Report on the condition of the U.S. banking industry: third quarter, 2003.Beginning with this issue, the Federal Reserve Bulletin will include a new quarterly report summarizing the condition of the banking industry from its broadest perspective, that of the bank holding company. The report presents financial and nonfinancial Adj. 1. nonfinancial - not involving financial matters financial, fiscal - involving financial matters; "fiscal responsibility" data drawn primarily from regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. filings with the Federal Reserve, along with a brief summary of key developments. Bank holding companies gained prominence prominence /prom·i·nence/ (prom´i-nins) a protrusion or projection. frontonasal prominence after the passage of the Bank Holding Company Act of 1956 and have helped enhance the efficiency of the U.S. banking system in a manner consistent with protecting the federal safety net and the financial system. The specific opportunities and restrictions faced by bank holding companies have evolved considerably over the years, largely in response to changing market forces. By owning banks, and in some cases nonbanking subsidiaries, bank holding companies have long been able to conduct a broad range of banking and nonbanking activities in a broad range of geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. markets. They currently control 97 percent of commercial banking assets in the United States--roughly $7.0 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. . Increasingly, bank holding companies have responded to the growing integration of markets for financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. by linking banking and nonbanking activities into larger and more diverse financial enterprises. As a result, bank holding companies now control another $2.0 trillion in nonbanking financial services assets. Net of intercompany claims, bank holding company assets totaled $8.7 trillion at the end of September September: see month. 2003. With nearly $700 billion in equity, bank holding companies are able to mobilize mo·bi·lize v. 1. To make mobile or capable of movement. 2. To restore the power of motion to a joint. 3. To release into the body, as glycogen from the liver. capital in financial markets to support both banking and nonbanking operations. The bank holding company structure has also allowed institutions to call upon a broad array of deposit and nondeposit funding sources. Development of this new report reflects both the Federal Reserve's perspective as the supervisor Same as operating system. of bank holding companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and its broader interest in the overall soundness and stability of the U.S. financial system. The report also responds to frequent public requests for aggregate data on bank holding companies, in particular for large institutions. THE DATA This new report presents aggregate time-series data drawn primarily from regulatory reports submitted to the Federal Reserve each quarter by individual bank holding companies (the FR Y-9C and the FR Y-9LP). The data exclude smaller bank holding companies, generally those with consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: assets less than $150 million, that are not obliged o·blige v. o·bliged, o·blig·ing, o·blig·es v.tr. 1. To constrain by physical, legal, social, or moral means. 2. to file these reports. For those institutions with a multitiered structure, only the top-tier bank holding company is included to avoid double-counting. Data in the tables provide information for three groups of reporting bank holding companies: * Financial Characteristics of All Reporting Bank Holding Companies (table 1) presents data for the overall population of bank holding companies that is required to file regulatory reports, that is, all but the smallest bank holding companies. * Financial Characteristics of Fifty Large Bank Holding Companies (table 2) describes the condition of the largest institutions within the overall population. * Financial Characteristics of All Other Reporting Bank Holding Companies (table 3) summarizes the condition of smaller reporting bank holding companies. The data for the fifty large bank holding companies---at both the institutional and aggregate level---have been analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. internally at the Federal Reserve for many years as part of its ongoing supervisory su·per·vi·sor n. 1. One who supervises. 2. One who is in charge of a particular department or unit, as in a governmental agency or school system. 3. One who is an elected administrative officer in certain U.S. monitoring processes. Experience with this analysis suggests that sole reliance on the raw information from regulatory reports can have certain significant drawbacks. In particular, trends and developments can be obscured by transitory TRANSITORY. That which lasts but a short time, as transitory facts that which may be laid in different places, as a transitory action. changes in the panel of large institutions, by large mergers or divestitures, and by significant restatements of published historical financial results without corresponding amendments to regulatory reports. To address these shortcomings A shortcoming is a character flaw. Shortcomings may also be:
* The data presented in this table are for the same fifty institutions across all periods covered by the report. These institutions are, by and large, the fifty largest companies in terms of consolidated assets as of the most recent period shown. This group excludes a few large bank holding companies at which banking operations account for only a small portion of assets and earnings, because these institutions have different financial characteristics that would distort the aggregates. (1) * In order to present data for the same institutions over time, the underlying data for historical periods are merger-adjusted to include the fifty large bank holding companies as they existed during those periods as well as entities that subsequently merged with them. The merger adjustments are generally made by combining the information for predecessor predecessor - parent institutions regardless of the accounting treatment applied to the transactions, although in some cases other information is required. Large divestitures have also been incorporated into this data. * The data used to generate table 2 reflect revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. and restatements to public financial statements for those fifty institutions that have not necessarily been captured by regulatory reports. (2) When available, restatements that present financial results for historical periods on a merger-adjusted basis were used in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. simply combining historical data. This approach to presenting data for the fifty large bank holding companies has ramifications ramifications npl → Auswirkungen pl for the data for "all reporting companies" and "all other reporting companies." Merger adjustments and restatements have had little effect on the aggregate information for "all" companies, in part because most mergers and acquisitions have involved other bank holding companies; the most significant effects were for 1998 and 1999, for which these adjustments increased the total assets of all reporting bank holding companies about 1.7 percent. The data for "all other" companies excludes historical data for those bank holding companies that were predecessors to the current panel of fifty