median
20 Average

Value of new construction (millions of dollars) 3
CONSTRUCTION

21 Total put in place

442,142

403,439

436,043

433,545

442,565

449,269

455,239

451,271

453,820

454,465

449,733

454,609

460,055

7? Private
73
Residential
Nonresidential
74
75
Industrial buildings
76
Commercial buildings
Other buildings
77
Public utilities and other
28

334,681
182,856
151,825
23,849
62,866
21,591
43,519

293,536
157,837
135,699
22,281
48,482
20,797
44,139

317,256
187,820
129,436
20,720
41,523
21,494
45,699

317,448
189,221
128,227
19,277
40,398
21,978
46,574

324,842
194,578
130,264
19,400
41,691
21,418
47,755

328,1%
199,304
128,892
19,246
41,143
21,517
46,986

335,354
206,417
128,937
19,961
39,602
20,900
48,474

335,484
207,214
128,270
19,600
41,414
21,123
46,133

334,801
205,730
129,071
20,484
42,317
21,564
44,706

336,972
205,519
131,453
22,152
41,323
21,484
46,494

329,014
197,833
131,181
19,498
42,302
22,508
46,873

333,388
198,852
134,536
20,150
42,466
23,189
48,731

334,504
200,564
133,940
19,549
42,062
23,235
49,094

79 Public
30
Military
31
Highway
Conservation and development...
V
Other
33

107,461
2,664
32,108
4,557
68,132

109,900
1,837
32,026
4,861
71,176

118,784
2,502
34,929
5,918
75,435

116,097
2,503
35,545
6,148
71,901

117,723
3,032
33,408
5,790
75,493

121,073
2,557
37,698
6,441
74,377

119,885
2,394
33,411
8,144
75,936

115,786
2,621
30,648
5,732
76,785

119,019
2,703
33,009
6,688
76,619

117,493
2,586
33,413
7,112
74,382

120,719
2,399
34,534
5,944
77,842

121,221
2,327
34,418
6,118
78,358

125,551
2,209
37,649
6,221
79,472

1. Not at annual rates.
2. Not seasonally adjusted.
3. Recent data on value of new construction may not be strictly comparable
with data for previous periods because of changes by the Bureau of the Census in
its estimating techniques. For a description of these changes, see Construction
Reports (C-30-76-5), issued by the Census Bureau in July 1976.
SOURCE. Bureau of the Census estimates for all series except (1) mobile homes,
which are private, domestic shipments as reported by the Manufactured Housing




Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 17,000 jurisdictions
beginning in 1984.

A50
2.15

Domestic Nonfinancial Statistics • October 1993
C O N S U M E R A N D P R O D U C E R PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 12
months earlier

Change from 3 months earlier
(annual rate)

Item

1992
1992
July

1993
July

Sept. r

Change from 1 month earlier

Dec/

Index
level,
July.
19931

19931

1993
Mar. r

June r

Mar.

Apr.

May

June

July

CONSUMER PRICES 2

(1982-84=100)
1 AU items

3.2

2.8

2.6

3.2

4.0

2.2

.1

.4

.1

.0

.1

144.4

.5

3.2
3.7
3.0
4.0

2.3
-.2
3.2
1.8
3.9

3.2
1.2
2.5
1.8
2.9

1.4
1.9
3.8
1.5
4.7

2.6
3.1
4.3
4.6
4.4

1.4
-3.8
2.9
.6
4.1

.1
.7
.1
.1
.2

.4
.2
.4
.3
.4

.4
-1.0
.2
.0
.3

-.4
-.2
.1
-.1
.2

.0
.0
.1
.0
.2

140.3
105.8
152.0
134.4
162.2

1.7
-1.4
3.7
2.8
1.7

1.3
1.8
-1.2
1.6
1.9

1.3
4.3
-3.5
1.5
1.2

-.3
3.3
-10.2
1.2
.6

4.3
-1.6
16.6
3.2
4.4

.6
1.3
-3.5
1.2
1.2

,5R

I.R

.0
-.1
-.6
.2
.2

-.3
-.9
-.5
-.3
.2

-.2
-.1
-1.0
.1
.1

125.3
125.0
79.4
139.7
131.2

Intermediate materials
12 Excluding foods and feeds
13 Excluding energy

1.3
.8

.9
1.2

.7

-2.1
-.3

5.7
4.7

.3
-.3

,4r
.2

.(F

1.3

-.2
-.2

.3
.1

-.2
.1

116.7
123.6

Crude materials
14 Foods
15 Energy
16 Other

-.1
3.4
3.3

2.6
-4.7
9.4

-4.8
19.8
2.2

5.1
-17.8
1.9

1.9
-10.1
24.3

-1.5
19.3
10.9

.y
.Y

2.3r

.5

-,5R

4.8
.4

-3.1
.2
.2

1.2
-4.9
.6

107.7
77.2
142.2

7

3
4
5
6

Food
Energy items
All items less food and energy
Commodities
Services
PRODUCER PRICES

(1982=100)
7 Finished goods
8
Consumer foods
9
Consumer energy
10 Other consumer goods
11 Capital equipment

1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a
rental-equivalence measure of homeownership.




,3r
,2r

.1r
,2

1.3r
,3r
.4
-,lr

,l r

2.0r

SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.

Selected Measures
2.16

A51

GROSS DOMESTIC PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1992
Account

1990

1991

1993

1992
Q2

Q3

Q4

Ql

Q2

GROSS DOMESTIC PRODUCT

5,522.2

5,677.5

5,950.7

5,902.2

5,978.5

6,081.8

6,145.8

6,206.9

3,748.4
464.3
1,224.5
2,059.7

3,887.7
446.1
1,251.5
2,190.1

4,095.8
480.4
1,290.7
2,324.7

4,057.1
470.6
1,277.5
2,309.0

4,108.7
482.5
1,292.8
2,333.3

4,194.8
499.1
1,318.6
2,377.1

4,234.7
498.8
1,320.8
2,415.1

4,301.0
519.3
1,329.7
2,452.0

799.5
793.2
577.6
201.1
376.5
215.6

721.1
731.3
541.1
180.1
360.9
190.3

770.4
766.0
548.2
168.4
379.9
217.7

773.2
765.1
550.3
170.3
380.0
214.8

781.6
766.6
549.6
166.1
383.5
217.0

804.3
794.0
562.1
167.0
395.1
231.9

844.0
809.0
573.8
168.0
405.8
235.2

831.3
825.0
593.1
171.9
421.3
231.9

6.3
3.3

-10.2
-10.3

4.4
2.2

8.1
6.4

15.0
9.7

10.3
6.2

34.9
32.6

6.3
8.6

-68.9
557.0
625.9

-21.8
598.2
620.0

-30.4
636.3
666.7

-37.1
625.4
662.5

-36.0
639.0
675.0

-40.5
652.7
693.2

-49.4
649.4
698.9

-49.9
662.1
712.0

17 Government purchases of goods and services
18 Federal
19 State and local

1,043.2
426.4
616.8

1,090.5
447.3
643.2

1,114.9
449.1
665.8

1,109.1
444.8
664.3

1,124.2
455.2
669.0

1,123.3
451.6
671.7

1,116.6
441.1
675.4

1,124.4
440.6
683.8

By major type of product
7,0 Final sales, total
Goods
71
Durable
??
23
Nondurable
Services
74
Structures
25

5,515.9
2,160.1
920.6
1,239.5
2,846.4
509.4

5,687.7
2,192.8
907.6
1,285.1
3,030.3
464.7

5,946.3
2,260.3
943.9
1,316.4
3,197.1
488.8

5,894.1
2,233.2
932.3
1,300.8
3,173.4
487.6

5,963.5
2,258.4
943.8
1,314.6
3,217.8
487.3

6,071.5
2,316.1
975.8
1,340.3
3,255.1
500.3

6,110.8
2,309.2
968.8
1,340.4
3,299.4
502.3

6,200.5
2,350.7
1,008.2
1,342.5
3,343.5
506.3

6.3
-.9
7.2

-10.2
-19.3
9.0

4.4
-3.5
7.9

8.1

9.5
-1.4

15.0
2.7
12.3

10.3
-6.9
17.2

34.9
17.8
17.2

6.3
-5.6
11.9

4,877.5

4,821.0

4,922.6

4,892.4

4,933.7

4,990.8

4,999.9

5,019.5

30

4,468.3

4,544.2

4,743.4

4,716.5

4,719.6

4,858.0

4,914.2

n.a.

31 Compensation of employees
Wages and salaries
32
Government and government enterprises
33
Other
34
35
Supplement to wages and salaries
Employer contributions for social insurance
36
Other labor income
37

3,291.2
2,742.9
514.8
2,228.0
548.4
277.4
271.0

3,390.8
2,812.2
543.5
2,268.7
578.7
290.4
288.3

3,525.2
2,916.6
562.5
2,354.1
608.6
302.9
305.7

3,506.3
2,901.3
561.4
2,339.9
605.0
301.5
303.6

3,534.3
2,923.5
564.3
2,359.1
610.8
302.9
307.9

3,583.7
2,963.9
569.6
2,394.3
619.8
307.6
312.2

3,628.4
2,999.8
578.2
2,421.6
628.6
312.0
316.5

3,669.4
3,034.8
580.3
2,454.5
634.5
313.7
320.8

38 Proprietors' income 1
39
Business and professional
Farm 1
40

366.9
325.2
41.7

368.0
332.2
35.8

404.5
364.9
39.5

398.4
359.9
38.5

397.4
365.9
31.5

428.4
380.4
48.1

441.9
389.0
52.9

442.7
394.4
48.4

41 Rental income of persons 2

-12.3

-10.4

4.7

3.3

6.4

13.6

17.7

24.6

42 Corporate profits
43
Profits before tax 3
Inventory valuation adjustment
44
Capital consumption adjustment
45

361.7
355.4
-14.2
20.5

346.3
334.7
3.1
8.4

393.8
371.6
-7.4
29.5

388.4
376.8
-15.5
27.0

374.1
354.1
-9.7
29.7

428.5
389.4
1.0
38.1

424.2
393.0
-9.4
40.6

n.a.
n.a.
-16.6
42.6

46 Net interest

460.7

449.5

415.2

420.0

407.3

403.6

402.0

n.a.

1 Total
2
3
4
5

By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services

6 Gross private domestic investment
7
Fixed investment
Nonresidential
8
9
Structures
Producers' durable equipment
10
Residential structures
11
12
13

Change in business inventories
Nonfarm

14 Net exports of goods and services
15 Exports
16 Imports

7,6 Change in business inventories
Durable goods
27
Nondurable goods
28
MEMO

29 Total GDP in 1987 dollars
NATIONAL INCOME

1

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. U.S. Department of Commerce, Survey of Current Business.

A52
2.17

Domestic Nonfinancial Statistics • October 1993
PERSONAL INCOME A N D SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1993

1992
Account

1990

1991

1992
Q2

Q3

Q4

Q1

Q2

PERSONAL INCOME AND SAVING

1 Total personal income

4,664.2

4,828.3

5,058.1

5,028.9

5,062.0

5,160.9

5,237.6

5,288.6

2 Wage and salary disbursements
3
Commodity-producing industries

2,742.8
745.6
556.1
634.6
847.8
514.8

2,812.2
737.4
556.9
647.4
883.9
543.6

2,918.1
743.2
565.7
666.8
945.5
562.5

2,901.3
743.1
564.7
662.9
933.9
561.4

2,923.5
742.4
565.5
667.7
949.1
564.3

2,969.9
750.6
572.8
675.8
973.9
569.6

3,005.8
754.4
576.5
685.0
988.2
578.2

3,034.8
760.2
579.3
691.0
1,003.3
580.3

271.0
366.9
325.2
41.7
-12.3
140.3
694.5
685.8
352.0

288.3
368.0
332.2
35.8
-10.4
137.0
700.6
771.1
382.0

305.7
404.5
364.9
39.5
4.7
139.3
670.2
866.1
414.1

303.6
398.4
359.9
38.5
3.3
136.6
675.2
859.7
412.1

307.9
397.4
365.9
31.5
6.4
141.0
663.2
874.1
417.1

312.2
428.4
380.4
48.1
13.6
145.8
657.8
888.0
421.6

316.5
441.9
389.0
52.9
17.7
149.9
656.4
909.9
434.1

320.8
442.7
394.4
48.4
24.6
150.7
654.9
922.0
436.9

224.8

238.4

250.6

249.3

251.5

254.8

260.4

261.9

4,664.2

4,828.3

5,058.1

5,028.9

5,062.0

5,160.9

5,237.6

5,288.6

621.3

618.7

627.3

617.1

628.8

643.6

656.0

664.2
4,624.5

5
6
7
8
9
10
11
12
13
14
15
16
17

Distributive industries
Service industries
Government and government enterprises
Other labor income
proprietors' income 1
Business and professional 1
Farm 1
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits . . .
LESS: Personal contributions for social insurance

18 EQUALS: Personal income
19

LESS: Personal tax and nontax payments

20 EQUALS: Disposable personal income

4,042.9

4,209.6

4,430.8

4,411.8

4,433.2

4,517.3

4,581.7

21

LESS: Personal outlays

3,867.3

4,009.9

4,218.1

4,179.5

4,229.9

4,316.9

4,358.8

4,424.7

22 EQUALS: Personal saving

175.6

199.6

212.6

232.3

203.3

200.4

222.9

199.8

19,513.0
13,043.6
14,068.0

19,077.1
12,824.1
13,886.0

19,271.4
12,973.9
14,035.0

19,181.8
12,893.3
14,021.0

19,288.4
12,973.3
13,998.0

19,456.3
13,098.4
14,105.0

19,444.3
13,092.1
14,165.0

19,469.3
13,180.3
14,172.0

4.3

4.7

4.8

5.3

4.6

4.4

4.9

4.3

MEMO

Per capita (1987 dollars)
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING

27 Gross saving

718.0

708.2

686.3

682.9

696.9

687.9

732.8

n.a.

28 Gross private saving

854.1

901.5

968.8

968.1

992.1

965.0

994.8

n.a.

29 Personal saving
30 Undistributed corporate profits'
31 Corporate inventory valuation adjustment

175.6
75.7
-14.2

199.6
75.8
3.1

212.6
104.3
-7.4

232.3
97.7
-15.5

203.3
91.2
-9.7

200.4
124.1
1.0

222.9
116.8
-9.4

199.8
n.a.
-16.6

Capital consumption
32 Corporate
33 Noncorporate

368.3
234.6

383.0
243.1

394.8
258.6

391.2
247.0

407.2
290.4

394.7
251.8

400.0
261.2

403.3
258.4

-136.1
-166.2
30.1

-193.3
-210.4
17.1

-282.5
-298.0
15.5

-285.2
-302.9
17.7

-295.2
-304.4
9.2

-277.2
-295.5
18.3

-262.0
-272.1
10.1

723.4

730.1

720.4

713.8

732.0

729.5

776.3

758.5

799.5
-76.1

721.1
9.0

770.4
-49.9

773.2
-59.4

781.6
-49.6

804.3
-74.7

844.0
-67.7

831.3
n.a.

5.4

21.9

34.1

30.9

35.1

41.7

43.4

allowances

34 Government surplus, or deficit ( - ) , national income and
product accounts
Federal
State and local

35
36

38 Gross private domestic
39 Net foreign
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




SOURCE. U.S. Department of Commerce, Survey of Current Business.

n.a.
n.a.
n.a.

n.a.

