Flow of Funds Accounts, Second Quarter 1989

Transcription

1 z.l September 19, 1989 Flow of Funds 1989.Q2 Flow of Funds Accounts, Second Quarter 1989 Seasonally Adjusted and Unadjusted Annual Revisions Board of Governors of the Federal Reserve System, Washington, D.C

2 PAGE i-iii iv-v vi-viii CONTENTS General Information Data Availability for Preliminary Estimates Debt Aggregate Growth Rates SUMMARY TABLES Income and Product Distribution Funds Raised in Credit Markets Credit Market Supply of Funds SECTOR TABLES , ,32 Households Total Nonfinancial Business, Farm Business, Noncorporate Business Nonfinancial Corporate Business State and Local Governments U.S. Government and Credit Agencies Foreign (Rest of World) Banking System Monetary Authority, Commercial Banking Summary Commercial Banking Subsectors U.S. Chartered Commercial Banks, Foreign Banking Offices in U.S., Domestic Affiliates of Commercial Banks (BHCs), Banks in U.S. Possessions Nonbank Finance Summary Savings Institutions Savings and Loan Associations, Mutual Savings Banks, Credit Unions Insurance and Pension Funds Life Insurance Companies, Private Pension Funds, State and Local Government Employee Retirement Funds, Other Insurance Companies Finance N.E.C. Finance Companies, Mutual Funds, MMMFs REITs, Security Brokers and Dealers, Securitized Credit Obligations (SCOs) TRANSACTION TABLES ,40 Monetary and Insurance Reserves Interbank Claims Deposit Claims continued

3 42 44 TRANSACTION TABLES continued U.S. Government Securities Private Securities Tax-Exempt Debt Securities and Loans, Corporate and Foreign Bonds, Mutual Funds and Other Corporate Equities 46,48 Mortgages Home Mortgages, Multi-family Residential Mortgages, Commercial Mortgages, Farm Mortgages , Consumer Credit and Bank Loans N.E.C. Open-Market Paper and Other Loans Security Credit, Trade Credit, Taxes Payable, Proprietors' Equity in Noncorporate Business Miscellaneous Total Net Borrowing and Lending in Credit Markets Total Liabilities in Relation to Total Financial Assets Saving by Individuals System Discrepancies

4 Flow of Funds Accounts Second Quarter 1989 (Annual Revisions) The accounts presented in this publication reflect historical revisions to both nonfinancial and financial statistics. They incorporate the revisions to the National Income and Product Accounts released by the Bureau of Economic Analysis, as well as current estimates for the first two quarters of Historical revisions to U.S. balance of payments accounts, together with capital account data through 1989.Q2 likewise have been assimilated into these statistics. As is customary with second quarter estimates, revisions to financial statistics have been carried back in time as far as available data permit or structural changes require. Estimates in this publication, for instance, reflect the most recent available benchmarks for private pension funds, consumer credit, and assets of nonfinancial corporations. Seasonal adjustments to the financial flows shown in these tables have been reviewed and recomputed from 1972.Q1 forwards, in some cases making special provision for "outliers" in the time series so that estimated seasonal factors will be less affected by statistical anomalies. Both the recomputation of factors and structural changes in the accounts noted below may contribute to revisions of the financial data. Several structural changes are embedded in these second quarter accounts compared with the presentation used since 1988.Q2. The most significant, perhaps, is a complete reworking of data and structure for thrift institutions (savings and loans, mutual savings banks and federal savings banks) and the associated statements of the Federal Home Loan Banks. While the structure of the thrift tables is little affected, revised background calculations reflect an attempt to keep thrift structure in line with the rapid changes in this industry and with recent legislative changes. Thrift presentations now clearly separate those which were (through the second quarter) FSLIC-insured from those which were FDIC-insured. For the most part these constituted savings and loans and mutual savings banks, respectively. As noted, financial connections between thrifts and the FHLBs have been reviewed and the estimates revised, especially as to FHLB advances and deposits. Bank holding company estimates have been revised in the present accounts to include "second-tier" BHCs, which have larger balance sheets than previously suspected. The principal structural change is the inclusion of figures on BHC retained earnings as a source of funds. These amounts previously were included with "commercial bank" current surplus, which has been lowered accordingly. As to other changes, the former "CMO" sector of the accounts has been expanded and retitled "Securitized Credit" to accomodate new estimates for securitized consumer credit as well as CMOs. While securitization of consumer credit receivables began around 1984, estimates are available only from end Within the foreign sector of the accounts, the principal revision this year is the inclusion of better information on the foreign currency assets and liabilities of banks with the rest of world than was -i-

5 previously available. Such positions have increased rapidly in recent years, and now appear to be quantitatively significant. Preliminary estimates. Figures shown for the most recent quarter in these tables are based on preliminary and incomplete information. At the end of this preface is a list of the principal sources of information that were available in putting together the second quarter, and the significance of individual items in the tables should be judged on the basis of this list. This list, summary in form, is by no means a complete statement of sources of data or of derivation methods. Because much of the source information consists of sector balance sheets or statements of activity, the list is organized mainly in terns of sectors. For nonfinancial activity included in the accounts, however, such as sector income and capital outlays, the Commerce Department's National Income and Product Accounts are the principal source. This part of the system is included separately at the beginning of the list. The items that are shown as available are in general also preliminary in the sense that they are subject to revision once a year on the basis of benchmark data. "Available for them means that the basic quarterly estimates have been completed in a form that will usually stand until the next annual revision. Virtually all quarterly data sources are compiled within five or six months of the end of the quarter, and the distinction between the two columns is not between final and preliminary versions of data but rather between those source estimates that are fully ready when the first quarterly estimate is put together and those that are not yet completed. Margins of Uncertainty. Flow of Funds statistics, like all social accounts, are subject to uncertainties resulting from incompatibilities between elements of source data, potential revisions to both financial and nonfinancial elements and incomplete data in certain parts of the accounts. While the size of these uncertainties cannot be quantified in precise statistical terms, allowance for them is explicitly made throughout the accounts by the inclusion of discrepancies" for various sectors and transactions forms. The size of such discrepancies relative to main asset/liability components is one indication of the degree of measurement difficulty with source data, especially on an annual basis. Differing seasonal adjustment methods between financial and nonfinancial components sometimes result in quarterly discrepancies which are not of long-run significance. Experience also suggests that many near-term discrepancies (e.g., for the latest few quarters published) tend to be reduced with the introduction of revised national accounts figures or with annual revisions in financial data. Availability: Flows and Outstandings. Flow of Funds statistics are usually compiled and available about two months following the last quarter reported, except for second quarter (annual revision) data, for which three months is more typical. The Z.7 release Flow of Funds Summary Statistics is made available as soon as possible, providing an overview of major credit market demands and supplies, together with developments in a few key sectors. The current publication which is the Z.l release and covers the full range -ii-

6 of the accounts is subject to printing and mailing delays of up to two weeks from the time the estimates are completed. To facilitate access in the meantime, copies of computer printouts are distributed to Federal Reserve Bank information offices for use by the public. The quarterly data in this release concentrate on flows of financing in economic sectors and transactions forms. The outstandings counterparts of these flows are published annually, in the autumn in Flow of Funds Accounts: Financial Assets and Liabilities, which constitutes part of the same release as the flow accounts. All subscribers to the Z.l release, therefore, receive both the quarterly flow and the annual outstandings publications. Summary annual and quarterly data on major credit market developments, including flows and positions, also are regularly published in four tables which appear in the statistical appendix of the Federal Reserve Bulletin. The current quarterly tables are an extension of a body of data that begins in 1946 in annual form and in 1952 quarterly. Annual flows and yearend positions for almost the entire period covered by the accounts recently have been published in two volumes. The first, Flow of Funds Accounts , Annual Total Flows and Year-End Assets and Liabilities, was made available in December, 1986 and costs $5.00. The second, Flow of Funds Accounts, , Annual Total Flows and Year-End Assets and Liabilities, appeared in December, 1988, and costs $5.00. Both volumes can be ordered from Publication Services, Stop 138, at the Federal Reserve Board. Subscription Information. The Federal Reserve Board charges nominal amounts for subscriptions to all statistical releases. The annual cost of the Z.7 Summary Statistics release presently is set at $5.00; the price of the full Z.l release has been fixed at $ The Flow of Funds Section also publishes Balance Sheets for the U.S. Economy, which is designated as the Federal Reserve Board7s C.9 release and appears twice a year, usually in April and October. The cost of that release is $5.00 per year. Subscription inquiries for these releases also should be directed to Publication Services, Stop 138, at the Federal Reserve street address given below. Quarterly or annual data for specific sectors of the accounts, in reasonable scope, are available on request in printed form from the Flow of Funds Section. Computer tapes for the entire published data base, or data on diskettes, may be purchased from the National Technical Information Service, 5285 Port Royal Road, Springfield, Virginia Tape and diskette prices are determined by NTIS. Requests and inquiries about the data and historical tabulations should be addressed to: Flow of Funds Section Room B-5100, Stop 95 Board of Governors of the Federal Reserve System 20th and Constitution Avenue, N.W. Washington, D.C (202) iii-

7 Data Availability for Preliminary Estimates: 1989.Q2 NONFINANCIAL" Available Major items missing 1. National income and product accounts FINANCIAL-- Second estimate of latest quarter, seasonally adjusted None 2. Households Estimates for other sectors. available for this sector are almost entirely residual and derived from data sectors. Availability is thus dependent on schedules for other Principal types of borrowing mortgages and consumer credit are in time for first quarterly estimates. 3. Farms 4. Nonfarm noncorporate business 5. Nonfinancial corporate business 6. State and local governments 7. Rest of the world (U.S. International Transactions) 8. U.S. Government Bank loans. For sponsored agency loans, see item 9 below. Statistics of Income benchmark data through 1986, Bank and finance company loans, mortgage borrowing, consumer credit For current quarter: gross security offerings, mortgages, bank loans, open-market paper, finance company loans, foreign direct investment. Gross security offerings, deposits at banks, nonmarketable U.S. Government Securities (SLGs). NIPA estimates; Balance of payments estimates. Monthly Treasury Statement of Receipts and Outlays for last month of quarter, Federal Financing Bank Statement. U.S. Government loans. See item 9 below. SOI balance sheets since 1986 Working capital, U.S. Government loans for current quarter. Security retirements, other asset items. None. Loans outstanding except at Federal Financing Bank iv

8 FINANCIAL" Available Major items missing 9. Sponsored credit agencies Balance sheets for FNMA, Home Loan Banks, Farm Credit Administration loans and securities outstanding. Asset breakdown for FCA. 10. Mortgage pools Complete None 11. Monetary authority Complete None 12. Banking All-bank totals for preceding quarter, current-quarter indicators for banking and monetary estimates through last month of current quarter. 13. Savings and loan associations Last month of quarter on summary monthly basis All-bank totals for current Detailed balance sheets and statements quarter liquidity 14. Mutual savings banks Data through 1988 Data for first half of Credit unions Complete None 16. Life insurance companies Two months of current quarter Balance sheet for last month of quarter 17. Private Pension Funds (including FERS) 18. State and local government retirement systems Complete Preceding quarter None Current quarter 19. Other insurance companies Preceding year Current year 20. Finance companies Complete None 21. REIT's Complete None 22. Open-end investment companies and money market funds Complete None 23. Security brokers and dealers Complete FOCUS report except for latest quarter. FOCUS report for last quarter. 24. Securitized Credit Obligation issuers Digitized for FRASER Complete data from Trepp/PSA Information Services and securitized consumer credit data. - v - None

9 NONFINANCIAL DEBT NONFINANCIAL DEBT GROWTH OF MAJOR DEBT AGGREGATES BY SECTOR DOMESTIC NONFINANCIAL SECTORS TOTAL MEMO: HOUSEHOLDS NONFINANCIAL BUSINESS STATE & NON- PRIVATE U.S. PVT. HOME CONSUMER LONG SHORT LOCAL FINAN- FINAN. TOTAL GOVT. NONFIN TOTAL MTGES CREDIT TOTAL TERM TERM GOVTS FOREIGN CIAL ASSETS ANNUAL CHANGE (PER CENT) QUARTERLY GROWTH RATES (Z - SAAR) 1985 I II III IV I II III IV I II III IV I II III IV I II VI-

10 NONFINANCIAL DEBT NONFINANCIAL DEBT GROWTH OF MAJOR DEBT AGGREGATES BY SECTOR TOTAL U.S. GOVT. PVT. NONFIN - -DOMESTIC NONFINANCIAL SECTORS TOTAL HOUSEHOLDS NONFINANCIAL BUSINESS STATE & NON TOTAL HOME CONSUMER MTGES CREDIT TOTAL LONG TERM SHORT TERM LOCAL GOVTS FOREIGN FINAN CIAL MEMO: PRIVATE FINAN. ASSETS ANNUAL FLOWS (5BILLIONS) QUARTERLY NET FLOWS ($B - SAAR) 1985 I II III IV I II III IV I II III IV I II III IV I II Digitized for FRASER -vii-

11 NONFINANCIAL DEBT NONFINANCIAL DEBT GROWTH OF MAJOR DEBT AGGREGATES BY SECTOR DOMESTIC NONFINANCIAL SECTORS TOTAL MEMO: HOUSEHOLDS NONFINANCIAL BUSINESS STATE & NON PRIVATE U.S. PVT. HOME CONSUMER LONG SHORT LOCAL FINAN- FINAN. TOTAL GOVT. NONFIN TOTAL MTGES CREDIT TOTAL TERM TERM GOVTS FOREIGN CIAL ASSETS YEAR-END OUTSTANDINGS ($ BILLIONS) QUARTERLY OUTSTANDINGS, SEASONALLY ADJUSTED 1985 I II III IV I II III IV I II III IV I II III IV I II viii-

12 Income and Product Distribution Income and Product Distribution Income and Product Accounts: GNP Expenditures and Gross Saving 1 ANNUAL FLOWS, $ BILLIONS I 1988 I A I II III IV 1 I II A01A.9 A231.7 A52A.3 A880.6 A739.9 A838.5 A Total GNP AA A20A.0 A093.8 A165.0 A221.9 A335.3 A397.A AA81.7 Current outlays 2 3 2A A A A 332A A 3AA6.8 Households 3 A A06.0 A21.1 A55.2 AA6.A A5A.6 A52.5 A67.A A66.A A71.0 Of which consumer durables A 5 A25.A A AA A State and local governments A A06.A A07.8 U.S. government A.9 6A A A A.7 Gross domestic investment A 73A.2 7A1.9 7A7.A Private fixed investment A A A.8 Residential construction A 5.3 A Mobile homes A A A A family structures A A.A Household purchases Farm 13 Change in work in process IA X -.6 A X A.O on nonfarm IA 15 X A X Noncorporate X A X Corporate AO.O AA.3 A A Multi-family units A Households (1) A A A.A Noncorporate business l.a.3 l.a 1.2 Nonfin. corp, business A.A.7.A REITs A16.1 AA2.9 A35.2 AAA.3 A87.2 A72.7 A87.1 A93.2 A Nonres. plant 8 equipment A Nonprofit inst. (HH) 23 2A 10.A Farm 2A Nonfarm noncorp. bus A3.7 A7.A 5A.A A Financial corporations A A A A Nonfin. corp, business AA Inventories Farm A A.2 2A.2 30.A A1.5 AO Nonfarm Noncorporate A A Corporate A A Net exports 33 3A AA8.6 5A Exports 3A 35 AA2.5 AA8.9 A A Imports A A A A7.1 Disposable personal income A A 12A AA A A Personal saving A.A A.l 3.2 A A.3 A Saving rate (percent) A A A7.5-1A8.3 Federal government surplus 39 A0 6A A A9.9 A5.8 A8.8 A6.7 St. 8 local government surplus A0 Corporate profits, taxes, and dividends: Al A A.A Profits - total (book) Al A2 X X x X - X X X.1 Farms A2 A A3.7 A2.A A0.7 A5.1 A6.5 A6.6 A8.A Foreign A3 AA Financial corporations AA A A A A2.2 2A Nonfin. corporate business A5 A A A A 1A1.2 1A3.2 1AA.A Tax accruals - total A6 A A.3.A.A.A A.A Farms A7 A8 20.A Financial corporations A8 A Nonfin. corporate business A A Dividends - total Farms A A.O Financial corporations A.C A.1 11A Nonfin. corporate business 53 5A A Net dividends paid 5A Net fgn. div. received AA.6 2A.0 A3.A A A 55.1 A3.A Undist. prof. - total (book) Farms A Financial corporations A Foreign A5.7 A5.A A7.1 3A Nonfin. corporate business A A A Domestic undist. prof Net fgn. div. received A6.8 A9.9 A8.9 A6.9 A Cap. cons, adjust. - total 63 6A A Farms 6A A A Financial corporations A9.5 AA A2.0 A A.8 Nonfin. corporate business A15.5 A37.2 A60.1 A A A A1.1 Total capital cons. w/ccadj A.A A 7A.1 7A Owner-occupied homes (HH) A.1 1A.8 15.A A Nonprofit institutions (HH) A Farm noncorporate A A A.A A.2 8A Nonfarm noncorp. business A A Total corporate A A A Financial business 73 7A l.a Corporate farms 7A A Nonfin. corporate business 75 Memo: Cap. cons, on consumer A A A durables not included above A A1.0 85A Tot. cap. cons. incl. durables A -A A A Statistical discrepancy A3.0 A8.0 A6.8 A5.0 AA.7 A5.3 AA.9 AA.9 A5.A AA.8 Profit tax rate (percent) A.2 1A.6 1A A.A 1A.5 1A.7 1A.3 1A.3 1A.6 1A.8 Personal tax rate (percent) 80 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION (1) Purchases of condominium units.

13 Funds Raised in Credit Markets Funds Raised in Credit Markets 2 Summary of Net Funds Raised in Credit and Equity Markets UNADJUSTED NET FLOWS, $ MILLIONS UNADJUSTED NET FLOWS, $ MILLIONS ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II Net Credit Market Borrowing by Nonfinancial Sectors Total net borrowing by domestic 1 nonfinancial sectors 142, , , , , , U.S. government 42,871 19,085 41,659 53,842 37,945 9, Treasury issues 42,994 17,153 36,437 43,444 38,240 8, Agency Issues & mortgages ,932 5,222 10, , Private domestic 5 nonfinancial sectors 99, , , , , , Debt capital instruments 84, , , ,104 94, , Tax-exempt obligations 4,855 9,115 11,355 8,697 5,248 5, Corporate bonds 29,693 35,983 28,969 26,224 27,897 34, Mortgages 49,501 96,534 81,493 80,183 61,273 64, Home mortgages 32,925 77,319 62,720 56,156 41,117 52, Multi-family resid. 5,127 3,615 4,424 5,745 5,862 2, Commercial 12,336 15,774 15,132 18,504 15,113 9, Farm Other debt instruments 15,844 48,932 28,028 53,000 22,723 44, Consumer credit -3,766 16,880 15,385 22,567-6,743 16, Bank loans n.e.c. 4,016 18, ,905 4,885 1, Commercial paper ,340 2,456 5,061 9,792 13, Other 15,855 8,730 9,715 10,467 14,789 12, By borrowing sector: 99, , , , , , StateSlocal governments 3,441 8,898 9,681 7,765 4,987 6, Households 33,909 89,203 80,277 83, , Nonfinancial business 62,543 92,463 59,887 76,952 71,384 83, Farm -4,224 2, ,971-2,696 2, Nonfarm noncorporate 22,314 20,153 20,686 28,743 23,788 18, Corporate 44,453 69,659 39,162 54,180 50,292 62, Fgn. net borrowing in U.S. 1,592 1, , , Bonds 3, ,364 1,866 1,228 1, Bank loans n.e.c , Commercial paper 1,299 1,493 2,263 4,579 3,720-1, U.S. govt. & other loans -3, ,646-1,613-5,296 1, Total domestic plus foreign 144, , , , , , Net Credit Market Borrowing by Financial Sectors Total net borrowing 1 by financial sectors 40,479 74,544 57,676 91,484 76,815 42, U.S. government-related 24,079 26,337 39,362 47,695 45,016 26, Sponsored credit ag. sec. 10,305 4,363 10,605 19,610 16,219 4, Mortgage pool securities 13,774 21,974 28,757 28,085 28,797 22, uoans from U.S. government Private financial sectors 16,400 48,207 18, ,799 15, Corporate bonds 14,202 17,428 8,483 11,540 12,070 5, Mortgages K K N.1 M 8 9 Bank loans n.e.c. -1,088 2,653-1, ,975 2, Open-market paper 6,867 22,779 4,554 19,438 10,632 9, Fed. Home Loan Bank loans -3,552 5,329 6,727 11,219 11,002-1, Total, by sector 40,479 74,544 57,676 91,484 76,815 42, Sponsored credit agencies 10,305 4,363 10,605 19,610 16,219 4, Mortgage pools 13,774 21,974 28,757 28,085 28,797 22, Private financial sectors 16,400 48,207 18,314 43,789 31,799 15, Commercial banks -6, ,219-5,437 4, Domestic affiliates , , Savings and loan assns. -4,027 6,544 6,210 11,177 10,836-2, Mutual Savings Banks Finance companies 14,263 26,794 7,919 18,037 14,084 13, REITs 1, ,480 3, X SCO Issuers 10,759 7,872 5,767 8,136 9, Total Net Credit Market Borrowing, All Sectors, by Type 1 Total net borrowing 184, , , , , , U.S. government securities Tax-exempt obligations Corporate 8 foreign bonds Mortgages 66,950 4,855 47,718 49,472 45,421 9,115 53,295 96,553 81,023 11,355 38,816 81, ,541 8,697 39,630 80,471 82,962 5,248 41,195 61,342 36,834 5,216 42,161 64, Consumer credit -3,766 16,880 15,385 22,567-6,743 16, Bank loans n.e.c. 2,420 21, ,998 3,092 3, Open-market paper 7,905 28,612 9,273 29,078 24,144 21, Other loans 9,281 14,425 12,796 20,073 20,495 12, Memo: U.S. govt, cash balance -1,080 16,423 4,588-9,551-19,670 21, M Totals net of changes in U.S. govt, cash balances: 11 Net borrowing by dom.. nonfin.. 143, , , , , , By U.S. government 43,951 2,662 37,071 63,393 57,615-11, External Corporate Equity Funds Raised in U.S. Markets 1 Total net share issues -21,141-30,403-21,996-44,372-36,332-9, Mutual funds 1,293 1,067-2, ,957 8, All other -22,434-31,470-19,122-44,197-41,289-18, Nonfinancial corporations -23,750-35,000-23,000-48,750-45,000-26, Financial corporations 600 4,747 3,650 3,372 2,371 3, Foreign shares 6 purchased in U.S , ,181 1,340 4, LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