large companies and thus were added to the totals for that group. Mergers and changes in the panel of fifty large companies have more pronounced effects for data for the fifty large companies and "all other" companies than for the total population, primarily because the merger adjustments have the effect of moving institutions from one panel into the other. The data for "all other" reporting bank holding companies exclude not only the fifty large companies and their predecessors but also the handful of large bank holding companies whose banking operations represent only a small component of the overall enterprise. Excluding the latter companies from the "all other" group allows table 3 to provide a clearer picture of developments at smaller institutions. (3) FINANCIAL CHARACTERISTICS Using these data, the first three tables display principal balance sheet, off-balance-sheet Off balance sheet usually means an asset or debt or financing activity not on the company's balance sheet. It could involve a lease or a separate subsidiary or a contingent liability such as a letter of credit. , and income statement items, along with key financial ratios for each of the three groups of bank holding companies. Taken together, the line items describe the condition of the industry from a longer-term and more aggregate perspective than, for example, an investment analyst focused on near-term near-term adj. Of, for, or involving a short period of time in the near future. returns might provide. The financial ratios have been chosen from a broader set of conventional indicators used by supervisors and others to assess the condition of banking organizations. The ratios have been calculated for the aggregates and thus represent overall measures rather than averages (unweighted) of ratios for individual bank holding companies. (4) NONFINANCIAL CHARACTERISTICS Nonfinancial characteristics of all reporting bank holding companies (table 4) reports key information on several other areas, including the structure, range of activities, and ownership of reporting bank holding companies. The data in table 4 do not incorporate merger adjustments or restatements; indeed, such items are rarely included in published financial statements. Structure and Financial Holding Company Status Table 4 displays the number and total assets of those reporting bank holding companies that qualify as financial holding companies under the Gramm-Leach-Bliley Act The Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial Services Modernization Act, Pub. L. No. 106-102, 113 Stat. 1338 (November 12, 1999), is an Act of the United States Congress which repealed the Glass-Steagall Act, opening up competition . (5) As of the end of September 2003, some 457 bank holding companies qualified as financial holding companies, accounting for more than 80 percent of the assets of all reporting bank holding companies. These figures include eleven institutions that are majority-owned by foreign entities, comprising 10 percent of the indicated financial holding company assets and 8 percent of total bank holding company assets. Banking and Nonbanking Activities As a measure of the volume of banking activities at these bank holding companies, table 4 reports the total assets of insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. commercial banks in the United States owned by bank holding companies. These statistics identify separately the assets of banks that are owned by reporting bank holding companies (those bank holding companies included in the figures reported in table 1, generally those with consolidated assets exceeding $150 million), those owned by smaller bank holding companies (bank holding companies not required to provide consolidated financial information in regulatory filings), and those commercial banks not affiliated af·fil·i·ate v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates v.tr. 1. To adopt or accept as a member, subordinate associate, or branch: with a bank holding company (independent banks). As of the end of September 2003, more than 97 percent of commercial banking assets were owned by reporting bank holding companies. Assets associated with nonbanking activities, and the number of bank holding companies reporting such assets, provide a view of the degree of diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. in bank holding company activities. They are best understood as broad indications rather than precise measures because, following the conventions of the regulatory reports filed with the Federal Reserve, the line items are not strictly comparable across activities. For three of the activities ("thrift institutions Thrift institution An organization formed as a depository for primarily consumer savings. Savings and loan associations and savings banks are thrift institutions. ," "foreign nonbank non·bank adj. Of, relating to, or done by a business or an institution that is not a bank but performs similar services. institutions," and "other nonbank institutions"), the assets shown are those of the nonbank subsidiaries of bank holding companies conducting the respective activity. For the remaining two activities ("insurance" and "securities broker-dealers"), the figures represent the total assets associated with the activity as drawn directly from the bank holding company's consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. . Assets associated with nonbanking activities have experienced some volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the over the period shown, sometimes influenced by a large single transaction or change in legal status. For example, the aggregate assets of thrift thrift: see leadwort. subsidiaries were affected significantly ($37 billion) by the conversion of Charter One's thrift subsidiary to a commercial bank in the second quarter of 2002 and the acquisition by Citigroup Citigroup U.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. of a large thrift institution (Golden State Bancorp, with assets of $55 billion) in the fourth quarter of 2002. Foreign Ownership Table 4 also presents information on the number and total assets of foreign-owned U.S. bank holding companies. As of the end of September 2003, there were twenty-eight such companies controlling roughly $950 billion of total assets. These data include the foreign-owned financial bank holding companies reported above in table 4, but do not include U.S. branches and agencies of foreign institutions. Other Data Total employment at reporting bank holding companies, shown on a full-time-equivalent basis, provides a point of reference both for analyzing trends in productivity and for comparing growth in the banking industry with that experienced by other sectors of the economy. To provide an indication of whether large institutions have accounted for a growing proportion of the industry's assets over time, table 4 shows both the combined assets of the current set of fifty large institutions (as shown in table 2) with the combined assets of the institutions that would have been the fifty large institutions at each historical point in time, and as they existed at that time. Large differences in these total asset figures for each period result primarily from mergers or acquisitions by the largest bank holding companies. As an aid to analyzing these figures, table 4 reports the proportion of total assets at all reporting bank holding companies that were controlled by each "historical point in time" set of fifty large institutions. Overall there is evidence that the proportion of assets controlled by