Summary Statistics
3.10 U.S. INTERNATIONAL TRANSACTIONS

A53

Summary

Millions of dollars; quarterly data seasonally adjusted except as noted 1
1993

1992
Item credits or debits

1990

1991

1992

Q1
1 Balance on current account..
2 Merchandise trade balance 2
3
Merchandise exports
Merchandise imports
4
5 Military transactions, net
6 Other service transactions, net
7 Investment income, net
8
U.S. government grants
9
U.S. government pensions and other transfers
10 Private remittances and other transfers
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )

-91,861
-109,033
389,303
-498,336
-7,834
38,485
20,348
-17,434
-2,934
-13,459

-8,324
-73,802
416,937
-490,739
-5,851
51,733
13,021
24,073
-3,461
-14,037

-66,400
-96,138
440,138
-536,276
-2,751
59,163
6,222
-14,688
-3,735
-14,473

Q2

Q3

Q4

Ql p

-6,685
-17,763
108,347
-126,110
-571
14,619
4,419
-2,788
-830
-3,770

-18,253
-24,801
108,306
-133,107
-727
14,378
907
-3,234
-1,118
-3,659

-17,775
-27,612
109,493
-137,105
-617
15,898
1,703
-2,783
-940
-3,424

-23,687
-25,962
113,992
-139,954
-836
14,265
-806
-5,883
-846
-3,619

-22,249
-29,068
111,627
-140,695
-383
15,006
273
-3,412
-971
-3,694

2,307

2,905

-1,609

-275

-293

-305

-737

309

12 Change in U.S. official reserve assets (increase, - )
13 Gold
14 Special drawing rights (SDRs)
15 Reserve position in International Monetary Fund
16 Foreign currencies

-2,158
0
-192
731
-2,697

5,763
0
-177
-367
6,307

3,901
0
2,316
-2,692
4,277

-1,057
0
-172
111
-996

1,464
0
-168
1
1,631

1,952
0
-173
-118
2,243

1,542
0
2,829
-2,685
1,398

-983
0
-140
-228
-615

17 Change in U.S. private assets abroad (increase, - )
18 Bank-reported claims3
19 Nonbank-reported claims
20 U.S. purchases of foreign securities, net
21
U.S. direct investments abroad, net

-44,280
16,027
-4,433
-28,765
-27,109

-68,643
3,278
1,932
-44,740
-29,113

-53,253
24,948
4,551
-47,961
-34,791

303
17,795
5,339
-8,493
-14,338

-9,866
4,050
1,294
-8,276
-6,934

-12,445
6,584
-3,214
-13,787
-2,028

-31,243
-3,481
1,132
-17,405
-11,489

-2,639
33,921
-26,578
-9,982

22 Change in foreign official assets in United States (increase, +) ..
23
U.S. Treasury securities
24 Other U.S. government obligations
25 Other U.S. government liabilities4
26 Other U.S. liabilities reported by U.S. banks3
27 Other foreign official assets 5

34,198
29,576
667
2,156
3,385
-1,586

17,564
14,846
1,301
1,542
-1,484
1,359

40,684
18,454
3,949
2,542
16,427
-688

21,124
14,916
464
58
5,573
113

21,008
11,240
1,699
678
7,466
-75

-7,378
-323
912
864
-7,831
-1,000

5,931
-7,379
874
943
11,219
274

10,990
1,039
710
-210
8,046
1,404

28 Change in foreign private assets in United States (increase, + ) . .
29
U.S. bank-reported liabilities3
30
U.S. nonbank-reported liabilities
31 Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in United States, net

70,976
16,370
7,533
-2,534
1,592
48,015

65,875
-11,371
-699
18,826
35,144
23,975

88,895
18,609
741
36,893
30,274
2,378

-1,290
-3,339
926
623
4,613
-4,113

23,442
-528
979
10,168
10,453
2,370

33,828
23,647
1,553
4,870
2,730
1,028

32,914
-1,171
-2,717
21,232
12,478
3,092

8,600
-22,048

34 Allocation of special drawing rights
35 Discrepancy
36 Due to seasonal adjustment
37 Before seasonal adjustment

0

0

0

30,820

-15,140

-12,218

30,820

-15,140

-12,218

0
-12,120
4,878
-16,998

0
-17,502
653
-18,155

0
2,123
-6,754
8,877

0
15,280
1,222
14,058

0
5,973
5,726
247

14,179
10,635
5,834

MEMO

Changes in official assets
38 U.S. official reserve assets (increase, - )
39 Foreign official assets in United States, excluding line 25
(increase, +)
40 Change in Organization of Petroleum Exporting Countries
official assets in United States (part of line 22)

-2,158

5,763

3,901

-1,057

1,464

1,952

1,542

-983

32,042

16,022

38,142

21,066

20,330

-8,242

4,988

11,199

1,707

-4,882

5,857

2,583

-2,113

3,051

2,336

639

1. Seasonal factors are not calculated for lines 12-16, 18-20, 22-34, and 38-40.
2. Data are on an international accounts basis. The data differ from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise trade data and are included in line 5.
3. Reporting banks include all types of depository institution as well as some
brokers and dealers.




4. Associated primarily with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis,
Survey of Current Business.

A54
3.11

International Statistics • October 1993
U.S. FOREIGN TRADE1
Millions of dollars; monthly data seasonally adjusted
1992
Item

1990

1991

1993

1992
Dec.

1 Exports of domestic and foreign
merchandise, excluding grant-aid
shipments
2 General imports including merchandise
for immediate consumption
plus entries into bonded
warehouses

393,592

421,730

448,164

Jan.

Feb.

Mar.

Apr.

May r

June p

39,178

37,505

36,928

38,895

38,479

38,930

37,648

495,311

488,453

532,665

46,143

45,176

44,832

49,347

48,660

47,306

49,710

-101,718

3 Trade balance

-66,723

-84,501

—6,965

-7,672

-7,904

-10,453

-10,182

-8,376

-12,062

1. Government and nongovernment shipments of merchandise between foreign
countries and the fifty states, including the District of Columbia, Puerto Rico, the
U.S. Virgin Islands, and U.S. Foreign Trade Zones. Data exclude (1) shipments
among the United States, Puerto Rico, the U.S. Virgin Islands, and other U.S.
affiliated insular areas, (2) shipments to U.S. Armed Forces and diplomatic
missions abroad for their own use, (3) U.S. goods returned to the United States by
its Armed Forces, (4) personal and household effects of travelers, and (5)
in-transit shipments. Data reflect the total arrival of merchandise from foreign
countries that immediately entered consumption channels, warehouses, or U.S.
Foreign Trade Zones (general imports). Import data are Customs value; export
data are F.A.S. value. Since 1990, data for U.S. exports to Canada have been
derived from import data compiled by Canada; similarly, in Canadian statistics,
Canadian exports to the United States are derived from import data compiled by

the United States. Since Jan. 1, 1987, merchandise trade data have been released
forty-five days after the end of the month; the previous month is revised to reflect
late documents.
Data in this table differ from figures for merchandise trade shown in the U.S.
balance of payments accounts (table 3.10, lines 2 through 4) primarily for reasons
of coverage. For both exports and imports, a large part of the difference is the
treatment of military sales and purchases. The military sales to foreigners
(exports) and purchases from foreigners (imports) that are included in this table as
merchandise trade are shifted, in the balance of payments accounts, from
"merchandise t r a d e " into the broader category "military transactions."
SOURCE. (U.S. Department of Commerce, Bureau of the Census), FT900, U.S.
Merchandise Trade.

3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period

1990

1991

1992
Feb.

Apr.

May

June

77,719

71,323

71,962

72,847

74,378

75,644

76,711

73,968

11,058
10,989

11,057
11,240

11,056
8,503

11,055
8,546

11,055
8,651

11,054
8,787

11,054
8,947

11,053
9,147

11,057
8,987

9,076
52,193

9,488
45,934

11,759
40,005

12,079
40,282

12,021
41,120

12,184
42,353

12,317
43,326

12,195
44,316

11,926
41,998

1 Total
2 Gold stock, including Exchange
Stabilization Fund
3 Special drawing rights '
4 Reserve position in International
Monetary Fund
5 Foreign currencies 4

1. Gold held "under e a r m a r k " at Federal Reserve Banks for foreign and
international accounts is not included in the gold stock of the United States; see
table 3.13, line 3. Gold stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted
by the International Monetary Fund (IMF) in July 1974. Values are based on a
weighted average of exchange rates for the currencies of member countries. From
July 1974 through December 1980, sixteen currencies were used; since January

1981, five currencies have been used. U.S. SDR holdings and reserve positions in
the IMF also have been valued on this basis since July 1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1
of the year indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—
$710 million; 1979—$1,139 million; 1980—$1,152 million; 1981—$1,093 million;
plus net transactions in SDRs.
4. Valued at current market exchange rates.

3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1993
Asset

1990

1991

1992
Jan.

1 Deposits
Held in custody
2 U.S. Treasury securities
3 Earmarked gold

Mar.

Apr.

May

June

July"

369

968

205

325

296

317

221

193

286

284

278,499
13,387

281,107
13,303

314,481
13,686

324,356
13,077

329,183
13,074

326,486
12,989

339,396
12,924

345,060
12,854

343,672
12,829

343,378
12,756

1. Excludes deposits and U.S. Treasury securities held for international and
regional organizations.
2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S.
Treasury securities payable at face value in dollars or foreign currencies.




Feb.

3. Held in foreign and international accounts and valued at $42.22 per fine troy
ounce; not included in the gold stock of the United States.

Summary Statistics
3.14 FOREIGN BRANCHES OF U.S. BANKS

A55

Balance Sheet Data1

Millions of dollars, end of period
1993

1992
Account

1989

1990

1991
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

All foreign countries

ASSETS

545,366

556,925

548,999

542,545

543,624

554,280

546,941

543,833

548,340

562,355

4
5
6
7
8
9 Public borrowers
10 Nonbank foreigners
11 Other assets

198,835
157,092
17,042
24,701
300,575
113,810
90,703
16,456
79,606
45,956

188,4%
148,837
13,296
26,363
312,449
135,003
72,602
17,555
87,289
55,980

176,487
137,695
12,884
25,908
303,934
111,729
81,970
18,652
91,583
68,578

166,798
132,275
9,703
24,820
318,071
123,256
82,190
20,756
91,869
57,676

169,278
134,218
9,570
25,490
314,736
116,325
81,812
19,984
%,615
59,610

172,304
139,170
9,249
23,885
317,868
115,323
84,439
19,822
98,284
64,108

171,648
138,532
9,073
24,043
314,912
112,598
84,909
18,915
98,490
60,381

164,142
128,611
10,830
24,701
315,428
110,189
87,225
18,694
99,320
64,263

161,888
126,659
9,169
26,060
320,980*
111,314
88,103
18,251
103,312r
65,472r

175,758
140,757
9,498
25,503
316,503
111,708
85,775
18,183
100,837
70,094

12 Total payable in U.S. dollars

382,498

379,479

364,078

365,824

353,643

361,251

353,315

344,319

344,373

355,063

Claims on United States
14 Parent bank
15 Other banks in United States
16
17 Claims on foreigners
18 Other branches of parent bank
19
70 Public borrowers
71 Nonbank foreigners
22 Other assets

191,184
152,294
16,386
22,504
169,690
82,949
48,396
10,961
27,384
21,624

180,174
142,962
12,513
24,699
174,451
95,298
36,440
12,298
30,415
24,854

169,848
133,662
12,025
24,161
167,010
78,114
41,635
13,685
33,576
27,220

162,125
129,329
9,266
23,530
183,527
83,117
47,250
14,313
38,847
20,172

164,681
131,554
9,213
23,914
171,120
77,606
41,616
13,883
38,015
17,842

167,773
136,650
8,704
22,419
174,726
77,681
43,067
13,710
40,268
18,752

167,051
135,939
8,336
22,776
170,338
75,871
41,266
13,068
40,133
15,926

159,541
126,181
10,168
23,192
169,206
73,049
43,566
12,537
40,054
15,572

155,951
123,490
8,209
24,252
170,390r
73,068
44,835
12,244
40,243r
18,032r

169,237
137,446
8,638
23,153
168,795
73,015
43,633
12,049
40,098
17,031

1 Total payable in any currency
7

Claims on United States
Parent bank
Other banks in United States
Nonbanks
Claims on foreigners
Other branches of parent bank

N

United Kingdom
161,947

184,818

175,599

165,850

164,360

165,132

162,122

163,194

165,044

173,158

Public borrowers
Nonbank foreigners
33 Other assets

39,212
35,847
1,058
2,307
107,657
37,728
36,159
3,293
30,477
15,078

45,560
42,413
792
2,355
115,536
46,367
31,604
3,860
33,705
23,722

35,257
31,931
1,267
2,059
109,692
35,735
36,394
3,306
34,257
30,650

36,403
33,460
1,298
1,645
111,623
46,165
33,399
3,329
28,730
17,824

37,609
34,290
886
2,433
108,362
42,894
33,513
3,059
28,896
18,389

34,919
32,779
783
1,357
110,420
41,317
36,601
2,542
29,960
19,793

34,989
31,719
892
2,378
106,944
39,466
34,914
2,531
30,033
20,189

33,353
29,605
757
2,991
109,428
39,673
38,138
2,755
28,862
20,413

31,239
27,523
747
2,969
111,830"
41,458
37,282
2,420
30,670"
21,975r

37,038
33,059
1,006
2,973
109,528
40,130
36,681
2,342
30,375
26,592

34 Total payable in U.S. dollars

103,208

116,762

105,974

109,493

101,375

99,755

94,870

95,612

97,431

100,422

36,404
34,329
843
1,232
59,062
29,872
16,579
2,371
10,240
7,742

41,259
39,609
334
1,316
63,701
37,142
13,135
3,143
10,281
11,802

32,418
30,370
822
1,226
58,791
28,667
15,219
2,853
12,052
14,765

34,508
32,186
1,022
1,300
66,335
34,124
17,089
2,349
12,773
8,650

35,481
33,070
684
1,727
59,505
30,823
14,316
2,154
12,212
6,389

32,929
31,559
428
942
60,695
28,856
16,800
1,883
13,156
6,131

32,783
30,443
413
1,927
57,530
30,017
13,422
1,949
12,142
4,557

31,233
28,420
393
2,420
60,180
29,388
16,903
1,888
12,001
4,637

28,634
25,996
326
2,312
61,742r
30,753
17,073
1,808
12,108rr
7,055

34,110
31,265
533
2,312
60,479
30,287
16,647
1,804
11,741
5,833

23 Total payable in any currency
74
75

76
77
78
79
30

Claims on United States
Parent bank
Other banks in United States
Nonbanks
Claims on foreigners
Other branches of parent bank

31
3?

35 Claims on United States
36 Parent bank
37 Other banks in United States
38 Nonbanks
39 Claims on foreigners
40 Other branches of parent bank
41
Banks
4~> Public borrowers
43
Nonbank foreigners
44 Other assets

Bahamas and Cayman Islands
45 Total payable in any currency

176,006

162,316

168,512

147,422

144,894

151,175

148,867

143,859

142,184

148,422

46 Claims on United States
47 Parent bank
48 Other banks in United States
49
50 Claims on foreigners
51 Other branches of parent bank
5?
53 Public borrowers
54 Nonbank foreigners
55 Other assets

124,205
87,882
15,071
21,252
44,168
11,309
22,611
5,217
5,031
7,633

112,989
77,873
11,869
23,247
41,356
13,416
16,310
5,807
5,823
7,971

115,430
81,706
10,907
22,817
45,229
11,098
20,174
7,161
6,796
7,853

%,280
66,608
7,828
21,844
44,509
7,293
21,212
7,786
8,218
6,633

96,916
67,219
7,962
21,795
41,185
7,041
18,464
7,564
8,116
6,733

102,836
73,825
7,892
21,119
40,821
7,311
17,440
7,422
8,648
7,518

100,687
72,841
7,424
20,422
41,314
6,650
18,797
7,188
8,679
6,866

%,829
67,190
9,279
20,360
40,442
6,873
17,662
6,690
9,217
6,588

94,292
65,568
7,184
21,540
41,293
6,999
18,442
6,527
9,325
6,599

101,580
73,494
7,651
20,435
40,407
7,009
18,087
6,334
8,977
6,435

56 Total payable in U.S. dollars

170,780

158,390

163,957

142,861

140,332

146,809

144,627

139,351

137,514

143,340

1. Since June 1984, reported claims held by foreign branches have been
reduced by an increase in the reporting threshold for "shell" branches from $50




million to $150 million equivalent in total assets, the threshold now applicable to
all reporting branches.

A56
3.14

International Statistics • October 1993
FOREIGN BRANCHES OF U.S. BANKS

Balance Sheet Data1—Continued
1992

Account

1989

1990

1993

1991
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

All foreign countries

LIABILITIES

57 Total payable in any currency

545,366

556,925

548,999

542,545

543,624

554,280

546,941

543,833

548,340

562,355

58 Negotiable certificates of deposit (CDs)
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks

23,500
197,239
138,412
11,704
47,123

18,060
189,412
138,748
7,463
43,201

16,284
198,307
136,431
13,260
48,616

10,032
189,444
134,339
12,182
42,923

12,320
175,978
122,627
12,829
40,522

11,872
184,155
124,123
12,373
47,659

11,5%
187,088
125,650
13,306
48,132

13,748
176,082
114,965
11,952
49,165

14,348
174,889
116,691
14,062
44,136

14,154
186,139
129,291
13,514
43,334

63 To foreigners
64
Other branches of parent bank . . .
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities

296,850
119,591
76,452
16,750
84,057
27,777

311,668
139,113
58,986
14,791
98,778
37,785

288,254
112,033
63,097
15,596
97,528
46,154

309,704
125,160
62,189
19,731
102,624
33,365

321,297
120,179
67,843
23,654
109,621
34,029

319,638
119,601
70,056
21,469
108,512
38,615

312,417
115,535
68,411
18,312
110,159
35,840

316,661
113,845
68,381
21,326
113,109
37,342

322,140
115,189
69,323
22,271
115,357
36,%3

318,%2
115,725
67,249
22,466
113,522
43,100

69 Total payable in U.S. dollars

396,613

383,522

370,710

368,773

353,725

363,285

353,431

343,867

343,766

356,781

70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks

19,619
187,286
132,563
10,519
44,204

14,094
175,654
130,510
6,052
39,092

11,909
185,472
129,669
11,707
44,096

6,238
178,674
127,948
11,512
39,214

7,102
164,634
116,008
11,710
36,916

6,640
172,223
117,228
11,418
43,577

6,519
175,354
119,040
12,467
43,847

7,062
163,715
107,949
11,282
44,484

7,248
161,775
109,645
13,126
39,004

8,138
172,373
121,631
12,862
37,880

176,460
87,636
30,537
9,873
48,414
13,248

179,002
98,128
20,251
7,921
52,702
14,772

158,993
76,601
24,156
10,304
47,932
14,336

172,189
83,700
26,118
12,430
49,941
11,672

169,595
79,144
23,281
14,067
53,103
12,394

170,756
79,594
25,571
14,034
51,557
13,666

160,774
77,685
21,227
10,762
51,100
10,784

163,149
75,682
22,150
12,627
52,690
9,941

165,162
75,313
22,%9
12,653
54,227
9,581

166,136
75,783
23,446
12,951
53,956
10,134

....