14 Funds Raised in Credit Markets Summary of Net Funds Raised in Credit and Equity Markets Funds Raised in Credit Markets 3 ANNUAL FLONS. $ BILLIONS I I 1988 II III I 1989 IV I I II Net Credit Market Borrowing by Nonfinancial Sectors Total net borrowing by domestic nonfinancial sectors U.S. government Treasury issues Asency issues 8 mortgages 4 Private domestic nonfinancial sectors Debt capital instruments Tax-exempt obligations Corporate bonds Mortgages 9 1C , Home mortgages Multi-family resid Commercial Farm Other debt instruments Consumer credit Bank loans n.e.c Commercial paper Other By borrowing sector: StateSlocal sovernments Households Nonfinancial business Farm Nonfarm noncorporate Corporate Fgn. net borrowing in U.S Bonds » Bank loans n.e.c Commercial paper U.S. govt. & other loans Total domestic plus foreign 31 Net Credit Market Sorrowing by Financial Sectors Total net borrowing by financial sectors U.S, government-related Sponsored credit ag. sec Mortgage pool securities Loans from U.S. sovernment Private financial sectors Corporate bonds Mortgages Bank loans n.e.c Open-market paper Fed. Home Loan Bank loans Total, by sector Sponsored credit agencies Mortgage pools Private financial sectors Commercial banks Domestic affiliates Savinss and loan assns Mutual Savinss Banks Finance companies REITs SCO Issuers 22 Total Net Credit Market Borrowing. All Sectors, by Type Total net borrowing U.S. sovernment securities Tax-exempt obligations Corporate 8 foreign bonds Mortgages Consumer credit Bank loans n.e.c Open-market paper Other loans M Memo: U.S. govt, cash balance Totals net of ichanges :in U.S. sovt. cash balances: Net borrowing by dom. nonfin By U.S. government External Corporate Equity Funds Raised in U.S. Markets Total net share issues Mutual funds All other Nonfinancial corporations Financial corporations Foreign shares purchased in U.S IILI.IONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

15 SEPTEMBER Credit Market Supply of Funds 4 UNADJUSTED NET FLONS, S MILLIONS Direct and Indirect Sources of Funds to Credit Markets Credit Market Supply of Funds UNADJUSTED NET FLOWS. $ MILLIONS I 1988 I 1989 ANNUAL FLOWS. $ BILLIONS 1 I II III IV 1 I II Total funds advanced in credit to dom. nonfinan. sectors markets , , , , By Federal agencies and foreign 2 Total net advances, by type , ,619 18, U.S. government securities ,405 3, ,850-13, Residential mortgages ,504 28,852 31,114 29,219 25, FHLB advances to thrifts -3,552 5,329 6, , Other loans and securities 7, ,721 2,290 11,548 8, By type of lender: 54,407 51,933 51,493 79,680 69,619 18, U.S. government ,281 1, Spons. cr. ags. 8 mtg. pools ,670 37,291 45,644 44,928 12, Monetary authority -5, ,046 9,864-5,206 2, Foreign ,721 11, ,008 3, Agency and foreign borrowing not in line 1: 12 Spons. cr. ags. 8 mtg. pools ,337 39,362 47, , Foreign 1,592 1, , , Private donestic funds advanced 14 Total net advances 114, , , , , U.S. government securities 34,589 31,016 77,830 66,484 65,112 49, Tax-exempt obligations 4,855 9,115 11,355 8,697 5,248 5, Corporate and foreign bonds 32,515 30,695 22,879 18,282 23,589 31, Residential mortgages 19,484 55,431 38,290 30,783 17,759 29, Other mortgages and loans ,468 35,998 80,559 29,611 49, Less: FHLB advances -3, ,727 11,219 11,002-1, Private financial intermediation Credit market funds advanced by private financial insts. 138,418 Commercial banking 13,954 Savings institutions 10,816 Insurance and pension funds 63,619 Other finance 50, ,707 55,563 42,585 51,848 12, ,084 38,922 42,936 41,668-9, ,698 46,884 24,523 55,177 34, ,552 22, ,971 48, ,509 50,138 2,717 38,690 33, Sources of funds 138, , , , , , Private domestic dep. 8 RPs 65,061 25,748 39,320 76,024 26,331 37, Credit market borrowing 16,400 48,207 18,314 43,789 31,799 15, Other sources 56,957 88,752 56,450 40,885 76,422 71, Foreign funds -16,391 16,490-10,399 19,641-9,645-6, Treasury balances 1,876 9,039 1,595-5,175-15,466 13, Insurance and pension res. 67,062 60,300 41,907 59,084 68,708 29, Other, net 4,410 2,923 23,347-32,665 32,825 35, Private domestic nonfinancial investors 34 Direct lending in cr. markets -7,990 70,896 83,855 76,677 27,564 57, U.S. government securities 10,030 14,204 63,259 56, , Tax-exempt obligations ,005 9,752 7,522 1, Corporate and foreign bonds ,560 6,310-1,723 10,935 6, Open-market paper -17,365 23,824 5,150 6,762-8,302 6, Other , ,369-4,713 9, Deposits and currency 59,872 31,703 39,714 77,495 29,593 45, Currency -1,366 5,959 3,486 6, , Checkable deposits -18,348 14,590-14,606 28,785-35, Small time 8 svgs. deposits 56,679 26,070 20,203 19,233 18,322 17, Money market fund shares 25,585-12,360-2,437 12,005 24,655 17, Large time deposits -5,049-6,885 33,798 7,724 11,622 4, Security RPs ,333 2,362 8,277 7,240-1, Foreign deposits -3, , ,673 2, Total of credit mkt. instru 48 ments, deposits, and currency 51, , , ,172 57, , Public holdings as X of total 37,689 24,613 26,853 35,323 44,938 11, Pvt. finan. Intermediation (X) 121,389 87,761 63,512 83, ,249 74, Total foreign funds 25,138 37,211 1,300 48,026 19,363-3, Corporate Equities Not Included Above 1 Total net issues ,403-21,996-44,372-36,332-9, Mutual fund shares ,067-2, ,957 8, Other equities ,470-19,122-44, , Acq. by financial institutions -7,149-1,299 7,002 3,696 1,302 4, Other net purchases -13,992-29,104-28,998-48,068-37,634-14, Line notes: (1): Page 2 line 1. (6): Includes farm and commercial mortgages. (12): Credit market funds raised by federally sponsored credit agencies and net issues of federally related mortgage pool securities. (14): Line 1 less line 2 plus lines 12 and 13. Also line 21 less line 28 plus line 34. Also sum of lines 29 and 48 less lines 41 and 47. (19): Includes farm and commercial mortgages. (27): Line 40 less lines 41 and 47. (28): Excludes equity issues and Investment company shares. Includes line 20. (30): Foreign deposits at commercial banks, plus bank borrowings from foreign branches, and liabilities of foreign banking offices to foreign affiliates, net of claims on foreign affiliates and deposits by banking in foreign banks. (31) : Demand deposits and note balances at commercial banks. (32) : Excludes investment of these reserves in corporate equities. (33) : Mainly retained earnings and net miscellaneous liabilities. (34) : Line 14 less line 21 plus line 28. (35-39): Lines less amounts acquired by private finance plus amounts borrowed by private finance. Line 39 includes mortgages. (41): Mainly an offset to line 10. (48): Lines 34 and 40. Also line 14 less line 29 plus lines 41 and 47. (49): Line 2/ (lines 1 * 13). (50): Line 21 / line 14. (51): Line 11 plus line 30. Corporate Equities: (1-3): Includes issues by financial Institutions. LATEST QUARTER BASED ON INCOMPLETE INFORMATION

16 Credit Market Supply of Funds Direct and Indirect Sources of Funds to Credit Markets Credit Market Supply of Funds 5 ANNUAL FLOWS, $ BILLIONS I 1988 I I I II III IV I I II Total funds advanced in credit markets to dom. nonfinan. sectors 1 By Federal agencies and foreign Total net advances, by type U.S. government securities Residential mortgages FHLB advances to thrifts Other loans and securities By type of lender: U.S. government Spons. cr. ags. 8 mtg. pools Monetary authority Foreign 11 Agency and foreign borrowing not in line 1: Spons. cr. ags. 8 mtg. pools Foreign 13 Private domestic funds advanced Total net advances U.S. government securities Tax-exempt obligations Corporate and foreign bonds Residential mortgages Other mortgages and loans Less: FHLB advances 20 Private financial Intermediation Credit market funds advanced by private financial insts Commercial banking Savings institutions Insurance and pension funds Other finance Sources of funds Private domestic dep. 8 RPs Credit market borrowing Other sources Foreign funds Treasury balances Insurance and pension res Other, net 33 Private domestic nonfinancial investors Direct lending in cr. markets U.S. government securities Tax-exempt obligations Corporate and foreign bonds Open-market paper Other Deposits and currency Currency Checkable deposits Small time & svgs. deposits Money market fund shares Large time deposits Security RPs Foreign deposits 47 Total of credit mkt. instru ments, deposits, and currency Public holdings as % of total Pvt. finan. intermediation (%) Total foreign funds 51 Corporate Equities Not Included Above Total net issues Mutual fund shares Other equities Acq. by financial institutions Other net purchases 5 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION. Line notes: (1): Page 2 line 1. (6): Includes farm and commercial mortgages. (12): Credit market funds raised by federally sponsored credit agencies and net issues of federally related mortgage pool securities. (14): Line 1 less line 2 plus lines 12 and 13. Also line 21 less line 28 plus line 34. Also sum of lines 29 and 48 less lines 41 and 47. (19): Includes farm and commercial mortgages. (27): Line 40 less lines 41 and 47. (28): Excludes equity issues and investment company shares. Includes line 20. (30): Foreign deposits at commercial banks, plus bank borrowings from foreign branches, and liabilities of foreign banking offices to foreign affiliates, net of claims on foreign affiliates and deposits by banking in foreign banks. (31) : Demand deposits and note balances at commercial banks. (32) : Excludes Investment of these reserves in corporate equities. (33) : Mainly retained earnings and net miscellaneous liabilities. (34) : Line 14 less line 21 plus line 28. (35-39): Lines less amounts acquired by private finance plus amounts borrowed by private finance. Line 39 includes mortgages. (41): Mainly an offset to line 10. (48): Lines 34 and 40. Also line 14 less line 29 plus lines 41 and 47. (49): Line 2/ (lines 1 13). (50): Line 21 / line 14. (51): Line 11 plus line 30. Corporate Equities: (1-3): Includes issues by financial institutions.

17 LATEST QUARTER BASED ON INCOMPLETE INFORMATION, Digitized for FRASER Households 6 UNADJUSTED NET FLOWS, $ MILLIONS Sector Statements of Saving and Investment Households UNADJUSTED NET FLOWS. $ MILLIONS I 1988 I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II Households, Personal Trusts, and Nonprofit Organizations 1 Personal income 2 - Personal taxes and nontaxes 952,8A5 992, ,876108A.98610A3, , A.0 133,A00 16A.992 1A5,891 1A A A A A A = Disposable personal income 819,AA5 827, ,985 9A2.59A 897, , A 2A A - Personal outlays 78A ,77A 83A.6A5 891,796 8A A 5 = Personal saving, NIPA basis 3A.560 6, A0 50,798 5A , A 15A Credits from govt, insurance 10, A5 30,713 23,188 12, A79 2A.A A * Capital gains dividends 1,A ,679 6,000 2, A A.A 7 8 Net durables in consumption 22,259 36,093 29,129 AA ,333 35,985 5A A «Net saving 68, A76 113, ,736 9A.858 7A A A * Capital consumption 101, , ,670 10A , ,5AA A3.6 26A.A = Gross saving 169, , ,A02 226, , ,910 A12.6 AA A 5A Gross investment 202,A69 201, ,9A5 223, ,263 A18.7 AA AA Capital expend, net of sales 159, , ,65A 191, ,A1A 181, A A IA Residential construction 53, A 60,325 59,853 58,686 55, IA 15 Consumer durable goods 101, ,A ,58A 105, , Nonprofit plant and equip. A, 687 A, 738 A.7A9 A, 795 A,817 A,853 8.A A 1A Net financial Investment A2,6A0 29,791 AA ,023 38,171 A A Net acq. of financial assets , , ,360 77, , Dep. 8 cr. mkt. instr. (1) A AA 106,9A9 115,032 71,819 98, A Deposits 53.25A 29.65A 32,692 A ,059 A3.A A Checkable dep. 8 curr. -12,025 16,731-13, A -18,030-2.A Small time 8 svgs.dep. 55,162 2A.3A7 18,519 17,032 16, A A7.5 13A Large time deposits -13.A80 2,518 31,270 5,751 11,012 1A A 1A A Money mkt. fund shares A2-3.A A5 22,908 15, A A 25 Credit mkt. Instruments -7,521 68,590 7A ,210 39,760 5A.9A9 8A AA U.S. govt, securities 8.A8A 13,611 60, A7 3A , A Tax-exempt obligations -2.78A 10,978 8,188 8,182 2,08 A Corporate 8 fgn. bonds 21A 12,560 6,310-1,723 10,935 6, A Mortgages 188 7,605-2,087 -A28-3,119 6, Open-market paper , A,532 -A,232 6,060 7.A Mutual fund shares 2, ,983-1,277 1,579 6, A Other corporate equities -1A.A53-30,189-26,298 -AA.831 -A0.89A -26,087-2A Al.A Life Insurance reserves 6.AA9 3, AA 1,083 3,08 A 1, A Pension fund reserves 53.67A 63, A8 69,578 6A.0A2 38, A A 35 Net inv. in noncorp. bus. -20,912-22,506-16,963-32, A1A -22.A A8.A -91.A Security credit -1.0A2 A.8A7-2.A A A Miscellaneous assets 5,037 A, A05 6, A3 10.A Net increase in liabilities 3A A ,337 39, AA 17A Credit market instruments 33,909 89, ,387 A0,770 58, A AO Home mortgages AO,221 71,211 60, A A8.151 A A6.A 116.A AO Al Installment cons, credit , A , A.8 AA.l Al A2 Other consumer credit -2,106-1,100-1, A -3,535 1,035 A A 1.6 A.9 A2 A3 Tax-exempt debt A A.A A A3 AA Other mortgages A AA A5 Bank loans n.e.c. -A, A -2,221-5, A5 A6 Other loans 607 1,017 3, , A A 3.3 A6 A7 Security credit ,017 1,21A 1.77A -3,783 2, A A7 A8 Trade debt 875 1,000 2, ,150 1, A 3.A A8 A9 Miscellaneous A 1,013 1,000 1, A9 50 Discrepancy -32, A0-2.5A3 3.AA1-6.A7A -AA (1) Excludes corporate equities. Memoranda: Net physical Investment: (A) Residential construction 51 Expenditures 53, A 60,325 59,853 58,686 55, Mobile homes 1,202 1,297 1,379 1,A17 1,376 1,301 A.9 A.3 A.7 A Other 52,357 A A6 58.A36 57,310 5A A - Capital consumption 17,966 18,151 18,338 18,52A 18,710 18,896 A1.9 A A 5A A 55 - Home mortgages AO ,211 60, A A8.151 A A6.A 116.A = Excess net investment A,628-38,778-18,529-15,695-8,175-10, AO.2 56 (B) Consumer durables 57 Expenditures 101, ,A78 110, ,58A 105, , Capital consumption 79,32A 80, A51 82,513 83,578 8A.6A A A 226.A = Net investment 22,259 36,093 29,129 AA ,333 35,985 5A A Consumer credit -3,766 16,880 15,385 22, A3 16.A17 AO A A Excess net investment 26,025 19, AA 21.50A 29,076 19, (C) Nonprofit plant and equip. 62 Expenditures A, 687 A, 738 A.7A9 A, 795 A,817 A,853 8.A A 1A Capital consumption ,839 3,881 3,923 3,965 A, A A = Net investment A A Percent ratios: 65 Effective tax rate 66 Saving rate, NIPA basis 1A.000 A,217 16, IA, 111 6,006 13,123 5,389 1A.058 6, A 1,5A A A 66 Percent of disposable income adi. (2): 67 Gross saving 20.A05 19,531 23,6A9 23,383 21,961 19, Capital expenditures 19,230 20,231 19,108 19,725 18,500 19,62A A Acquisition of finan. assets 9,283 1A.3A6 1A ,208 8,AA2 11, A Net increase in liabilities A,152 10,837 9,192 8,905 A,273 6, A Credit market borrowing A,079 10,50A 8,732 8,601 A,A52 6, (2) Disposable income adl. = 831,139 8A9, ,2A8 969,A61 915, , A A (NIPA disposable income + govt, insurance credits * capital gains dlvid.)

18 Households Sector Statements of Saving and Investment Households 7 ANNUAL FLOWS, $ BILLIONS I 1988 I I II III IV i I II Households, Personal Trusts, and Nonprofit Organizations Personal income Personal taxes and nontaxes = Disposable personal income Personal outlays = Personal saving, NIPA basis Credits from govt, insurance Capital gains dividends Net durables in consumption = Net saving * Capital consumption = Gross saving Gross investment Capital expend, net of sales Residential construction Consumer durable goods Nonprofit plant and equip Net financial investment Net acq. of financial assets Dep. 8 cr. mkt. instr. (1) Deposits Checkable dep. & curr Small time 8 svgs.dep Large time deposits Money mkt. fund shares Credit mkt. instruments U.S. govt, securities Tax-exempt obligations Corporate 8 fgn. bonds Mortgages Open-market paper Mutual fund shares Other corporate equities Life Insurance reserves Pension fund reserves Net inv. in noncorp. bus Security credit Miscellaneous assets Net increase in liabilities Credit market instruments Home mortgages Installment cons, credit Other consumer credit » -.8 Tax-exempt debt Other mortgages Bank loans n.e.c Other loans Security credit Trade debt Miscellaneous Discrepancy 50 (1) Excludes corporate equities. Memoranda: Net physical Investment: (A) Residential construction Expenditures Mobile homes Other Capital consumption Home mortgages «Excess net investment 56 (B) Consumer durables Expenditures Capital consumption = Net investment Consumer credit = Excess net investment 61 (C) Nonprofit plant and equip Expenditures Capital consumption = Net investment 64 Percent ratios: Effective tax rate Saving rate, NIPA basis 66 Percent of disposable income adi. (2): Gross saving Capital expenditures Acquisition of finan. assets Net increase in liabilities Credit market borrowing (2) Disposable income adi. = 72 (NIPA disposable income + govt, insurance credits * capital gains divid.) BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

19 SEPTEMBER Total and Noncorporate Business 8 UNADJUSTED NET FLOWS, $ MILLIONS Sector Statements of Saving and Investment Total and Noncorporate Business UNADJUSTED NET FLOWS. $ MILLIONS I 1988 I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II Nonfinancial Business - Total 1 Income before taxes 141, , , , , , A Gross saving 114, , , , , , A Gross Investment 110, , , , , ,A A 286. A A Capital expenditures 109, , , , ,A10 115,8A A.7 3A2.5 A 5 Fixed investment 87, ,57A 109, ,32A 90, ,9A2 291.A A Business plant 8 equipment 94, , , ,93A 100, , A A Home construction Cl J -8,816 7,943 3, , A Multi-family residential 1,050 2,122 2,990 2A8-1,633-1, Change ln inventories 21,750 73A 9,986-1,845 24,981-2, A.0-2A Mineral rts. from U.S. govt , A A Net financial Investment ,774-15,903 15,605-5,287-9, Net acq. of financial assets 16,854 30,884 26,695 50,228 A, , A.A Net increase in liabilities 16,353 A2,658 42,598 34,623 10,265 A0, A Corporate equities -23, ,000-48,750 -A , A 23.5 IA 15 Credit market instruments 62,543 92,463 59,887 76,952 71,384 83, A A 1A Bonds 30,099 35,574 29,233 26,031 28,165 33, Mortgages 8,711 24,757 20,414 22, ,888 A Bank loans n.e.c. 8,038 19,189 1,195 12, ,697 A A3.2 A Other loans 15,695 12,943 9,045 15,371 23,548 26, A Trade debt -13,571-2,457 6,637 16,192-14,996-2, A3.7 3A Other liabilities 15,197 9,663 17, ,751 8, A Proprietor net Investment -24,066-22, ,883-28,874-23, A Discrepancy A,203 12,932 18, ,793 16,164 -AA Farm Business 1 Proprietors net income 11,000 11,350 9,425 8, , A w/iva 8 CCAdj. 2 Net saving (corporate) A16 AA Capital consumption 5,125 5,125 5,142 5,144 5,157 5, A A 3 A Corporate A l.a A 5 Noncorporate A, 753 A, 755 4,774 A, 778 A,793 A,801 1A Current surplus = gross saving 5,425 5.A5A 5,499 5,530 5,573 5, Gross investment 5,425 5,454 5, ,573 5, Capital expenditures 3,782 1,878 2,340-3,999 3,173 1, A.1 2A A.l 8 9 Plant and equipment ,8AA , A A Residential construction 30A A Change in inventories 1, ,550 2, Net financial investment 1,643 3,576 3,159 9,529 2,AOO 3, A Net acq. of financial assets IA Checkable dep. 8 currency IA 15 Miscellaneous assets Insurance receivables A 78A Eq. in spons. ags. (2) A Net increase in liabilities ,820-2,270-8, ,A A Credit market instruments -4,224 2, ,971-2,696 2, Mortgages A A A.l 2.A Bank loans n.e.c. -9A7 2,187 A ,428 1, l.a Other loans -2, A0 -A,791 -AA A U.S. government -1.3A ,612 58A A A.2 M 23 2A Fed. Int. Credit Banks -1, ,179-1, A 25 Trade debt Proprietor net investment 3,033-5,702-2,565-3, , A Nonfarm Noncorporate Business Digitized for FRASER 1 Net Income w/ IVA and CCAdj 77,576 78,938 80,043 81,716 81,614 82, Gross svg. = capital consump. 20,934 21,055 21, ,982 22,646 A Gross investment 20,934 21,055 21,032 21,375 21,982 22, A Capital expenditures 11,717 21,610 21,199 16,492 11,680 18,918 AA A 5 Fixed capital 10,192 19,685 18,674 14,517 9,355 17, Plant and equipment 13,880 14, , AAA 15, Home construction (1) -A,560 3, A3-4,396 3, l.a M 7 8 Multi-family residential 872 1,712 2, ,693-1, Change in inventories 1,525 1,925 2, , Net financial investment 9, , ,728 -l.a l.a Net acq. of financial assets 7,584 6,385 7,907 6,749 7,493 8, A.A Checkable dep. & currency 1,000 1,000 1, Time deposits 2, , ,227 3, IA U.S. govt, securities Consumer credit -A1A -9 A3 9A9-51A H Mortgages Trade credit 1,200 1, ,200 1,200 1,200 3.A 1.6 A.A Miscellaneous assets 2,316 2,212 2,057 1,946 1,690 2, Insurance receivables 1,324 1,211 1, , Equity in spons.ags. (2) M K Other 1,000 1, A A.l Net increase in liabilities ,940 8,074 1,866-2,809 4, Credit market instruments 22, ,686 28,743 23,788 18, AA.A A Mortgages 14,000 13,000 17, , Home mortgages -3,648 3,054 1,102 -A3A -3,517 2, A.O Multi-family A,832 3,418 4,147 5, , Commercial 12,816 6,528 11,751 12,218 15,301 8, Bank loans n.e.c ,943 1, A Other loans 7,384 3,210 2,549 9,382 5,430 4, Other taxes payable AOO AOO AOO 400 AOO AOO Trade debt A A Miscellaneous liabilities 2,000 2,000 2, , Proprietor net investment -27,099-16,309-15,652-29,861-29,525-16, (1) Farm plus nonfarm change in work in process. (2) Shares in FICBs, Banks for Cooperatives, and Federal Land Banks. LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