the fifty large institutions has declined modestly in recent years. For example, at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1998 the then-current panel of fifty large institutions controlled 78 percent of the assets of reporting bank holding company assets, although the current panel (as of the end of September 2003) represented a little more than 76 percent. Had current ownership patterns been in place in 1998, however, the large institutions would have controlled a larger share of total assets--nearly 82 percent--rather than the 78 percent shown in the table for that period. SUMMARY OF CURRENT DEVELOPMENTS Integral to this new quarterly report is a brief commentary on the most recent data, key industry developments, and current industry conditions from the perspective of a central banker BANKER, com. law. A banker is one engaged in the business of receiving other persons money in deposit, to be returned on demand discounting other persons' notes, and issuing his own for circulation. One who performs the business usually transacted by a bank. and bank supervisor. U.S. BANKING INDUSTRY DEVELOPMENTS IN THE THIRD QUARTER 2003 Assets of all reporting bank holding companies grew only slightly ($22 billion, or 0.3 percent) during the quarter ending on September 30, 2003. This result follows five consecutive quarters with growth of at least 2 percent and an increase of more than 6 percent in the second quarter of 2003. Institutions continued to acquire loans, residential mortgage loans in particular, at a pace more than sufficient to offset continued declines in commercial and industrial loans. Unused commitments to lend rose $124 billion, twice the pace of $40 billion to $60 billion per quarter seen since the beginning of 2002. The modest pace of asset growth was influenced significantly by declines in holdings of securities and other earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin , which fell $39 billion (1.2 percent) in the third quarter. Declines occurred primarily in longer-maturity and mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. . The notional value Notional Value The total value of a leveraged position's assets. This term is commonly used in the options, futures and currency markets because in them a very little amount of invested money can control a large position (have a large consequence for the trader). of derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. contracts held by bank holding companies, most of which are contracts tied to changes in interest rates, rose a comparatively small amount (about $1.2 trillion, or 1.7 percent) during the quarter. Deposits overall did not grow in the third quarter, although declines in demand deposit accounts were offset by continued strong growth in interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid consumer deposits. Partly because of slower deposit growth, the ratio of loans to deposits--one conventional indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of bank liquidity--has increased materially since March 2003, after declining steadily for more than a year. Earnings remained strong by historical standards. Net income of reporting bank holding companies totaled $27.3 billion in the third quarter, for a return on average assets of 1.26 percent and a return on common equity of 16.46 percent, both at annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. rates. Bank holding companies reduced their provisions for loan losses to $7.1 billion, down substantially from the $11.1 billion recorded a year earlier, as asset quality and the rate of net charge-offs improved. Net interest income grew with the rise in interest-bearing assets, but the net interest margin--the rate of pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern profitability on earning assets, net of funding costs--continued to contract. Gains realized on the sale of investment securities fell to about $0.1 billion. Such gains had contributed $8.1 billion to pretax earnings over the previous four quarters, including $2.6 billion in the second quarter of 2003. Noninterest income rose only slightly, and non-interest expense increased about $1 billion. Efficiency, measured as operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. per dollar of expense, nonetheless improved slightly. Regulatory risk-based capital ratios Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. improved in the quarter, continuing a modest upward trend since early 2002. The leverage ratio has remained within a narrow band around 6.75 percent over this period.
Glossary of Ratios
Financial ratio Importance and derivation
Return on Measures the rate of profitability (net income)
average equity relative to the average size of the bank holding
and return on company as stated in the balance sheet and the
average assets book value of the owners' interest, respectively,
annually adjusted.
Net interest Measures the net return on direct, financial
margin intermediation activities--that is, interest income
earned on interest-bearing assets of the bank
holding company minus interest expense paid on
its interest-bearing liabilities--as a percentage of
average interest bearing assets, annually adjusted.
Because some assets have preferred treatment
under tax law, the net interest margin is presented
on a fully taxable-equivalent basis.
Efficiency ratio Measures the non-interest expense needed to
generate each dollar of revenue, where the latter
is measured as the sum of net interest income and
non-interest income. Nonrecurring income and
expense items are excluded from this ratio.
Net charge-offs Measures the overall rate of credit losses incurred
to loans during the period, showing loan losses (net of any
recoveries) as a percentage of average loans for
the period, annually adjusted.
Nonperforming Measures the portion of the loan portfolio for
assets as a which there is significant risk of credit loss,
percentage of showing nonperforming assets (non-accrual assets,
loans and loans restructured at preferential terms, and
related assets foreclosed real estate or other assets) as a
percentage of loans and foreclosed assets.
Loans to Measures the extent to which loans, the least
deposits liquid of earning assets, are funded with bank
deposits. Bank deposits are considered a more
stable source of funding than nondeposit funding
categories.
Regulatory Tier 1 risk-based capital ratio, showing qualifying
capital ratios capital items as a percentage of risk-weighted
assets.
Total risk-based capital ratio, showing a broader
set of qualifying capital items, including a
portion of the allowance for credit losses, certain
subordinated debt, and similar items as a
percentage of risk-weighted assets.
Leverage ratio, showing qualifying tier 1 capital
as a percentage of average (unweighted) assets for
the quarter.
1. Financial characteristics of all reporting bank holding
companies in the United States
Millions of dollars, except as noted, not seasonally adjusted
Account or ratio (1),(2) 1998 1999 2000
Balance sheet
Total assets 5,697,652 6,203,489 6,682,174
Loans 3,113,858 3,381,185 3,693,932
Securities and money market 1,902,230 2,075,522 2,177,612
Allowance for loan losses -54,588 -55,958 -60,424
Other 736,152 802,740 871,053
Total liabilities 5,261,842 5,740,507 6,170,537
Deposits 3,357,625 3,500,705 3,748,468
Borrowings 1,474,684 1,762,963 1,964,881
Other (3) 429,533 476,839 457,188
Total equity 435,810 462,981 511,637
Off-balance-sheet
Unused commitments to lend (4) 2,755,975 3,016,346 3,216,547
Securitizations outstanding (5) n.a. n.a. n.a.