75 To foreigners
76
Other branches of parent bank . . .
77
Banks
78 Official institutions
79
Nonbank foreigners
80 Other liabilities

United Kingdom
81 Total payable in any currency ..

161,947

184,818

175,599

165,850

164,360

165,132

162,122

163,194

165,044

173,158

82 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonbanks

20,056
36,036
29,726
1,256
5,054

14,256
39,928
31,806
1,505
6,617

11,333
37,720
29,834
1,438
6,448

4,517
39,174
31,100
1,065
7,009

5,774
32,780
25,099
1,742
5,939

5,597
33,092
24,250
1,633
7,209

4,753
38,011
29,759
1,192
7,060

5,414
34,661
22,611
1,110
10,940

5,644
37,272
28,095
1,652
7,525

6,566
39,514
30,410
1,097
8,007

87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities

92,307
27,397
29,780
8,551
26,579
13,548

108,531
36,709
25,126
8,361
38,335
22,103

98,167
30,054
25,541
9,670
32,902
28,379

107,176
35,983
25,231
12,090
33,872
14,983

111,351
35,376
25,965
14,188
35,822
14,455

110,514
35,143
27,227
12,938
35,206
15,929

104,356
33,424
23,985
10,531
36,416
15,002

108,670
33,545
26,082
12,342
36,701
14,449

106,834
31,437
27,184
11,752
36,461
15,294

106,731
32,275
25,854
12,139
36,463
20,347

93 Total payable in U.S. dollars

108,178

116,094

108,755

108,214

100,731

101,342

95,892

94,159

96,152

98,465

94 Negotiable CDs
95 To United States
96
Parent bank
97
Other banks in United States
98
Nonbanks

18,143
33,056
28,812
1,065
3,179

12,710
34,697
29,955
1,156
3,586

10,076
33,003
28,260
1,177
3,566

3,894
35,417
29,957
709
4,751

4,770
28,545
23,767
1,063
3,715

4,444
28,874
23,097
1,097
4,680

3,765
33,552
28,405
707
4,440

4,214
30,170
21,145
676
8,349

4,392
32,457
26,631
1,311
4,515

5,462
34,523
28,747
847
4,929

99 To foreigners
100
Other branches of parent bank
101
Banks
102 Official institutions
103
Nonbank foreigners
104 Other liabilities

50,517
18,384
12,244
5,454
14,435
6,462

60,014
25,957
9,488
4,692
19,877
8,673

56,626
20,800
11,069
7,156
17,601
9,050

62,048
22,026
12,540
8,847
18,635
6,855

60,107
20,807
9,740
10,114
19,446
7,309

59,643
20,516
10,359
9,967
18,801
8,381

51,850
19,516
6,702
7,008
18,624
6,725

54,407
18,958
8,327
8,803
18,319
5,368

54,576
17,449
9,065
8,210
19,852
4,727

53,288
17,691
8,311
8,812
18,474
5,192

Bahamas and Cayman Islands
105 Total payable in any currency . . .

176,006

162,316

168,512

147,422

144,894

151,175

148,867

143,859

142,184

148,422

106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States .
110 Nonbanks

678
124,859
75,188
8,883
40,788

646
114,738
74,941
4,526
35,271

1,173
130,058
79,394
10,231
40,433

1,350
111,861
67,347
10,445
34,069

1,355
108,150
65,122
10,265
32,763

1,142
110,729
62,336
10,059
38,334

1,713
110,391
59,668
11,492
39,231

1,692
105,895
59,416
10,291
36,188

1,812
102,211
56,566
11,220
34,425

1,535
108,736
64,156
11,567
33,013

111 To foreigners
112
Other branches of parent bank
113
Banks
114
Official institutions
115
Nonbank foreigners
116 Other liabilities

47,382
23,414
8,823
1,097
14,048
3,087

44,444
24,715
5,588
622
13,519
2,488

35,200
17,388
5,662
572
11,578
2,081

32,556
15,169
6,422
805
10,160
1,655

33,766
15,411
6,350
932
11,073
1,623

37,690
18,056
7,967
1,036
10,631
1,614

35,369
18,015
6,476
858
10,020
1,394

34,773
17,462
6,219
905
10,187
1,499

36,146
18,626
6,123
1,052
10,345
2,015

36,563
18,927
6,382
1,025
10,229
1,588

171,250

157,132

163,789

143,150

140,734

146,875

144,291

138,741

137,159

143,450

117 Total payable in U.S. dollars




Summary Statistics

A57

3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period

Dec.

4
5
6
7
8
9
10
11
12

Feb.

Mar.

Apr/

May r

344,529

1 Total1
2
3

Jan.

360,530

398,672

411,802

413,220

409,997r

413,459

424,366

By type
Liabilities reported by banks in the United States .
U.S. Treasury bills and certificates
U.S. Treasury bonds and notes
Marketable
Nonmarketable
U.S. securities other than U.S. Treasury securities

39,880
79,424

38,396
92,692

54,823
104,596

63,792
111,540

66,454
113,594

62,994r
113,547

62,608
113,293

68,293
120,785

202,487
4,491
18,247

203,677
4,858
20,907

210,553
4,532
24,168

207,573
4,563
24,334

203,209
4,592
25,371

202,552
4,622
26,282

205,262
5,431
26,865

202,216

By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries

167,191
8,671
21,184
138,096
1,434
7,955

168,365
7,460
33,554
139,465
2,092
9,592

188,700
7,920
40,015
152,142
3,565
6,328

196,232
8,411
41,388
156,205
3,705
5,859

199,651
7,886
42,502
154,009
3,866
5,304

187,394
9,326
44,509
157,932r
3,919
6,915

184,938
8,302
49,070
159,775
3,782
7,590

191,243
8,899
48,056
164,732
3,782
7,652

5,417
27,655

1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies; zero coupon bonds are included at
current value.

5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
SOURCE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States and on the 1984 benchmark survey of foreign portfolio
investment in the United States.

3.16 LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies

Reported by Banks in the United States1

Millions of dollars, end of period
1993

1992
Item

1989

1990

1991
June

1 Banks' liabilities
2 Banks' claims
3 Deposits
4 Other claims
5 Claims of banks' domestic customers

67,835
65,127
20,491
44,636
3,507

1. Data on claims exclude foreign currencies held by U.S. monetary
authorities.




70,477
66,796
29,672
37,124
6,309

75,129
73,195
26,192
47,003
3,398

Sept.

Dec.

Mar/

70,969
58,354
23,468
34,886
4,375

84,162
72,164
28,074
44,090
3,987

72,796
62,789
24,240
38,549
4,432

82,995
64,077
24,948
39,129
2,625

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.

A58
3.17

International Statistics • October 1993
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars

Reported by Banks in the United States1

Millions of dollars, end of period
1992

Item

1990

1991

1993

1992

Dec.

Jan.

Feb.

Apr.

Mar.

May r

June"

HOLDER AND TYPE OF LIABILITY
1 Total, all foreigners

759,634

756,066

810,025

810,025

802,216

814,725

798,447r

791,382r

793,068

820,712

2 Banks' own liabilities
Demand deposits
3
4
Time deposits
5
Other 3
6
Own foreign offices 4

577,229
21,723
168,017
65,822
321,667

575,374
20,321
159,649
66,305
329,099

606,210
21,823
160,374
93,840
330,173

606,210
21,823
160,374
93,840
330,173

592,754
21,106
150,062
103,910
317,676

606,005
22,310
147,284
106,262
330,149

586,505 R
21,582
143,999*
97,064 R
323, M F

581,554 R
22,239
147,948 R
101,099 R
310,268 R

574,306
22,140
147,734
104,469
299,963

597,393
21,455
151,813
108,545
315,580

182,405
96,796

180,692
110,734

203,815
127,649

203,815
127,649

209,462
133,799

208,720
135,300

211,942
137,062

209,828
138,016

218,762
144,725

223,319
144,066

17,578
68,031

18,664
51,294

21,982
54,184

21,982
54,184

22,969
52,694

20,735
52,685

22,309
52,571

21,550
50,262

23,931
50,106

30,061
49,192

organizations 8
Banks' own liabilities
Demand deposits
Time deposits
Other 3

5,918
4,540
36
1,050
3,455

8,981
6,827
43
2,714
4,070

9,350
6,951
46
3,214
3,691

9,350
6,951
46
3,214
3,691

11,099
7,837
39
2,702
5,096

11,538
8,884
47
2,311
6,526

9,295 R
6,037 R
196
2,722 R
3,119 R

10,731
5,834
33
1,687
4,114

8,934
6,481
35
2,989
3,457

9,130
6,070
19
3,407
2,644

Banks' custodial liabilities5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments
Other

1,378
364

2,154
1,730

2,399
1,908

2,399
1,908

3,262
2,774

2,654
2,348

3,258
2,876

4,897
4,461

2,453
1,883

3,060
2,320

1,014
0

424

486
5

486
5

488
0

306

382

433

0

0

3

564
6

740
0

119,303
34,910
1,924
14,359
18,628

131,088
34,411

159,419
51,058
1,274
17,823
31,961

159,419
51,058
1,274
17,823
31,961

175,332
59,577
1,397

180,048

176,541 R

175,901r
59,187r
1,358

189,078

192,279

63,410

62,677

38,848

1,385
21,516
40,509

2,203
19,232
41,242

84,393
79,424

96,677
92,692

108,361

108,361

104,596

4,766
203

3,879
106

540,805
458,470
136,802
10,053
88,541
38,208
321,667

5

7 Banks' custodial liabilities
8
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
9
10

instruments 7
Other

11 Nonmonetary international and regional
12
13
14
15

16
17
18
19

20 Official institutions 9
21
Banks' own liabilities
22
Demand deposits
23
Time deposits
24
Other 3
25
26
27
28

Banks' custodial liabilities5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other

29 Banks 10
30
Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits
34
Other 3
35
Own foreign offices 4
36
37
38
39

Banks' custodial liabilities5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments 7
Other

40 Other foreigners
41
Banks' own liabilities
Demand deposits
42
43
Time deposits
44
Other 3
45
46
47
48

Banks' custodial liabilities5
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments 7
Other

0

18,685

62,687
1,764
18,996

39,495

41,927

59,491r
1,457
18,747r
39,287

104,596

115,755
111,540

117,361
113,594

117,050
113,547

116,714
113,293

125,668
120,785

129,602
119,860

3,726
39

3,726
39

4,054
161

3,648
119

3,411
92

3,284
137

4,739
144

9,602
140

522,265
459,335
130,236
8,648
82,857
38,731
329,099

546,556
475,340
145,167
10,168
90,175
44,824
330,173

546,556
475,340
145,167
10,168
90,175
44,824
330,173

522,700
453,849
136,173
9,903
80,351
45,919
317,676

530,365
462,769
132,620
10,974
77,823
43,823
330,149

520,891r
451,813r
127,953r
10,495
74,446r

503,131
436,242
136,279
11,386

524,472
458,562
142,982
9,910

76,459

83,174

323,860"

51 L,808r
445,570*
135,302r
10,883
79,707r
44,712r
310,268r

48,434
299,963

49,898
315,580

82,335
10,669

62,930
7,471

71,216
11,087

71,216
11,087

68,851
9,685

67,596
9,296

69,078
9,976

66,238
9,908

66,889
10,837

65,910
10,546

5,341
66,325

5,694
49,765

7,568
52,561

7,568
52,561

7,708
51,458

6,692
51,608

7,957
51,145

7,360
48,970

7,412
48,640

7,755
47,609

93,608
79,309
9,711
64,067
5,530

93,732
74,801
9,004
57,574
8,223

94,700
72,861
10,335
49,162
13,364

94,700
72,861
10,335
49,162
13,364

93,085
71,491
9,767
48,324
13,400

92,774
71,665
9,525
48,154
13,986

91,720"
69,164r
9,434
48,084r
11,646r

92,942r
70,963r
9,965
47,573r
13,425r

91,925
68,173
9,334
46,770
12,069

94,831
70,084
9,323
46,000
14,761

14,299
6,339

18,931
8,841

21,839
10,058

21,839
10,058

21,594
9,800

21,109
10,062

22,556
10,663

21,979
10,354

23,752
11,220

24,747
11,340

6,457
1,503

8,667
1,423

10,202
1,579

10,202
1,579

10,719
1,075

10,089
958

10,559
1,334

10,473
1,152

11,216
1,316

11,964
1,443

7,073

7,456

9,114

9,114

9,724

9,499

9,548

9,412r

9,585

10,389

2,626
16,504

15,281

43,012 R

18,98LR

MEMO

49 Negotiable time certificates of deposit in custody for
foreigners

1. Reporting banks include all types of depository institution, as well as some
brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign
subsidiaries consolidated in Consolidated Report of Condition filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of
foreign banks, consists principally of amounts owed to head office or parent
foreign bank, and foreign branches, agencies, or wholly owned subsidiaries of
head office or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.




6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development, the
Inter-American Development Bank, and the Asian Development Bank. Excludes
"holdings of dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
International Settlements.
10. Excludes central banks, which are included in "Official institutions."

Nonbank-Reported
3.17

LIABILITIES TO FOREIGNERS

Reported by Banks in the United States1—Continued
1993

1992
Item

Data

1990

1991

1992
May

Apr.

Mar.

June"

Dec.

Jan.

Feb.

810,025

802,216

814,725

798,447r

791,382r

793,068r

820,712

r

r

784,134r

811,582

298,984r
1,497
19,775
1,229
2,265
31,087
19,912r
742
8,094
11,502
2,355
2,476
14,055
3,149
39,703
2,664
109,553
507
24,521
726
3,172r

313,834r
l,525 r
21,099r
2,464
2,185
33,825r
23,959
859
9,089r
13,903
2,690
2,674
13,588r
2,140
41,880
2,761r
106,638r
510
28,292r
847
2,906r

325,001
1,496
21,817
3,088
2,580
33,736
22,752
819
10,402
11,271
2,840
2,764
15,484
2,336
40,558
2,496
116,035
512
30,051
1,129
2,835

AREA

1 Total, all foreigners
2 Foreign countries
3 Europe
Austria
4
Belgium and Luxembourg
5
Denmark
6
Finland
7
France
8
9 Germany
10 Greece
Italy
11
Netherlands
1?
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19
United Kingdom
Yugoslavia"
70
Others in Western Europe
71
Russia
77
Other Eastern Europe
23

759,634

756,066

810,025

753,716

747,085

800,675

800,675

791,117

803,187

789,152

254,452
1,229
12,382
1,399
602
30,946
7,485
934
17,735
5,350
2,357
2,958
7,544
1,837
36,690
1,169
109,555
928
11,689
119
1,545

249,097
1,193
13,337
937
1,341
31,808
8,619
765
13,541
7,161
1,866
2,184
11,391
2,222
37,238
1,598
100,292
622
9,274
241
3,467

308,418
1,611
20,572
3,060
1,299
41,459
18,631
910
10,041
7,372
3,319
2,465
9,796
2,986
39,440
2,666
112,454
504
25,834
577
3,422

308,418
1,611
20,572
3,060
1,299
41,459
18,631
910
10,041
7,372
3,319
2,465
9,796
2,986
39,440
2,666
112,454
504
25,834
577
3,422

303,751
1,158
21,255
1,885
1,862
34,285
20,685
815
8,759
8,722
3,550
2,518
14,904
2,962
41,533
2,533
106,739
506
25,926
436
2,718

304,752
1,942
19,729
2,835
2,049
32,457
18,934
758
10,701
11,702
2,521
2,508
17,233
1,902
40,227
2,862
105,510
512
27,491
497
2,382

293,412r
1,256
19,475
1,536
2,297
31,712
16,107
763
8,889
11,409
2,350
2,489
15,735
1,619
39,596
2,520
106,394r
523
25,748
535
2,459