20 Total and Noncorporate Business Total and Noncorporate Business Sector Statements of Savins and Investment 9 ANNUAL FLOWS, $ BILLIONS I 1988 I I II III IV 1 I II Nonfinancial Business - Total Income before taxes Gross savin , Gross investment Capital expenditures Fixed investment Business plant 8 equipment Home construction (1) Multi-family residential Change in inventories Mineral rts. from U.S. govt Net financial investment Net acq. of financial assets Net increase in liabilities Corporate equities Credit market instruments Bonds Mortgages Bank loans n.e.c Other loans Trade debt ^ Other liabilities Proprietor net investment Discrepancy 23 Farm Business Proprietors net income 1 w/iva 8 CCAdi Net savins (corporate) , Capital consumption Corporate , Noncorporate Current surplus = gross saving Gross Investment Capital expenditures Plant and equipment Residential construction 10 II Change in inventories Net financial investment Net acq. of financial assets , Checkable dep. & currency Miscellaneous assets «2.8 3, Insurance receivables X Eq. in spons. ags. (2) Net increase in liabilities Credit market instruments , Mortgages , Bank loans n.e.c X Other loans U.S. government Fed. Int. Credit Banks ,2 1.3 Trade debt , Proprietor net investment 26 Nonfarm Noncorporate Business Digitized for FRASER 1 231, ,2 326, Net income w/ IVA and CCAdj l , Gross svg. = capital consump Gross investment Capital expenditures Fixed capital Plant and equipment 6 7 X i.l X Home construction (1) Multi-family residential Change in inventories Net financial investment Net acq. of financial assets , Checkable dep. 8 currency , Time deposits , U.S. govt, securities X Consumer credit Mortgages Trade credit Miscellaneous assets Insurance receivables X X -.1 X - * X - * Equity in spons.ags. (2) Other Net increase In liabilities Credit market instruments Mortgages X Home mortgages Multi-family Commercial Bank loans n.e.c Other loans Other taxes payable Trade debt Miscellaneous liabilities Proprietor net investment 33 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION. (1) Farm plus; nonfarm change in work in process. (2) Shares ln FICBs, Banks for Cooperatives, and Federal Land Banks.

21 Nonfinancial Corporate Business IQ UNADJUSTED NET FLOWS. $ MILLIONS 1 1 I Nonfinancial Corporate Business Sector Statements of Savins and Investaent UNADJUSTED NET FLOWS, $ MILLIONS ANNUAL FLOWS, $ BILLIONS II III IV 1 I II Nonfinancial Corporate Business, Excluding Farms 1 Profits before tax (book) ,963 63,071 55,755 58,576 58, Profit tax accruals ,334 27,851 25,123 26,966 26, Domestic net dividends , ,235 27,657 27, = Domestic undist. profits , , Capital consumption adl ,175 9, ,295 6, * Depreciation charges. NIPA , ,534 76,736 77, * Earnings rec. from abroad ,712 2,305 9,242 3,526 4, * U.S. internal funds, book 90,723 98,068 96, ,426 91, * Fgn. earnings ret. abroad 3,133 3,339 5, , * Inv. valuation adjustment ,000-5,603-5,403-10,695-5, = Total internal funds * IVA ,407 95,980 95, , Gross investment 83,659 80,475 77,748 95,710 83,568 78, Capital expenditures (1) 94,018 95,270 96,643 94, ,557 95, Fixed investment 74,588 94,736 89,286 92,256 80,220 99, Plant and equipment ,509 87,398 92,704 84,556 95, Home construction -4,560 3,817 1, ,396 3, H Multi-family residential Inventory change IVA 18, , ,506-4, Mineral rts. from U.S. govt , Net financial Investment ,795-18, ,989-16, Net acq. of financial assets 8,613 23,743 17,899 42,662-3,176 22, Liquid assets 5,329-5,333 11,973 23,003-8,444-6, Checkable dep. and curr ,527 6,910 13,192-5,743-6, Time deposits 3,776-1, , , Money mkt. fund shares , ,747 1, Security RPs 2, ,035 6,707 2, Foreign deposits -3, ,092-5,183 2,673 2, U.S. gcvt. securities ,748 3, , Tax-exempt obligations 1, ,107-1,103-1, M -.2 K Commercial paper -3, ,881 2,230-4, Consumer credit -2, ,337-3, H Mutual fund shares -2, , Trade credit 10, ,337-9,537 7,000 2, Miscellaneous assets ,754-2,961 24, , Foreign dir.invest.(2.5) ,977 7,419 1,107 9,011 9, Equity, etc , ,118 1, Retained earnings 3,043 5,208 7, ,368 7, Insurance receivables ,058-1,000-2,188-2, Equity In sponsored ags M Other -8,000 19,733-9,323 24,550-6, Net Increase in liabilities 18,972 38,538 36,794 41,469 14,813 39, Net funds raised In mkts. 20,703 34,659 16,162 5,430 5,292 36, Net new equity issues -23,750-35,000-23,000-48,750-45, Debt Instruments 44,453 69,659 39,162 54,180 50, Tax-exempt debt (3) Corporate bonds (2) 29,693 35,983 28,969 26,224 27,897 34, Mortgages -4,402 11,931 4, ,015 3, Home mortgages -3,648 3,054 1, ,517 2, » Multi-family Commercial -1,049 8,680 2,818 5, Bank loans n.e.c. 8,055 13, ,861 7,575 4, Loans from foreign 7,198 1,390 3, ,802 3, Commercial paper ,340 2,456 5,061 9,792 13, Accept, liabs. to bks. -2,314 1, Nonbank finance loans 6,579 2, ,012 3,749 3, U.S. government loans , Profit taxes payable 3,530-6,474 3,254-2,217 6,153-5, Trade debt -14,528-3,384 5,741 15,327-15,830-2, Fgn.dlr.invest.in U.S.(5) 9, ,637 22,929 19,198 12, Equity, etc. 7,842 12,528 9,813 21,691 18,953 11, Retained earnings 1,425 1,209 1,824 1, Discrepancy ,932 18, , Memorandum Items: 63 Trade credit net of trade debt 24,610 10,108 3,596-24,864 22,830 5, Profits tax payments ,905 27,104 21,240 40, Debt subtotals: 65 Securities and mortgages 25,697 47,505 33, , Loans and short-term paper 18,756 22,154 5, , Total short-term liab. (4) 7,758 12,296 14,727 35,751 16,465 16, Percent ratios: 68 Effective tax rate 45,142 45,727 44,158 45,059 46,035 44, Capital outlays/internal funds 107, , ,690 99, , , Cr. mkt. borrowing/cap. exp. 47,281 73,117 40, ,520 65, (1) Capital outlays on book basis: 71 Inventory change, NIPA 18, ,686 1,730 20,506-4, Less: Inv. val. adjustment -5,994-8,000-5,603-5,403-10,695-5, * Inventory change before IVA 24,769 7,084 12,289 7,133 31,201 1, Total cap. expend, before IVA , ,246 99, , , Less: US internal funds, book 90,723 98,068 96, , = Financing gap: Excess of capital expenditures 76 over U.S. internal funds 9,289 5, ,557 23,826 9, (2) Corporate bonds Include net Issues by Netherlands Antilles subsidiaries: U.S. direct investnent abroad Is before subtracting net Inflows of capital from Netherlands Antilles subsidiaries to U.S. parents. (3) Industrial revenue bonds. Issued by state and local governments to finance private Investment and secured in interest and principal by the industrial user of the funds. (4) Loans and short-term paper, taxes payable and trade debt. (5) Direct investment totals and retained earnings exclude capital gains/losses included in balance of payments statistics. LATEST QUARTER BASED ON INCOMPLETE INFORMATION, Digitized for FRASER

22 Nonfinancial Corporate Business Nonfinancial Corporate Business Sector Statements of Sawing and Investment 11 ANNUAL FLOWS, $ BILLIONS I 1988 I A I II III IV 1 1 I II Nonfinancial Corporate Business, Excluding Farms A A A2.2 2A Profits before tax (book) I Profit tax accruals A A.1 11A Domestic net dividends 3 A A A A = Domestic undist. profits A A9.5 AA A2.0 A A.8 Capital consumption adj A Depreciation charges, NIPA Earnings rec. from abroad A A A a U.S. internal funds, book A Fgn. earnings ret. abroad A Inv. valuation adjustment AA A s Total internal funds + IVA A A AA.6 3A A Gross investment A A Capital expenditures (1) 13 IA 308.A A Fixed investment IA A A A A Plant and equipment X A X Home construction l.a.3 l.a 1.2 Multi-family residential A A Inventory change IVA A.A Mineral rts. from U.S. govt A A A7.8 -A Net financial investment A.A Net acq. of financial assets A Liquid assets A.7 A Checkable dep. and curr. 23 2A A.l A Time deposits 2A 25 A A Money mkt. fund shares A A A.2 Security RPs A.A Foreign deposits A A A A U.S. govt, securities A.A -A.A -A. 7 -l.a Tax-exempt obligations A A 1.1.A A Commercial paper A A Consumer credit A Mutual fund shares A8.1 A A A Trade credit 33 3A A A A 55.5 A A Miscellaneous assets 3A A A A3.1 Foreign dir.invest.(2,5) A A Equity, etc A Retained earnings A A.O.2 -A.2 -A.O Insurance receivables X.1.1.A x x - M X X X Equity in sponsored ags. 39 AO A -17.A A.1 AA.A 22.A Other A0 A A A3.5 Net Increase in liabilities A1 A A Net funds raised in mkts. A2 A3-7A A Net new equity Issues A3 AA A A A9.A 17A Debt instruments AA A Tax-exempt debt (3) A5 A6 A A A Corporate bonds (2) A6 A Mortgages A7 A8 X X -.A Home mortgages A8 A A.l Multi-family A A A Commercial A A9.7 A A Bank loans n.e.c Loans from foreign A A AA.l AA.9 Commercial paper 53 5A A.l A A Accept, liabs. to bks. 5A A 1A.8 Nonbank finance loans U.S. government loans A.A -.A A Profit taxes payable A A A Trade debt A A Fgn.dir.invest.in U.S.(5) A 35.A A5.A 51.9 A A7.A A6.8 Equity, etc A.A 6.A Retained earnings A.A A A Al.l Discrepancy 62 Memorandum items: 63 1A.A A8.A Trade credit net of trade debt 63 6A A.9 7A Profits tax payments 6A Debt subtotals: A A Securities and mortgages A A A A Loans and short-term paper A A A Total short-term liab. (A) 67 Percent ratios: A A0.9 A8.0 A7.0 A5.0 AA.7 A5.2 A5.0 A5.0 A5.5 AA.8 Effective tax rate A A A Capital outlays/internal funds A A1.8 5A AA Cr. mkt. borrowing/cap. exp. 70 (1) Capital outlays on book basis: A A Inventory change, NIPA A Less: Inv. val. adjustment A A A = Inventory change before IVA 73 7A A A05.A A0.5 A20.5 All.9 A1A.3 A09.5 Total cap. expend, before IVA 7A A A A Less: US internal funds, book 75 = Financing gap: Excess of capital expenditures A AA over U.S. Internal funds 76 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION, (2) Corporate bonds Include net issues by Netherlands Antilles subsidiaries; U.S. direct investment abroad is before subtracting net inflows of capital from Netherlands Antilles subsidiaries to U.S. parents. (3) Industrial revenue bonds. Issued by state and local governments to finance private investment and secured in interest and principal by the industrial user of the funds. (A) Loans and short-term paper, taxes payable and trade debt. (5) Direct investment totals and retained earnings exclude capital gains/losses included in balance of payments statistics.

23 State and Local Governments 12 Sector Statements of Saving and Investment UNADJUSTED NET FLOWS, $ MILLIONS State and Local Governments UNADJUSTED NET FLOWS, $ MILLIONS ANNUAL FLOWS, $ BILLIONS 1 I II III IV 11 I II State and Local Governments - General Funds (1) 1 Total receipts, NIPA basis 171, ,A17 18A , A25.6 AA9.A A Tax receipts 131, , ,799 1A5.69A 1A1.A1A 1A A Social insurance receipts 13,000 13, A25 13,650 13,850 1A A A Grants-in-aid received 27,178 27, , A66 28, A 5 Total expenditures, NIPA basis 152, , , ,082 16A A.A9A A A1A.3 AA Purch. of 9oods and services 137,707 1A , ,30A 1A ,A A Net interest and transfers 15,UA 16, A02 16,778 16, A 37.8 A1.0 A5.6 A5.2 A Net surplus, NIPA basis 19.0AA ll.oaa , A3 9.A A A7.A Retirement credit to HH 1A,12O 15, A 16,592 16, = Gross saving A,92A -A, A1 2,A51 3,351-7, A.3 A.A Net financial Investment 60A -A,576-5,822-7, A.A A.8 A.O Net acq. of financial assets A,517 A,911 A.A , Checkable dep. and curr. -2,896 A,139-1,302 2,107-5, A1 -.A IA Time deposits , A -2,370 2,207-7, IA 15 Security RPs 3.7A9 A.2A1 3,397 1,570 A, 722-1, A Credit market Instruments , ,072-1,726 1, A U.S. govt, securities -2.A28 2, A -A.23A A A Treasury Issues 2,909 5,969 2.A19 A,357-2, l.a Agency issues -5,337-3,778-3,288-7, A Tax-exempt obligations A A57 AA3 A50 A Mortgages ,679 2,058 1, Profit taxes receivable A 1.2 -l.a Other taxes receivable A00 A00 A00 A00 A00 A A Net increase in liabilities 3,913 9.A AA 8,385 5,618 7, A.A 2A 25 Credit market borrowing 3.AA1 8,898 9,681 7,765 A, A Tax-exempt obligations A.1A9 9, ,765 A, A6 1A Short-term 139 3,032 A, 765 1, Other A,010 6,756 5,616 6,832 A,861 6,A A A U.S. government loans , Trade debt A Discrepancy A, ,919 10,001 8,669-2,953 A.A A.2 31 (1) Employee retirement funds are in Insurance sector. LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

24 State and Local Governments Sector Statements of Saving and Investment State and Local Governments 13 ANNUAL FLONS, $ BILLIONS I 1988 I I I II III IV 1 I II State and Local Governments - General Funds (1) Total receipts, NIPA basis Tax receipts Social insurance receipts Grants-in-aid received Total expenditures, NIPA basis Purch. of goods and services Net interest and transfers Net surplus, NIPA basis Retirement credit to HH = Gross saving Net financial investment Net acq. of financial assets Checkable dep. and curr Time deposits Security RPs Credit market instruments U.S. govt, securities Treasury issues Agency issues Tax-exempt obligations Mortgages Profit taxes receivable Other taxes receivable Net increase in liabilities Credit market borrowing Tax-exempt obligations Short-term Other U.S. government loans Trade debt Discrepancy 31 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION. (1) Employee retirement funds are in insurance sector.

25 U.S. Government end Credit Agencies 14 Sector Statements of Saving and Investment UNADJUSTED NET FLOWS, $ MILLIONS U.S. Government and Credit Agencies UNADJUSTED NET FLOWS. $ MILLIONS I 1988 I 1989 ANNUAL FLOWS, $ BILLIONS I I II III IV I I II U.S. Government 1 Total receipts, NIPA basis , , , Personal taxes 90, , ,991 98, , , Corp, profits tax accruals 24,291 29,177 29,875 28,082 27,438 28, Indirect taxes 13,817 14, ,208 14, Social insurance receipts ,839 93,140 84, , Total expenditures, NIPA basis 274, , , , , Goods and services 93,496 92,793 89, ,393 99, , Transfers, etc. 144, , , , , , Net Interest 36,303 37,508 38,109 39,505 41,880 42, Net surplus, NIPA basis -39,863-6,282-31,491-68,189-40, Insurance credits to HH -3,907 4,865 13,695 5,304-4,076 5, s Gross saving -35,956-11,147-45,186-73,493-36,202-6, * Mineral rights sales ( , = Nonfinancial surplus -35,301-9,697-44, ,371-5, Net financial Investment -43,928-19,247-43, ,807-20, Net acq. of financial assets ,344 12,848-20,816-9,242 16, Gold, SDRs 8 fgn. exch. -1, ,614-1, , Checkable dep. 8 currency -2, ,438-12,045-19,031 25, Time deposits Credit market instruments ,457-4, Fed. agency securities Mortgages Other loans -1, ,373-4,664 1, Taxes receivable 2,830-6,984 1, ,973-13, Trade credit , , Miscellaneous Net increase in liabilities ,591 56,831 49, , Treasury curr. 8 SDR ctfs , Credit market instruments 42,871 19,085 41,659 53,842 37,945 9, Savings bonds 2, ,775 2,611 1, Other Treasury issues 40,074 15,009 34,823 41,669 35,629 6, Agency issues and mtgs ,932 5,222 10, , Life 8 retirement reserves -3,907 4,865 13, ,076 5, Trade debt -1, ,950-3,970-2,057 2, Miscellaneous 5, ,307-5,504-1,737 16, Discrepancy 8,627 9, ,312 4, Memo: 37 Corp, tax receipts, net 21,461 36,161 28,003 30,046 21,465 41, (1) Sales of Outer Continental Shelf leases. Federally Sponsored Credit Agencies and Mortgage Pools Sponsored credit agencies (1) 1 Current surplus Net acq. of financial assets 15,733 1,174 12,908 17,312 16,089 6, Checkable dep. and currency » Fed. funds 8 security RPs 11,834-4,336 2,859-3, , Credit market instruments 5,270 5,696 8, , U.S. government securities 3,798-4, , Open-market paper « Student loans (SLMA) , Housing credit 1,067 9,070 6,650 13,735 11, Residential mortgages 4,619 3, , FHLB loans to thrifts -3, ,727 11,219 11,002-1, Loans to agriculture , Farm mortgages Loans to coops (BC) 1, Loans to farmers (FICB) -1, ,179-1, Miscellaneous assets -1, , , Net increase in liabilities 14, ,148 17,111 15, Credit market Instruments 10,305 4,363 10,605 19,610 16,219 4, Sponsored agency issues 10,305 4,363 10,605 19,610 16,219 4, U.S. government loans Miscellaneous liabilities 4,564-3,492 2, , Discrepancy Federally related mortgage pools (2) 23 Net acq. of mortgages 13,774 21,974 28,757 28,085 28,797 22, Home mortgages 12,436 21,183 27,249 26, Multi-family mortgages 1, ,509 1,572 2,477 1, Farm mortgages K Net lncr. in pool securities 13,774 21,974 28,757 28,085 28,797 22, Memo: Totals for agencies and pools 28 Housing credit 14,853 31, ,821 40,017 22, Loans to agriculture ,477-1, Net security issues 24,079 26,337 39,362 47,695 45,016 26, (1) Sponsored agencies Include: Federal Home Loan Banks, Federal National Mortgage Assn..Federal Home Loan Mortage Corp..Student Loan Marketing Assn., Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, and the Financing Corp. (2) GNMA, FNMA, FHLMC, and Farmers Home Administration pools. Excludes Federal Financing Bank holdings of pool securities, which are in U.S. government mortgages and other loans directly. LATEST QUARTER BASED ON INCOMPLETE INFORMATION. Digitized for FRASER

26 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION, Digitized for FRASER U.S. Government and Credit Agencies U.S. Government and Credit Agencies Sector Statements of Saving and Investment ANNUAL FLOWS. $ BILLIONS I 1988 I I II III IV 1 I II U.S. Government > Total receipts, NIPA basis Personal taxes Corp, profits tax accruals Indirect taxes Social insurance receipts Total expenditures, NIPA basis Goods and services Transfers, etc Net interest Net surplus, NIPA basis Insurance credits to HH = Gross saving Mineral rights sales (1) = Nonfinancial surplus Net financial investment Net acq. of financial assets Gold, SDRs 8 fgn. exch Checkable dep. 8 currency X Time deposits Credit market instruments Fed. agency securities Mortgages Other loans _ Taxes receivable a Trade credit Miscellaneous Net increase in liabilities Treasury curr. 8 SDR ctfs Credit market instruments Savings bonds Other Treasury issues Agency issues and mtgs Life 8 retirement reserves Trade debt Miscellaneous Discrepancy 36 Memo: Corp, tax receipts, net 37 (1) Sales of Outer Continental Shelf leases. Federally Sponsored Credit Agencies and Mortgage Pools Sponsored credit agencies (1) Current surplus Net acq. of financial assets X Checkable dep. and currency Fed. funds & security RPs Credit market instruments U.S. government securities X X X Open-market paper Student loans (SLMA) Housing credit Residential mortgages * FHLB loans to thrifts Loans to agriculture Farm mortgages Loans to coops (BC) Loans to farmers (FICB) Miscellaneous assets Net increase in liabilities , Credit market instruments Sponsored agency issues U.S. government loans Miscellaneous liabilities Discrepancy 22 Federally related mortgage pools ( Net acq. of mortgages Home mortgages Multi-family mortgages X X X Farm mortgages Net incr. in pool securities 27 Memo: Totals for agencies and pools Housing credit Loans to agriculture Net security issues 30 (1) Sponsored agencies include: Federal Home Loan Banks, Federal National Mortgage Assn..Federal Home Loan Mortage Corp..Student Loan Marketing Assn., Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, and the Financing Corp. (2) GNMA, FNMA, FHLMC, and Farmers Home Administration pools. Excludes Federal Financing Bank holdings of pool securities, which are in U.S. government mortgages and other loans directly.