Derivatives (notional value,
billions) (6) 37,050 37,786 43,483
Income statement
Net income (7) 59,076 76,649 71,994
Net interest income 175,711 187,143 194,950
Provisions for loan losses 27,586 20,067 26,859
Non-interest income 145,330 173,012 195,943
Non-interest expense 211,226 224,044 253,076
Security gains or losses 5,438 3,114 -580
Ratios (percent)
Return on average equity 13.64 17.5 15.13
Return on average assets 1.03 1.30 1.12
Net interest margin (8) 3.61 3.72 3.57
Efficiency ratio (7) 62.72 60.88 62.57
Nonperforming assets to loans
and related assets 0.88 0.84 1.07
Net charge-offs to average loans 0.56 0.54 0.65
Loans to deposits 92.74 96.59 98.55
Regulatory capital ratios
Tier 1 risk-based 8.90 8.78 8.81
Total risk-based 12.09 11.71 11.78
Leverage 6.91 7.00 6.80
Number of reporting bank holding
companies 1,544 1,647 1,727
2002
Account or ratio (1),(2) 2001 2002 Q1
Balance sheet
Total assets 7,437,596 7,928,334 7,451,594
Loans 3,800,969 4,041,486 3,789,784
Securities and money market 2,554,072 2,845,886 2,652,269
Allowance for loan losses -68,506 -73,576 -70,395
Other 1,151,062 1,114,538 1,079,937
Total liabilities 6,856,758 7,294,029 6,860,537
Deposits 4,001,377 4,326,601 3,976,428
Borrowings 2,057,603 2,221,052 2,121,082
Other (3) 797,778 746,376 763,027
Total equity 580,838 634,304 591,056
Off-balance-sheet
Unused commitments to lend (4) 3,394,101 3,558,787 3,395,525
Securitizations outstanding (5) 276,717 295,001 274,727
Derivatives (notional value,
billions) (6) 48,261 57,734 49,548
Income statement
Net income (7) 65,385 84,875 22,995
Net interest income 221,442 242,656 60,135
Provisions for loan losses 39,522 42,922 9,860
Non-interest income 214,163 216,785 52,980
Non-interest expense 297,140 292,423 70,341
Security gains or losses 4,294 4,549 520
Ratios (percent)
Return on average equity 11.79 14.12 15.77
Return on average assets 0.91 1.11 1.23
Net interest margin (8) 3.59 3.72 3.80
Efficiency ratio (7) 65.75 62.39 61.02
Nonperforming assets to loans
and related assets 1.45 1.45 1.51
Net charge-offs to average loans 0.89 1.02 0.94
Loans to deposits 94.99 93.41 95.31
Regulatory capital ratios
Tier 1 risk-based 8.91 9.22 9.23
Total risk-based 11.91 12.30 12.28
Leverage 6.65 6.69 6.82
Number of reporting bank holding
companies 1,842 1,979 1,884
2002
Account or ratio (1),(2) Q2 Q3 Q4
Balance sheet
Total assets 7,622,211 7,774,589 7,928,334
Loans 3,828,071 3,908,876 4,041,486
Securities and money market 2,761,633 2,847,792 2,845,886
Allowance for loan losses -70,898 -71,990 -73,576
Other 1,103,405 1,089,912 1,114,538
Total liabilities 7,011,607 7,154,781 7,294,029
Deposits 4,050,023 4,157,680 4,326,601
Borrowings 2,176,897 2,260,184 2,221,052
Other (3) 784,687 736,918 746,376
Total equity 610,604 619,808 634,304
Off-balance-sheet
Unused commitments to lend (4) 3,457,688 3,518,506 3,558,787
Securitizations outstanding (5) 282,556 287,846 295,001
Derivatives (notional value,
billions) (6) 52,614 55,464 57,734
Income statement
Net income (7) 21,424 21,575 18,886
Net interest income 60,773 60,083 61,666
Provisions for loan losses 10,372 11,149 11,541
Non-interest income 52,853 53,830 57,121
Non-interest expense 71,312 71,574 79,178
Security gains or losses 467 1,936 1,672
Ratios (percent)
Return on average equity 14.29 14.24 12.27
Return on average assets 1.13 1.12 0.95
Net interest margin (8) 3.77 3.68 3.64
Efficiency ratio (7) 62.14 62.72 65.53
Nonperforming assets to loans
and related assets 1.53 1.55 1.45
Net charge-offs to average loans 1.01 1.09 1.04
Loans to deposits 94.52 94.02 93.41
Regulatory capital ratios
Tier 1 risk-based 9.30 9.33 9.22
Total risk-based 12.35 12.38 12.30
Leverage 6.84 6.79 6.69
Number of reporting bank holding
companies 1,907 1,946 1,979
2003
Account or ratio (1),(2) Q1 Q2 Q3
Balance sheet
Total assets 8,163,880 8,659,585 8,681,392
Loans 4,109,280 4,261,743 4,330,285
Securities and money market 2,999,458 3,207,324 3,167,860
Allowance for loan losses -73,430 -73,689 -72,935
Other 1,128,572 1,264,207 1,256,183
Total liabilities 7,515,262 7,986,903 8,002,034
Deposits 4,420,203 4,565,966 4,567,312
Borrowings 2,311,501 2,504,690 2,532,945
Other (3) 783,559 916,247 901,777
Total equity 648,619 672,682 679,358
Off-balance-sheet
Unused commitments to lend (4) 3,620,450 3,656,787 3,780,873
Securitizations outstanding (5) 298,258 285,290 290,332
Derivatives (notional value,
billions) (6) 63,993 68,222 69,412
Income statement
Net income (7) 24,617 26,377 27,273
Net interest income 62,210 63,157 63,763
Provisions for loan losses 8,573 8,429 7,102
Non-interest income 57,403 61,969 62,130
Non-interest expense 74,384 77,760 78,601
Security gains or losses 1,848 2,669 123
Ratios (percent)
Return on average equity 15.59 16.24 16.46
Return on average assets 1.22 1.26 1.26
Net interest margin (8) 3.57 3.48 3.41
Efficiency ratio (7) 62.19 62.62 62.45
Nonperforming assets to loans
and related assets 1.44 1.34 1.23
Net charge-offs to average loans 0.84 0.80 0.75
Loans to deposits 92.97 93.34 94.81
Regulatory capital ratios
Tier 1 risk-based 9.33 9.33 9.50
Total risk-based 12.43 12.35 12.51
Leverage 6.72 6.75 6.73
Number of reporting bank holding
companies 2,036 2,064 2,099
Footnotes appear on p. 54.
2. Financial characteristics of fifty large bank holding companies
in the United States
Millions of dollars, except as noted, not seasonally adjusted
Account or ratio (2),(9) 1998 1999 2000
Balance sheet
Total assets 4,659,300 5,036,242 5,403,677
Loans 2,491,066 2,642,645 2,874,605
Securities and money market 1,565,234 1,739,572 1,818,384
Allowance for loan losses -45,405 -45,676 -48,886
Other 648,405 699,701 759,574
Total liabilities 4,315,619 4,672,539 5,002,366
Deposits 2,547,090 2,635,918 2,795,936
Borrowings 1,359,006 1,586,963 1,777,223
Other (3) 409,523 449,657 429,207
Total equity 343,680 363,703 401,310
Off-balance-sheet
Unused commitments to lend (4) 2,633,035 2,870,114 3,065,766
Securitizations outstanding (5) n.a. n.a. n.a.