780,651

20,349

21,605

22,746

22,746

21,467

22,898

25,040

22,302

21,331

20,017

75 Latin America and Caribbean
Argentina
76
Bahamas
77
Bermuda
78
Brazil
79
British West Indies
30
Chile
31
Colombia
37
33 Cuba
Ecuador
34
35
Guatemala
36 Jamaica
Mexico
37
Netherlands Antilles
38
Panama
39
Peru
40
Uruguay
41
Venezuela
47
Other
43

332,997
7,365
107,386
2,822
5,834
147,321
3,145
4,492
11
1,379
1,541
257
16,650
7,357
4,574
1,294
2,520
12,271
6,779

345,529
7,753
100,622
3,178
5,704
163,620
3,283
4,661
2
1,232
1,594
231
19,957
5,592
4,695
1,249
2,096
13,181
6,879

316,020
9,477
82,222
7,079
5,584
151,886
3,035
4,580
3
993
1,377
371
19,456
5,205
4,177
1,080
1,955
11,387
6,153

316,020
9,477
82,222
7,079
5,584
151,886
3,035
4,580
3
993
1,377
371
19,456
5,205
4,177
1,080
1,955
11,387
6,153

313,754
10,792
84,777
6,319
5,321
147,375
3,638
4,438
2
945
1,311
294
20,023
4,352
4,013
1,052
1,898
11,106
6,098

321,062
10,608
87,812
6,508
5,304
150,063
3,420
4,417
3
886
1,311
279
21,196
4,869
4,214
1,045
2,061
10,984
6,082

318,718r
11,568
83,607r
6,269
5,462
151,243r
3,325
4,183
3
928
1,382
309
21,762
4,221
3,924r
995
1,815
11,446
6,276r

316,594r
10,956r
81,737
6,135
5,463
147,408r
3,479
4,359
2
919
1,352
293
24,896
4,537
4,147r
1,070
1,767
11,511
6,563r

303,209r
11,229r
80,063r
5,297r
5,335r
138,866r
3,524
4,337r
2r
951
l,323 r
289
23,35l r
3,812
4,067r
977
1,733
11,644
6,409r

311,543
11,199
80,673
6,064
4,934
146,674
3,550
4,379
3
915
1,397
341
22,295
4,057
3,732
979
1,767
12,237
6,347

44

136,844

120,462

143,436

143,436

141,633

143,636

140,427r

131,025r

133,940r

143,464

2,421
11,246
12,754
1,233
1,238
2,767
67,076
2,287
1,585
1,443
15,829
16,965

2,626
11,491
14,269
2,418
1,463
2,015
47,069
2,587
2,449
2,252
15,752
16,071

3,202
8,379
18,509
1,396
1,480
3,775
58,342
3,336
2,275
5,582
21,446
15,714

3,202
8,379
18,509
1,396
1,480
3,775
58,342
3,336
2,275
5,582
21,446
15,714

3,114
8,929
17,588
1,323
1,392
3,389
56,009
3,444
2,350
5,722
19,877
18,496

3,007
9,102
19,543
1,377
1,460
3,371
57,993
3,488
2,746
5,375
19,897
16,277

2,957
9,042r
17,041
1,399
1,871
3,930
56,917r
3,337
2,774
5,342
19,718
16,099

3,527
8,884r
16,353
989
1,464
3,763
51,107r
3,591
2,785
4,967
19,687
13,908

3,008
8,790
15,832r
1,341
1,861
3,161
54,365r
3,929r
2,458
5,377
19,272r
14,546r

2,885
9,638
16,212
1,312
2,132
2,764
62,687
3,840
2,933
5,233
20,325
13,503

57 Africa
Egypt
58
59
Morocco
South Africa
60
Zaire
61
Oil-exporting countries
67
Other
63

4,630
1,425
104
228
53
1,110
1,710

4,825
1,621
79
228
31
1,082
1,784

5,884
2,472
76
190
19
1,346
1,781

5,884
2,472
76
190
19
1,346
1,781

5,913
2,756
88
158
25
1,125
1,761

6,364
3,077
92
319
17
1,135
1,724

6,508
3,084
87
243
13
1,239
1,842

6,438
2,938
151
246
14
1,294
1,795

6,474r
2,922
144
198r
16
1,368
1,826

6,529
2,784
181
265
15
1,332
1,952

64 Other
65
Australia
Other
66

4,444
3,807
637

5,567
4,464
1,103

4,171
3,047
1,124

4,171
3,047
1,124

4,599
3,502
1,097

4,475
3,388
1,087

5,047
4,013
1,034

5,308
4,056
1,252

5,346
4,449
897

5,028
4,078
950

67 Nonmonetary international and regional
organizations
International 16
68
Latin American regional
69
Other regional 18
70

5,918
4,390
1,048
479

8,981
6,485
1,181
1,315

9,350
7,434
1,415
501

9,350
7,434
1,415
501

11,099
7,864
2,327
908

11,538
8,857
1,738
943

9,295r
6,25 l r
2,021
1,023

10,731
7,590
2,223
918

8,934r
5,388r
2,412
1,134

9,130
5,612
2,318
1,200

24 Canada

45
46
47
48
49
•>0

51
57
53

54
55

56

China
People's Republic of China
Republic of China (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries 14
Other

11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
12. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23. Since December 1992, has included, in addition, all
former parts of the U.S.S.R. (except Russia), and Bosnia-Hercegovina, Croatia,
and Slovenia.
13. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
14. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




15. Comprises Algeria, Gabon, Libya, and Nigeria.
16. Principally the International Bank for Reconstruction and Development.
Excludes "holdings of dollars" of the International Monetary Fund.
17. Principally the Inter-American Development Bank.
18. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."

A59

A60

International Statistics • October 1993

3.18 BANKS' OWN CLAIMS ON FOREIGNERS
Payable in U.S. Dollars

Reported by Banks in the United States1

Millions of dollars, end of period
1992
Area and country

1990

1991

1993

1992
Dec.

Jan.

Feb.

Mar.

Apr."

May"

June"

1 Total, all foreigners

511,543

514,339

495,761

495,761

484,670

495,033

475,969'

469,454

459,319

482,058

2 Foreign countries

506,750

508,056

490,679

490,679

481,570

490,925

472,647r

467,037

457,637

480,044

113,093
362
5,473
497
1,047
14,468
3,343
727
6,052
1,761
782
292
2,668
2,094
4,202
1,405
65,151
1,142
597
530
499

114,310
327
6,158
686
1,907
15,112
3,371
553
8,242
2,546
669
344
1,881
2,335
4,540
1,063
60,395
825
789
1,970
597

124,130
341
6,404
707
1,419
14,847
4,229
718
9,048
2,497
356
325
2,772
4,929
4,722
962
63,980
569
1,706
3,147
452

124,130
341
6,404
707
1,419
14,847
4,229
718
9,048
2,497
356
325
2,772
4,929
4,722
962
63,980
569
1,706
3,147
452

117,355
366
6,473
705
1,275
14,012
5,544
670
8.716
2,927
649
390
2,593
5,340
4,493
1,071
56,308
571
1,607
3,154
491

124,763
530
5,886
785
1,226
14,670
5,370
668
8,466
3,279
750
494
4,158
5,155
4,971
1,041
61,433
567
1,607
3,154
553

122,490r
894r
6,273r
682
1,010
13,235r
5,725r
583
8,418r
2,676
645
454
3,859r
4.809
4,348r
943
62,227r
553
1,780
2,906
470

120,309
1,013
6,177
645
998
13,141
5,322
618
8,724
2,607
714
513
3,642
4,509
4,355
1,285
60,721
551
1,316
2,889
569

118,174
941
5,513
628
885
11,614
6,089
596
8,218
3,278
676
593
3,441
4,229
4,729
1,508
59,664
550
1,455
3,080
487

121,817
1,080
5,955
731
1,238
11,809
6,223
568
9,229
2,750
788
670
3,604
4,065
4,167
1,585
62,025
548
1,190
3,046
546

16,091

15,113

14,185

14,185

16,465

14,972

18,287r

16,977

16,393

16,688

231,506
6,967
76,525
4,056
17,995
88,565
3,271
2,587
0
1,387
191
238
14,851
7,998
1,471
663
786
2,571
1,384

246,137
5,869
87,138
2,270
11,894
107,846
2,805
2,425
0
1,053
228
158
16,567
1,207
1,560
739
599
2,516
1,263

213,772
4,882
59,532
5,934
10,733
98,738
3,397
2,750
0
884
262
167
15,049
1,379
4,474
730
936
2,525
1,400

213,772
4,882
59,532
5,934
10,733
98,738
3,397
2,750
0
884
262
167
15,049
1,379
4,474
730
936
2,525
1,400

219,079
4,804
62,831
6,797
10,924
101,614
3,690
2,752
0
853
240
170
15,216
1,735
2,024
735
895
2,409
1,390

212,204
4,859
63,898
2,851
10,507
96,324
3,795
2,819
0
835
257
164
15,988
1,938
2,307
708
844
2,485
1,625

204,144r
4,844r
57,593r
3,910
10,871r
93,856"
3,638
2,807
0
819"
274
168
15,115"
2,098"
2,541"
650
846
2,558
1,556"

200,437
3,931
57,909
5,609
10,806
88,964
3,551
2,786
0
807
269
161
15,534
1,971
2,311
691
787
2,495
1,855

195,315
3,942
54,456
3,089
10,705
90,023
3,717
2,875
0
770
256
165
14,967
2,354
2,260
675
778
2,542
1,741

212,401
4,065
59,185
4,319
12,312
97,269
3,632
2,825
1
771
506
184
15,422
3,011
2,384
657
904
2,803
2,151

138,722

125,262

131,296

131,2%

121,777

131,494

120,066"

122,296

120,886

122,020

620
1,952
10,648
655
933
774
90,699
5,766
1,247
1,573
10,749
13,106

747
2,087
9,617
441
952
860
84,807
6,048
1,910
1,713
8,284
7,796

906
2,046
9,673
529
1,189
820
78,647
6,180
2,145
1,867
18,559
8,735

906
2,046
9,673
529
1,189
820
78,647
6,180
2,145
1,867
18,559
8,735

774
1,683
9,145
532
1,323
877
74,631
6,073
1,871
1,7%
17,083
5,989

892
1,585
10,298
549
1,292
809
79,791
6,753
1,842
1,737
17,775
8,171

939
1,630
10,563"
443
1,469
896
67,761"
6,938
1,713
1,678
19,048
6,988

1,388
1,670
9,215
549
1,432
1,057
71,584
7,048
1,645
1,794
17,909
7,005

881
1,562
10,419
489
1,386
814
71,811
7,152
1,521
1,763
17,937
5,151

1,880
1,835
9,706
475
1,526
777
71,220
7,421
1,402
1,865
17,437
6,476

57 Africa
58 Egypt
59 Morocco
60 South Africa
61
Zaire
62 Oil-exporting countries 6
63 Other

5,445
380
513
1,525
16
1,486
1,525

4,928
294
575
1,235
4
1,298
1,522

4,289
194
441
1,041
4
1,004
1,605

4,289
194
441
1,041
4
1,004
1,605

4,262
171
421
1,069
3
1,067
1,531

4,147
291
403
1,030
3
1,108
1,312

3,907"
192
396
1,011
3
1,140
1,165"

3,767
151
396
924
3
1,128
1,165

3,661
151
420
803
3
1,134
1,150

3,809
178
416
746
3
1,166
1,300

64 Other
65 Australia
66 Other

1,892
1,413
479

2,306
1,665
641

3,007
2,263
744

3,007
2,263
744

2,632
1,8%
736

3,345
2,552
793

3,753
3,1P
636

3,251
2,635
616

3,208
2,534
674

3,309
2,574
735

67 Nonmonetary international and regional
organizations7

4,793

6,283

5,082

5,082

3,100

4,108

3,322

2,417

1,682

2,014

3 Europe
4 Austria
5 Belgium and Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
1? Netherlands
n
Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia2
Others in Western Europe 3
21
22 Russia
23 Other Eastern Europe 4
24 Canada
25 Latin America and Caribbean
26 Argentina
27 Bahamas
28 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34 Ecuador
35 Guatemala
36 Jamaica
37 Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41
Uruguay
42 Venezuela
43 Other
44 Asia
China
People's Republic of China
Republic of China (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries5
Other

45
46
47
48
49
50
51
5?
53
54
55
56

•

1. Reporting banks include all types of depository institutions, as well as some
brokers and dealers.
2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
3. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23. Since December 1992, has included, in addition, all
former parts of the U.S.S.R. (except Russia), and Bosnia-Hercegovina, Croatia,
and Slovenia.




4. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."

Nonbank-Reported
3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
United States1
Payable in U.S. Dollars

Data

Reported by Banks in the

Millions of dollars, end of period
1992
Claim

1990

1993

1991
Feb.

Dec.

Mar. r

495,033
30,349
305,438
102,737
50,634
52,103
56,509

475,969
33,631
292,938
97,073
48,778
48,295
52,327

1 Total

579,044

579,683

555,799

555,799

2 Banks' claims
3 Foreign public borrowers
4 Own foreign offices
5 Unaffiliated foreign banks
6
Deposits
Other
7
8
All other foreigners

511,543
41,900
304,315
117,272
65,253
52,019
48,056

514,339
37,126
318,800
116,602
69,018
47,584
41,811

495,761
31,245
299,916
109,788
60,949
48,839
54,812

495,761
31,245
299,916
109,788
60,949
48,839
54,812

67,501
14,375

65,344
15,280

60,038
15,452

60,038
15,452

37,125

31,454

31,454

12,939

13,132

13,132

13,628

8,974

8,700

8,700

44,638

40,297

33,604

33,604

32,962

33,816

7,959

14 Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States .

459,319
29,579
280,950
94,719
47,339
47,380
54,071

12,606

13 Customer liability on acceptances

469,454
30,266
285,497
97,837
47,808
50,029
55,854

27,283

11,792

May r

51,889
12,000

41,333

Apr. r

9 Claims of banks' domestic customers^
10 Deposits
11 Negotiable and readily transferable
instruments 4
12 Outstanding collections and other
claims

527,858
484,670
32,972
291,819
101,868

52,707
49,161
58,011

MEMO

36,127

36,801

36,425

foreign bank, and foreign branches, agencies, or wholly owned subsidiaries of
head office or parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see Federal Reserve
Bulletin, vol. 65 (July 1979), p. 550.

1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are quarterly.
Reporting banks include all types of depository institution, as well as some
brokers and dealers.
2. For U.S. banks, includes amounts due from own foreign branches and
foreign subsidiaries consolidated in Consolidated Report of Condition filed with
bank regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists principally of amounts due from head office or parent

3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Payable in U.S. Dollars

Reported by Banks in the United States1

Millions of dollars, end of period
1993

1992
Maturity, by borrower and area 2

1989

1990

1991
June

1 Total
2
3
4
5
6
7

8
9
10
11
12
13
14
15
16
17
18
19

By borrower
Maturity of one year or less
Foreign public borrowers
All other foreigners
Maturity of more than one year
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3

Dec.

Mar. r

238,123

206,903

195,302

196,776

187,272

195,517

182,703

178,346
23,916
154,430
59,776
36,014
23,762

165,985
19,305
146,680
40,918
22,269
18,649

162,573
21,050
141,523
32,729
15,859
16,870

162,382
20,400
141,982
34,394
15,165
19,229

155,072
17,739
137,333
32,200
13,314
18,886

163,873
17,689
146,184
31,644
13,268
18,376

152,704
21,140
131,564
29,999
12,199
17,800

53,913
5,910
53,003
57,755
3,225
4,541

49,184
5,450
49,782
53,258
3,040
5,272

51,835
6,444
43,597
51.059
2,549
7,089

55,123
7,986
48,983
41,343
2,127
6,820

55,964
5,949
45,241
40,664
2,183
5,071

53,865
6,118
50,316
45,726
1,784
6,064

55,295
7,890
45,154
37,910
1,680
4,775

4,121
2,353
45,816
4,172
2,630
684

3,859
3,290
25,774
5,165
2,374
456

3,878
3,595
18,277
4,459
2,335
185

6,752
3,158
16,847
5,018
2,356
263

6,624
3,227
15,111
4,853
2,107
278

5,380
3,290
15,159
5,015
2,390
410

4,8%
3,117
14,387
5,033
2,130
436

1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.




Sept.

2. Maturity is time remaining to maturity,
3. Includes nonmonetary international and regional organizations.

A61

A62
3.21

International Statistics • October 1993
CLAIMS ON FOREIGN COUNTRIES

Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1

Billions of dollars, end of period
1991
Area or country

1989

1992

1993

1990
June

Sept.

Dec.

Mar.

June

Sept.

Dec.

Mar.