27 Foreign sector 16 Sector Statements of Saving and Investment UNADJUSTED NET FLONS, $ MILLIONS Foreign sector UNADJUSTED NET FLONS, $ MILLIONS ANNUAL FLONS, $ BILLIONS 1 I II III IV 1I I II Foreign Sector 1 Net U.S. exports, NIPA basis -16,296-19,192-21,193-16,994-9,026-12, U.S. export receipts , , , , , U.S. import payments 146, , , , , , (Memo: net corporate earnings retained abroad) ,339 5,549 5,353 7,630 8, Transfers to foreign 3,334 2,846 3,343 5,227 3,397 3, U.S. govt. Interest paid ,126 7,530 7,817 8, * Net capital grants » Net foreign investment (U.S. balance, sign reversed) 26,232 29,164 32, , Net financial investment ,255 5,479 56,016 24,944-2, Net acq. of financial assets 33,860 52,105 18,852 67,854 41,672 19, Gold and SDRs (1) X U.S. checkable dep ,089-1, X U.S. time deposits 190 2,542-2,246 2,568-1,121-1, Net Interbank claims -15,763 12,653-6,594 16,541-9,072-5, Security RPs -1,142 1,155 1, , X U.S. corporate equities ,074-2, , Credit market instruments 41,529 20,721 11,699 28,385 29,008 3, U.S. govt, securities 33,772 13,961 1,114 19,699 17,252-5, Official, net 27,540 6,055-3,197 12, Private, net 6,232 7,906 4,311 7,105 11,897 4, U.S. corporate bonds (2) 1,001 5,172 7,454 9,808 5, Loans to US nonbanks 7,198 1,390 3, ,802 3, Open-market paper Security credit Trade credit ,262 1,817 1, X Miscellaneous assets 10,074 13,106 13,889 20,344 20, Dir. investmt.in U.S.(3) 9,267 13,737 11,637 22,929 19,198 12, Equity, etc. 7,842 12,528 9,813 21,691 18,953 11, Retained earnings 1,425 1,209 1,824 1, Other ,252-2,585 1,279 4, Net increase in liabilities ,850 13,373 11,838 16, U.S. off. fgn. exchange 32 8 net IMF position -1, ,345-2,098 3,812 12, U.S. private deposits -3,317-2,711 2,009 2, Foreign corporate equities ,181 1, Credit market instruments 1,592 1, , , Corporate bonds 3, ,364 1,866 1,228 1, Bank loans n.e.c , To foreign official X To foreign banks To other foreign Commercial paper 1,299 1,493 2,263 4,579 3,720-1, Accept, liabs. to banks -4, ,216-4,164 1, U.S. government loans 1, ,725-3,829-1, Security debt Trade debt 1,621-1,427 2,409 4,792 2, Miscellaneous liabilities 3,166 10, ,329 7,080 8, U.S.equity in IBRD, etc U.S. govt, deposits X U.S. dir. invstmt. (2.3) 4,447 1,977 7,419 1,107 9,011 9* Equity, etc. 1,404-3, ,118 1,643 1, Retained earnings 3,043 5,208 7, ,368 7, Other -1,751 7,422-2, , Discrepancy (FOF basis) (4) -5,197-14,091 26,587-25,978-4,434 27,365 (1) U.S. net sales, sign reversed (2) Corporate bonds Include net 1: ssues by Netherlands Antilles subsidiaries; U.S. direct investment abroad is before subtracting net inflows of capital from Netherlands Antilles subsidiaries to U.S. parents. (3) Direct investment totals and retained earnings exclude capital gains/losses Included in balance of payments statistics. (4) BOP discrepancy adjusted to national accounts concepts LATEST QUARTER BASED ON INCOMPLETE INFORMATION,

28 SEPTEMBER Foreign sector Sector Statements of Saving and Investment Foreign sector 17 ANNUAL FLOHS. $ BILLIONS I 1988 I I II III IV 1 I II Foreign Sector Net U.S. exports* NIPA basis U.S. export receipts U.S. Import payments (Memo: net corporate earnings retained abroad) Transfers to foreign U.S. govt, interest paid * Net capital grants Net foreign investment (U.S. balance* sign reversed) Net financial investment Net acq. of financial assets Gold and SDRs (1) U.S. checkable dep U.S. time deposits Net Interbank claims Security RPs U.S. corporate equities Credit market instruments U.S. govt, securities Official* net Private* net U.S. corporate bonds (2) Loans to US nonbanks Open-market paper Security credit Trade credit Miscellaneous assets Dir. investmt.in U.S.(3) Equity* etc Retained earnings Other Net Increase in liabilities 31 U.S. off. fgn. exchange net IMF position U.S. private deposits Foreign corporate equities Credit market instruments Corporate bonds M Bank loans n.e.c M To foreign official To foreign banks To other foreign Commercial paper Accept, liabs. to banks U.S. government loans Security debt Trade debt Miscellaneous liabilities U.S.equity ln IBRD* etc M -.2 U.S. govt, deposits U.S. dir. invstmt. (2.3) Equity* etc Retained earnings Other Discrepancy (FOF basis) (4) 53 (1) U.S. net sales. sl9n reversed. (21 Corporate bonds Include net issues by Netherlands Antilles subsidiaries; U.S. direct investment abroad is before subtracting net inflows of capital from Netherlands Antilles subsidiaries to U.S. parents. (3) Direct investment totals and retained earnings exclude capital gains/losses included in balance of payments statistics. (4) BOP discrepancy adjusted to national accounts concepts. BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION,

29 Banking System 18 Sector Statements of Saving and Investment UNADJUSTED NET FLOWS, $ MILLIONS Banking System UNADJUSTED NET FLOWS, $ MILLIONS 1988 I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II Monetary Authority 1 Current surplus 1A6 1A5 1A A Net ac,q. of financial assets ,269 7, ,032 1A A 9.A 2 3 Gold and foreign exchange -A , ,052 6, A A Treasury currency A 5 SDR certificates , Federal Reserve float A F.R. loans to domestic banks -1.50A A -1.61A.3.A Security RPs -1,316 7.A26 2,06A -2,629-6, A Credit market Instruments -5,209 A, A6 9.86A -5,206 2, A U.S. government securities A, A6 9.86A -5,206 2, A Treasury securities A.95A 1,123 10,089-5, A A Agency issues -15A A Acceptances A Bank loans n.e.c A 15 Miscellaneous assets -3A A50-1,086 A, Net increase in liabilities A ,901-11,182 13, Depository inst. reserves -3,007-3,096 3, , l.a Vault cash of coml. banks -1.7A8 2.A55-3.A72 5.A , Checkable dep. and currency -3,907 13,065 6,653 2,275-3, Due to U.S. government ,312 3,218 -A,361 -A, 132 7, Due to foreign A1-1A K Currency outside banks ,959 3.A A 589 5, A Miscellaneous liabilities A Commercial Banking (1) 1 Current surplus A.79A 3,568 3,182 3,582 A, 758 2, A Fixed nonres. investment 7,212 7,152 7.A38 7,629 8, A 7.A Net acq. of financial assets 10,721 66,256 A A0,896 50, A 135.A A.0 3 A Checkable dep. and currency A 5 Total bank credit 2A,75A 51,138 38,851 A3.52A 29,138 A A 1A U.S. govt, securities 7, A7 A.2A2 16.9AA 12.19A A Treasury issues A90 -A,967 83A -5, A 5, A A Agency Issues 6, , A 9,890 6, Tax-exempt obligations -7,235-5,359-2,936-6,968-3,616-1, A.5 A Corporate bonds 6,78A 2,821 9A , * 1.5 A Total loans 18,039 52,793 31,793 AA AA1 38, Mortgages 13,33A 2A.91A ,361 19,502 26, Consumer credit 1, A 10, A1-7,030 9, A.O A Bank loans n.e.c. 2.A20 21, A.998 3,092 3, A A A 15 Open-market paper -3, , , Security credit A.255-2,768-37A ,659-1, N 2.A Corporate equities A N H -.1 K K Cust. liabs. on acceptances -6,538 1, , Vault cash -1.7A8 2.A55-3.A72 5.A68-5,358 1, Reserves at Federal Reserve A7 2.9A9 20-1,093 A22 -l.a -2.A Miscellaneous assets , A A,853 23, A 13.A 2A Net increase in liabilities 11.12A 86,607 AA,322 65,207 35,572 A9.A A.8 1A Checkable deposits -18, A -13,068 25, A A 26.A A U.S. government ,039 1, A66 13,552 A A 25 Foreign ,295-1, A8-29 A.l A Private domestic -19,793 12, A A A Small time and savings dep. 2A ,081 20,021 20,596 12, AA.8 A A Large time deposits A, A2 12.9A2 19, A 13.8 A A Fed. funds and security RPs 28,516 3,503 A,700-17,080 2A.137 9, A A Net interbank claims A ,369 15, A -8.A To Federal Reserve -2,017 11A AA3-2, To domestic banks (2) 1.A93 1,322 -A.A A A,161-9A To foreign banks , A 16.5A1-9,072-5, A Corporate equity Issues A12 All A20 A23 A29 A3A 1.3.A A 35 Credit market debt -6, A 2, A A.9A A A Corporate bonds 182 3,182 1,266 A Open-market paper A9-1.9A0 1, A A Profit taxes payable 3A A A Miscellaneous liabilities -6,357 23, A , A AA A0 Discrepancy -2,015 16, A3 5.A8A -8,721-6, A0 A1 Memo: Credit mkt. funds adv A 55,563 38,922 A6.88A 22,AA5 50, AA.6 A1 (1) Consists of U.S.-chartered commercial banks, domestic affiliates(bhc's), Edge Act corporations, agencies and branches of foreign banks, and banks ln U.S. possessions. Edge Act corporations and offices of foreign banks appear together ln these tables as "foreign banking offices ln U.S." IBF s are excluded from domestic banking and treated like branches ln foreign countries. (2) Floats and discrepancies ln Interbank deposits and loans. LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

30 Banking System Banking System Sector Statements of Saving and Investment 19 ANNUAL FLOWS, $ BILLIONS I 1988 I I II III IV 1 I II Monetary Authority Current surplus Net acq. of financial assets Gold and foreign exchange Treasury currency SDR certificates Federal Reserve float F.R. loans to domestic banks 7 8 M Security RPs Credit market instruments U.S. government securities Treasury securities Agency issues Acceptances Bank loans n.e.c Miscellaneous assets Net increase in liabilities , Depository inst. reserves Vault cash of coml. banks Checkable dep. and currency Due to U.S. government 20 21» Due to foreign ,8 Currency outside banks Miscellaneous liabilities 23 Commercial Banking Cl J Current surplus Fixed nonres. investment , Net acq. of financial assets Checkable dep. and currency Q Total bank credit ^ U.S. govt, securities Treasury issues , ,2 Agency issues , Tax-exempt obligations Corporate bonds Total loans Mortgages Consumer credit Bank loans n.e.c Open-market paper Security credit M -.1 M K - - X M * Corporate equities Cust. liabs. on acceptances Vault cash ,2 Reserves at Federal Reserve Miscellaneous assets Net increase in liabilities Checkable deposits U.S. government Foreign Private domestic , Small time and savings dep Large time deposits Fed. funds and security RPs Net interbank claims To Federal Reserve To domestic banks (2) To foreign banks Corporate equity issues Credit market debt Corporate bonds Open-market paper K.1 H Profit taxes payable Miscellaneous liabilities Discrepancy Memo: Credit mkt. funds adv. 41 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION (1) Consists of U.S.-chartered commercial banks, domestic affiliates(bhc's), Edge Act corporations, agencies and branches of foreign banks, and banks in U.S. possessions. Edge Act corporations and offices of foreign banks appear together in these tables as "foreign banking offices in U.S.** IBF s are excluded from domestic banking and treated like branches in foreign countries. (2) Floats and discrepancies in interbank deposits and loans.

31 Commercial Banking Subsectors 20 Subsector Statements for Component Groups in Commercial Banking UNADJUSTED NET FLOWS, $ MILLIONS Commercial Banking Subsectors UNADJUSTED NET FLOWS, $ MILLIONS I 1988 I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II U.S.-Chartered Commercial Banks 1 Current surplus 2,957 1,715 1, , K 1 2 Fixed nonres. investment 7,212 7,152 7,438 7,629 8,155 8, Net acq. of financial assets 11,814 39,999 39,743 35,563 21,038 35, Total bank credit 19,649 39,652 38,831 30,916 26,349 46, U.S. government securities 7, ,455 3,625 17,145 11, Treasury Issues 502-4, ,679 7,445 5, Agency issues 6,520 5,559 7,876 9,304 9,700 6, Tax-exempt obligations -7,272-5,407-2,999-7,046-3,708-1, Corporate bonds 6,371 2,800 1,407 1, , * Total loans 13,528 41,544 31,968 32,576 12,928 38, Mortgages 12, ,961 16,069 18, Consumer credit 1,211 9,624 10,532 12,241-7,030 9, Bank loans n.e.c , , , Open-market paper -2, , Security credit 3,120-2, ,120 2, Cust. liabs. on acceptances -4, , Vault cash & res. at F.R. -5, ,800-6,426 1, Miscellaneous assets 1, ,434 2,477-13, Net Increase in liabilities 14,054 62, ,814 17,682 36, Checkable deposits -19,367 22,396-12,869 25,660-51,348 16, U.S. government 1,876 9,039 1,595-5,175-15,466 13, Foreign -1,160 1, Private domestic ,128-13,298 29,970-36,429 3, Small time&savings deposits 24, ,081 20,021 20,596 12, Large time deposits 5, ,998 7,932 15, Fed. funds and security RPs 26, ,048-16,331 28,569 8, Net interbank liabilities -17,104 11, ,120-2, Federal Reserve float Borrowing at F.R. banks -1, , To domestic banking -13,869 1,652 4,668 7, To foreign banks -1,218 9,795-4,598-1,561-1,605 1, Acceptance liabilities -4, , Corporate equities Corporate bonds Profit taxes payable Miscellaneous liabilities -2,141 12,336 12,015 3,466 7,715-9, Inv. by dom. affiliates 828 7,897 7,704 4,845 4,882 4, Other -2,969 4,439 4,311-1,379 2,833-13, Discrepancy -2,015 16,767-5,043 5,484-8,721-6, Memo: Credit mkt. funds adv. 12,456 42,444 39,146 32,317 22,894 49, Foreign Banking Offices in U.S. 1 Net acq. of financial assets -1,493 20, ,371 15,290 6, Total bank credit 4,327 11, ,868 1,108-1, U.S. government securities 1, Tax-exempt obligations Corporate bonds ,577.1» Total loans 2,928 11, ,630 1, Mortgages 1,227 2,570 2,195 2,268 1, Bank loans n.e.c ,028-1,607 11,602 1,043-1, Open-market paper Security credit K Corporate equities * * -.1 * M Cust. liabs. on acceptances -2,465 1, ,480-3,671 1, Reserves at Federal Reserve M Miscellaneous assets -3,339 8,141 1,777-1,665 17, Net increase in liabilities -1,493 20, ,371 15, Checkable deposits Time deposits ,046 3,044 5,010 4,074 3, Fed. funds and sec RPs (net) 1, , ,432 1, Net interbank liabilities 2,192 6,559-6,714 3,124 3,716-10, To foreign banks -12,550 2,929-1,960 14,257-4,743-9, To domestic banks 14,742 3, ,459-1, Acceptance liabilities -1,903 1,030-1,250 1,756-3,783 3, Miscellaneous liabilities -4,273 8, ,509 8, LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

32 Commercial Banking Subsectors Subsector Statements for Component Groups in Commercial Banking ANNUAL FLONS, $ BILLIONS I 1988 I I I II III IV 1 I II U.S.-Chartered Commercial Banks Commercial Banking Subsectors Current surplus Fixed nonres. Investment Net acq. of financial assets Total bank credit U.S. government securities Treasury issues Agency issues Tax-exempt obligations Corporate bonds Total loans Mortgages Consumer credit Bank loans n.e.c Open-market paper Security credit Cust. liabs. on acceptances Vault cash 8 res. at F.R Miscellaneous assets Net increase in liabilities Checkable deposits U.S. government Foreign Private domestic Small time8savings deposits Large time deposits Fed. funds and security RPs Net interbank liabilities Federal Reserve float Borrowing at F.R. banks x To domestic banking To foreign banks Acceptance liabilities Corporate equities Corporate bonds *.1 X Profit taxes payable Miscellaneous liabilities Inv. by dom. affiliates Other Discrepancy Memo: Credit mkt. funds adv. 40 Foreign Banking Offices in U.S Net acq. of financial assets Total bank credit U.S. government securities Tax-exempt obligations Corporate bonds Total loans Mortgages Bank loans n.e.c Open-market paper Security credit X -.1 X X X X X Corporate equities Cust. liabs. on acceptances Reserves at Federal Reserve Miscellaneous assets Net increase in liabilities Checkable deposits Time deposits Fed. funds and sec RPs (net) Net interbank liabilities To foreign banks To domestic banks Acceptance liabilities * Miscellaneous liabilities 23 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION

33 Commercial Banking Subsectors, Continued 22 UNADJUSTED NET FLOWS, $ MILLIONS Commercial Banking Subsectors, Continued Commercial Banking Subsectors, Continued UNADJUSTED NET FLOWS. $ MILLIONS I 1988 I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV I I II Domestic Affiliates of Commercial Banks (BHC s) 1 Current surplus 1,837 1,853 2,056 2,720 1,968 2, A.O A Net acq. of financial assets 250 5,621 A, 723 7,621 A.A A Credit market instruments 576-3A A99 1.A26 77A A U.S. govt, securities , A A 5 Bank loans n.e.c. 1, ,592 1,A Miscellaneous assets ,963 A,522 8,120 3,036 8, A 22.A Inv. in bank subsidiaries 828 7, A A.8A5 A.882 A,269 5.A Inv. in finance co. subs. -1,335-1, A3 3,572-2, A A.l 8 9 Other A A5 2, A Net increase in liabilities -1,587 3,768 2,667 A,901 2.A9A 6.78A 6.A A.9 18.A 1A.5 1A Net interbank claims -1,375 -A,031 -A,355 6,126-6, To domestic banks 620-3,960 -A.319 2,281-3,811-1, A.O To foreign banks -1, A5-2.72A 1, IA Corporate bonds 289 3,A87 1.2A1 3A IA 15 Commercial paper -A 08 1, A , A l.a Miscellaneous liabilities A83 7,015-1, A6 7.0A A Equity, etc. -1.AA8 A,162 3,396 1, A Other 1,355-1,679 3,619-2,388 3,032 6, Banks in U.S. Possessions 1 Net acq. of financial assets Checkable dep. and currency Credit market instruments K A U.S. government securities A0 A M A 5 Tax-exempt obligations 37 A * Corporate bonds * Home mortgages Commercial mortgages A M *» Miscellaneous assets A A Net Increase in deposit liab LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

34 Connercial Banking Subsectors, Continued Commercial Banking Subsectors, Continued Commercial Banking Subsectors, Continued 23 ANNUAL FLOHS, $ BILLIONS I II III IV 1 I II Donestic Affiliates of Commercial Banks (BHCs) Current surplus Net acq. of financial assets Credit market Instruments U.S. govt, securities N Bank loans n.e.c Miscellaneous assets Inv. in bank subsidiaries Inv. in finance co. subs Other Net increase in liabilities Net interbank claims To domestic banks To foreign banks Corporate bonds Commercial paper Miscellaneous liabilities Equity, etc Other 18 Banks in U.S. Possessions Net acq. of financial assets Checkable dep. and currency Credit market instruments N U.S. government securities K -.1 M Tax-exempt obligations K Corporate bonds Home mortgages K Commercial mortgages 8 9 * K Miscellaneous assets Net increase in deposit liab. 10 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

35 Nonbank Finance Summary 24 UNADJUSTED NET FLOWS, $ MILLIONS Private Nonbank Financial Institutions Nonbank Finance Summary UNADJUSTED NET FLOWS, $ MILLIONS I 1988 I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II Private Nonbank Financial Institutions - Total 1 Current surplus 1,278 1,940 1,582-1,689-3, Fixed nonres. investment 5,938 6,133 6,232 6,661 6,245 6, Multi-family resid. invest M K M.1 K 3 4 Net acq. of financial assets 150, ,019 89, , ,284 85, Checkable dep. and currency ,863 2,069 1,650-3,426 2, Time and savln9s deposits 12,904 5,230-2,634 4,027 7,891 3, Money market fund shares 3,006-4,880 1, ,206 3, Security RPs 6,109 1, ,958-1, Foreign deposits , , Mutual fund shares ,878 1, Other corporate equities ,099 6,102 2, , Credit market instruments 124, ,144 75, ,107 75, U.S. government securities 17,400 15,929 5,524 5,495 19,878 2, Tax-exempt obligations 12,666 3,469 4,539 8,143 7,510 7, Corporate 8 foreign bonds 39,719 32,742 24,105 29,925 25,356 33, Mortgages ,986 33,975 29, , Consumer credit -2,325 7,067 4, ,771 6, Other loans 41,187 9,951 2,550 35,812 40,597 20, Reserves at Federal Reserve K Security credit ,195 1, Trade credit 1,157 1,686 1,518 1,296 1, Miscellaneous assets 10, ,357 5,857 2,959 1, Net increase in liabilities 156, ,174 99, , ,118 91, Thrift deposits 35,832 17,138 12,551 1,392-6,986 4, Money market fund shares 28,591-17, ,861 20, Security RPs 81 5,325 5,940-7,199 9,327-2, Insurance & pension reserves 64,030 62,037 51,397 65,357 71,202 34, Corporate equity issues (1) 1,481 5, ,774 6,899 11, Credit market instruments 22,768 42,076 18, ,453 10, Corporate bonds 14,020 14,246 7,217 11,070 12,135 5, Mortgages M M «.1 H Bank loans n.e.c ,653-1,426 1,300-1,975 2, Open-market paper 13,417 19,830 6,494 17,731 12,221 5, Fed. Home Loan Bank loans -3,552 5, ,219 11,002-1, Security credit 2, ,141 3,105-1, Trade debt 277 1, ,006 2, Profit taxes payable Proprietor net investment 3, , Miscellaneous liabilities -3,048 4,224 12,356 13,356 2,371 11, Discrepancy 756 3,895 4,706-10,920 4, (1) Includes mutual fund shares. Savings Institutions Combined 1 Current surplus Fixed nonres. Investment Net acq. of financial assets 22,918 37,631 40,021 22, Checkable dep. and currency -2, ,501 1, Time deposits 2,921-1,727-3,409-1, , Security RPs 3,528 2, ,868 4,631-6, Corporate equities Credit market Instruments 10,816 42,585 42,936 24, , U.S. govt, securities -6,384 7,063 4,565 5,388-3, Tax-exempt obligations K Corporate bonds 1,492 7, ,821-2, Mortgages 14,705 24,034 33,490 19,875 11, Home mortgages 11,705 19,544 30,979 17,061 9,405 4, Multi-family ,317 1,783 2,172 1,305-2, « Commercial 839 2, , Farm - - * * Consumer Install, credit 10 4,173 2, Consumer noninstail.credit Other loans (to business) Open-market paper ,029 1,055-3,146 1, Reserves at Federal Reserve K Miscellaneous assets 7,503-5,955-1, ,909 6, Net increase in liabilities 21,159 36,723 38,494 22, Deposits 35,832 17,138 12,551 1,392-6,986 4, Checkable 1,096 5, , Small time and savings 32,103 10,244 6,212-1,296-3,024 4, Large time 2,633 1,324 5,561 1, , Security RPs -6,925 10,902 7,465 4, Cr. mkt. instr. -3,604 6,980 6,782 11, , Profit taxes payable K N Miscellaneous liabilities -4,155 1,681 11,684 5, , Discrepancy ,105-2,240-1, , H LATEST QUARTER BASED ON INCOMPLETE INFORMATION,