Derivatives (notional value,
billions) (6) 36,830 37,746 43,416
Income statement
Net income (7) 47,920 63,666 58,740
Net interest income 137,759 144,899 149,469
Provisions for loan losses 25,057 17,173 23,163
Non-interest income 131,304 154,432 176,086
Non-interest expense 178,174 185,306 210,813
Security gains or losses 5,028 2,219 -577
Ratios (percent)
Return on average equity 14.46 18.68 15.80
Return on average assets 1.06 1.33 1.13
Net interest margin (8) 3.62 3.59 3.42
Efficiency ratio (7) 62.76 60.46 62.49
Nonperforming assets to loans
and related assets 0.90 0.89 1.16
Net charge-offs to average loans 0.65 0.61 0.74
Loans to deposits 97.8 100.26 102.81
Regulatory capital ratios
Tier 1 risk-based 8.18 8.06 8.14
Total risk-based 11.63 11.29 11.42
Leverage 6.53 6.61 6.40
2002
Account or ratio (2),(9) 2001 2002 Q1
Balance sheet
Total assets 5,744,978 6,064,763 5,745,176
Loans 2,878,582 3,044,217 2,867,961
Securities and money market 2,009,620 2,219,849 2,091,269
Allowance for loan losses -55,705 -59,304 -57,256
Other 912,480 860,002 843,202
Total liabilities 5,309,929 5,595,206 5,301,457
Deposits 2,966,151 3,191,827 2,928,301
Borrowings 1,821,140 1,958,071 1,888,772
Other (3) 522,638 445,308 484,384
Total equity 435,049 469,557 443,719
Off-balance-sheet
Unused commitments to lend (4) 3,228,396 3,376,837 3,225,671
Securitizations outstanding (5) 269,056 279,632 264,341
Derivatives (notional value,
billions) (6) 47,833 57,320 49,195
Income statement
Net income (7) 50,209 65,774 18,396
Net interest income 160,633 176,025 44,054
Provisions for loan losses 34,434 36,981 8,441
Non-interest income 167,237 165,028 40,798
Non-interest expense 216,247 206,919 50,087
Security gains or losses 4,099 4,530 550
Ratios (percent)
Return on average equity 12.01 14.66 16.82
Return on average assets 0.89 1.11 1.27
Net interest margin (8) 3.34 3.51 3.61
Efficiency ratio (7) 63.03 59.39 57.92
Nonperforming assets to loans
and related assets 1.53 1.55 1.59
Net charge-offs to average loans 1.03 1.19 1.09
Loans to deposits 97.05 95.38 97.94
Regulatory capital ratios
Tier 1 risk-based 8.17 8.44 8.53
Total risk-based 11.55 11.93 11.98
Leverage 6.19 6.18 6.41
2002
Account or ratio (2),(9) Q2 Q3 Q4
Balance sheet
Total assets 5,876,226 5,967,990 6,064,763
Loans 2,884,545 2,937,869 3,044,217
Securities and money market 2,185,677 2,242,620 2,219,849
Allowance for loan losses -57,451 -58,089 -59,304
Other 863,455 845,589 860,002
Total liabilities 5,420,451 5,508,907 5,595,206
Deposits 2,978,617 3,049,852 3,191,827
Borrowings 1,937,981 2,014,019 1,958,071
Other (3) 503,853 445,037 445,308
Total equity 455,776 459,083 469,557
Off-balance-sheet
Unused commitments to lend (4) 3,284,565 3,335,157 3,376,837
Securitizations outstanding (5) 270,738 274,012 279,632
Derivatives (notional value,
billions) (6) 52,220 55,011 57,320
Income statement
Net income (7) 16,662 16,589 14,132
Net interest income 44,037 42,886 45,048
Provisions for loan losses 9,041 9,660 9,839
Non-interest income 40,561 41,238 42,431
Non-interest expense 50,382 50,472 55,961
Security gains or losses 501 1,815 1,711
Ratios (percent)
Return on average equity 14.81 14.71 12.39
Return on average assets 1.14 1.13 0.93
Net interest margin (8) 3.56 3.42 3.46
Efficiency ratio (7) 58.81 59.97 62.64
Nonperforming assets to loans
and related assets 1.64 1.67 1.55
Net charge-offs to average loans 1.20 1.29 1.21
Loans to deposits 96.84 96.33 95.38
Regulatory capital ratios
Tier 1 risk-based 8.56 8.58 8.44
Total risk-based 12.01 12.05 11.93
Leverage 6.38 6.30 6.18
2003
Account or ratio (2),(9) Q1 Q2 Q3
Balance sheet
Total assets 6,218,488 6,587,358 6,602,255
Loans 3,076,496 3,169,051 3,222,303
Securities and money market 2,330,538 2,491,611 2,463,266
Allowance for loan losses -58,811 -58,671 -57,738
Other 870,265 985,367 974,423
Total liabilities 5,740,910 6,094,577 6,103,322
Deposits 3,247,658 3,360,811 3,353,428
Borrowings 2,023,682 2,161,137 2,188,266
Other (3) 469,571 572,628 561,629
Total equity 477,579 492,782 498,933
Off-balance-sheet
Unused commitments to lend (4) 3,428,029 3,454,070 3,574,947
Securitizations outstanding (5) 280,938 271,626 274,294
Derivatives (notional value,
billions) (6) 63,536 67,636 68,800
Income statement
Net income (7) 19,196 20,488 20,898
Net interest income 44,897 45,229 46,018
Provisions for loan losses 7,438 7,198 5,871
Non-interest income 43,654 47,134 46,331
Non-interest expense 52,268 54,583 55,653
Security gains or losses 1,774 2,351 -4
Ratios (percent)
Return on average equity 16.48 17.18 17.18
Return on average assets 1.24 1.28 1.26
Net interest margin (8) 3.36 3.27 3.23
Efficiency ratio (7) 59.35 59.56 60.29
Nonperforming assets to loans
and related assets 1.52 1.44 1.30
Net charge-offs to average loans 1.01 0.95 0.87
Loans to deposits 94.73 94.29 96.09
Regulatory capital ratios
Tier 1 risk-based 8.54 8.50 8.69
Total risk-based 12.05 11.93 12.11
Leverage 6.19 6.20 6.20
Footnotes appear on p. 54
3. Financial characteristics of all other reporting bank holding
companies in the United States
Millions of dollars, except as noted, not seasonally adjusted
Account or ratio (1),(10) 1998 1999 2000
Balance sheet
Total assets 1,038,352 1,129,948 1,235,593
Loans 622,792 722,963 801,476
Securities and money market 336,996 315,986 336,210
Allowance for loan losses -9,183 -10,085 -11,306
Other 87,747 101,084 109,214
Total liabilities 946,223 1,033,372 1,128,097
Deposits 810,535 858,101 945,865
Borrowings 115,678 154,126 156,719
Other (3) 20,010 21,145 25,513
Total equity 92,129 96,576 107,497
Off-balance-sheet
Unused commitments to lend (4) 122,940 134,742 142,244
Securitizations outstanding (5) n.a. n.a. n.a.