June p

340.9

320.1

322.3

338.4

343.6

349.8

357.4

343.9

345.6

361.8r

378.5

152.9
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2
5.4
32.3

132.2
5.9
10.4
10.6
5.0
3.0
2.2
4.4
60.9
5.9
24.0

130.3
6.1
10.5
8.3
3.6
3.3
2.5
3.3
59.5
8.2
25.1

135.0
5.8
11.1
9.7
4.5
3.0
2.1
3.9
65.6
5.8
23.5

137.6
6.0
11.0
8.3
5.6
4.7
1.9
3.4
68.5
5.8
22.6

131.1
5.3
10.0
8.4
5.4
4.3
2.0
3.2
64.8
6.6
21.1

136.3
6.2
12.0
8.8
8.0
3.3
1.9
4.6
65.9
6.7
18.7

137.5
6.2
15.5
10.9
6.4
3.7
2.2
5.2
61.9
6.7
18.9

134.0
5.6
15.4
9.3
6.5
2.8
2.3
4.8
61.4
6.6
19.2

143.8r
6.1r
13.6r
9.9r
6.7r
3.7
3.0
5.3r
66.5
8.6
20.4r

151.3
7.0
13.8
10.8
7.6
3.7
2.5
4.8
75.3
8.1
17.8

13 Other industrialized countries
14 Austria
15 Denmark
16 Finland
17 Greece
18 Norway
19 Portugal
20 Spain
21 Turkey
22 Other Western Europe
23 South Africa
24 Australia

21.0
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
1.0
2.0
1.6

22.9
1.4
1.1
.7
2.7
1.6
.6
8.3
1.7
1.2
1.8
1.8

21.3
1.1
1.2
.8
2.4
1.5
.6
7.1
1.9
1.1
1.8
2.0

22.1
1.0
.9
.6
2.3
1.4
.5
8.3
1.6
1.3
1.6
2.4

22.8
.6
.9
.7
2.6
1.4
.6
8.3
1.4
1.8
1.9
2.7

21.5
.8
.8
.8
2.3
1.5
.5
7.7
1.2
1.5
1.8
2.3

25.5
.8
1.3
.8
2.8
1.7
.5
10.1
1.5
2.0
1.7
2.3

25.1
.8
1.5
1.0
3.0
1.6
.5
9.8
1.5
1.5
1.7
2.3

24.1
1.2
.9
.7
3.0
1.2
.4
9.0
1.3
1.7
1.7
2.9

25.5r
1.2r
.8
.7
2.8
1.8
.7
9.5r
1.4
2.0
1.6
1.9

27.2
1.3
1.0
.9
3.1
1.8
.9
10.5
2.2
1.8
1.3
2.5

25 OPEC 2
26 Ecuador
27 Venezuela
28 Indonesia
29 Middle East countries
30 African countries

17.1
1.3
7.0
2.0
5.0
1.7

12.8
1.0
5.0
2.7
2.5
1.7

14.0
.9
5.3
2.6
3.7
1.5

15.6
.8
5.6
2.8
5.0
1.5

14.5
.7
5.4
2.7
4.2
1.5

15.8
.7
5.4
3.0
5.3
1.4

16.2
.7
5.3
3.0
5.9
1.4

15.9
.7
5.4
3.0
5.4
1.4

16.1
.6
5.2
3.0
6.2
1.1

16.91
.6
5.3
3.1
6.7
i.r

15.9
.6
5.6
3.1
5.4
1.2

31 Non-OPEC developing countries

77.5

65.4

64.4

64.7

63.9

69.7

68.1

72.9

72.2

74.2r

77.3

6.3
19.0
4.6
1.8
17.7
.6
2.8

5.0
14.4
3.5
1.8
13.0
.5
2.3

4.6
11.6
3.6
1.6
14.3
.5
2.0

4.5
10.5
3.7
1.6
16.2
.4
1.9

4.8
9.6
3.6
1.7
15.5
.4
2.1

5.0
10.8
3.9
1.6
17.7
.4
2.2

5.1
10.6
4.0
1.6
16.3
.4
2.2

6.2
10.8
4.2
1.7
17.1
.5
2.5

6.6
10.8
4.4
1.8
16.0
.5
2.6

7.0
11.6
4.6
1.9
16.8
.4
2.6

6.6
12.5
4.3
1.9
16.9
.4
3.4

1 Total
2 G-10 countries and Switzerland
3 Belgium and Luxembourg
4 France
5 Germany
6
Italy
7 Netherlands
Sweden
8
9 Switzerland
10 United Kingdom
11 Canada
12 Japan

32
33
34
35
36
37
38

Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other

39
40
41
42
43
44
45
46
47

Asia
China
Peoples Republic of China
Republic of China (Taiwan)
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia3

.3
4.5
3.1
.7
5.9
1.7
4.1
1.3
1.0

.2
3.5
3.3
.5
6.2
1.9
3.8
1.5
1.7

.6
4.1
3.0
.5
6.9
2.1
3.7
1.7
1.8

.4
4.1
2.8
.5
6.5
2.3
3.6
1.9
2.0

.3
4.1
3.0
.5
6.8
2.3
3.7
1.7
2.0

.3
4.8
3.6
.4
6.9
2.5
3.6
1.7
2.3

.3
4.6
3.8
.4
6.9
2.7
3.1
1.9
2.5

.3
5.0
3.6
.4
7.4
3.0
3.6
2.2
2.7

.7
5.2
3.2
.4
6.6
3.0
3.6
2.2
2.7

.6
5.3
3.1
.5
6.5
3.3
3.4
2.2
2.7

1.6
5.9
3.1
.4
6.9
3.7
2.9
2.4
2.6

48
49
50
51

Africa
Egypt
Morocco
Zaire
Other Africa 3

.4
.9
.0
1.0

.4
.8
.0
1.0

.4
.7
.0
.8

.4
.7
.0
.8

.4
.7
.0
.7

.3
.7
.0
.7

.5
.7
.0
.6

.3
.6
.0
.9

.2
.6
.0
1.0

.2
.5
.0
,8r

.2
.6
.0
.9

52 Eastern Europe
53 Russia
54 Yugoslavia
55 Other

3.5
.7
1.6
1.3

2.3
.2
1.2
.9

2.1
.4
1.0
.7

1.8
.4
.8
.7

2.4
.9
.9
.7

2.9
1.4
.8
.6

3.0
1.7
.7
.6

3.1
1.8
.7
.7

3.1
1.9
.6
.6

2.9
1.7
.6
.7

3.3
1.9
.6
.8

56 Offshore banking centers
57 Bahamas
58 Bermuda
59 Cayman Islands and other British West Indies
60 Netherlands Antilles
61 Panama4
62
Lebanon
63
Hong Kong
64 Singapore
65 Other

38.4
5.5
1.7
9.0
2.3
1.4
.1
11.3
7.0
.0

44.7
2.9
4.4
11.7
7.9
1.4
.1
9.7
6.6
.0

50.2
6.8
4.2
14.9
1.4
1.3
.1
14.3
7.2
.0

54.6
6.7
7.1
13.8
3.9
1.3
.1
14.0
7.7
.0

54.2
11.9
2.3
15.8
1.2
1.4
.1
14.4
7.1
.0

60.9
14.5
3.9
17.4
1.0
1.4
.1
14.0
8.5
.0

59.4
12.2
5.1
18.1
.8
1.7
.1
15.0
6.4
.0

52.3
8.1
3.8
15.7
.7
1.8
.1
15.2
6.8
.0

55.0
5.6
6.2
19.9
1.1
1.7
.1
13.8
6.5
.0

59.0r
8.7r
4.1
17.6r
1.6
1.9
.1
16.7
8.4
.0

58.0
6.9
4.5
16.1
2.5
1.9
.1
16.8
9.2
.0

66 Miscellaneous and unallocated6

30.5

39.9

40.0

44.4

48.0

47.8

48.6

36.8

41.0

39.3

45.5

1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
Since June 1984, reported claims held by foreign branches have been reduced
by an increase in the reporting threshold for "shell" branches from $50 million to




$150 million equivalent in total assets, the threshold now applicable to all
reporting branches.
2. Organization of Petroleum Exporting Countries, shown individually; other
members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar,
Saudi Arabia, and United Arab Emirates); and Bahrain and Oman (not formally
members of OPEC).
3. Excludes Liberia.
4. Includes Canal Zone.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional
organizations.

Nonbank-Reported

Data

A63

3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States1
Millions of dollars, end of period

1989

1990

1993

1992

1991
Type of liability and area or country

1991
Dec.

Mar.

June

Sept.

Dec.

Mar.

1

38,764

46,043

43,453

43,453

44,193

44,109

45,184

43,144

43,966

7 Payable in dollars
3 Payable in foreign currencies

33,973
4,791

40,786
5,257

38,061
5,392

38,061
5,392

38,735
5,458

37,616
6,493

36,792
8,392

35,739
7,405

36,015
7,951

By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies

17,879
14,035
3,844

21,066
16,979
4,087

21,872
17,760
4,112

21,872
17,760
4,112

22,185
17,957
4,228

21,756
16,714
5,042

23,281
16,546
6,735

22,047
15,700
6,347

22,674
16,109
6,565

7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities

20,885
8,070
12,815

24,977
10,683
14,294

21,581
8,662
12,919

21,581
8,662
12,919

22,008
9,125
12,883

22,353
9,715
12,638

21,903
9,586
12,317

21,097
9,046
12,051

21,292
9,873
11,419

19,938
947

23,807
1,170

20,301
1,280

20,301
1,280

20,778
1,230

20,902
1,451

20,246
1,657

20,039
1,058

19,906
1,386

11,660
340
258
464
941
541
8,818

10,978
394
975
621
1,081
545
6,357

11,805
217
2,106
682
1,056
408
6,329

11,805
217
2,106
682
1,056
408
6,329

12,349
174
1,997
666
1,025
355
7,238

12,728
194
2,324
634
979
490
7,244

13,767
256
2,785
738
980
627
7,580

12,530
434
1,608
740
606
569
7,910

12,995
299
1,610
751
639
503
8,632

10
11

1?
13
14
15
16
17
18

Payable in dollars
Payable in foreign currencies
By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

19

Canada

70
71
7?
73
74
75
26

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

77
78
29

Japan
Middle East oil-exporting countries

30
31

Africa
Oil-exporting countries

32

Allother 4

33
34
35
36
37
18
39

Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

610

229

267

267

283

337

320

491

551

1,357
157
17
0
724
6
0

4,153
371
0
0
3,160
5
4

4,404
537
114
6
3,144
7
4

4,404
537
114
6
3,144
7
4

4,092
396
114
8
2,960
7
4

3,373
343
114
10
2,232
8
4

3,462
220
115
18
2,408
12
5

3,515
349
114
19
2,342
12
6

3,544
594
114
18
2,142
13
5

4,151
3,299
2

5,295
4,065
5

5,338
4,102
13

5,338
4,102
13

5,366
4,107
13

5,229
4,136
10

5,642
4,609
17

5,477
4,451
19

5,534
4,562
24

2
0

2
0

6
4

6
4

7
6

0
0

5
0

6
0

6
0

100

409

52

52

88

89

85

28

44

9,071
175
877
1,392
710
693
2,620

10,310
275
1,218
1,270
844
775
2,792

8,126
248
957
944
709
575
2,310

8,126
248
957
944
709
575
2,310

7,666
256
678
880
574
543
2,445

7,309
240
659
702
605
461
2,404

6,879
173
688
744
601
430
2,262

6,704
287
663
621
556
398
2,250

6,661
143
669
613
666
532
2,156

40

Canada

1,124

1,261

990

990

1,095

1,077

1,085

892

929

41
4?
43
44
45
46
47

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

1,224
41
308
100
27
323
164

1,672
12
538
145
30
475
130

1,352
3
310
219
107
304
94

1,352
3
310
219
107
304
94

1,701
13
493
230
108
375
168

1,803
8
409
212
73
475
279

1,496
3
338
115
85
322
125

1,586
6
293
203
57
444
130

1,620
18
437
107
87
385
167

7,550
2,914
1,632

9,483
3,651
2,016

9,330
3,720
1,498

9,330
3,720
1,498

9,890
3,549
1,591

10,439
3,537
1,778

11,006
3,909
1,813

10,787
3,994
1,792

10,840
4,007
1,723

886
339

844
422

713
327

713
327

644
253

775
389

675
335

556
295

574
236

1,030

1,406

1,070

1,070

1,012

950

762

572

668

48
49
50

Japan
Middle Eastern oil-exporting countries 2,

51
52

Africa
Oil-exporting countries

53

Other 4

1. For a description of the changes in the international statistics tables, see
Federal Reserve Bulletin, vol. 65, (July 1979), p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.

A64

International Statistics • October 1993

3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
the United States1

Reported by Nonbanking Business Enterprises in

Millions of dollars, end of period
1991
Type, and area or country

1989

1990

1993

1992

1991
Dec.

Mar.

June

Sept.

Dec.

Mar.

1 Total

33,173

35,348

42,233

42,233

40,899

41,037

38,345

38,039

41,016r

2 Payable in dollars
3 Payable in foreign currencies

30,773
2,400

32,760
2,589

39,688
2,545

39,688
2,545

38,281
2,618

38,071
2,966

35,460
2,885

35,562
2,477

38,291r
2,725r

By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
S Other financial claims
Payable in dollars
9
Payable in foreign currencies
10

19,297
12,353
11,364
989
6,944
6,190
754

19,874
13,577
12,552
1,025
6,297
5,280
1,017

25,264
17,290
16,415
875
7,974
7,094
880

25,264
17,290
16,415
875
7,974
7,094
880

24,289
16,262
15,076
1,186
8,027
7,305
722

24,037
15,056
13,717
1,339
8,981
8,277
704

21,311
12,436
11,353
1,083
8,875
7,868
1,007

21,041
12,615
11,826
789
8,426
7,688
738

22,05l r
12,714r
ll,658 r
1,056r
9,337r
8,611r
726

11 Commercial claims
12 Trade receivables
13 Advance payments and other claims

13,876
12,253
1,624

15,475
13,657
1,817

16,%9
14,244
2,725

16,969
14,244
2,725

16,610
14,044
2,566

17,000
14,538
2,462

17,034
14,330
2,704

16,998
14,711
2,287

18,%5r
16,901r
2,064

13,219
657

14,927
548

16,179
790

16,179
790

15,900
710

16,077
923

16,239
795

16,048
950

18,022r
943r

8,463
28
153
152
238
153
7,4%

9,645
76
371
367
265
357
7,971

13,724
13
314
335
385
591
11,445

13,724
13
314
335
385
591
11,445

14,243
12
279
285
727
682
11,669

13,225
25
788
377
732
780
8,789

11,433
16
811
319
767
602
7,915

9,514
8
776
399
537
507
6,130

10,218r
6r
905r
378r
566r
493
6,838

14
15

16
17
18
19
20
21
22

Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

23

Canada

1,904

2,934

2,716

2,716

2,753

2,533

2,245

1,721

2,095r

24
25
26
27
28
29
30

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

8,020
1,890
7
224
5,486
94
20

6,201
1,090
3
68
4,635
177
25

7,689
758
8
144
6,304
212
40

7,689
758
8
144
6,304
212
40

6,200
493
12
143
5,124
212
34

6,849
523
12
134
5,759
244
32

6,452
1,099
65
396
4,449
239
26

8,326
618
40
496
6,530
286
29

5,72<F
302
79
592
4,286r
235
23

31
32
33

Asia
Japan
Middle East oil-exporting countries 2

590
213
8

860
523
8

675
385
5

675
385
5

642
380
3

975
728
4

727
481
4

846
683
3

3,263
3,066
8

34
35

Africa
Oil-exporting countries 3

140
12

37
0

57
1

57
1

60
0

57
0

71
1

79
9

128
1

36

All other 4

180

195

403

403

391

398

383

555

627

6,209
242
964
6%
479
313
1,575

7,044
212
1,240
807
555
301
1,775

7,935
192
1,542
940
643
295
2,084

7,935
192
1,542
940
643
295
2,084

7,842
181
1,560
933
646
323
2,082

8,087
255
1,561
905
666
394
2,169

7,742
172
1,739
870
588
294
1,973

7,442
184
1,392
880
541
260
1,799

8,269rr
167
l,3% r
939*
724r
r
426r
2,277

37
38
39
40
41
42
43

Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

44

Canada

1,091

1,074

1,109

1,109

1,115

1,058

1,105

1,192

l,185 r

45
46
47
48
49
50
51

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

2,184
58
323
297
36
508
147

2,375
14
246
326
40
661
192

2,562
11
263
418
41
801
202

2,562
11
263
418
41
801
'202

2,544
11
272
364
45
865
206

2,653
9
291
438
32
829
251

3,113
7
245
395
43
942
302

2,827
18
237
336
39
837
317

3,375r
18r
195r
818r
17
%2 r
336r

52
53
54

Asia
Japan
Middle Eastern oil-exporting countries

3,570
1,199
518

4,127
1,460
460

4,558
1,878
621

4,558
1,878
621

4,343
1,782
635

4,456
1,786
609

4,300
1,793
511

4,649
1,850
677

5,281r
2,146r
766r

55
56

Africa
Oil-exporting countries

429
108

488
67

418
95

418
95

418
75

422
73

430
60

540
78

45 r
75

57

Other 4

393

367

387

387

348

324

344

348

404r

1. For a description of the changes in the international statistics tables, see
Federal Reserve Bulletin, vol. 65, (July 1979), p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).