36 Nonbank Finance Summary Private Nonbank Financial Institutions Nonbank Finance Summary 25 ANNUAL FLOWS, $ BILLIONS I 1988 I I I II III IV 1 I II Private Nonbank Financial Institutions - Total Current surplus Fixed nonres. investment Multi-family resid. invest Net acq. of financial assets Checkable dep. and currency Time and savings deposits Money market fund shares Security RPs Foreisn deposits Mutual fund shares Other corporate equities Credit market Instruments U.S. government securities Tax-exempt obligations Corporate 8 foreign bonds Mortgages Consumer credit Other loans Reserves at Federal Reserve Security credit Trade credit Miscellaneous assets Net increase in liabilities Thrift deposits Money market fund shares Security RPs Insurance & pension reserves Corporate equity issues (1) Credit market Instruments Corporate bonds Mortgages Bank loans n.e.c Open-market paper Fed. Home Loan Bank loans Security credit Trade debt Profit taxes payable Proprietor net investment Miscellaneous liabilities Discrepancy 40 (1) Includes mutual fund shares. Savinss Institutions Combined Current surplus Fixed nonres. investment Net acq. of financial assets 3 4 * Checkable dep. and currency Time deposits Security RPs Corporate equities Credit market instruments U.S. govt, securities N.2 K Tax-exempt obligations Corporate bonds Mortgages Home mortgages Multi-family Commercial K.1 * * Farm Consumer Install, credit Consumer noninstall.credit Other loans (to business) Open-market paper Reserves at Federal Reserve Miscellaneous assets Net Increase in liabilities Deposits Checkable Small time and savings Large time Security RPs Cr. mkt. instr *.1 «H Profit taxes payable Miscellaneous liabilities Discrepancy 32 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION,

37 Savings Institutions 26 Sector Statements of Saving and Investment UNADJUSTED NET FLOWS. $ MILLIONS Savings Institutions UNADJUSTED NET FLOWS, S MILLIONS 1 1 I ANNUAL FLOWS, $ BILLIONS II III IV 1 I II Savings and Loan Associations (1) 1 Current surplus -1,275 -l.aao A -1.A l.a Fixed nonres. Investment A A Net acq. of financial assets 10.A68 27,967 29,287 19,235-6, A 3 A Checkable dep. 8 currency -1,258 27A AA A A A 5 Time deposits Fed. funds 8 security RPs 2, ,289-1,877 1,870-3, A.O Credit market instruments A.90A 32.8A9 29,916 18, A0 -A,282 A9.8 A5.8 2A.A 21.A U.S. Treasury securities -2,832-1, , A -1, U.S. govt, agency secur. -1, ,671 7,950-1,679 2,198 A.O Tax-exempt obligations 16 12A 177 -A5-19A X Corporate 8 foreign bonds 1.6A8 8.A00 A ,089 1, A Mortgages 7,536 15,102 2A ,515 9.A33-3,988 AA.O A Consumer credit , A A Other loans (to business) A A.2 2.A 1A 15 Open-market paper -2A5 -A ,798-2, Reserves at Federal Reserve 518-1A9 A A35 - X Miscellaneous assets A.36A -5,606-3, A8 -A,970 8, A 21.A Net increase in liabilities 9.A91 27,333 28,261 18,335-7,312-2, A Deposits 25, A2 6,968-2,082-15,030 2, A A Checkable -A06 1, ,535-2, A Small time and savings 27,595 8,612 9, A69 1A.167 2A.8 30.A Large time -1,552-2, A56-6, A A Security RPs -7, A17 6,032 5, , A Credit market instruments -A, AA 6,210 11,177 10,836-2, A 25 Corporate bonds -2A 1, A33-50 l.a.a -.5.A Bank loans n.e.c A A X Fed. Home Loan Bank loans -3,975 A,893 6,155 10, A9-1, l.a Profit taxes payable A A X X Miscellaneous liabilities -A.2A5 2,108 9,039 A,081 -A,1AA 676 A A A Discrepancy -2,673-2.A03-2,276-2.A39-2,323-2.A l.a Memo: Acq.of credit mkt.inst. A.90A 32.8A9 29,916 18, A0 -A,282 A9.8 A5.8 2A.A 21.A (1) Includes all savings and loan associations and federal savings banks Insured by FSLIC. Mutual Savings Banks (2) 1 Current surplus A89 A87 A65 A62 A A Net acq. of financial assets 6,255 A,779 7,862 2,977 2, A.2 A.A Checkable dep. and currency -1,A61 2A , A Fed. funds and security RPs 2,107 -AA A77 1,788-2, * -.6 A 5 Corporate equities Credit market instruments A,273 A.A95 6.7A2 2, ,392 A.A U.S. Treasury securities X U.S. govt, agency secur. -1, Tax-exempt obligations A -.A Corporate & foreign bonds IQ 11 Mortgages 5,521 6,389 6,559 A, , A Consumer credit ,158.1 l.a Open-market paper 658 -A7A 1,322-7A A A Miscellaneous assets 985 AOA A7-1, A 15 Net Increase in liabilities 5,568 A,590 7,A33 3,520 2, A Deposits A, 395 A,196 A, 383 2,77A A,1AA 2,250 3.A Checkable 1,152 2,663 1, A 1, Small time 8 savings ,009 -A,858-1, , A Large time A,070 3,5A2 8,053 3,188 A,992 10,203 l.a X Security RPs 960 A85 1,A , X 2.A Fed. Home Loan Bank loans A23 A A A A Miscellaneous liabilities l,0a5 1, A Discrepancy , A2 X A (2) Includes all federal and mutual savings banks Insured by FDIC. Credit Unions 1 Current surplus Net acq. of financial assets 6,195 A,885 2, A, Checkable dep. and currency A.2.A 3 A Time deposits 3,0A A8-1.A , A X 7.A 1.6 A 5 At banks 2,588-2,056-1,663-1, w 5 6 At savings and loans A ,685 -A A.7.A Fed.funds 8 security RPs -6A7 1,962-1,666 A Credit market instruments 1, A1 6,278 3, A0 3, U.S. government securities -61 6A A AAO Treasury Issues 1,272 l,0a A l.a Agency Issues -1,333 -A Home mortgages 1,6A8 2,5A3 2,908 2,298 1,36A 1, Consumer credit 52 2,057 2,792 1, , A Miscellaneous assets 2,15A ,508-1.A1A 2, A 15 Net Increase in liabilities 6,100 A,800 2, A, A A Shares/Deposits 5,800 A,700 1, ,900 - A.A A A Checkable 350 1, A Small time 8 savings 5, A1 1, A7 11A Large time A M Miscellaneous liabilities , A LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

38 Savings Institutions Sector Statements of Saving and Investment ANNUAL FLOWS, $ BILLIONS I 1988 I I II III IV 1 I II Savings and Loan Associations (1) Savlnss Institutions Current surplus Fixed nonres. Investment Net acq. of financial assets Checkable dep. 8 currency M Time deposits Fed. funds & security RPs Credit market Instruments U.S. Treasury securities U.S. govt, agency secur Tax-exempt obligations Corporate 8 foreign bonds Mortgages Consumer credit Other loans (to business) Open-market paper Reserves at Federal Reserve Miscellaneous assets Net increase in liabilities Deposits Checkable Small time and savings Large time Security RPs Credit market Instruments Corporate bonds * Bank loans n.e.c Fed. Home Loan Bank loans M.1 «K Profit taxes payable Miscellaneous liabilities Discrepancy Memo: Acq.of credit mkt.inst. 31 Mutual Savings Banks (2) (1) Includes all savlnss and loan associations and federal savings banks Insured by FSLIC Current surplus Net acq. of financial assets Checkable dep. and currency « Fed. funds and security RPs Corporate equities Credit market instruments U.S. Treasury securities U.S. govt, agency secur * -.1 K -.1 Tax-exempt obligations Corporate 8 foreign bonds Mortgages Consumer credit Open-market paper Miscellaneous assets Net increase in liabilities Deposits Checkable Small time 8 savings Large time Security RPs Fed. Home Loan Bank loans Miscellaneous liabilities Discrepancy 23 Credit Unions (2) Includes all federal and mutual savings banks insured by FDIC M Current surplus Net acq. of financial assets Checkable dep. and currency Time deposits At banks At savings and loans Fed.funds & security RPs Credit market instruments U.S. government securities Treasury Issues M Agency issues Home mortgages Consumer credit Miscellaneous assets Net increase in liabilities Shares/Deposits Checkable Small time 8 savings Large time Miscellaneous liabilities 20 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

39 Insurance and Pension Funds 28 UNADJUSTED NET FLOWS. S MILLIONS Sector Statenents of Saving and Investment Insurance and Pension Funds UNADJUSTED NET FLOWS. $ MILLIONS I 1988 I 1989 ANNUAL FLOWS. $ BILLIONS 1 I II III IV 1 I II Life Insurance Companies 1 Current surplus -76-1A A1-2A A A.7 A A 1 2 Fixed nonres. investment ,301 1,821 1,321 1, Net acq. of financial assets ,768 23,927 24,507 23,288 24, A A Checkable dep. and currency ,284 1, A 5 Money mkt. fund shares 120 A27 5A8 A8A A Mutual fund shares AOO -AOO -AOO Other corporate equities A , A 2.A 3.A 7 8 Credit market instruments 22.86A 23,786 21,594 21,217 20,988 18, A2.A U.S. government securities A,111 1,785 3,022 2,310 1, Treasury issues A A90 A A Agency Issues ,363 1,262 2,211 1, A Tax-exempt obligations A A1 X Corporate 8 foreign bonds 16, ,665 9,073 17,453 14, Mortgages 2,440 6,055 A, 757 7,012 2,271 1, A IA 15 Open-market paper 2,433 1,631 3,471 2,117-1,062 2, Policy loans -6A2 123 A A -162 A A Miscellaneous assets 2,102 2,068 2,016 2,319 1,750 2, Net increase ln liabilities 29,038 28,579 26,311 22,083 25, A Life insurance reserves 6,369 3,205 2,462 1,000 3,000 1, A Pension fund reserves 22,878 25,843 24,571 22,528 23,310 25, A Profit taxes payable X -.A -.5 X Miscellaneous liabilities -23A -A9A -7A7-1.A Discrepancy 1, A -A,386 1,067 39A Private Pension Funds (1) 1 Net acq. of financial assets 20,663 17,109 7,346 23,945 28,300-9,183 A Checkable dep. and currency 1, A Time deposits 8,218 6,178-1,687 7,089 5,533-1, X A Money mkt. fund shares 2,886-5,307 96A -1,057 73A 2, A 5 Mutual fund shares 1,000 1,200 1,300 1,302 1,378 1,019.9 l.a A 5 6 Other corporate equities -10,182-4,449-2,714-1, , A A Credit market instruments 22, AOA 13,537 6,060 17,597 21,928 3, U.S. government securities 3,810 3,553 3,180 5,966 9,497 3, Treasury issues 6,417 A,790 4,164 4,496 6, Agency issues -2,607-1,237-98A 1,470 2,666-3AA A Corporate 8 foreign bonds 9,767 A,961 3,770 A, , A A Mortgages Open-market paper 8,694 5,155-9A3 7,083 6,862-1,907 A.2 A.l IA Miscellaneous assets -4,747 5,232 3, ,907-7,954 A A IA (1) Includes Federal Employees* Retirement Thrift Savings Fund State and Local Government Employee Retirement Funds 1 Net acq. of financial assets 14,120 15,880 17,018 17,884 16,592 16, Checkable dep. and currency -20 3A X X.4.A 2 3 Time deposits -16A 2, , , A Corporate equities A,000 3,800 10,740 7,374 3,724 7,762 A.l A 5 Credit market instruments 10, , ,068 7, A U.S. government securities 7,277 1,880 7, ,884 1, Treasury Issues A,577 2,488 5,184 3,239 6,076 1, Agency issues 2, ,425-4,205 4, l.a Tax-exempt obligations X Corporate 8 foreign bonds 3.1A5 6, ,507 1,664 6, Mortgages Other Insurance Companies 1 Current surplus 1, ,307 1,447 1,420 1, Fixed nonres. investment 1, ,874 1,399 1,973 1, l.a Net acq. of financial assets 10,294 8,215 9,818 10,416 10,383 11, A Checkable dep. and currency x -.4 A 5 Security RPs A09 3A A A.O Corporate equities 737 6A8 8A , Credit market instruments 8.0A7 5,614 7,174 7, , U.S. government securities 1, ,813 1,688 1, Treasury issues 69A -62 1, l.a Agency issues A , Tax-exempt obligations A,831 3,694 3,933 4,644 4,956 6, A.O Corporate 8 foreign bonds 1,603 1,213 1,341 1, , X Commercial mortgages IA Trade credit 1,157 1,686 1,518 1,296 1, Net increase in liabilities 10,525 9,338 9,247 10,388 11,323 12, Corporate equity issues 2,785 2,719 2,712 2,657 2,634 2, Profit taxes payable 9 12 IA X X Policy payables 7,731 6,607 6,521 7,716 8,668 9, Discrepancy A9-1, LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

40 Insurance and Pension Funds ANNUAL FLOWS, $ BILLIONS i 1988 i I I II III IV I I II Insurance and Pension Funds Sector Statements of Savins and Investment 29 Life Insurance Companies Current surplus Fixed nonres. Investment Net acq. of financial assets K Checkable dep. and currency Money mkt. fund shares Mutual fund shares Other corporate equities Credit market instruments U.S. government securities Treasury issues Agency issues Tax-exempt obligations Corporate 8 foreign bonds Mortgages Open-market paper Policy loans Miscellaneous assets Net increase in liabilities , Life Insurance reserves Pension fund reserves * * Profit taxes payable Miscellaneous liabilities Discrepancy 23 Private Pension Funds (1) Net acq. of financial assets Checkable dep. and currency Time deposits Money mkt. fund shares Mutual fund shares Other corporate equities , Credit market instruments U.S. government securities Treasury issues Agency issues Corporate & foreign bonds M Mortgages Open-market paper Miscellaneous assets 14 State and Local Government Employee Retirement Funds (1) Includes Federal Employees* Retirement Thrift Savings Fund Net acq. of financial assets Checkable dep. and currency Time deposits Corporate equities Credit market instruments U.S. government securities Treasury issues Agency issues » N - Tax-exempt obligations Corporate 8 foreign bonds Mortgages 11 Other Insurance Companies Current surplus Fixed nonres. investment Net acq. of financial assets Checkable dep. and currency Security RPs Corporate equities Credit market instruments U.S. government securities Treasury Issues Agency Issues Tax-exempt obligations Corporate 8 foreign bonds K Commercial mortgages Trade credit Net Increase in liabilities Corporate equity Issues M -.1 H H.1 K a Profit taxes payable Policy payables Discrepancy 19 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

41 Finance n.e.c. 30 Sector Statements of Saving and Investment UNADJUSTED NET FLONS. $ MILLIONS I 1988 I 1989 I I II III IV I I II Finance Companies Finance n.e.c UNADJUSTED NET FLONS. $ MILLIONS ANNUAL FLONS, $ BILLIONS Current surplus ,097 1, Fixed nonres. Investment , , Net acq. of financial assets 8,276 14,953-3,694 19,609 8,013 15, Checkable dep. and currency Credit market Instruments 8,275 14,978-3,595 19,492 7, Mortgages ,701-4,903 2, , Consumer credit -2,050 3,015 1,952 3, , Other loans (to business) 12,286 4, ,145 8,245 7, Net increase in liabilities 11,966 22,181 5,166 16,154 14,268 17, Credit market Instruments 14,263 26,794 7,919 18,037 14,084 13, Corporate bonds 3,143 4,640 1,197 2,955 2,964 5, Bank loans n.e.c. -2,272 2, ,108 2, Open-market paper 13, , , Id Profit taxes payable » «14 15 Inv. by parent companies ,343 3,572-2, Other mlsc. liabilities , ,546 3, K Discrepancy 2,469 5,813 7,270-5,120 4, Open-End :Investment Companies (Mutual Funds) 1 Current surplus ,085-5,375-1, Net acq. of financial assets , , Checkable dep. and currency H Corporate equities -5, , , Credit market Instruments 5,958 4,103 1, ,161 8, U.S. government securities -9,918 8,844-10,554-7, ,000 K Treasury issues -9,596 9,028-9, ,174-1,140 * Agency Issues Tax-exempt obligations 1,430 2,408 1,735 2,433 3,672 5, Corporate 8 foreign bonds 4,937-1, , , Open-market paper 9,509-5, ,374 1, Net share issues ,067-2, ,957 8, Money Market Mutual Funds 1 Net acq. of financial assets ,432 25,861 20, Checkable dep. and currency ,116-1, , Time deposits ,041 2,962-3,648 2,496 6, Security RPs ,961 5, Foreign deposits , , Credit market instruments ,732-6,741 10,022 19,020 11, U.S. government securities 3,356-9,603-3, ,175 1, Treasury issues , Asency issues 2,802-7,868-1,143-2,413-4,355 3, Tax-exempt obligations 8,459-4, ,960-1, Open-market paper 7,295 2,039-2,648 11,098 20,235 11, Miscellaneous 4, ,384 2, Net share Issues 28,591-17, , , LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

42 SEPTEMBER Finance n.e.c. Sector Statements of Saving and Investment Finance n.e.c. 31 ANNUAL FLOWS, $ BILLIONS I 1988 I I II III IV 1 I II Finance Companies Current surplus Fixed nonres. investment Net acq. of financial assets X X Checkable dep. and currency Credit market instruments Mortgages Consumer credit Other loans (to business) Net increase in liabilities Credit market instruments Corporate bonds Bank loans n.e.c Open-market paper X X X Profit taxes payable Inv. by parent companies Other misc. liabilities Discrepancy 17 Open-End Investment Companies (Mutual Funds) Current surplus Net acq. of financial assets Checkable dep. and currency Corporate equities Credit market instruments U.S. government securities Treasury issues X Agency issues Tax-exempt obligations Corporate & foreign bonds Open-market paper Net share issues 12 Money Market Mutual Funds Net acq. of financial assets Checkable dep. and currency Time deposits Security RPs Foreign deposits Credit market instruments U.S. government securities Treasury issues Agency issues Tax-exempt obligations Open-market paper Miscellaneous Net share issues 13 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

43 Finance n.e.c., Continued 32 Sector Statenents of Saving and Investment UNADJUSTED NET FLOWS, MILLIONS Finance n.e.c., Continued UNADJUSTED NET FLOWS, $ MILLIONS ANNUAL FLOWS, $ BILLIONS I II III IV 1 I II Real Estate Investment Trusts 1 Current surplus Fixed nonres. investment Multi-family resid. invest K N H.1 * 3 4 Net acq. of financial assets , M Mortgages M Miscellaneous assets ,185 3, Net Increase in liabilities , Corporate equity issues , Credit market instruments 1, ,480 3, N Mortgages M «K.1» Corporate bonds K M Bank loans n.e.c. 1, ,498 3, Open-market paper * K Miscellaneous liabilities * Security Brokers and Dealers 1 Current surplus Net acq. of financial assets 7, ,221-2,592 6,714-1, Checkable dep. and currency 1,819 1, Corporate equities Credit market instruments 5,625-2,550-6,992-3,778 10, U.S. government securities ,399-5,218-8,492 9,257-2, Tax-exempt obligations -2,279 1, ,589-2, Corporate 8 foreign bonds 2,647 1,661 1,879 3,568 2,918 4, Open-market paper , Security credit -1, ,386-4,195 1, Miscellaneous assets , , Net increase in liabilities 7, ,514 6,764-1, Corporate equity issues -1,570 1, Security RPs (net) 7,006-5,577-1,525-11,533 9,342 2, Security credit 2,897 1,745-3,141 3,105-1, From banks 3,939-3, ,979 1,247-2, Customer credit balances -1,042 4,847-2,406 5,084-2,851 1, Trade debt 277 1, ,006 2, Profit taxes payable M Miscellaneous liabilities -4, ,286 4,171-2,701-3, Proprietor net investment 3, , Securitized Credit Obligations (SCOs) 1 Net acq. of financial assets 10,759 7, ,136 9, Agency securities 10,759 7, ,136 4,123-1, Consumer credit - 5,487 1, Net increase in liabilities 4 Corporate bonds 10,759 7,872 5,767 8,136 9, LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