Derivatives (notional value,
billions) (6) 220 28 54
Income statement
Net income (7) 11,156 12,777 13,173
Net interest income 37,952 41,923 45,233
Provisions for loan losses 2,529 2,798 3,552
Non-interest income 14,026 16,774 17,921
Non-interest expense 33,052 37,103 40,393
Security gains or losses 410 826 -10
Ratios (percent)
Return on average equity 10.97 13.26 13.03
Return on average assets 0.93 1.17 1.12
Net interest margin (8) 3.59 4.28 4.26
Efficiency ratio (7) 62.53 62.47 62.36
Nonperforming assets to loans
and related assets 0.80 0.68 0.76
Net charge-offs to average loans 0.26 0.30 0.32
Loans to deposits 76.84 84.25 84.73
Regulatory capital ratios
Tier 1 risk-based 12.71 12.19 11.85
Total risk-based 14.56 13.64 13.32
Leverage 8.58 8.59 8.54
Number of other reporting bank
holding companies 1,450 1,569 1,661
2002
Account or ratio (1),(10) 2001 2002 Q1
Balance sheet
Total assets 1,342,168 1,473,676 1,351,276
Loans 854,003 922,058 854,910
Securities and money market 374,251 426,518 388,488
Allowance for loan losses -12,350 -13,725 -12,634
Other 126,264 138,825 120,511
Total liabilities 1,221,660 1,337,584 1,228,367
Deposits 1,020,435 1,113,678 1,031,305
Borrowings 174,059 191,264 169,856
Other (3) 27,166 32,643 27,206
Total equity 120,508 136,092 122,908
Off-balance-sheet
Unused commitments to lend (4) 157,841 173,370 160,139
Securitizations outstanding (5) 4,567 4,942 4,313
Derivatives (notional value,
billions) (6) 92 92 91
Income statement
Net income (7) 14,449 17,471 4,333
Net interest income 47,754 52,925 12,702
Provisions for loan losses 4,599 5,246 1,172
Non-interest income 23,142 25,422 6,161
Non-interest expense 45,581 48,298 11,512
Security gains or losses 796 729 117
Ratios (percent)
Return on average equity 12.45 13.68 14.26
Return on average assets 1.13 1.26 1.30
Net interest margin (8) 4.16 4.25 4.25
Efficiency ratio (7) 63.45 60.72 59.78
Nonperforming assets to loans
and related assets 0.96 1.02 0.99
Net charge-offs to average loans 0.43 0.46 0.42
Loans to deposits 83.69 82.79 82.9
Regulatory capital ratios
Tier 1 risk-based 12.18 12.42 12.42
Total risk-based 13.77 14.06 14.01
Leverage 8.74 8.87 8.84
Number of other reporting bank
holding companies 1,786 1,923 1,828
2002
Account or ratio (1),(10) Q2 Q3 Q4
Balance sheet
Total assets 1,387,618 1,438,498 1,473,676
Loans 877,183 903,958 922,058
Securities and money market 395,584 414,560 426,518
Allowance for loan losses -12,962 -13,433 -13,725
Other 127,812 133,414 138,825
Total liabilities 1,258,645 1,304,736 1,337,584
Deposits 1,053,692 1,089,210 1,113,678
Borrowings 175,970 182,908 191,264
Other (3) 28,984 32,619 32,643
Total equity 128,973 133,762 136,092
Off-balance-sheet
Unused commitments to lend (4) 163,515 173,637 173,370
Securitizations outstanding (5) 4,350 4,178 4,942
Derivatives (notional value,
billions) (6) 94 111 92
Income statement
Net income (7) 4,313 4,546 4,279
Net interest income 13,291 13,601 13,331
Provisions for loan losses 1,194 1,394 1,486
Non-interest income 6,005 6,425 6,831
Non-interest expense 11,982 12,083 12,721
Security gains or losses 164 263 185
Ratios (percent)
Return on average equity 13.78 13.93 12.82
Return on average assets 1.26 1.29 1.18
Net interest margin (8) 4.27 4.35 4.12
Efficiency ratio (7) 62.37 59.89 62.7
Nonperforming assets to loans
and related assets 0.97 1.02 1.02
Net charge-offs to average loans 0.42 0.45 0.53
Loans to deposits 83.25 82.99 82.79
Regulatory capital ratios
Tier 1 risk-based 12.53 12.53 12.42
Total risk-based 14.15 14.16 14.06
Leverage 8.96 8.97 8.87
Number of other reporting bank
holding companies 1,851 1,890 1,923
2003
Account or ratio (1),(10) Q1 Q2 Q3
Balance sheet
Total assets 1,524,324 1,573,027 1,579,127
Loans 942,132 970,420 982,695
Securities and money market 455,722 469,932 463,122
Allowance for loan losses -14,133 -14,437 -14,660
Other 140,603 147,112 147,969
Total liabilities 1,383,241 1,427,604 1,434,463
Deposits 1,148,153 1,176,226 1,183,022
Borrowings 199,814 214,372 216,293
Other (3) 35,275 37,006 35,148
Total equity 141,082 145,423 144,664
Off-balance-sheet
Unused commitments to lend (4) 182,842 190,487 193,821
Securitizations outstanding (5) 4,998 5,208 5,119
Derivatives (notional value,
billions) (6) 103 109 104
Income statement
Net income (7) 4,688 4,916 4,773
Net interest income 13,581 13,775 13,578
Provisions for loan losses 1,051 1,137 1,087
Non-interest income 6,877 7,561 7,230
Non-interest expense 12,690 13,328 12,993
Security gains or losses 301 431 130
Ratios (percent)
Return on average equity 13.54 13.81 13.49
Return on average assets 1.26 1.28 1.22
Net interest margin (8) 4.06 4.01 3.88
Efficiency ratio (7) 61.5 63.05 62.18
Nonperforming assets to loans
and related assets 1.13 1.09 1.02
Net charge-offs to average loans 0.32 0.37 0.36
Loans to deposits 82.06 82.5 83.07
Regulatory capital ratios
Tier 1 risk-based 12.57 12.53 12.53
Total risk-based 14.25 14.23 14.24
Leverage 8.96 8.94 8.94
Number of other reporting bank
holding companies 1,980 2,008 2,043
Footnotes appear on p. 54.