3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.

Securities Holdings and Transactions

A65

3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1993
1991

1992

Jan.June

Transaction and area or country

Dec.

1993

1992
Jan.

Feb.

Mar.

Apr. r

May r

June"

27,013
24,548

25,090
25,417

23,083
22,299

24,264
23,437

U.S. corporate securities
STOCKS

211,207
200,116

1 Foreign purchases
2 Foreign sales

221,307
226,428

147,373
141,034

22,725
20,382

19,170
19,353

28,753
25,980

3 Net purchases or sales ( - )

11,091

-5,121

6,339

2,343

-183

2,773

2,465

-327

784

827

4 Foreign countries

10,522

-5,154

6,065

2,319

-178

2,683

2,308

-335

788

799

53
9
-63
-227
-131
-352
3,845
2,177
-134
4,255
1,179
153
174

-4,912
-1,350
-65
-262
168
-3,301
1,407
2,203
-88
-3,943
-3,598
10
169

2,430
-291
518
97
1,570
-372
-681
1,307
-129
3,218
-194
15
-95

1,505
-154
162
190
221
705
176
422
70
122
215
-7
31

52
-25
91
64
205
-350
-341
305
-92
-123
28
4
17

2,271
223
97
-11
501
1,135
57
-235
-65
593
-624
27
35

975
-183
103
68
356
476
176
410
-13
763
250
2
-5

-646
-154
141
32
280
-1,140
91
246
7
2
-530
-48
13

-621
-86
4
35
50
-689
-132
509
56
910
452
10
56

399
-66
82
-91
178
196
-532
72
-22
1,073
230
20
-211

568

33

274

24

-5

90

157

8

-4

28

153,096
125,637

215,041
175,560

128,742
105,872

19,264
15,391

17,220
15,454

21,934
18,896

25,223
23,275

20,850
15,802

19,336
15,286

24,179
17,159

5 Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries

7
8
9
10
11
12
13
14
15
16
17

18 Nonmonetary international and
regional organizations
BONDS

2

19 Foreign purchases
20 Foreign sales
21 Net purchases or sales (—)

27,459

39,481

22,870

3,873

1,766

3,038

1,948

5,048

4,050

7,020

22 Foreign countries

27,590

38,365

23,244

3,328

1,862

3,164

2,084

5,069

4,082

6,983

23
24
25
26
27
28
29
30
31
32
33
34
35

13,112
847
1,577
482
656
8,931
1,623
2,672
1,787
8,459
5,767
52
-116

17,836
1,203
2,486
540
-579
12,836
237
9,300
3,166
7,545
-450
354
-73

7,941
1,578
725
-463
-419
6,425
554
5,049
1,591
7,903
3,640
208
-2

2,118
217
857
48
105
962
-38
513
360
119
9
302
-46

1,090
101
91
-119
122
334
-437
419
300
305
190
168
17

2,143
311
52
-133
-38
2,376
145
482
248
149
61
27
-30

27
75
-57
-178
11
-229
138
490
263
1,216
595
-10
-40

1,612
508
811
108
-239
975
291
632
463
2,082
991
0
-11

599
595
230
-7
-219
-66
20
1,262
115
2,062
940
21
3

2,470
-12
-402
-134
-56
3,035
397
1,764
202
2,089
863
2
59

-131

1,116

-374

545

-96

-126

-136

-21

-32

37

-4,565
17,447
22,012
-4,629
70,126
74,755

-4,022
19,292
23,314
-1,268
55,768
57,036

-3,768
16,404
20,172
-420
58,795
59,215

Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries

36 Nonmonetary international and
regional organizations

Foreign securities
37 Stocks, net purchases or sales ( - ) 3
38 Foreign purchases
39 Foreign sales3
40 Bonds, net purchases or sales ( - )
41
Foreign purchases
42 Foreign sales

-31,967
120,598
152,565
-14,828
330,311
345,139

43 Net purchases or sales ( - ) , of stocks and bonds
44 Foreign countries
45
46
47
48
49
50

Europe
Canada
Latin America and Caribbean
Africa
Other countries

51 Nonmonetary international and
regional organizations

-32,268
150,022
182,290
-18,277
486,238
504,515

-21,720
99,298
121,018
-27,271
349,570
376,841

-46,795

-50,545

-46,711

-53,881

-34,452
-7,004
759
-7,350
-9
1,345
-84

-2,351
12,732
15,083
-5,107
38,545
43,652

-1,571
15,055
16,626
-9,528
56,046
65,574

-48,991

-7,242

-7,458

-11,099

-9,194

-5,290

-4,188

-11,762

-48,527

-7,196

-6,451

-11,237

-8,925

-5,569

-4,521

-11,824

-37,557
-6,635
-2,298
-6,629
-2
-760

-34,906
-10,297
1,011
-3,419
-217
-699

-4,507
-1,167
511
-1,678
-11
-344

-6,486
-161
195
-394
-7
402

-6,669
-5,028
25
539
3
-107

-3,084
-3,034
68
-2,477
-18
-380

-3,255
-816
-903
-528
-18
-49

-5,273
19
1,122
-182
-186
-21

-10,139
-1,277
504
-377
9
-544

3,336

-464

-46

-1,007

138

-269

279

333

62

1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities and securities of U.S.
government agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments
abroad.




-5,443
18,368
23,811
-6,319
70,290
76,609

-4,376
12,782
17,158
-2,866
39,617
42,483

3. In a July 1989 merger, the former stockholders of a U.S. company received
$5,453 million in shares of the new combined U.K. company. This transaction is
not reflected in the data,

A66

International Statistics • October 1993

3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES

Foreign Transactions

Millions of dollars
1993
1991

1992

Jan.June

Country or area

Dec.

1993

1992
Jan.

Feb.

Mar.

Apr. r

May r

June p

Transactions, net purchases or sales ( - ) during period1
1 Estimated total

19,865

39,288

3,238

14

439

-1,273

6,129

4,255

-761

-5,551

2 Foreign countries

19,687

37,935

1,403

-188

-144

-2,166

5,577

4,416

-479

-5,801

8,663
523
-4,725
-3,735
-663
1,007
6,218
10,024
13
-3,019

19,625
1,985
2,076
-2,959
-804
488
24,184
-5,995
650
562

-1,548
954
-9,570
-142
886
-1,946
10,633
-2,808
445
7,915

3,173
-28
898
-804
-344
213
2,833
405
0
-99

-600
-59
697
-1,238
-54
-199
2,025
-1,774
2
3,302

-382
45
-1,632
206
258
-455
183
975
38
82

-3,826
622
-2,757
66
-540
-1,569
672
-509
189
2,490

1,517
-387
-1,382
731
-100
-719
2,659
576
139
1,386

188
647
-3,396
486
649
108
2,948
-1,355
101
522

1,555
86
-1,100
-393
673
888
2,146
-721
-24
133

10,285
10
4,179
6,097
3,367
-4,081
689
-298

-3,222
539
-1,956
-1,805
23,517
9,817
1,103
-3,650

-8,893
389
-5,479
-3,803
6,270
9,813
-92
-2,249

-4,519
11
415
-4,945
1,184
2,201
0
73

-1,495
-175
-3,309
1,989
-1,136
-743
-33
-182

445
179
-1,656
1,922
-1,032
804
-139
-1,140

-537
154
-471
-220
7,215
3,457
-66
301

-2,020
74
1,096
-3,190
3,837
3,348
67
-371

-3,880
152
-1,863
-2,169
3,014
3,311
-2
-321

-1,406
5
724
-2,135
-5,628
-364
81
-536

178
-358
-72

1,353
1,018
533

1,835
726
611

202
76
97

583
228
270

893
581
235

552
56
1

-161
-228
16

-282
-318
-17

250
407
106

19,687
1,190
18,496

37,935
6,876
31,059

1,403
-9,102
10,505

-188
-715
527

-144
-2,980
2,836

-2,166
-4,364
2,198

5,577
-657
6,234

4,416
2,710
1,706

-479
-3,046
2,567

-5,801
-765
-5,036

-6,822
239

4,317
11

-4,681
2

505
0

-238
8

-1,855
0

811
0

114
-6

-1,070
0

-2,443
0

3 Europe
4 Belgium and Luxembourg
5 Germany
6 Netherlands
7 Sweden
8 Switzerland
9
United Kingdom
10 Other Western Europe
11 Eastern Europe
12 Canada
13
14
15
16
17
18
19
20

Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Other

21 Nonmonetary international and regional organizations
International
23 Latin American regional

77

MEMO

24 Foreign countries
25 Official institutions
26 Other foreign
Oil-exporting countries
77 Middle East 2
28 Africa 3

1. Official and private transactions in marketable U.S. Treasury securities
having an original maturity of more than one year. Data are based on monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and notes
held by official institutions of foreign countries.




2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States),
3. Comprises Algeria, Gabon, Libya, and Nigeria,

Interest and Exchange Rates

A67

3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS 1
Percent per year

Country

Country

Country
Month
effective
6.25
6.0
4.99
9.25
6.75

Austria..
Belgium .
Canada..
Denmark
France ..

Rate on Aug. 31, 1993

Rate on Aug. 31, 1993

Rate on Aug. 31, 1993

July 1993
July 1993
Aug. 1993
July 1993
July 1993

Percent

6.75
9.0
2.5
5.75

Germany...
Italy
Japan
Netherlands

1. Rates shown are mainly those at which the central bank either discounts or
makes advances against eligible commercial paper or government securities for
commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood
that the central bank transacts the largest proportion of its credit operations.

Percent

July
July
July
July

1993
1993
1992
1993

Norway
Switzerland
United Kingdom

Month
effective

7.5
4.5
12.0

Month
effective

July 1993
July 1993
Sept. 1992

2. Since February 1981, the rate has been that at which the Bank of France
discounts Treasury bills for seven to ten days.

3.27 FOREIGN SHORT-TERM INTEREST RATES1
Percent per year, averages of daily figures
1993
Type or country

1990

1991

1992
Apr.

Feb.
1
2
3
4
5
6
7
8
9
10

Eurodollars
United Kingdom
Canada
Germany
Switzerland
Netherlands
France
Italy
Belgium
Japan

8.16

14.73
13.00
8.41
8.71
8.57
10.20
12.11
9.70
7.75

5.86
11.47
9.07
9.15
8.01
9.19
9.49
12.04
9.30
7.33

3.70
9.56
6.76
9.42
7.67
9.25
10.14
13.91
9.31
4.39

1. Rates are for three-month interbank loans, with the following exceptions:
Canada, finance company paper; Belgium, three-month Treasury bills; and Japan,
CD rate.




3.12
6.10

6.38
8.29
5.34
7.98
11.70
11.43
8.75
3.27

3.11
5.91
5.59
7.85
5.05
7.47
10.89
11.26

8.27
3.26

May

June

July

Aug.

3.10
5.90
5.43
7.81
4.97
7.43
8.73
11.41
7.94
3.22

3.12
5.91
5.29
7.41
4.97
6.98
7.48
10.74
7.16
3.24

3.21
5.83
4.91
7.51
4.99
6.64
7.19
10.18
6.87
3.23

3.17
5.88
4.48
7.12
4.62
6.45
7.72
9.42
7.12
3.22

3.14
5.79
4.56
6.49
4.56
6.27
7.47
9.20
8.95
3.03

A68

International Statistics • October 1993

3.28 FOREIGN EXCHANGE RATES1
Currency units per dollar except as noted
1993
Country/currency unit

1990

1991

1992
Mar.

1
2
3
4
5
6
7
8
9
10

Australia/dollar^
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma

11
12
13
14
15
16
17
18
19
20

Hong Kong/dollar
India/rupee
Ireland/pound
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder 2
New Zealand/dollar
Norway/krone
Portugal/escudo

21
77
23
24
25
76
77
28
79
30

Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound2

June

July

Aug.

77.872
11.686
34.195
1.1460
5.3337
6.4038
4.0521
5.6468
1.6610
182.63

73.521
10.992
32.148
1.2085
5.5206
6.0372
4.4865
5.2935
1.5618
190.81

70.775
11.586
33.919
1.2471
5.7455
6.3242
5.9767
5.5944
1.6466
223.57

71.155
11.234
32.857
1.2621
5.7202
6.1339
5.6190
5.3984
1.5964
217.90

69.859
11.305
33.044
1.2698
5.7392
6.1751
5.4847
5.4180
1.6071
218.12

67.492
11.637
34.009
1.2789
5.7504
6.3380
5.5674
5.5700
1.6547
225.45

67.788
12.071
35.483
1.2820
5.7756
6.6531
5.7852
5.8464
1.7157
234.77

67.767
11.926
35.997
1.3074
5.7899
6.8984
5.8289
5.9329
1.6951
237.73

7.7899
17.492
165.76
1,198.27
145.00
2.7057
1.8215
59.619
6.2541
142.70

7.7712
22.712
161.39
1,241.28
134.59
2.7503
1.8720
57.832
6.4912
144.77

7.7402
28.156
170.42
1,232.17
126.78
2.5463
1.7587
53.792
6.2142
135.07

7.7332
31.939
147.58
1,591.35
117.02
2.6051
1.8507
53.026
6.9989
152.17

7.7306
31.610
152.75
1,536.14
112.41
2.5777
1.7942
53.904
6.7399
148.25

7.7290
31.613
151.65
1,475.66
110.34
2.5661
1.8026
54.290
6.8027
151.89

7.7362
31.668
147.47
1,505.05
107.41
2.5696
1.8559
53.949
6.9986
157.63

7.7556
31.600
140.83
1,586.02
107.69
2.5672
1.9299
54.900
7.3179
167.87

7.7517
31.611
139.05
1,603.87
103.72
2.5516
1.9073
55.264
7.3611
173.36

1.8134
2.5885
710.64
101.96
40.078
5.9231
1.3901
26.918
25.609
178.41

1.7283
2.7633
736.73
104.01
41.200
6.0521
1.4356
26.759
25.528
176.74

1.6294
2.8524
784.58
102.38
44.013
5.8258
1.4064
25.160
25.411
176.63

1.6446
3.1790
796.42
117.71
47.069
7.7362
1.5206
26.026
25.425
146.17

1.6228
3.1718
798.61
115.64
47.712
7.4500
1.4599
25.987
25.251
154.47

1.6136
3.1787
803.19
121.30
47.965
7.3271
1.4504
25.978
25.234
154.77

1.6175
3.2408
805.91
127.11
48.073
7.4541
1.4769
26.267
25.214
150.82

1.6206
3.3518
809.58
134.93
48.643
7.9802
1.5147
26.682
25.331
149.55

1.6102
3.3654
811.96
138.67
48.750
8.0405
1.4973
26.951
25.192
149.16

89.09

89.84

86.61

1. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) monthly statistical release.
For ordering address, see inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the
currencies of ten industrial countries. The weight for each of the ten countries is




May

78.069
11.331
33.424
1.1668
4.7921
6.1899
3.8300
5.4467
1.6166
158.59

MEMO

31 United States/dollar3

Apr.

93.65

90.62

90.24

91.81

94.59

94.33

the 1972-76 average world trade of that country divided by the average world
trade of all ten countries combined. Series revised as of August 1978 (see Federal
Reserve Bulletin, vol. 64 (August 1978), p. 700).