44 Finance n.e.c., Continued Sector Statements of Saving and Investment ANNUAL FLOWS, $ BILLIONS I II III IV 11 I II Finance n.e.c., Continued 33 Real Estate Investment Trusts Current surplus Fixed nonres. investment Multi-family resid. invest Net acq. of financial assets » K Mortgages Miscellaneous assets Net increase in liabilities Corporate equity issues Credit market instruments Mortgages K M Corporate bonds Bank loans n.e.c K K - Open-market paper Miscellaneous liabilities 14 Security Brokers and Dealers * Current surplus Net acq. of financial assets Checkable dep. and currency Corporate equities Credit market instruments U.S. government securities Tax-exempt obligations Corporate 8 foreign bonds Open-market paper Security credit Miscellaneous assets Net increase in liabilities Corporate equity issues Security RPs (net) Security credit From banks Customer credit balances Trade debt Profit taxes payable Miscellaneous liabilities Proprietor net investment 21 Securitized Credit Obligations (SCOs) Net acq. of financial assets Agency securities Consumer credit 3 Net increase In liabilities Corporate bonds 4 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION

45 Monetary and Insurance Reserves 34 Foreign Exchange, Treasury Currency and Insurance Reserves UNADJUSTED NET FLONS. S MILLIONS Monetary and Insurance Reserves UNADJUSTED NET FLOWS, S MILLIONS ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II Gold and Official Foreign Exchange Holdings (1) 1 Total U.S. reserves -1, ,000 12, U.S. gold stock and SDRs X U.S. govt.: Ex. Stab. Fund X Monetary authority (2) * * X X 4 5 U.S. foreign exchange position -1, ,345-2,098 3,812 12, Official fgn.currency hldgs ,547-1,791 4,128 12, Treasury , , Monetary authority , ,064 6, Net IMF position U.S. government asset Monetary authority X x * * * 11 (1) Lines 1, 2, and 3 exclude Increases ln SDRs through allocations, which occurred at various dates beginning January Transactions in SDRs are Included. Also excluded from the table are revaluations of foreign currency holdings, gold, SDRs, and IMF position. Allocations and revaluations are reflected in tables on outstandings. (2) Treasury gold stock. Treasury Currency and SDR Certificates 1 Total U.S. govt, liability , Treasury currency SDR certificates , Unallocated assets Life insurance reserves: Insurance and Pension Fund Reserves 1 Net change in liabilities 6,449 3,286 2,544 1,083 3,084 1, U.S. government » Life insurance companies 6,369 3,205 2,462 1,000 3,000 1, Net change in assets (HH) 6,449 3,286 2,544 1,083 3,084 1, Pension fund reserves: 5 Net change in liabilities 53,674 63,616 62,548 69,578 64,042 38, U.S. government -3,987 4,784 13,613 5,221-4,160 5, Insurance sector ,832 48,935 64,357 68,202 32, Life insurance companies 22,878 25,843 24,571 22,528 23,310 25, Private pension funds 20,663 17,109 7,346 23,945 28,300-9, St.&loc. govt. rtr. funds 14,120 15,880 17,018 17, , Net change ln assets (HH) 53,674 63,616 62,548 69,578 64,042 38, LATEST QUARTER BASED ON INCOMPLETE INFORMATION,

46 SEPTEMBER Monetary and Insurance Reserves Monetary and Insurance Reserves Foreign Exchange. Treasury Currency and Insurance Reserves 35 ANNUAL FLOWS, $ BILLIONS I 1988 I I I II III IV I I II Gold and Official Foreign Exchange Holdings (1) Total U.S. reserves U.S. gold stock and SDRs U.S. govt.: Ex. Stab. Fund 3 4 X X X * X X * X X Monetary authority (2) U.S. foreign exchange position Official fgn.currency hldgs Treasury Monetary authority Net IMF position U.S. government asset X X X * X * * X X -.1 X Monetary authority 11 til Lines 1, 2, and 3 exclude increases in SDRs through allocations, which occurred at various dates beginning January Transactions in SDRs are included. Also excluded from the table are revaluations of foreign currency holdings, gold, SDRs, and IMF position. Allocations and revaluations are reflected in tables on outstandings. (2) Treasury gold stock. Treasury Currency and SDR Certificates Total U.S. govt, liability Treasury currency SDR certificates ~'2 X X Unallocated assets 4 Insurance and Pension Fund Reserves Life insurance reserves: Net change in liabilities U.S. government Life Insurance companies Net change in assets (HH) 4 Pension fund reserves: Net change in liabilities U.S. government Insurance sector Life insurance companies Private pension funds St.Sloc. govt. rtr. funds Net change in assets (HH) 11 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION

47 Interbank Claims Interbank Claims 36 Het Interbank Positions, Domestic and Foreign Banks UNADJUSTED NET FLOWS. $ MILLIONS UNADJUSTED NET FLOWS. S MILLIONS i 1988 I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II Net Interbank Claims 1 Net change in liabilities -21,042 13,448-10,ASA 21,147-12,665-7, Monetary authority -A,755-6A ,777-7, Depository inst. reserves -3,007-3,096 3, , Vault cash -1.7A8 2,455-3,472 5,468-5,358 1, Commercial banking -16,287 14,089-10, A -8, To monetary authority -2, , To banks in fgn entries. -15,763 12,653-6, A , Liabilities, net -17,660 14,242-6, ,070-6, U.S. chartered banks -3,180 11,846-3,984-2.AA7-2,371 1, Due to fgn affils. -A,318 5,548 6,113 4,742-2,759-4, Due from fgn affils. -1,138-6,298 10,097 7, , Domestic affiliates -1, ,845-2,72A 1, Due to f9n. affil ,374 1, Due from fgn. affil. 1,443 2,445 2,018-2, Fgn. bkg. off. in U.S. -12,485 2,467-1,986 14,475 -A,975-8, Due to fgn affil. -2,853 3,833-2,742 2,069 -A,505-9, Due from fgn. affil. 9,632 1, ,406 A Less: Dep. at fgn. banks -1,897 1, U.S. chartered banks -1,962 2,051 61A Fgn. bkg. off. in U.S. 65 -A » To U.S. banking, net 1,493 1,322-4,405-1,274 A U.S.-chartered banks -13,869 1,652 A, 668 7,578 -A87 3, Liabilities -2,056 4,432-1,876 3,545 3,394 5, A To dom. affiliates 5A ,537-3,195 5,417 2, To fgn. off in U.S. -A,096 1, ,014-6,184 3, Unallocated Less, due from: 1,493 1,322 A,A05 1»27A A, Fgn. offices in US 10,646 5,282-3,762-3,119 2,275 1, Domestic Affiliates 1,167-2,502-2,782-91A 1, Domestic affiliates 620-3,960 -A,319 2,281-3,811-1, Due to U.S. banks 1,167-2,502-2,782-91A 1, Due from U.S. banks 5A7 1,458 1,537-3,195 5,417 2, Fgn. bkg. off. in U.S. 14,742 3,630-4,754-11,133 8,459-1, Due to U.S. banks 10,646 5,282-3,762-3,119 2,275 1, A -Due from U.S. banks A,096 1, ,014-6,184 3, Net change in assets -22,535 12,126-6, A21-16,826-7, Foreign -15,763 12,653-6,594 16,541-9,072-5, Domestic -6, ,880-7,754-1, Monetary authority -2, AA3-2, Federal Reserve float A AO Loans to member banks -1, A -1, Commercial banking -5,273 -A A88-6,451 1, A2 Reserves at F.R. -3,525-2,947 2, , A3 Vault cash 1,7A8 2,455-3,472 5, AA Thrifts: Reserves at F.R A9 A w A5 Discrepancy: Floats, etc. 1,493 1,322-4,405-1,274 4, LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

48 Interbank Claims Net Interbank Positions, Domestic and Foreign Banks Interbank Claims 37 ANNUAL FLONS, $ BILLIONS I 1988 I I II III IV 1 1 I II Net Interbank Claims Net change ln liabilities Monetary authority Depository inst. reserves Vault cash Commercial banking To monetary authority To banks In fgn entries Liabilities, net U.S. chartered banks Due to fgn affils Due from fgn affils Domestic affiliates Due to fgn. affil Due from fgn. affil Fgn. bkg. off. in U.S Due to fgn affil Due from fgn. affil Less: Dep. at fgn. banks U.S. chartered banks Fgn. bkg. off. in U.S To U.S. banking, net X U.S.-chartered banks X Liabilities To dom. affiliates To fgn. off in U.S Unallocated Less, due from: Fgn. offices in US X Domestic Affiliates Domestic affiliates x Due to U.S. banks Due from U.S. banks Fgn. bkg. off. in U.S Due to U.S. banks Due from U.S. banks Net change in assets Foreign Domestic Monetary authority Federal Reserve float Loans to member banks Commercial banking Reserves at F.R Vault cash Thrifts: Reserves at F.R Discrepancy: Floats, etc. 45 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION

49 Deposit Claims 38 Monetary Claims On Financial Institutions UNADJUSTED NET FLOWS, $ MILLIONS Deposit Claims UNADJUSTED NET FLOWS, $ MILLIONS I 1988 I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II Checkable Deposits and Currency 1 Net change in liabilities -21,546 41,689-5,637 28,372-57,760 28, Monetary authority -3,907 13,065 6,653 2,275-3,502 12, U.S. govt, cash 8 deposits ,312 3,218-4,361-4, Foreign deposits tt 4 5 Currency outside banks -1,366 5, , , Commercial banking ,054-13,068 25,279-51,142 16, U.S. government deposits 1,876 9,039 1,595-5,175-15,466 13, Foreign deposits ,295-1, Private domestic deposits -19,793 12,720-13,104 29,922-36,224 3, Savings institutions 1,096 5, , Net change in total assets -21,546 41,689-5,637 28,372-57,760 28, Pvt. domes, sectors, by type -20,063 24, ,394-38,751 7, Currency -1,366 5,959 3, , Demand deposits ,257-15,151 24,587-33,752 8, Other checkable 4,758 9,033 2,825 6,153-5,588-6, Pvt.domes.sectors, by holder -20,063 24,249-8,840 37,394-38,751 7, Pvt. domestic nonfinancial -19,714 20,549-11,120 35,439-34,919 4, Households -12,025 16,731-13,687 11,194-18,030-2, Business 189-2,471 8,092 14,234-4, StateSlocal governments -2,896 4,139-1,302 2,107-5,103 9, Mail float 4,982 2,150-4,223 7,904-7,010 3, Financial sectors ,700 2, ,832 3, Foreign ,089-1, w U.S. government -1,001 16,351 4,813-9,536-19,598 21, Small Time and Savings Deposits 1 Net change in liabilities 57,061 26, ,725 17,572 16, Commercial banks 24,958 16,289 12,081 20,021 20, Savings institutions 32,103 10,244 6,212-1,296-3,024 4, Savings and loan assns. 27,595 8,612 9, ,469 14, Mutual savings banks ,009-4, , Credit unions ,641 1, , Net change in assets 57,061 26,533 18, ,572 16, Households 55,162 24,347 18,519 17,032 16,169 15, State and local governments 1,517 1,723 1,684 2,201 2,153 2, U.S. government Credit unions , Large Time Deposits 1 Net change in liabilities 7, ,603 14,812 19, Commercial banking 4, ,042 12,942 19, Domestic banks 5, ,998 7,932 15,842 3, Foreign banking offices ,046 3,044 5,010 4, Savings institutions 2, ,561 1, , Net change in assets 7, ,603 14,812 19,070 8, Pvt. domestic nonfinancial -5,049-6,885 33,798 7,724 11,622 4, Households -13,480 2,518 31,270 5,751 11,012 14, Business 6, ,328 6, State & local governments 2,155-8, , , Foreign 190 2,542-2, ,121-1, Financial sectors 12,443 4, ,520 8,569 4, Saving and loan assns Credit unions ,056-1,663-1, N Private pension funds 8,218 6,178-1, ,533-1, * St.Slocal govt.rtr.funds , , , Money market funds 1,929-2,041 2, ,496 6, LATEST QUARTER BASED ON INCOMPLETE INFORMATION

50 SEPTEMBER 19» 1989 Deposit Claims Monetary Claims On Financial Institutions ANNUAL FLONS, $ BILLIONS I 1988 I I II III IV 1 I II Checkable Deposits and Currency Deposit Claims Net change in liabilities Monetary authority U.S. govt, cash 8 deposits 3 4 K Foreign deposits Currency outside banks Commercial banking U.S. government deposits Foreign deposits Private domestic deposits Savings institutions Net change in total assets Pvt. domes, sectors, by type Currency Demand deposits Other checkable Pvt.domes.sectors, by holder Pvt. domestic nonfinancial Households Business State&local governments Mall float Financial sectors Foreign U.S. government 24 Small Time and Savings Deposits Net change in liabilities Commercial banks Savings institutions Savinss and loan assns Mutual savings banks Credit unions Net change in assets Households State and local sovernments X U.S. sovernment Credit unions 11 Large Time Deposits Net change in liabilities Commercial banking Domestic banks Foreign banking offices Savings institutions Net change in assets Pvt. domestic nonfinancial Households Business State & local sovernments Foreign Financial sectors X Savins and loan assns Credit unions Private pension funds St.Slocal govt.rtr.funds Money market funds 17 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION

51 Deposit Claims, Continued 40 UNADJUSTED NET FLOWS, $ MILLIONS Monetary Claims On Financial Institutions Deposit Claims, Continued UNADJUSTED NET FLOWS, $ MILLIONS I II III IV 1 1 I II 1979 Money Market Mutual Fund Shares ANNUAL FLOWS, $ BILLIONS Net change in assets 28,591-17,2A A32 25,861 20,625 3A.A A0.A 1 2 Households 23,597 13,9A2-3.A A5 22,908 15, A Nonfin. corp, business 1,988 1, A7 1,725 2.A A.O 11.A Life insurance cos. 120 A27 5A8 A8A A A 5 Private pension funds 2,886-5,307 96A -1,057 73A 2.A93.8 1, A 5 Federal Funds and Security Repurchase Agreements 1 Net change in liabilities 28,597 8, A0-2A A6A 7, A Commercial banking (net) 28,516 3,503 A,700-17,080 2A.137 9, A A Domestic banks 26,5A ,0A8-16,331 28,569 8, A A Foreign banking offices 1,969 A, 338-1,3A8-7A9 -A.A32 1.8A A 5 Savings and loan assns. -7,885 10,A , , Mutual savings banks 960 A85 1.A ,000-1, M 2.A Brokers 8 dealers (net) 7,006-5,577-1,525-11, A2 2, A.7-1A Net change in assets 21,679 10,267 9, A1 12.1A Nonfinancial corporations 2.AA5 92-1,035 6,707 2, State and local governments 3,7A9 A,2A1 3,397 1,570 A, 722-1, A Foreign -1,142 1,155 1.A , » Financial Sectors 16,627 A, A -8, , Monetary authority -1,316 7,A A -2,629-6, A IA Sponsored credit agencies 11,83A -A,336 2, A 1,933 13, A -2.3 IA 15 Savings and loan assns. 2, ,289-1,877 1,870-3, A.O Mutual savings banks 2,107 -AA A77 1,788-2, K Credit unions -6A7 1,962-1,666 A Other insurance companies A09 3A A A.O Money market funds 2, A ,961 5, Discrepancy-unallocated assets 6,918-1,A ,523 -A, l.a U.S. Deposits in Foreign Countries 1 Total fgn. liability, held by: -3,317-2,711 2,009 2,010 -A, A.5 10.A A Nonfinan. corporate business -3,823 -A -3,092-5,183 2,673 2, A Money market funds 506 A 381 7, ,692 A A LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

52 Deposit Claims, Continued Monetary Claims On Financial Institutions Deposit Claims, Continued 41 ANNUAL FLOWS, $ BILLIONS I 1988 I I II III IV 1 I II Money Market Mutual Fund Shares Net change in assets Households Nonfin. corp, business Life insurance cos Private pension funds Federal Funds and Security Repurchase Agreements ~ Net change in liabilities Commercial banking (net) Domestic banks Foreign banking offices Savings and loan assns Mutual savings banks Brokers & dealers (net) Net change in assets Nonfinancial corporations State and local governments Foreign Financial Sectors X Monetary authority Sponsored credit agencies Savings and loan assns X Mutual savings banks Credit unions Other insurance companies Money market funds Discrepancy-unallocated assets 20 U.S. Deposits in Foreign Countries Total fgn. liability, held by: Nonfinan. corporate business Money market funds 3 BILLIONS OF DOLLARS LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

53 U.S. Government Securities 42 U.S. Government Securities Market Summary UNADJUSTED NET FLOWS, $ MILLIONS 1988 II III I 1989 II U.S. Government Securities UNADJUSTED NET FLOWS, $ MILLIONS ANNUAL FLOWS, $ BILLIONS Total Net Issues, by Sector and Type 1 Total U.S. government secur. 66, U.S. government Spons. agencies 8 mtg. pools 42,871 24,079 45,421 19,084 26,337 81,023 41,661 39, , ,946 45,016 36,834 9,986 26, By instrument: 4 Treasury issues 42,994 17,153 36,437 43,444 38,240 8, Household savings bonds 2,920 2,144 1,614 1,775 2,611 1, Treas. excl. savings bonds 40,074 15,009 34,823 41,669 35,629 6, Other 23,956 28,268 44,586 58,097 44,722 28, Budget agency issues ,662 10, , K 8 9 Loan participations (1) Spons. agency issues (2) 10,305 4,363 10,605 19,610 16,219 4, Mortgage pool secur. (2) 13,774 21,974 28,757 28,085 28,797 22, Total Net Purchases, by Sector and Type Total purchases, by sector 66,950 45,421 81, ,541 82,962 36, U.S. govt, (agency issues) Sponsored credit agencies 3,798-4,379 1,033 5,494 5,804-10, Treasury issues 3,449-4,304 1,033 5,576 5,822-11, Agency issues Monetary authority -5,209 4,823 1,046 9,864-5,206 2, Treasury issues -5,055 4,954 1,123 10,089-5,019 3, Agency issues Foreign 33,772 13,961 1,114 19,699 17,252-5, Treasury issues 33,630 11, ,233 13,224-7, Agency issues 142 2,650 1,461 2,466 4,028 1, «11 12 Total private domestic 34,589 31,016 77,830 66,484 65,112 49, Treasury Issues 10,970 5,192 34,628 10,546 24,213 23, Agency issues 23,619 25,824 43,202 55,938 40,899 26, Private domestic nonfinan. 10,030 14,204 63,259 56,747 28,290 35, Total Treasury issues 4,506 3,183 41,897 24,439 5,360 20, Savings bonds (HH) 2,920 2,144 1,614 1,775 2,611 1, Other Treasury issues 1, ,283 22,664 2,749 18, Agency issues 5,524 11,021 21,362 32,308 22,930 14, K Households 8,484 13,611 60,577 58,647 34,092 36, Total Treasury issues -2,400-1,207 35,912 18,778 9,303 20, Savings bonds 2,920 2,144 1,614 1,775 2,611 1, Other Treas. issues -5,320-3,351 34,298 17,003 6,692 18, Agency issues 10,884 14,818 24,665 39,869 24,789 15, Nonfarm noncorp. bus Nonfin. corp, business 3,824-1,748 3,401 1,144-1, Treasury issues ,729 3,416 1,154-1, Agency issues N.1» State and local govts. -2,428 2, ,194-4, Treasury issues 2,909 5,969 2,419 4,357-2, Agency issues -5,337-3,778-3,288-7,551-1, Commercial banking ,047 4,242 16,944 12, Treasury issues 490-4, ,352 7,054 5, Agency issues 6,669 5,850 8,213 9,594 9,890 6, U.S. commercial banks 7, ,455 3,625 17,145 11, Domestic affiliates , Foreign banking offices 1, Banks in U.S.possessions M Private nonbank finance 17,400 15,929 5,524 5,495 19,878 2, Treasury issues 5,974 6,976-8,103-8,541 11,799-2, Agency issues 11,426 8,953 13,627 14,036 8,079 5, Savings and loan assns. -3,964 6,326 5,065 5,732-3, Treasury issues ,895-1,606-2,218-1,994-1, Agency issues -1,132 8,221 6,671 7,950-1,679 2, Mutual savings banks -2, , Treasury issues » Agency issues -1, Credit unions Treasury issues 1,272 1, Agency issues -1, Life insurance companies 2,038 4,111 1,785 3,022 2,310 1, Treasury Issues 525 1, Agency issues 1,513 2,363 1,262 2,211 1, Private pension funds 3,810 3,553 3,180 5,966 9,497 3, Treasury issues 6,417 4,790 4,164 4,496 6,831 3, Agency issues -2,607-1, , St.Slocal govt.rtr.funds 7,277 1,880 7, ,884 1, Treasury issues 4,577 2,488 5,184 3,239 6,076 1, Agency issues 2, ,425-4,205 4, Other Insurance cos. 1, ,813 1,688 1, Treasury issues , Agency issues , Mutual funds -9,918 8,844-10,554-7,552-10,892-1,000 H Treasury issues -9,596 9,028-9,646-7,496-10,174-1,140 * Agency issues Money market funds 3,356-9,603-3, ,175 1, Treasury issues 554-1,735-2, ,180-1, Agency issues 2,802-7,868-1,143-2,413-4,355 3, Brokers S dealers 4,930-8,399-5,218-8,492 9,257-2, SCO Issuers (agencies) 10,759 7,872 5,767 8,136 4,123-1, (1) For purchases, agency issues include :loan participations. (2) These issues are Included in credit market debt of financial institutions in the Flow of Funds Accounts. Digitized for FRASER LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

54 U.S. Government Securities U.S. Government Securities U.S. Government Securities Market Summary 43 ANNUAL FLOWS, $ BILLIONS I 1988 I I II III IV 1 I II Total Net Issues, by Sector and Type Total U.S. government secur U.S. government Spons. agencies & mtg. pools 3 By instrument: Treasury issues Household savings bonds Treas. excl. savings bonds Other M Budget agency Issues Loan participations (1) Spons. agency issues (2) , Mortgage pool secur. (2) 11 Total Net Purchases, by Sector and Type Digitized for FRASER Total purchases, by sector U.S. govt, (agency issues) Sponsored credit agencies Treasury issues Agency issues Monetary authority Treasury issues Agency issues Foreign Treasury issues Agency issues Total private domestic Treasury issues Agency issues Private domestic nonfinan Total Treasury issues Savings bonds (HH) Other Treasury issues Agency issues Households Total Treasury issues Savings bonds Other Treas. issues Agency issues Nonfarm noncorp. bus Nonfin. corp, business Treasury issues M Agency issues State and local govts Treasury issues Agency issues Commercial banking Treasury issues , Agency Issues U.S. commercial banks Domestic affiliates Foreign banking offices * Banks in U.S.possessions Private nonbank finance Treasury issues Agency issues Savings and loan assns Treasury issues Agency issues Mutual savings banks Treasury issues Agency issues Credit unions Treasury issues M Agency issues Life insurance companies Treasury issues Agency issues Private pension funds Treasury issues Agency issues St.Slocal govt.rtr.funds Treasury issues Agency issues Other insurance cos Treasury issues Agency issues Mutual funds Treasury Issues K Agency issues Money market funds Treasury Issues Agency issues Brokers & dealers SCO Issuers (agencies) 70 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION (1) For purchases, agency Issues include loan participations. (2) These Issues are included in credit market debt of financial institutions in the Flow of Funds Accounts.