4. Nonfinancial characteristics of all reporting
bank holding companies in the United States
Millions of dollars, except as noted, not seasonally adjusted
Account 1998 1999 2000
Bank holding companies that
qualify as financial
holding companies (11, 12)
Domestic
Number n.a. n.a. 299
Total assets n.a. n.a. 4,494,331
Foreign-owned (13)
Number n.a. n.a. 9
Total assets n.a. n.a. 502,506
Total U.S. commercial bank
assets (14) 5,391,206 5,673,702 6,129,534
By ownership
Reporting bank holding
companies 4,947,929 5,226,027 5,657,210
Other bank holding companies 234,260 226,916 229,274
Independent banks 209,017 220,759 243,050
Assets associated with
nonbanking activities (12, 15)
Insurance n.a. n.a. n.a.
Securities broker-dealers n.a. n.a. n.a.
Thrift institutions 121,640 117,699 102,218
Foreign nonbank institutions 169,851 78,712 132,629
Other nonbank institutions 758,668 879,793 1,234,714
Number of bank holding companies
engaged in nonbanking activities
(12, 15)
Insurance n.a. n.a. n.a.
Securities broker-dealers n.a. n.a. n.a.
Thrift institutions 58 57 50
Foreign nonbank institutions 21 25 25
Other nonbank institutions 514 559 633
Foreign-owned bank holding
companies (13)
Number 19 18 21
Total assets 296,852 535,024 636,669
Employees of reporting bank
holding companies
(full-time equivalent) 1,748,549 1,775,418 1,859,930
Assets of fifty large bank
holding companies (9, 17)
Fixed panel (from table 2) 4,632,892 5,036,242 5,403,677
Fifty large as of reporting date 4,442,175 4,809,785 5,319,129
Percent of all reporting
bank holding companies 78.00 77.50 79.60
2002
Account 2001 2002 Q1
Bank holding companies that
qualify as financial
holding companies (11, 12)
Domestic
Number 388 434 408
Total assets 5,436,691 5,916,901 5,464,392
Foreign-owned (13)
Number 10 11 10
Total assets 621,442 616,254 642,143
Total U.S. commercial bank
assets (14) 6,415,909 6,897,447 6,327,268
By ownership
Reporting bank holding
companies 5,942,575 6,429,738 5,862,784
Other bank holding companies 230,464 227,017 225,000
Independent banks 242,870 240,692 239,483
Assets associated with
nonbanking activities (12, 15)
Insurance 426,462 350,709 381,860
Securities broker-dealers n.a. 630,851 693,080
Thrift institutions 91,170 107,422 92,954
Foreign nonbank institutions 138,977 145,344 144,175
Other nonbank institutions 1,674,267 561,636 506,276
Number of bank holding companies
engaged in nonbanking activities
(12, 15)
Insurance 143 86 91
Securities broker-dealers n.a. 47 47
Thrift institutions 38 32 40
Foreign nonbank institutions 32 37 33
Other nonbank institutions 743 880 748
Foreign-owned bank holding
companies (13)
Number 23 26 24
Total assets 764,411 762,901 785,199
Employees of reporting bank
holding companies
(full-time equivalent) 1,985,981 1,992,559 1,990,550
Assets of fifty large bank
holding companies (9, 17)
Fixed panel (from table 2) 5,744,978 6,064,763 5,745,176
Fifty large as of reporting date 5,732,621 6,032,000 5,732,131
Percent of all reporting
bank holding companies 77.10 76.10 76.90
2002
Account Q2 Q3 Q4
Bank holding companies that
qualify as financial
holding companies (11, 12)
Domestic
Number 411 415 434
Total assets 5,643,297 5,707,041 5,916,901
Foreign-owned (13)
Number 11 11 11
Total assets 656,344 689,804 616,254
Total U.S. commercial bank
assets (14) 6,572,090 6,762,780 6,897,447
By ownership
Reporting bank holding
companies 6,107,717 6,296,385 6,429,738
Other bank holding companies 226,558 226,602 227,017
Independent banks 237,815 239,793 240,692
Assets associated with
nonbanking activities (12, 15)
Insurance 386,590 338,384 350,709
Securities broker-dealers 695,814 703,738 630,851
Thrift institutions 53,938 56,063 107,422
Foreign nonbank institutions 149,674 144,814 145,344
Other nonbank institutions 466,371 493,780 561,636
Number of bank holding companies
engaged in nonbanking activities
(12, 15)
Insurance 92 91 86
Securities broker-dealers 47 47 47
Thrift institutions 37 37 32
Foreign nonbank institutions 35 38 37
Other nonbank institutions 798 835 880
Foreign-owned bank holding
companies (13)
Number 24 24 26
Total assets 787,998 827,867 762,901
Employees of reporting bank
holding companies
(full-time equivalent) 2,000,084 1,979,260 1,992,559
Assets of fifty large bank
holding companies (9, 17)
Fixed panel (from table 2) 5,876,226 5,967,990 6,064,763
Fifty large as of reporting date 5,861,542 5,951,115 6,032,000
Percent of all reporting
bank holding companies 76.90 76.50 76.10
2003
Account Q1 Q2 Q3
Bank holding companies that
qualify as financial
holding companies (11, 12)
Domestic
Number 437 440 446
Total assets 6,061,528 6,433,656 6,450,389
Foreign-owned (13)
Number 11 11 11
Total assets 648,017 732,695 729,244
Total U.S. commercial bank
assets (14) 7,031,480 7,325,659 7,296,533
By ownership
Reporting bank holding
companies 6,578,067 6,863,642 6,845,365
Other bank holding companies 222,670 222,997 217,039
Independent banks 230,743 239,020 234,130
Assets associated with
nonbanking activities (12, 15)
Insurance 360,056 384,182 398,533
Securities broker-dealers 709,839 656,919 667,512
Thrift institutions 126,375 124,640 143,578
Foreign nonbank institutions 154,812 160,515 162,789
Other nonbank institutions 524,610 740,129 755,999
Number of bank holding companies
engaged in nonbanking activities
(12, 15)
Insurance 94 96 104
Securities broker-dealers 48 50 48
Thrift institutions 31 31 29
Foreign nonbank institutions 38 40 39
Other nonbank institutions 911 944 988
Foreign-owned bank holding
companies (13)
Number 26 27 28
Total assets 799,540 946,847 947,932