A69

Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List Published Semiannually,

with Latest

BULLETIN

Reference
Issue Page

Anticipated schedule of release dates for periodic releases

SPECIAL TABLES—Quarterly Data Published Irregularly, with Latest

June 1993
BULLETIN

A78

Reference

Title and Date

Issue Page

Assets and liabilities of commercial banks
June 30, 1992
September 30, 1992
December 31, 1992
March 31, 1993

November
February
May
August

1992
1993
1993
1993

A70
A70
A70
A70

November
February
May
August

1992
1993
1993
1993

A76
A76
A76
A76

November
February
May
August

1992
1993
1993
1993

A80
A80
A80
A80

November
January
August
October

1991
1992
1992
1992

A80
A70
A80
A70

December
May
August
March

1991
1992
1992
1993

A79
A81
A83
A71

Terms of lending at commercial banks
August 1992
November 1992
February 1993
May 1993

Assets and liabilities of U.S. branches and agencies of foreign banks
June 30, 1992
September 30, 1992
December 31, 1992
March 31, 1993

Pro forma balance sheet and income statements for priced service operations
June 30, 1991
September 30,1991
March 30, 1992
June 30, 1992

Assets and liabilities of life insurance companies
June 30, 1991
September 30, 1991
December 31, 1991
September 30, 1992




A70

Index to Statistical Tables
References are to pages A3-A68 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 22, 23
Assets and liabilities (See also Foreigners)
Banks, by classes, 20-23
Domestic finance companies, 36
Federal Reserve Banks, 11
Financial institutions, 28
Foreign banks, U.S. branches and agencies, 24
Automobiles
Consumer installment credit, 39
Production, 47, 48
BANKERS acceptances, 10, 23, 26
Bankers balances, 20-23. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 35
Rates, 26
Branch banks, 24, 55
Business activity, nonfinancial, 45
Business expenditures on new plant and equipment, 35
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 20
Federal Reserve Banks, 11
Central banks, discount rates, 67
Certificates of deposit, 26
Commercial and industrial loans
Commercial banks, 18, 22
Weekly reporting banks, 22-24
Commercial banks
Assets and liabilities, 20-23
Commercial and industrial loans, 18, 20, 21, 22, 23, 24
Consumer loans held, by type and terms, 39
Deposit interest rates of insured, 16
Loans sold outright, 22
Nondeposit funds, 19
Real estate mortgages held, by holder and property, 38
Time and savings deposits, 4
Commercial paper, 25, 26, 36
Condition statements (See Assets and liabilities)
Construction, 45, 49
Consumer installment credit, 39
Consumer prices, 45, 46
Consumption expenditures, 52, 53
Corporations
Nonfinancial, assets and liabilities, 35
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 39
Currency in circulation, 5, 14
Customer credit, stock market, 27
DEBITS to deposit accounts, 17
Debt (See specific types of debt or securities)

Demand deposits
Banks, by classes, 20-24




Demand deposits—continued
Ownership by individuals, partnerships, and
corporations, 24
Turnover, 17
Depository institutions
Reserve requirements, 9
Reserves and related items, 4, 5, 6, 13
Deposits (See also specific types)

Banks, by classes, 4, 20-23, 24
Federal Reserve Banks, 5,11
Interest rates, 16
Turnover, 17
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 35
EMPLOYMENT, 45
Eurodollars, 26
FARM mortgage loans, 38
Federal agency obligations, 5, 10, 11, 12, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 30
Receipts and outlays, 28, 29
Treasuryfinancingof surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 7, 19, 22, 23, 24, 26, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 37, 38
Federal Housing Administration, 33, 37, 38
Federal Land Banks, 38
Federal National Mortgage Association, 33, 37, 38
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 5, 11, 12, 30
Federal Reserve credit, 5, 6, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 36
Business credit, 36
Loans, 39
Paper, 25, 26
Financial institutions, loans to, 22, 23, 24
Float, 51
Flow of funds, 40, 42, 43,44
Foreign banks, assets and liabilities of U.S. branches and
agencies, 23, 24
Foreign currency operations, 11
Foreign deposits in U.S. banks, 5, 11, 22, 23
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 23, 54, 55, 57, 58, 63, 65, 66

A71

GOLD
Certificate account, 11
Stock, 5, 54
Government National Mortgage Association, 33, 37, 38
Gross domestic product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 45, 51, 52
Industrial production, 45, 47
Installment loans, 39
Insurance companies, 30, 38
Interest rates
Bonds, 26
Consumer installment credit, 39
Deposits, 16
Federal Reserve Banks, 8
Foreign central banks and foreign countries, 67
Money and capital markets, 26
Mortgages, 37
Prime rate, 25
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific types)

Banks, by classes, 20, 21, 22, 23, 24
Commercial banks, 4, 18, 20-23
Federal Reserve Banks, 11, 12
Financial institutions, 38
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)

Banks, by classes, 20-23
Commercial banks, 4, 18, 20-23
Federal Reserve Banks, 5, 6, 8, 11, 12
Financial institutions, 38
Insured or guaranteed by United States, 37, 38
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 27
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 7
Reserve requirements, 9
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 4, 13
Money and capital market rates, 26
Money stock measures and components, 4, 14
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 10
PERSONAL income, 52
Prices
Consumer and producer, 45, 50
Stock market, 27
Prime rate, 25
Producer prices, 45, 50
Production, 45, 47
Profits, corporate, 35




REAL estate loans
Banks, by classes, 18, 22, 23, 38
Terms, yields, and activity, 37
Type of holder and property mortgaged, 38
Repurchase agreements, 7, 19, 22, 23, 24
Reserve requirements, 9
Reserves
Commercial banks, 20
Depository institutions, 4, 5, 6, 13
Federal Reserve Banks, 11
U.S. reserve assets, 54
Residential mortgage loans, 37
Retail credit and retail sales, 39, 40,45
SAVING
Flow of funds, 40, 42, 43, 44
National income accounts, 51
Savings and loan associations, 38, 39, 40. (See also SAIF-insured
institutions)
Savings banks, 38, 39
Savings deposits (See Time and savings deposits)
Securities (See also specific

types)

Federal and federally sponsored credit agencies, 33
Foreign transactions, 65
New issues, 34
Prices, 27
Special drawing rights, 5, 11, 53, 54
State and local governments
Deposits, 22, 23
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 22, 23
Rates on securities, 26
Stock market, selected statistics, 27
Stocks (See also Securities)
New issues, 34
Prices, 27
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 4. (See also Credit unions and Savings and
loan associations)
Time and savings deposits, 4, 14, 16, 19, 20, 21, 22, 23, 24
Trade, foreign, 54
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 11, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 20, 21, 22, 23
Treasury deposits at Reserve Banks, 5, 11, 28
U.S. government securities
Bank holdings, 20-23, 24, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 5, 11, 12, 30
Foreign and international holdings and
transactions, 11, 30, 66
Open market transactions, 10
Outstanding, by type and holder, 28, 30
Rates, 25
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 37, 38
WEEKLY reporting banks, 22-24
Wholesale (producer) prices, 45, 50
YIELDS (See Interest rates)

A72

Federal Reserve Board of Governors
and Official Staff
A L A N GREENSPAN,

Chairman
Vice Chairman

WAYNE D . A N G E L L

DAVID W . M U L L I N S , JR.,

OFFICE OF BOARD

EDWARD W . KELLEY, JR.

MEMBERS

JOSEPH R. COYNE, Assistant to the Board
DONALD J. WINN, Assistant to the Board
THEODORE E. ALLISON, Assistant to the Board for

Federal

Reserve System Affairs
LYNN S. FOX, Special Assistant to the Board
WINTHROP P. HAMBLEY, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board

LEGAL

DIVISION OF INTERNATIONAL
FINANCE
EDWIN M . TRUMAN, Staff Director
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SIEGMAN, Senior Associate Director
D A L E W . HENDERSON, Associate Director
DAVID H . HOWARD, Senior Adviser
DONALD B . ADAMS, Assistant Director
PETER HOOPER III, Assistant Director
KAREN H . JOHNSON, Assistant Director
RALPH W . SMITH, JR., Assistant Director

DIVISION

J. VIRGIL MATTINGLY, JR., General Counsel
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
KATHLEEN M. O'DAY, Associate General Counsel

DIVISION OF RESEARCH AND STATISTICS
MICHAEL J. PRELL, Director
EDWARD C . ETTIN, Deputy Director
WILLIAM R . JONES, Associate Director
THOMAS D . SIMPSON, Associate Director
LAWRENCE SLIFMAN, Associate

OFFICE OF THE SECRETARY
WILLIAM W. WILES,

Secretary
JENNIFER J. JOHNSON, Associate
Secretary
BARBARA R. LOWREY, Associate
Secretary
ELLEN MALAND, Assistant
Secretary

DIVISION OF BANKING
SUPERVISION AND REGULATION
RICHARD SPILLENKOTHEN, Director
STEPHEN C . SCHEMERING, Deputy Director
D O N E . KLINE, Associate Director
WILLIAM A . RYBACK, Associate Director
FREDERICK M . STRUBLE, Associate Director
HERBERT A . BIERN, Deputy Associate Director
ROGER T. COLE, Deputy Associate Director
JAMES I. GARNER, Deputy Associate Director
HOWARD A . AMER, Assistant Director
GERALD A . EDWARDS, JR., Assistant Director
JAMES D . GOETZINGER, Assistant Director
STEPHEN M . HOFFMAN, JR., Assistant Director
LAURA M . HOMER, Assistant Director
JAMES V. HOUPT, Assistant Director
JACK P. JENNINGS, Assistant Director
MICHAEL G . MARTINSON, Assistant Director
RHOGER H PUGH, Assistant Director
SIDNEY M . SUSSAN, Assistant Director
MOLLY S . WASSOM, Assistant Director




Director

Associate Director
MARTHA BETHEA, Deputy Associate Director
PETER A . TINSLEY, Deputy Associate Director
MYRON L . KWAST, Assistant Director
PATRICK M . PARKINSON, Assistant Director
MARTHA S . SCANLON, Assistant Director
JOYCE K . ZICKLER, Assistant Director
DAVID J. STOCKTON,

JOHN J. MINGO,

Adviser

LEVON H . GARABEDIAN,

Assistant

Director

(Administration)
DIVISION OF MONETARY

AFFAIRS

Director
DAVID E . LINDSEY, Deputy Director'
BRIAN F. MADIGAN, Associate Director
RICHARD D . PORTER, Deputy Associate Director
DEBORAH DANKER, Assistant Director
DONALD L . KOHN,

NORMAND R.V. BERNARD, Special Assistant to the Board

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
GRIFFITH L. GARWOOD,

Director

Associate Director
DOLORES S . SMITH, Associate Director
MAUREEN P. ENGLISH, Assistant Director
IRENE SHAWN M C N U L T Y , Assistant Director
G L E N N E . LONEY,

A73

S U S A N M . PHILLIPS

JOHN P. LAWARE
LAWRENCE B . LINDSEY

OFFICE OF
STAFF DIRECTOR

FOR

MANAGEMENT

Staff Director
Special Assignment:
Project Director, National Information Center
PORTIA W . THOMPSON, Equal Employment Opportunity
Programs Officer
S . DAVID FROST,

WILLIAM SCHNEIDER,

DIVISION OF HUMAN
MANAGEMENT

RESOURCES

JOHN H. PARRISH, Assistant

Director
JOHN R . WEIS, Associate Director
A N T H O N Y V. DIGIOIA, Assistant Director
JOSEPH H . HAYES, JR., Assistant Director
FRED HOROWITZ, Assistant Director
DAVID L . S H A N N O N ,

OFFICE OF THE

CONTROLLER
Controller
Assistant Controller (Programs and

GEORGE E . LIVINGSTON,
STEPHEN J. CLARK,

Budgets)
DARRELL R . PAULEY,

Assistant Controller (Finance)

DIVISION OF SUPPORT SERVICES
ROBERT E . FRAZIER, Director
GEORGE M . LOPEZ, Assistant Director
DAVID L . WILLIAMS, Assistant Director
DIVISION OF INFORMATION
MANAGEMENT

RESOURCES

Director
Deputy Director

STEPHEN R . MALPHRUS,
BRUCE M . BEARDSLEY,

MARIANNE M. EMERSON, Assistant

Po KYUNG

Director

Assistant Director
RAYMOND H . MASSEY, Assistant Director
EDWARD T. MULRENIN, Assistant Director
DAY W . RADEBAUGH, JR., Assistant Director
ELIZABETH B . RIGGS, Assistant Director
RICHARD C . STEVENS, Assistant Director
KIM,




DIVISION OF RESERVE BANK
OPERATIONS
AND PAYMENT SYSTEMS
CLYDE H . FARNSWORTH, JR., Director
DAVID L . ROBINSON, Deputy Director (Finance and
Control)
CHARLES W . BENNETT, Assistant Director
JACK DENNIS, JR., Assistant Director
EARL G . HAMILTON, Assistant Director
JEFFREY C . MARQUARDT, Assistant Director
Director

Assistant Director
YOUNG, Assistant Director

LOUISE L . ROSEMAN,
FLORENCE M .

OFFICE OF THE INSPECTOR

GENERAL

BRENT L. BOWEN, Inspector
General
DONALD L. ROBINSON, Assistant Inspector General
BARRY R. SNYDER, Assistant Inspector General

74

Federal Reserve Bulletin • October 1993

Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET

COMMITTEE
MEMBERS

A L A N GREENSPAN,

Chairman

WILLIAM J. MCDONOUGH,

Vice Chairman

WAYNE D . ANGELL

EDWARD W . KELLEY, JR.

EDWARD G . BOEHNE

JOHN P. LAWARE

SUSAN M . PHILLIPS

SILAS KEEHN

LAWRENCE B . LINDSEY

GARY H . STERN

DAVID W . MULLINS, JR.

ROBERT D . MCTEER, JR.

ALTERNATE

J. ALFRED BROADDUS, JR.

JERRY L . JORDAN

ROBERT P. FORRESTAL

MEMBERS

JAMES H . OLTMAN

ROBERT T. PARRY

STAFF
DONALD L. KOHN, Secretary
NORMAND R . V . BERNARD,

and

RICHARD W. LANG, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
ARTHUR J. ROLNICK, Associate
Economist
HARVEY ROSENBLUM, Associate
Economist
KARL A. SCHELD, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
LAWRENCE SLIFMAN, Associate
Economist

Economist

Deputy Secretary

JOSEPH R. COYNE, Assistant
Secretary
GARY P. GILLUM, Assistant
Secretary
J. VIRGIL MATTINGLY, JR., General Counsel
ERNEST T. PATRIKIS,

Deputy General Counsel

MICHAEL J. PRELL, Economist
EDWIN M. TRUMAN, Economist

RICHARD G. DAVIS, Associate

Economist

Deputy Manager for Foreign Operations
E. LOVETT, Deputy Manager for Domestic Operations

MARGARET L . GREENE,
JOAN

FEDERAL ADVISORY

COUNCIL
E. B. ROBINSON, JR.,
JOHN B . MCCOY,

First District
Second District
ANTHONY P. TERRACCIANO, Third District
JOHN B . MCCOY, Fourth District
EDWARD E . CRUTCHFIELD, JR., Fifth District
E.B. ROBINSON, JR., Sixth District
MARSHALL

N.

CARTER,

CHARLES S . SANFORD, JR.,




President

Vice President
Seventh District
III, Eighth District
JOHN F. GRUNDHOFER, Ninth District
DAVID A . RISMILLER, Tenth District
CHARLES R . HRDLICKA, Eleventh District
RICHARD M . ROSENBERG, Twelfth District
EUGENE A . MILLER,
ANDREW

B.

CRAIG,

HERBERT V. PROCHNOW, Secretary
WILLIAM J. KORSVIK, Associate
Secretary

A75

CONSUMER ADVISORY

COUNCIL

Denver, Colorado, Chairman
Chicago, Illinois, Vice Chairman

DENNY D . DUMLER,
JEAN POGGE,

DOUGLAS D . BLANKE,

Charlottesville, Virginia
Madison, Wisconsin
GARY S. HATTEM, New York, New York
JULIA E. HILER, Marietta, Georgia
RONALD HOMER, Boston, Massachusetts
THOMAS L. HOUSTON, Dallas, Texas

GENEVIEVE BROOKS,

HENRY JARAMILLO, Belen, N e w Mexico

BARRY A. ABBOTT, San Francisco, California
JOHN R. ADAMS, Philadelphia, Pennsylvania
JOHN

A.

BAKER,

BONNIE GUITON,
JOYCE HARRIS,

Atlanta, Georgia
Denver, Colorado

VERONICA E. BARELA,

MULUGETTA BIRRU, Pittsburgh, Pennsylvania

St. Paul, Minnesota
Bronx, New York

TOYE L. BROWN, Boston, Massachusetts

EDMUND MIERZWINSKI, W a s h i n g t o n , D . C .

CATHY CLOUD, W a s h i n g t o n , D . C .

JOHN V. SKINNER, Irving, Texas

Yelm, Washington
St. Louis, Missouri
NORMA L. FREIBERG, New Orleans, Louisiana
LORI GAY, LOS Angeles, California
DONALD A. GLAS, Hutchinson, Minnesota
MICHAEL

D.

LOWELL

EDWARDS,

THRIFT INSTITUTIONS ADVISORY

GRACE W. WEINSTEIN, Englewood, N e w Jersey
JAMES L. WEST,

Tijeras, New Mexico

ROBERT O . ZDENEK, W a s h i n g t o n , D . C .

COUNCIL

DANIEL

C.

WILLIAM A. COOPER, Minneapolis, Minnesota
PAUL L. ECKERT, Davenport, Iowa
GEORGE R . GLIGOREA, Sheridan, Wyoming
THOMAS J. HUGHES, Merrifield, Virginia
KERRY KILLINGER, Seattle, Washington

Houston, Texas, President
Somerville, New Jersey, Vice President

ARNOLD,

BEATRICE D'AGOSTINO,




N. SWANSON, Portland, Oregon
W. TIERNEY, Washington, D.C.

MICHAEL

MICHAEL FERRY,

Cleveland, Ohio
New Bedford, Massachusetts
NICHOLAS W. MITCHELL, JR., Winston-Salem, North Carolina
STEPHEN W. PROUGH, Irvine, California
THOMAS R . RICKETTS, Troy, Michigan
CHARLES JOHN KOCH,
ROBERT MCCARTER,

A76

Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
MS-138, Board of Governors of the Federal Reserve System,
Washington, DC 20551 or telephone (202) 452-3244 or FAX
(202) 728-5886. When a charge is indicated, payment should
accompany request and be made payable to the Board of
Governors of the Federal Reserve System. Payment from foreign residents should be drawn on a U.S. bank.

THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.

1984. 120 pp.
ANNUAL REPORT.
ANNUAL REPORT: BUDGET REVIEW, 1991-92.
FEDERAL RESERVE BULLETIN. Monthly. $25.00

per year or
$2.50 each in the United States, its possessions, Canada,
and Mexico. Elsewhere, $35.00 per year or $3.00 each.
ANNUAL STATISTICAL DIGEST: period covered, release date,
number of pages, and price.
October 1982
239 pp.
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December 1983
266 pp.
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264 pp.
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256 pp.
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March 1991
712 pp.
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November 1991
185 pp.
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1990
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November 1992
215 pp.
1991
SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES

OF CHARTS. Weekly. $30.00 per year or $.70 each in the
United States, its possessions, Canada, and Mexico. Elsewhere, $35.00 per year or $.80 each.
and other statutory provisions
affecting the Federal Reserve System, as amended through
August 1990. 646 pp. $10.00.

THE FEDERAL RESERVE ACT

REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.

(Truth in Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp.
Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one address,
$2.00 each.

A N N U A L PERCENTAGE RATE TABLES

Introduction to How of Funds. 1980. 68 pp. $1.50 each; 10 or
more to one address, $1.25 each.




Federal Reserve Regulatory Service. Looseleaf; updated at
least monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
year.
Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
The Payment System Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
four Handbooks plus substantial additional material.)
$200.00 per year.
Rates for subscribers outside the United States are as follows
and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each.
WELCOME TO THE FEDERAL RESERVE. March 1989. 14 pp.
INDUSTRIAL PRODUCTION—1986 EDITION. December 1986.

440 pp. $9.00 each.
FINANCIAL FUTURES AND OPTIONS IN THE U . S . ECONOMY.

December 1986. 264 pp. $10.00 each.
FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALYSIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each.

CONSUMER EDUCATION PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies are
available without charge.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
A Guide to Business Credit for Women, Minorities, and Small
Businesses
How to File A Consumer Credit Complaint
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancings
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
Making Deposits: When Will Your Money Be Available?
When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit

All

STAFF STUDIES:

Summaries Only Printed in the

Bulletin
Studies and papers on economic and financial subjects that are
of general interest. Requests to obtain single copies of the full
text or to be added to the mailing list for the series may be sent
to Publications Services.
Staff Studies 1-145 are out of print.
1 4 6 . THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1 9 7 7 - 8 4 , b y

Thomas F. Brady. November 1985. 25 pp.
1 4 7 . REVISIONS IN THE MONETARY SERVICES (DIVISIA) INDEXES OF THE MONETARY AGGREGATES, by Helen T. Farr

and Deborah Johnson. December 1985. 42 pp.
1 4 8 . THE MACROECONOMIC AND SECTORAL EFFECTS OF THE
ECONOMIC RECOVERY TAX ACT: SOME SIMULATION

1 6 1 . A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY,

1980-90, by Margaret Hastings Pickering. May 1991.
21pp.
1 6 2 . EVIDENCE ON THE SIZE OF BANKING MARKETS FROM
MORTGAGE LOAN RATES IN TWENTY CITIES, b y S t e p h e n

A. Rhoades. February 1992. 11 pp.
1 6 3 . CLEARANCE AND SETTLEMENT IN U . S . SECURITIES MAR-

KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob,
Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary
Ann Taylor. March 1992. 37 pp.
1 6 4 . THE 1 9 8 9 - 9 2 CREDIT CRUNCH FOR REAL ESTATE, b y

James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.
1 6 5 . THE DEMAND FOR TRADE CREDIT: A N INVESTIGATION OF
MOTIVES FOR TRADE CREDIT USE BY SMALL BUSINESSES,

by Gregory E. Elliehausen and John D. Wolken. September 1993. 18 pp.

RESULTS, by Flint Brayton and Peter B. Clark. December
1985. 17 pp.
1 4 9 . THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
BANKING BEFORE AND AFTER ACQUISITION, b y S t e p h e n

A. Rhoades. April 1986. 32 pp.
1 5 0 . STATISTICAL COST ACCOUNTING MODELS IN BANKING:
A REEXAMINATION AND AN APPLICATION, by John T.

Rose and John D. Wolken. May 1986. 13 pp.
1 5 1 . RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING
FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice

P. White, Paul F. O'Brien, and Mary M. McLaughlin.
January 1987. 30 pp.
1 5 2 . DETERMINANTS OF CORPORATE MERGER ACTIVITY: A
REVIEW OF THE LITERATURE, by Mark J. Warshawsky.

April 1987. 18 pp.
by Carolyn D. Davis and
Alice P. White. September 1987. 14 pp.

1 5 3 . STOCK MARKET VOLATILITY,

1 5 4 . T H E EFFECTS ON CONSUMERS AND CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES,

155.

by Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
THE FUNDING OF PRIVATE PENSION PLANS, by Mark J.
Warshawsky. November 1987. 25 pp.

1 5 6 . INTERNATIONAL TRENDS FOR U . S . BANKS AND BANKING

MARKETS, by James V. Houpt. May 1988. 47 pp.
1 5 7 . M 2 PER UNIT OF POTENTIAL G N P AS AN ANCHOR FOR
THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D.

Porter, and David H. Small. April 1989. 28 pp.
1 5 8 . THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE

PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
1 5 9 . N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, by Nellie Liang

and Donald Savage. February 1990. 12 pp.
1 6 0 . BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, b y

Gregory E. Elliehausen and John D. Wolken. September
1 9 9 0 . 35 pp.




REPRINTS OF SELECTED Bulletin ARTICLES
Some Bulletin articles are reprinted. The articles listed below
are those for which reprints are available. Most of the articles
reprinted do not exceed twelve pages. Limit of ten copies
Recent Developments in the Bankers Acceptance Market. 1/86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and U.S.
Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the
1983 and 1986 Surveys of Consumer Finances. 10/87.
Home Equity Lines of Credit. 6/88.
Mutual Recognition: Integration of the Financial Sector in the
European Community. 9/89.
The Activities of Japanese Banks in the United Kingdom and in
the United States, 1980-88. 2/90.
Industrial Production: 1989 Developments and Historical
Revision. 4/90.
Recent Developments in Industrial Capacity and Utilization.
6/90.
Developments Affecting the Profitability of Commercial Banks.
7/90.
Recent Developments in Corporate Finance. 8/90.
U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90.
The Transmission Channels of Monetary Policy: How Have
They Changed? 12/90.
Changes in Family Finances from 1983 to 1989: Evidence from
the Survey of Consumer Finances. 1/92.
U.S. International Transactions in 1991. 5/92.

A78

Maps of the Federal Reserve System

•

NEW YORK
HILADELPHIA

M H H H

BHHr

mm

LEGEND

Both pages
• Federal Reserve Bank city
• Board of Governors of the Federal
Reserve System, Washington, D.C.

Facing page
• Federal Reserve Branch city
— Branch boundary

NOTE

The Federal Reserve officially identifies Districts
by number and Reserve Bank city (shown on both
pages) and by letter (shown on the facing page).
In the 12th District, the Seattle Branch serves
Alaska, and the San Francisco Bank serves Hawaii.
The System serves commonwealths and territories as follows: the New York Bank serves the



Commonwealth of Puerto Rico and the U.S. Virgin
Islands; the San Francisco Bank serves American
Samoa, Guam, and the Commonwealth of the
Northern Mariana Islands. The Board of Governors
revised the branch boundaries of the System most
recently in December 1991.

A79

1-A

3-C

2-B

5-E

4-D

Baltimore^

Pittsburgh

/

i<

Buffalo

MAH

•

C
T

NJ

• Cincinnati

^
NY

PHILADELPHIA

N E W YORK

BOSTON
6-F

7-G

• Nashville

TN

Birmingham

8-H

«

AL \

_
W
1

^

\
/

MS
LA

GA
^

Ml

Louisville

Detroit •

1A
iL •

'

m

RICHMOND

CLEVELAND

Jacksonville

JMiami

New Orleans

„

ATLANTA

TN

AR

IN

Memphis

Littl?'
Rock

•

ST. LOUIS

CHICAGO

9-1
MN

• Helena

•''litisTM&WTIMM'
I so

MI

•

MINNEAPOLIS
10-J

12-L

I NE

Omaha*

CO

•
Denver

} M
O

•

ALASKA

NM

Oklahoma• City
O
K

KANSAS CITY
11-K

DALLAS



Salt iSke City

• Los Angeles
HAWAII

SAN FRANCISCO

A80

Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
Chairman
branch, or facility
Zip
Deputy Chairman

President
First Vice President

BOSTON*

02106

Richard F. Syron
Cathy E. Minehan

NEW YORK*

10045

Jerome H. Grossman
Warren B. Rudman

Ellen V. Futter
Maurice R. Greenberg
14240 Joseph J. Castiglia

William J. McDonough
James H. Oltman

PHILADELPHIA

19105

Edward G. Boehne
William H. Stone, Jr.

CLEVELAND*

44101

Vice President
in charge of branch

Buffalo

Cincinnati
Pittsburgh
RICHMOND*

A. William Reynolds
G. Watts Humphrey, Jr.
45201 Marvin Rosenberg
15230 Robert P. Bozzone

Jerry L. Jordan
Sandra Pianalto

23219

J. Alfred Broaddus, Jr.
Jimmie R. Monhollon

Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
CHICAGO*
Detroit
ST. LOUIS
Little Rock
Louisville
Memphis
MINNEAPOLIS
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
SAN FRANCISCO
Los Angeles
Portland
Salt Lake City
Seattle

Jane G. Pepper
James M. Mead

James O. Aston

Anne Marie Whittemore
Henry J. Faison
Rebecca Hahn Windsor
Anne M. Allen

30303 Edwin A. Huston
Leo Benatar
35283 Donald E. Boomershine
32231 Joan D. Ruffier
33152 R. Kirk Landon
37203 James R. Tuerff
70161 Lucimarian Roberts

Robert P. Forrestal
Jack Guynn

60690 Richard G. Cline
Robert M. Healey
48231 J. Michael Moore

Silas Keehn
William C. Conrad

63166

Robert H. Quenon
Janet McAfee Weakley
72203 Robert D. Nabholz, Jr.
40232 John A. Williams
38101 Seymour B. Johnson

Gary H. Stern
Colleen K. Strand

64198

Ronald B. Duncan1
Walter A. Varvel1
John G. Stoides1

Thomas C. Melzer
James R. Bowen

55480 Delbert W. Johnson
Gerald A. Rauenhorst
59601 James E. Jenks

Charles A. Cerino1
Harold J. Swart1

Thomas M. Hoenig
Henry R. Czerwinski

80217
73125
68102

Burton A. Dole, Jr.
Herman Cain
Barbara B. Grogan
Ernest L. Holloway
Sheila Griffin

Donald E. Nelson1
Fred R. Herr1
James D. Hawkins1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso

Roby L. Sloan1

Karl W. Ashman
Howard Wells
John P. Baumgartner

John D. Johnson

Kent M. Scott
David J. France
Harold L. Shewmaker

Leo E. Linbeck, Jr.
Cece Smith
79999 W. Thomas Beard, III
77252 Judy Ley Allen
78295 Erich Wendl

Robert D. McTeer, Jr.
Tony J. Salvaggio

94120 James A. Vohs
Judith M. Runstad
90051 Donald G. Phelps
97208 William A. Hilliard
84125 Gary G. Michael
98124 George F. Russell, Jr.

Robert T. Parry
Patrick K. Barron

75201

Sammie C. Clay
Robert Smith, III1
Thomas H. Robertson

John F. Moore1
E. Ronald Liggett1
Andrea P. Wolcott
Gordon Werkema1

*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Jericho,
New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311;
Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior
 Vice President.


Federal Reserve Statistical Releases
Available on the Commerce Department's
Economic Bulletin Board
The Board of Governors of the Federal Reserve
System makes some of its statistical releases available to the public through the U.S. Department of
Commerce's economic bulletin board. Computer
access to the releases can be obtained by sub-

scription. For further information regarding a
subscription to the economic bulletin board,
please call (202) 482-1986. The releases transmitted
to the economic bulletin board, on a regular basis,
are the following:

Reference
Number

Statistical release

Frequency of release

H.3

Aggregate Reserves

Weekly/Thursday

H.4.1

Factors Affecting Reserve Balances

Weekly/Thursday

H.6

Money Stock

Weekly/Thursday

H.8

Assets and Liabilities of Insured Domestically Chartered
and Foreign Related Banking Institutions

Weekly/Monday

H.10

Foreign Exchange Rates

Weekly/Monday

H.15

Selected Interest Rates

Weekly/Monday

G.5

Foreign Exchange Rates

Monthly/end of month

G.17

Industrial Production and Capacity Utilization

Monthly/midmonth

G.19

Consumer Installment Credit

Monthly/fifth business day

Z.7

Flow of Funds

Quarterly




Publications of Interest
FEDERAL RESERVE REGULATORY

SERVICE

To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations as well as related
statutes, interpretations, policy statements, rulings,
and staff opinions. For those with a more specialized
interest in the Board's regulations, parts of this service are published separately as handbooks pertaining
to monetary policy, securities credit, consumer affairs,
and the payment system.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated monthly, and each contains
citation indexes and a subject index.
The Monetary Policy and Reserve Requirements
Handbook contains Regulations A, D, and Q, plus
related materials.
The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with related statutes, Board interpretations, rulings,
and staff opinions. Also included are the Board's list

of marginable OTC stocks and its list of foreign
margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, and BB, and
associated materials.
The Payment System Handbook deals with expedited funds availability, check collection, wire transfers, and risk-reduction policy. It includes Regulation
CC, Regulation J, the Expedited Funds Availability
Act and related statutes, the official Board commentary on Regulation CC, and policy statements on risk
reduction in the payment system.
For domestic subscribers, the annual rate is $200
for the Federal Reserve Regulatory Service and $75
for each Handbook. For subscribers outside the
United States, the price including additional air mail
costs is $250 for the Service and $90 for each Handbook. All subscription requests must be accompanied
by a check or money order payable to the Board of
Governors of the Federal Reserve System. Orders
should be addressed to Publications Services, mail
stop 138, Board of Governors of the Federal Reserve
System, Washington, DC 20551.

U.S. MONETARY POLICY AND FINANCIAL MARKETS
U.S. Monetary Policy and Financial Markets by AnnMarie Meulendyke offers an in-depth description of
the way monetary policy is developed by the Federal
Open Market Committee and the techniques employed to implement policy at the Open Market Trading Desk. Written from her perspective as a senior
economist in the Open Market Function at the Federal
Reserve Bank of New York, Ann-Marie Meulendyke
describes the tools and the setting of policy, including
many of the complexities that differentiate the process
from simpler textbook models. Included is an account
of a day at the Trading Desk, from morning
information-gathering through daily decisionmaking
and the execution of an open market operation.
The book also places monetary policy in a broader




context, examining first the evolution of Federal
Reserve monetary policy procedures from their beginnings in 1914 to the end of the 1980s. It indicates how
policy operates most directly through the banking
system and the financial markets and describes key
features of both. Finally, the book turns its attention to
the transmittal of monetary policy actions to the U.S.
economy and throughout the world.
The book is $5.00 a copy for U.S. purchasers and
$10.00 for purchasers outside the United States. Copies are available from the Public Information Department, Federal Reserve Bank of New York, 33 Liberty
Street, New York, NY 10045. Checks must accompany orders and should be payable to the Federal
Reserve Bank of New York in U.S. dollars.

Publications of Interest
FEDERAL

RESERVE

CONSUMER

CREDIT

PUBLICATIONS

The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects
as how the Equal Credit Opportunity Act protects
women against discrimination in their credit dealings,
how to use a credit card, and how to resolve a billing
error.
The Board also publishes the Consumer Handbook
to Credit Protection Laws, a complete guide to consumer credit protections. This forty-four-page booklet
explains how to shop and obtain credit, how to maintain a good credit rating, and how to dispute unfair
credit transactions.

Three booklets on the mortgage process are also
available: A Consumer's Guide to Mortgage Lock-Ins,
A Consumer's Guide to Mortgage Refinancings, and
A Consumer's Guide to Mortgage Settlement Costs.
These booklets were prepared in conjunction with the
Federal Home Loan Bank Board and in consultation
with other federal agencies and trade and consumer
groups.
Copies of consumer publications are available free
of charge from Publications Services, mail stop 138,
Board of Governors of the Federal Reserve System,
Washington, DC 20551. Multiple copies for classroom use are also available free of charge.

A guide to

Business
Credit

A Consumer's
Guide to
Mortgage
Lock-Ins




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