55 Private Securities 44 Tax-Exempt Debt and Corporate and Foreign Securities UNADJUSTED NET FLOWS, $ MILLIONS Private Securities UNADJUSTED NET FLOWS. $ MILLIONS 1988 I 1989 ANNUAL FLOWS. $ BILLIONS 1 I II III IV 1 I II Tax-Exempt Debt Securities and Loans (1) 1 Net change in liabilities ,115 11,355 8,697 5,248 5, State and local governments 4,149 9,788 10,381 8,765 4,987 6, Short-term 139 3,032 4,765 1, Other 4,010 6,756 5,616 6,832 4,861 6, Households 8 nonprof. org Nonfin. corporate business (industrial revenue bonds) 7 Net change in assets 4,855 9,115 11,355 8,697 5,248 5, Households ,188 8, Nonfin. corporate business 1, ,107-1,103-1, «-.2 K State&local govt. gen. funds Commercial banking -7,235-5,359-2,936-6,968-3,616-1, Savings and loan assns K Mutual savings banks Insurance 5,063 3,757 3,691 4,666 4,669 6, Life insurance companies M State81ocal govt.rtr.funds it Other insurance companies 4,831 3,694 3,933 4,644 4,956 6, Money market funds 8,459-4, ,960-1, Mutual funds 1, ,735 2,433 3,672 5, Brokers and dealers -2,279 1, ,589-2, (1) Includes small amounts of taxable issues since Corporate and Foreign Bonds 1 Net Issues 47,718 53,295 38,816 39,630 41,195 42, Nonfin. corporate business 29,693 35,983 28, , Foreign (1) 3, ,364 1,866 1,228 1, Total finance 14,202 17,428 8,483 11,540 12,070 5, Commercial banking 182 3,182 1, Savings and loan assns Finance companies 3,143 4,640 1,197 2,955 2,964 5, REITs a a a 8 9 SCO Issuers 10,759 7,872 5, , Net purchases 47,718 53,295 38,816 39,630 41,195 42, Households ,560 6, ,935 6, Foreign (2) 1,001 5,172 7,454 9,808 5,536 4, Commercial banking 6,784 2, , , a Savings and loan assns. 1,648 8, ,869-3,089 1, Mutual savings banks Insurance 30,643 24,819 16,174 24, , Life Insurance companies 16,128 11,834 11,665 9,073 17,453 14, Private pension funds 9,767 4,961 3,770 4,573 5,418 1, St.&loc. govt. rtr. funds 3,145 6, ,507 1,664 6, Other insurance companies 1,603 1,213 1,341 1,534 1,870 2, a Mutual funds 4,937-1,261 5,030 5, , Brokers and dealers 2,647 1,661 1,879 3,568 2,918 4, Mutual Funds and Other Corporate Equities 1 Net Issues -21,141-30,403-21,996-44,372-36,332-9, Mutual funds 1,293 1,067-2, ,957 8, Other sectors -22,434-31,470-19,122-44,197-41, Nonfin. corporate business -23,750-35,000-23,000-48,750-45,000-26, Foreign (1) 716-1, ,181 1,340 4, Commercial banking Other Insurance companies 2,785 2,719 2,712 2,657 2,634 2, REITs -1, , Brokers and dealers -1,570 1, Net purchases -21,141-30,403-21,996-44,372-36, Mutual fund shares 1,293 1,067-2, ,957 8, Households 2, ,983-1,277 1,579 6, Nonfin. corp business -2, , Life insurance companies Private pension funds 1,000 1,200 1,300 1,302 1,378 1, Other corporate equities -22,434-31,470-19,122-44,197-41,289-18, Households -14,453-30,189-26,298-44,831-40,894-26, Foreign (2) ,074-2, Commercial banking »» -.1 K M Mutual savings banks Insurance -2,919 1,585 9,433 6,253 1,606 3, Life Insurance cos. 2,526 1, , Private pension funds -10,182-4,449-2,714-1,932-3,970-6, St.&loc. govt. rtr. fnds 4,000 3,800 10,740 7,374 3,724 7, Other insurance cos , Mutual funds -5,344-2,878-4,311-3, Brokers and dealers (1) Net purchases of foreign issues by U.S. residents. (2) Net purchases of U.S. issues by foreign residents. LATEST QUARTER BASED ON INCOMPLETE INFORMATION,

56 Private Securities Tax-Exempt Debt and Corporate and Foreign Securities Private Securities 45 ANNUAL FLONS, $ BILLIONS I 1988 I I II III IV 1 I II Tax-Exempt Debt Securities and Loans (1) Net change in liabilities State and local governments Short-term Other K -.8 Households & nonprof. org Nonfin. corporate business 6 (industrial revenue bonds) Net change in assets Households Nonfin. corporate business StateSlocal govt. gen. funds Commercial banking Savings and loan assns * -.1 K -.1 Mutual savings banks Insurance Life insurance companies M M - StateSlocal govt.rtr.funds Other insurance companies Money market funds Mutual funds Brokers and dealers 20 (1) Includes small amounts of taxable issues since Corporate and Foreign Bonds Net issues Nonfin. corporate business Foreign (1) Total finance Commercial banking Savings and loan assns Finance companies H K REITs SCO Issuers Net purchases Households Foreign (2) Commercial banking Savings and loan assns Mutual savings banks Insurance Life insurance companies Private pension funds St.&loc. govt. rtr. funds Other insurance companies Mutual funds Brokers and dealers 22 Mutual Funds and Other Corporate Equities Net issues Mutual funds Other sectors Nonfin. corporate business Foreign (1) Commercial banking Other insurance companies REITs Brokers and dealers Net purchases Mutual fund shares Households Nonfin. corp business Life insurance companies Private pension funds Other corporate equities Households Foreign (2) K -.1 K * - - * M X Commercial banking Mutual savings banks Insurance Life insurance cos Private pension funds St.Sloe. govt. rtr. fnds Other insurance cos Mutual funds Brokers and dealers 27 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION. (1) Net purchases of foreign issues by U.S. residents. (2) Net purchases of U.S. issues by foreign residents.

57 Mortgages - I Mortgages UNADJUSTED NET FLOWS, $ MILLIONS Mortgage Markets by Type of Mortgage UNADJUSTED NET FLOWS. $ MILLIONS I 1988 I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV I I II Total Mortgages 1 Net change in mortgages 49,472 96,553 81,467 80,471 61,342 64, Home mortgages 32,925 77,319 62,720 56,156 41,117 52, Multi-family residential 5,117 3,622 4,414 5,837 5,884 2, Commercial 12,317 15,786 15,116 18,700 15,160 9, Farm Borrowings by: 49,472 96,553 81,467 80,471 61,342 64, U.S. government REITs * K K.1 M 8 9 Private nonfinancial sectors 49,501 96,534 81,493 80,183 61,273 64, Households 40,221 71,211 60,516 57,024 48,151 46, Nonprofit institutions Nonfinancial business 8, ,414 22,599 12,565 16, Farms Nonfarm noncorporate 14,000 13,000 17,000 17,313 17,399 13, Corporate -4,402 11,931 4,197 5,508-4,015 3, Funds advanced by: 49,472 96,553 81,467 80,471 61,342 64, Households 188 7,605-2, ,119 6, Nonfarm noncorp. business St.Sloc. govt. gen. funds 1, ,679 2,058 1, U.S. government Sponsored credit agencies(l) 4,087 3, , , Mortgage pools 13,774 21,974 28,757 28,085 28,797 22, Private finan. Institutions 29,151 62,900 55,157 47,760 33,497 30, Commercial banking 13,334 24,914 21,182 18,361 19,502 26, Savings Institutions 14,705 24,034 33,490 19, SSL associations (1) 7,536 15,102 24,023 13,515 9,433-3, Mutual savings banks (1) 5,521 6,389 6,559 4, , Credit unions 1,648 2,543 2,908 2,298 1,364 1, Insurance 2,771 6,211 4,846 6,993 1,885 1, Life insurance companies 2,440 6,055 4,757 7,012 2, Private pension funds St.Sloc. govt, rtr.funds Other insurance cos Finance companies -1,961 7,701-4,903 2, , REITs M (1) Memo: FHLB loans to -3,552 5,329 6,727 11,219 11,002-1, thrifts (included in "other loans" category). Home Mortgages (1) 1 Net borrowing 32,925 77,319 62,720 56,156 41,117 52, Households 40,221 71,211 60,516 57,024 48,151 46, Nonfarm noncorp. business -3,648 3,054 1, ,517 2, Nonfin. corporate business -3,648 3,054 1, ,517 2, K 4 5 Net change in assets 32,925 77,319 62,720 56,156 41,117 52, Households 48 9,203-1,512-1,439-4,136 6, Nonfarm noncorp. business State and local governments ,362 1,647 1, U.S. government Spons. credit agencies 4,448 3, , , Mortgage pools 12,436 21,183 27,249 26,514 26,322 20, Commercial banking 4,484 15,511 10,776 7,242 10,398 14, Savings institutions 11,705 19,544 30,979 17,061 9,405 4, Savings and loan assns. 6,136 12,668 23,439 12,369 7,889 1, Mutual savings banks 3,921 4,333 4,632 2, , Credit unions 1,648 2,543 2,908 2,298 1,364 1, Insurance , Life insurance companies , Private pension funds St.&loc. govt. rtr. funds K Finance companies -1,887 7,587-5,068 2, , REITs * K 22 (1) 1-4 family LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

58 Mortgages - 1 Mortgages - I Mortgage Markets by Type of Mortgage 47 ANNUAL FLOWS, $ BILLIONS I 1988 I I II III IV 1 I II Total Mortgages Net change in mortgages Home mortgages Multi-family residential Commercial Farm Borrowings by: X X X - X X X X X U.S. government REITs Private nonfinancial sectors Households Nonprofit institutions Nonfinancial business Farms Nonfarm noncorporate Corporate Funds advanced by: Households Nonfarm noncorp, business St.&loc. govt. gen. funds U.S. government Sponsored credit agencies(l) Mortgage pools Private finan. institutions Commercial banking Savings institutions S&L associations (1) Mutual savings banks (1) Credit unions Insurance Life insurance companies X Private pension funds St.&loc. govt. rtr.funds X Other insurance cos Finance companies X X REITs (1) Memo: FHLB loans to 36 thrifts i(included in "other loans" category). Home Mortgages (1) Net borrowing Households X Nonfarm noncorp, business 3 4 * * Nonfin. corporate business Net change in assets X Households Nonfarm noncorp, business X State and local governments U.S. government Spons. credit agencies Mortgage pools Commercial banking Savings institutions Savings and loan assns Mutual savings banks Credit unions X Insurance Life insurance companies X X Private pension funds St.&loc. govt. rtr. funds Finance companies X * X X X X REITs 22 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION (1) 1-4 family

59 SEPTEMBER Mortgages - II 48 Mortgage Markets (Continued) UNADJUSTED NET FLOWS. $ MILLIONS Mortgages - II UNADJUSTED NET FLOWS, $ MILLIONS I 1988 I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II Multi-Family Residential Mortgages 1 Net borrowing 5,117 3,622 A.A1A 5, A 2, A A Nonfarm noncorp. business A,832 3.A18 A.1A7 5,529 5, Nonfin. corporate business A A A REITs X x x N X A 5 U.S. government 1-2 -A Net change in assets 5,117 3,622 A.A1A 5, A 2, A A Households 23A A A Nonfarm noncorp. business State and local governments A l.a l.a 2.A 9 10 U.S. government Spons. credit agencies A A Mortgage pools ,509 1,572 2.A77 1, A Commercial banking A25 A A l.a IA Savings institutions 2,161 2,317 1,783 2,172 1,305-2, X IA 15 Savings and loan assns. 1,200 1, A , A Mutual savings banks A2 1, A Life insurance companies A A A A Private pension funds A A0 x -.2 x X X St.Slocal govt. rtr. funds A0 -AA Finance companies 9A A REITs A X Commercial Mortgages 1 Net borrowing 12,317 15,786 15,116 18, ,008 2A.A Households A Nonfarm ncncorp. business 12,816 6,528 11,751 12,218 15,301 8, A A9.7 3 A Nonfin. corporate business -1.0A9 8,680 2,818 5,726-7A5 -A A 5 REITs A7-15 X X X.1 X 5 6 Net change in assets 12,317 15,786 15,116 18,700 15,160 9,008 2A.A Households A A A -.9.A 7 8 Nonfarm noncorp. business State and local governments A0-1A9 56 A A 9 10 U.S. government A3-2A2-1, A Commercial banking 8,231 8, A AA 8,699 10, A Savings institutions 839 2, A , A Savings and loan assns ,159 -A7-31A 869-2, A A IA Mutual savings banks A A1.2 X -.6 *.5 IA 15 Life Insurance companies 2,052 5,312 A, A A Private pension funds A.3.A St.&local govt. rtr. funds A Other insurance companies A.3.3.A Finance companies A -A A A REITs A A X 20 Farm Mortgages 1 Net borrowing A A A.l 2.A 1 2 Net change in assets A A A.l 2.A 2 3 Households A A l.a X.2 3 A Nonfarm noncorp. business X X A 5 State and local governments -1 -A X X 5 6 U.S. government A A 6 7 Sponsored credit agencies A88 -A5A -A2A A A Mortgage pools X 8 9 Commercial banks 19A A 36A A77.1 X -.2 X Mutual savings banks X X X Life insurance companies A A -158 A St.&local govt. rtr. funds X X - 12 LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

60 Mortgages -II Mortgage Markets (Continued) ANNUAL FLOWS, $ BILLIONS I 1988 I I II III IV 1 I II Multi-Family Residential Mortgages Mortgages - II Net borrowing Nonfarm noncorp, business Nonfin. corporate business X x.1.1 X X X.4.1 w REITs x x X * X X w U.S. government Net change In assets Households Nonfarm noncorp, business State and local governments X U.S. government Spons. credit agencies Mortgage pools Commercial banking Savings institutions Savings and loan assns Mutual savings banks ,7 Life Insurance companies X X Private pension funds * * St.&local govt. rtr. funds X * Finance companies A.4 X.3.3 X.4.7 w.6.1 REITs 21 Commerc'tai Mortgages , , Net borrowing Households , Nonfarm noncorp, business T , Nonfin. corporate business X X REITs Net change in assets Households Nonfarm noncorp, business State and local governments 9 10 X U.S. government Commercial banking , Savings institutions Savings and loan assns , Mutual savings banks Life insurance companies X Private pension funds St.&local govt. rtr. funds * Other Insurance companies X Finance companies * X REITs Farm Mortgages Net borrowing Net change In assets Households X X X X X X X X X X Nonfarm noneorp. business 4 5 X X.2 X X X X * X X X State and local governments U.S. government Sponsored credit agencies 7 8 X X X Mortgage pools Commercial banks 9 10 X.1 X X Mutual savings banks Life Insurance companies St.81ocal govt. rtr. funds 12 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION

61 Consumer Credit end Bank Loans N.E.C. Consumer Credit and Bank Loans N.E.C. 50 Consumer Credit and Bank Loans Not Elsewhere Classified UNADJUSTED NET FLOWS, $ MILLIONS UNADJUSTED NET FLOWS, $ MILLIONS 1988 I 1989 ANNUAL FLOWS. $ BILLIONS 1 I II III IV 1 I II Consumer Credit 1 Net chanse In liabilities (HH) -3,766 16,880 15,385 22,567-6,743 16, Installment credit -1,660 17, ,603-3, Noninstallment credit -2,106-1, ,535 1, Net change In assets -3,766 16, ,567-6,743 16, Installment credit -1,660 17,980 17,248 19,603-3,208 15, Nonfarm noncorp. business -25A « Nonfin. corporate business -1, «.9 H Commercial banking 2,230 10, , Savings and loan assns , , Mutual savings banks -2A8 7A Credit unions 52 2,057 2,792 1, , Finance companies -2, , , SCO Issuers , Noninstallment credit , ,964-3, Nonfarm noncorp. business K Nonfin. corporate business -6A ,169-1, Commercial banking -1, , ,842 1, Savings and loan assns. -1,165 1, Mutual savings banks 880-1, Bank Loans; Not Elsewhere Classified Total loans by commercial 1 banking, Flow of Funds basis 18,039 52,793 31,793 44,638 16,441 38, Loans elsewhere classified: 2 Mortgages 13,334 24, ,502 26, Consumer credit 1,211 9,624 10,532 12,241-7,030 9, A Security credit A,255-2, ,591 1,659-1, * Open-market paper -3, , , = Banking sector total bank 2,420 21, ,998 3,092 3, loans n.e.c. 7 U.S. chartered banks , , Domestic affiliates 1, ,592 1, Foreign banking off. in US 796 9,028-1,607 11,602 1,043-1, * Loans by F.R. banks = Total bank loans n.e.c. 2,420 21, ,092 3, Net change in liabilities 2,420 21, ,998 3,092 3, Nonfinancial sectors , ,698 5, IA Households -A, , Farm business -9A7 2, ,428 1, Nonfarm noncorp. business 930 3, , Corporate business 8,055 13, ,861 7,575 4, Foreign , Official Institutions M Banks Other Financial sectors -1,088 2, ,300-1,975 2, Savings and loan assns H A Finance companies -2, ,756-1,108 2, REITs ,498 3, LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

62 Consumer Credit and Bank Loans N.E.C Consumer Credit and Bank Loans N.E.C Consumer Credit and Bank Loans Not Elsewhere Classified ANNUAL FLOWS, $ BILLIONS I 1988 I I II III IV 1 I II Consumer Credit Net change in liabilities (HH) Installment credit Noninstallment credit Net change ln assets Installment credit X.1.2 X * Nonfarm noncorp, business Nonfin. corporate business Commercial banking Savings and loan assns X Mutual savings banks Credit unions Finance companies SCO Issuers Noninstallment credit X Nonfarm noncorp, business Nonfin. corporate business Commercial banking Savings and loan assns Mutual savings banks 19 Bank Loans Not Elsewhere Classified Total loans by commercial banking, Flow of Funds basis 1 Loans elsewhere classified: Mortgages Consumer credit Security credit Open-market paper s Banking sector total bank 6 loans n.e.c U.S. chartered banks X Domestic affiliates Foreign banking off. in US Loans by F.R. banks s Total bank loans n.e.c Net change in liabilities Nonfinancial sectors Households Farm business Nonfarm noncorp, business Corporate business X Foreign X Official institutions Banks Other Financial sectors X Savings and loan assns Finance companies REITs 25 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

63 Other Loans Other Loans 52 Open-Market Paper and Other Loans UNADJUSTED NET FLOWS, $ MILLIONS UNADJUSTED NET FLOWS, $ MILLIONS 1988 I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II Open-Market Paper 1 Total net issues, all types 7,905 28,612 9,273 29,078 2A.1AA 21, Commercial paper 1A,OA7 27,A92 9,979 26, A21 17, A Nonfinancial corporations -261 A,3A0 2,A56 5, , A.O 1A A Foreign issues in U.S. 1,299 1.A A, , A A 5 Financial business 13,009 21,659 5, A , A Commercial banking -A 08 1,829-1,23A A l.a Finance companies 13,392 19,838 6,520 17,838 12,228 5, A REITs X Bankers acceptances (1) -6,1A2 1, ,092-5,277 A, Net purchases, by sector 7,905 28,612 9,273 29,078 2A.1AA 21, Households -13,623 23,836 1,269 A,532 -A.232 6,060 7.A Nonfin. corporate business 3,7A2-12 3,881 2,230 -A, 070 A A Foreign -AA A18-2A IA Sponsored credit agencies » A IA 15 Monetary authority Commercial banking (1) -3, , Savings & loan associations -2A5 -A ,798-2, Mutual savings banks 658 -A7A 1,322-7A A Life insurance companies 2,A33 1,631 3.A71 2, , Private pension funds 8.69A 5,155-9A3 7,083 6,862-1,907 A.2 A.l Mutual funds 9,509-5,888 5, A 1, Money market funds 7,295 2, A8 11,098 20,235 11, Brokers and dealers 327 2,819-3, A2 163 l.a -.A A.8 A.9 -A.8 23 (1) Excludes banks* holdings of own acceptances. Other Loans 1 SSL assn, loans to business A A.2 2.A 1 2 Liab.: Noncorporate business A A A Nonfin. corp, business A A A39-37A A Finance co. loans to business A,262-6AA 13.1A5 8.2A5 7, A.l A 5 Liab.: Noncorporate business 6.1A3 2, ,572 A, 122 3, A, Nonfin. corp, business 6.1A ,573 A,123 3, A U.S. government loans -1, A8 -A, A Liab.: Households 769 A3 2, Farm business -1.3A ,612 58A A A.2 X 9 10 Nonfarm noncorp. bus , A , A A Nonfin. corp, business , St.Slocal governments , Foreign 1, ,725-3,829-1, A.7 A.2 A.5 A.3 13 IA Spons. credit agencies A IA 15 Sponsored credit agenry loans -2, A 8,032 9,778 10,909-1, Liab.: Households (SLMA) , A Farm business (FICB) -1.0A ,179-1, Noncorp. business (BC) 1.A A S&L assns. (FHLB) -3,975 A,893 6,155 10, A9-1, l.a Mutual sav. bks (FHLB) A23 A A A A Policy loans (HH liability) -51A 2A8 167 A6 A19-37 A A A Asset: U.S. government X.1.1 X X Life insurance cos. -6A2 123 A A -162 A A Cust. liab. on acceptances 2A outstanding (bank asset) -6,538 1, ,761-5,033 2, A 25 Liab: Nonfin. corp, business -2,31A 1, A A.A Foreign A,22A 1A ,216 -A.16A 1, A.l Foreign loans to US nonbanks 27 Liab.: Nonfin. corp, business 7,198 1,390 3,168-7A5 5,802 3, LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

64 Other Loans Open-Market Paper and Other Loans 53 Other Loans ANNUAL FLOWS, $ BILLIONS I 1988 I I II III IV 1 I II Open-Market Paper Total net Issues, all types Commercial paper Nonfinancial corporations Foreign issues in U.S Financial business Commercial banking Finance companies X X REITs Bankers acceptances (1) Net purchases, by sector Households Nonfin. corporate business Foreign X X X Sponsored credit agencies Monetary authority Commercial banking (1) Savings & loan associations Mutual savings banks Life Insurance companies Private pension funds Mutual funds Money market funds Brokers and dealers 23 (1) Excludes banks* holdings of own acceptances. Other Loans SSL assn, loans to business Liab.: Noncorporate business Nonfin. corp, business Finance co. loans to business Liab.: Noncorporate business Nonfin. corp, business X -2.5 U.S. government loans Liab.: Households Farm business Nonfarm noncorp. bus Nonfin. corp, business St.&local governments Foreign Spons. credit agencies Sponsored credit agency loans Liab.: Households (SLMA) Farm business (FICB) Noncorp. business (BC) S&L assns. (FHLB) Mutual sav. bks (FHLB) X Policy loans (HH liability) X X Asset: U.S. government Life insurance cos. 23 Cust. liab. on acceptances outstanding (bank asset) Liab: Nonfin. corp. business Foreign 26 Foreign loans to US nonbanks Liab.: Nonfin. corp. business 27 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION,

65 Security Credit, Trade Credit, and Taxes Security Credit, Trade Credit, end Taxes 54 Security Credit, Trade Credit, and Taxes Payable UNADJUSTED NET FLOWS, $ MILLIONS UNADJUSTED NET FLOWS, S MILLIONS I 1988 I 1989 ANNUAL FLOWS, $ BILLIONS t I II III IV 1 I II Security Credit 1 Net chanse in liabilities 2,008 2,762-1,927 4,879-5,387 1, Households ~889 1,017 1,214 1,774-3,783 2, Foreign Brokers and dealers 2,897 1,745-3,141 3,105-1, From domestic banks 2,804-3, ,508 1,681-1, From fgn bk off in US 1, X Customer credit balances -1,042 4,847-2,406 5,084-2,851 1, Net change in assets 2,008 2,762-1,927 4,879-5,387 1, Households -1,042 4,847-2,406 5,084-2,851 1, Commercial banking 4,255-2, ,591 1,659-1, X Brokers and dealers ,386-4,195 1, Foreign 12 Trade Credit 1 Net change in liabilities -11,457-1,447 8,943 19,803-10,464 2, Households 875 1,000 2, ,150 1, Farm business Nonfarm noncorp. business Nonfin. corporate business -14,528-3,384 5,741 15,327-15,830-2, State and local governments Foreign 1,621-1,427 2,409 4,792 2, U.S. government -1, ,950-3,970-2,057 2, Brokers and dealers 277 1, ,006 2, Net change in assets 12,524 8,470 13,285-6,751 11,121 3, Nonfarm noncorp. business 1,200 1,200 1,200 1,200 1,200 1, Nonfin. corporate business 10,082 6,724 9,337-9,537 7,000 2, Foreign ,262 1,817 1, X U.S. government , , Other insurance companies 1,157 1,686 1,518 1,296 1, Discrepancy -23,981-9,917-4,342 26,554-21,585-1, Taxes Payable 1 Net change in profit taxes pay 3,700-6,300 3,380-2,000 6,200-5, Nonfin. corporate business 3,530-6,474 3,254-2,217 6,153-5, Commercial banks Savings & loan associations X 4 5 Life insurance companies x Other insurance companies X Finance companies X X 7 8 Brokers and dealers * Net change in other taxes pay. (Nonfarm noncorp. business) Net change in profit taxes rec 3,030-6,784 2,072-1,764 5,773-13, State and local governments U.S. government 2,830-6,984 1,872-1,964 5,973-13, Net change in other taxes rec. (State and local governments) Discrepancy , , Proprietors' Equity in Noncorporate Business 1 Total household Investment -20,912-22,506-16,963-32,981-28,414-22, Farm business 3,033-5,702-2,565-3, , Nonfarm noncorp. business -27,099-16,309-15,652-29,861-29,525-16, Brokers and dealers 3, , LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

66 Security Credit, Trade Credit, and Taxes Security Credit, Trade Credit, and Taxes Security Credit, Trade Credit, and Taxes Payable ANNUAL FLOWS, $ BILLIONS I 1988 I I I II III IV I I II Security Credit Net change in liabilities Households Foreign Brokers and dealers From domestic banks From fgn bk off in US Customer credit balances Net change in assets Households Commercial banking Brokers and dealers Foreign 12 Trade Credit Net chanse in liabilities Households Farm business Nonfarm noncorp. business , Nonfin. corporate business State and local governments Foreign U.S. government Brokers and dealers , Net change in assets Nonfarm noncorp. business Nonfin. corporate business Foreign U.S. government Other insurance companies , Discrepancy 16 Taxes Payable X X.1 X X.1 X X X X X -.1 X X.1 X X X X X Net change in profit taxes pay Nonfin. corporate business Commercial banks Savings & loan associations Life insurance companies Other insurance companies Finance companies Brokers and dealers Net change in other taxes pay. (Nonfarm noncorp. business) Net change in profit taxes rec State and local governments U.S. government Net change in other taxes rec. (State and local governments) Discrepancy 14 Proprietors' Equity in Noncorporate Business Total household investment Farm business Nonfarm noncorp. business Brokers and dealers BILLIONS OF DOLLARS LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

67 Miscellaneous I 56 Miscellaneous Financial Claims UNADJUSTED NET FLOWS, $ MILLIONS Miscellaneous I UNADJUSTED NET FLOWS, $ MILLIONS I 1988 I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II Net change in liabilities 14,856 56,427 66,400 39,488 57,219 59, Households ,013 1,000 1, Nonfarm noncorp, business 2,000 2, ,000 2,000 2, Nonfin. corporate business 9,267 13,737 11,637 22,929 19,198 12, Foreign 3,166 10, ,329 7,080 8, U.S. government 5,317 5, ,504-1,737 16, Total finance -5,514 24,348 41,692 16,721 29,678 19, Sponsored credit agencies 4,564-3,492 2,543-2, , Monetary authorities Commercial banking -6,357 23,916 26,140 6,015 28,576 6, Savings 8 loan assns. -4,245 2,108 9,039 4,081-4, Mutual savings banks ,045 1, Credit unions , Life insurance companies , Other Insurance companies 7,731 6,607 6,521 7,716 8,668 9, Finance companies -2,318-4,636-2,778-1, , REITs K Brokers and dealers ,286 4,171-2,701-3, Net change in assets 22,811 56,654 30,386 70,132 56,259 63, Households 5,037 4,656 5,405 6,672 8,943 10, Farm business Nonfarm noncorp, business ,212 2,057 1,946 1,690 2, Nonfin. corporate business ,754-2,961 24, , Foreign ,106 13,889 20,344 20,477 16, U.S. government Total finance 6,872 13,615 10,440 15,422 23,546 8, Sponsored credit agencies -1, ,262-1,519 2, Monetary authority ,450-1,086 4, Commercial banking -2,272 13,903 7,034 4,853 23, Savings and loan assns. 4,364-5,606-3,068 1,748-4,970 8, Mutual savings banks , Credit unions 2, ,508-1,414 2, Life insurance companies 2,102 2,068 2,016 2,319 1,750 2, Private pension funds -4,747 5,232 3, ,907-7, REITs ,185 3, Money market funds 4,535-2, ,384 2, Brokers and dealers , , Unallocated, net -7, ,014-30, , (A) Foreign claims Foreign direct investment by U.S. corps. 39 Liab.: Foreign (1) 4,447 1,977 7,419 1,107 9,011 9, Equity & Intercompany accts. 1,404-3, ,118 1,643 1, Retained earnings 3,043 5,208 7, ,368 7, Direct investment in U.S. by fgn. corps. 42 Liab.: Nonfin. corp, bus.(l) 9,267 13,737 11,637 22,929 19,198 12, Equity 8 intercompany accts. 7,842 12,528 9,813 21,691 18,953 11, Retained earnings 1,425 1,209 1,824 1, U.S. govt, equity in IBRD, etc. 45 Liab.: Foreign Nonofficial foreign currency 46 Asset: U.S. government K Liab.: Foreign (B) Claims on federally related agencies Postal Savings deposits 47 Asset: Households Liab.: U.S. government 47 Deposits at Federal Home Loan Banks 48 Liab.: Sponsored credit ags. 4,193-4, , Asset: S&L associations 49 Federal Reserve Bank stock Asset: Commercial banks Equity in sponsored credit ag U.S. government 51 Private: 52 Farm business (FICB 8 FLB) Nonfarm noncorporate (BC) » «53 54 Nonfin. corp. bus. (FNMA) «.1 K S&L associations (FHLB) M (1) Excludes capital gains/losses. LATEST QUARTER BASED ON INCOMPLETE INFORMATION,

68 Miscellaneous 1 Miscellaneous Financial Claims Miscellaneous I 57 ANNUAL FLOWS, $ BILLIONS I II III IV 1 I II Net change in liabilities Households Nonfarm noncorp. business Nonfin. corporate business Foreign U.S. government Total finance Sponsored credit agencies Monetary authorities Commercial banking Savings 8 loan assns Mutual savings banks Credit unions Life insurance companies Other insurance companies Finance companies REITs Brokers and dealers Net change in assets Households Farm business Nonfarm noncorp. business Nonfin. corporate business Foreign U.S. government Total finance Sponsored credit agencies Monetary authority Commercial banking Savings and loan assns Mutual savings banks Credit unions Life insurance companies Private pension funds REITs Money market funds Brokers and dealers Unallocated, net 38 (A) Foreign claims Foreign direct investment by U.S. corps Liab.: Foreign (1) Equity 8 intercompany accts Retained earnings 41 Direct investment In U.S. by fgn. corps Liab.: Nonfin. corp, bus.(l) Equity 8 intercompany accts Retained earnings 44 U.S. govt, equity in IBRD, etc Liab.: Foreign X (B) Claims Nonofficial foreign currency Asset: U.S. government 46 Liab.: Foreign on federally related agencies Postal Savings deposits Asset: Households 47 Liab.: U.S. government Deposits at Federal Home Loan Banks Liab.: Asset: Sponsored credit ags. SSL associations Federal Asset: Reserve Bank stock Commercial banks Equity in sponsored credit ag U.S. government 51 Private: X Farm business CFICB 8 FLB) X X -.1 X - X X - X Nonfarm noncorporate (BC) X X X X X X X Nonfin. corp. bus. (FNMA) S8L associations (FHLB) 55 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION, (1) Excludes capital gains/losses.

69 Miscellaneous II 58 UNADJUSTED NET FLOWS, $ MILLIONS (C) Life Insurance claims Miscellaneous Financial Claims (Continued) I 1988 I 1989 I I II III IV I I II Miscellaneous II UNADJUSTED NET FLOWS, $ MILLIONS ANNUAL FLOWS, $ BILLIONS Deferred and unpaid premiums 1 Liab.: Households Asset: Life insurance ,013 1,000 1, Life company reserves 2 Liab.: Life insurance cos Accident and health Policy dividend accum Asset: Households (D) Nonlife insurance claims 5 Liab.: Other insurance cos. 7,731 6,607 6,521 7,716 8,668 9, Asset: Households 4,740 4,663 5,777 7,014 9,253 9, Farm business Nonfarm noncorp. bus. 1,324 1,211 1, , Nonfin. corp, business ,058-1,000-2,188-2, (E) Intercorporate claims Corporate parent investment in: 10 Commercial bank subsidiaries 828 7, Finance company subsidiaries -1,335-1,360 Asset: Domestic bank affiliates 7,704 4,845 4,882 4,269 3,343 3,572-2, (F) Unallocated assets 8 liabilities 12 Net total (liab. less assets) -7, ,014-30, , Net change in liabilities -12,228 30,078 35,229-1,594 17,944 16, Foreign -1,751 7,422-2, , Nonfarm noncorp. business 2, ,000 2,000 2,000 2, U.S. government 597 1, , , U.S. govt.-without levels 4,720 4,478 3,531-7,743-2,021 14, Sponsored credit agencies ,563-2, , Monetary authority Commercial banking -7,185 16,019 18,436 1,170 23,694 1, U.S. commercial banks -2,969 4,439 4,311-1,379 2,833-13, Domestic affiliates ,015-1,183 5,246 7, Foreign banking offices -4,273 8,938 6,979 3,611 15,509 8, Banks in U.S. poss Savings and loan assns. -4,245 2,108 9,039 4,081-4, Mutual savings banks ,045 1, Credit unions , Life Insurance companies , Finance companies , ,482 2,546 3, M REITs M Brokers and dealers -4, ,286 4,171-2,701-3, Net change in assets -4, , Foreign ,252-2,585 1,279 4, Nonfarm noncorp. business 1,000 1, Nonfin. corporate business -8,000 19, ,550-6,087 17, Sponsored credit agencies -1, ,354 3,262-1,519 2, Monetary authority ,450-1,086 4, Commercial banking -1,813 7,351 2,686-3,580 20,683-4, U.S. commercial banks 1, ,450 2,459-13, Domestic affiliates , Foreign banking offices -3,339 8,141 1,777-1,665 17,878 6, Banks in U.S. possession Savinss and loan assns ,656-2, ,172 3, Mutual savings banks , Credit unions 2, ,508-1,414 2, Life insurance companies ,258 1,102 1, Private pension funds -4, , ,907-7, REITs ,185 3, Money market funds 4,535-2, ,384 2, Brokers and dealers 1,349 1, ,595-2, LATEST QUARTER BASED ON INCOMPLETE INFORMATION

70 SEPTEMBER Miscellaneous II Miscellaneous Financial Claims (Continued) Miscellaneous II 59 ANNUAL FLONS. $ BILLIONS I 1988 I I II III I 1989 IV I I II (C) Life Insurance claims Deferred and unpaid premiums Liab.: Households Asset: Life insurance * Life company reserves Liab.: Life insurance cos Accident and health Policy dividend accum. 4 Asset: Households (D) Nonlife Insurance claims x Liab.: Other insurance cos Asset: Households Farm business Nonfarm noncorp. bus Nonfin. corp, business 9 (E) Intercorporate claims Corporate parent investment in: 17.6 Commercial bank subsidiaries Finance company subsidiaries 11 Asset: Domestic bank affiliates (F) Unallocated assets 8 liabilities X X X X BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION Net total (liab. less assets) Net change in liabilities Foreign Nonfarm noncorp. business U.S. government U.S. govt.-without levels Sponsored credit agencies Monetary authority Commercial banking U.S. commercial banks Domestic affiliates Foreign banking offices Banks in U.S. poss Savings and loan assns Mutual savings banks Credit unions Life insurance companies Finance companies REITs Brokers and dealers Net change in assets Foreign Nonfarm noncorp. business Nonfin. corporate business Sponsored credit agencies Monetary authority Commercial banking U.S. commercial banks Domestic affiliates Foreign banking offices Banks in U.S. possession Savings and loan assns Mutual savings banks Credit unions Life insurance companies Private pension funds REITs Money market funds Brokers and dealers 50

71 Total Claims 60 Total Financial Assets and Liabilities UNADJUSTED NET FLOWS, $ MILLIONS Total Claims UNADJUSTED NET FLOWS, $ MILLIONS I 1989 ANNUAL FLOWS, $ BILLIONS 1 I II III IV 1 I II Total Net Borrowins and Lending in Credit Markets (1) Total net borrowing in credit markets 184, , , , , Domestic nonfinan. sectors 142, , , , , , U.S. government 42,871 19,085 41,659 53,842 37,945 9, Private domestic 99, , , , , , Households 33,909 89,203 80,277 83,387 40, Farm business -4,224 2, ,971-2,696 2, Nonfarm noncorp. bus. 22,314 20,153 20,686 28,743 23,788 18, Corporate business 44, ,162 54,180 50,292 62, State&local governments 3,441 8, ,765 4,987 6, Foreign borr. in U.S. 1,592 1, , Financial sectors 40, ,676 91,484 76, Sponsored credit agencies 10,305 4,363 10,605 19,610 16,219 4, Mortgage pools 13,774 21,974 28,757 28,085 28,797 22, Commercial banks -6, ,219-5,437 4, Bank affiliates , , Savings and loan assns. -4,027 6,544 6,210 11,177 10,836-2, Finance companies 14,263 26,794 7,919 18,037 14,084 13, REITs 1, , « SCO Issuers 10,759 7,872 5, , Total net lending in credit markets 184, , , , , , Digitized for FRASER 21 Private dom. nonfin. sectors -7,990 70,896 83,855 76,677 27,564 57, Households -7,521 68,590 74,257 69,210 39, Nonfarm noncorp. business , , Corporate business ,796 8,730 6,608-10, State & local governments , ,072-1, Foreign 41,529 20,721 11,699 28,385 29,008 3, U.S. government ,281 1, Financial sectors 152, , , , , Sponsored credit agencies 5,270 5,696 8, ,131-9, Mortgage pools 13,774 21,974 28,757 28,085 28,797 22, Monetary authority -5,209 4,823 1,046 9,864-5, Commercial banking 13,954 55,563 38,922 46,884 22,445 50, U.S. commercial banks ,444 39,146 32, , Bank affiliates , Foreign banking offices , ,827-2, Banks in U.S. poss * Private nonbank finance 124, , , ,107 75, Savings institutions 10,816 42,585 42,936 24, , Savings & loan assns. 4,904 32,849 29,916 18,680-1,540-4, Mutual savings banks 4,273 4,495 6,742 2, Credit unions 1,639 5,241 6,278 3, , Insurance sector 63,619 51,848 41,668 55,177 62, Life insurance cos. 22,864 23,786 21, ,988 18, Private pension funds 22,404 13,537 6,060 17,597 21,928 3, St.81oc.govt.rtr.funds ,911 6,840 8,508 12,068 7, Other insurance cos. 8,047 5, ,855 7,987 8, Finance n.e.c. 50,029 12,711-9,442 34,114 48,434 33, Finance companies 8,275 14, ,492 7,988 15, REITs » Mutual funds 5,958 4,103 1, ,161 8, Money market funds 19,110-11,732-6,741 10,022 19,020 11, Brokers and dealers ,550-6,992-3,778 10, SCO Issuers 10,759 7,872 5,767 8,136 9, (1) Excludes corporate equities. Total Liabilities and Their Relation to Total Financial Assets Net flows through credit markets (from 1 preceding table) , , , , Other financial sources: 2 Official foreign exchange -1, ,098 3,812 12, Treasury curr. and SDR ctfs , Deposits at financial insts. 96,970 60,306 50,263 51, , Checkable deposits -21,546 41,689-5,637 28,372-57,760 28, Small time 8 savings dep. 57,061 26,533 18,293 18,725 17,572 16, Money market fund shares 28,591-17, ,861 20, Large time deposits 7, ,603 14,812 19,070 8, Security RPs 28,597 8,828 10,640-24,279 33,464 7, Foreign deposits -3, ,711 2,009 2,010-4, Life insurance reserves 6,449 3,286 2,544 1, , Pension fund reserves 53,674 63,616 62,548 69,578 64,042 38, Interbank claims -21,042 13,448-10,484 21,147-12,665-7, Corporate equities -21,141-30,403-21,996-44, , Security credit 2,008 2,762-1,927 4,879-5,387 1, Trade debt -11,457-1,447 8,943 19,803-10,464 2, Taxes payable 4,100-5,900 3,780-1,600 6,600-5, Noncorp. proprietors equity -20,912-22,506-16,963-32,981-28,414-22, Miscellaneous 14,856 56,427 66,400 39,488 57,219 59, Total financial sources - Floats not incl. in assets 287, , , , , , Check, dep.: U.S. 9ovt. -1, , , ,150-4,223 7,904-7,010 3, Other 1,449-4, Trade credit -23,981 - Liabilities not allocated -9,917-4, ,585-1, as assets 24 Treasury currency Interbank claims 1,493 1,322-4,405-1,274 4, Security RPs 6,918-1, ,523-4, Profit taxes payable , Miscellaneous -7, ,014-30, , Totals allocated to sectors 29 as assets 313, , , , , , LATEST QUARTER BASED ON INCOMPLETE INFORMATION.

72 Total Claims Total Claims Total Financial Assets and Liabilities 51 ANNUAL FLOWS, $ BILLIONS I 1988 I I II III IV 1 I II Total Net Borrowing and Lending in Credit Markets (1) Total net borrowing in credit markets Domestic nonfinan. sectors U.S. government Private domestic Households Farm business Nonfarm noncorp. bus Corporate business StateSlocal governments Foreign borr. in U.S Financial sectors Sponsored credit agencies Mortgage pools Commercial banks Bank affiliates Savings and loan assns Finance companies REITs SCO Issuers 19 Total net lending in credit markets Private dom. nonfin. sectors Households Nonfarm noncorp, business Corporate business State 8 local governments Foreign U.S. government Financial sectors Sponsored credit agencies Mortgage pools Monetary authority Commercial banking U.S. commercial banks Bank affiliates Foreign banking offices Banks in U.S. poss Private nonbank finance Savings institutions Savings 8 loan assns Mutual savings banks Credit unions Insurance sector Life Insurance cos Private pension funds St.Sloc.govt.rtr.funds Other insurance cos Finance n.e.c Finance companies K * REITs Mutual funds Money market funds Brokers and dealers SCO Issuers 53 Total Liabilities and Their Relation to Total Financial. Assets (1]i Excludes corporate equities. Net flows through credit markets (from preceding table) 1 Other financial sources: Official foreign exchange Treasury curr. and SDR ctfs Deposits at financial insts Checkable deposits Small time 8 savings dep Money market fund shares Large time deposits Security RPs Foreign deposits Life insurance reserves Pension fund reserves Interbank claims Corporate equities Security credit Trade debt Taxes payable Noncorp, proprietors equity Miscellaneous Total financial sources - Floats not incl. In assets * Check, dep.: U.S. govt Other Trade credit 23 - Liabilities not allocated as assets M H Treasury currency Interbank claims Security RPs Profit taxes payable Miscellaneous 28 Totals allocated to sectors as assets 29 BILLIONS OF DOLLARS. LATEST QUARTER BASED ON INCOMPLETE INFORMATION. Digitized for FRASER