Employees of reporting bank
holding companies
(full-time equivalent) 2,000,168 2,019,953 2,029,709
Assets of fifty large bank
holding companies (9, 17)
Fixed panel (from table 2) 6,218,488 6,587,358 6,602,255
Fifty large as of reporting date 6,203,000 6,587,000 6,602,255
Percent of all reporting
bank holding companies 76.00 76.10 76.10
Note. All data are as of the most recent period shown. The historical
figures may not match those in earlier versions of this table because
of mergers, significant acquisitions or divestitures, or revisions of
bank holding company restatements to financial reports. Data for
the most recent period may not include all late-filing institutions.
(1.) Covers top-tier bank holding companies except (1) those with
consolidated assets of less than $150 million and with only one
subsidiary bank and (2) multibank holding companies with consolidated
assets of less than $150 million, with no debt outstanding to the
general public and not engaged in certain nonbanking activities.
(2.) Data for all reporting bank holding companies and the fifty large
bank holding companies reflect merger adjustments to the fifty large
bank holding companies. Merger adjustments account for mergers,
acquisitions, other business combinations and large divestitures
that occurred during the time period covered in the tables so that
the historical information on each of the fifty underlying
institutions depicts, to the greatest extent possible, the
institutions as they exist in the most recent period. In general,
adjustments for mergers among bank holding companies reflect the
combination of historical data from predecessor bank holding
companies.
The data for the fifty large bank holding companies have also been
adjusted as necessary to match the historical figures in each
company's most recently available financial statement.
In general, the data are not adjusted for changes in generally
accepted accounting principles.
(3.) Includes minority interests in consolidated subsidiaries.
(4.) Includes credit card lines of credit as well as commercial
lines of credit.
(5.) Includes loans sold to securitization vehicles in which
bank holding companies retain some interest, whether through
recourse or seller-provided credit enhancements or by servicing
the underlying assets. Securitization data were first collected
on the FR Y-9C report for June 2001.
(6.) The notional value of a derivative is the reference amount
of an asset on which an interest rate or price differential is
calculated. The total notional value of a bank holding company's
derivatives holdings is the sum of the notional values of each
derivative contract regardless of whether the bank holding
company is a payor or recipient of payments under the contract.
The actual cash flows and fair market values associated with
these derivative contracts are generally only a small fraction
of the contract's notional value.
(7.) Income statement subtotals for all reporting bank holding
companies and the fifty large bank holding companies exclude
extraordinary items, the cumulative effects of changes in
accounting principles, and discontinued operations at the fifty
large institutions and therefore will not sum to Net income.
The efficiency ratio is calculated excluding nonrecurring income
and expenses.
(8.) Calculated on a fully-taxable-equivalent basis.
(9.) In general, the fifty large bank holding companies are the
fifty largest bank holding companies as measured by total
consolidated assets for the latest period shown. Excludes a
few large bank holding companies whose commercial banking
operations account for only a small portion of assets and earnings.
(10.) Excludes predecessor bank holding companies that were
subsequently merged into other bank holding companies in the
panel of fifty large bank holding companies. Also excludes those
bank holding companies excluded from the panel of fifty large
bank holding companies because commercial banking operations
represent only a small part of their consolidated operations.
(11.) Excludes qualifying institutions that are not reporting
bank holding companies.
(12.) No data related to financial holding companies and only
some data on nonbanking activities were collected on the FR
Y-9C report before implementation of the Gramm-Leach-Bliley
Act in 2000.
(13.) A bank holding company is considered "foreign-owned" if
it is majority-owned by a foreign entity. Data for foreign-owned
companies do not include data for branches and agencies of foreign
banks operating in the United States.
(14.) Total assets of insured commercial banks in the United
States as reported in the commercial bank Call Report (FFIEC 031
or 041, Reports of Condition and Income). Excludes data for a
small number of commercial banks owned by other commercial banks
that file separate call reports yet are also covered by the
reports filed by their parent banks. Also excludes data for mutual
savings banks.
(15.) Data for thrift, foreign nonbank, and other nonbank
institutions are total assets of each type of subsidiary as reported
in the FR Y-9LP report. Data cover those subsidiaries in which the
top-tier bank holding company directly or indirectly owns or
controls more than 50 percent of the outstanding voting stock and
that has been consolidated using generally accepted accounting
principles. Data for securities broker-dealers are net assets
(that is, total assets, excluding intercompany transactions) of
broker-dealer subsidiaries engaged in activities pursuant to the
Gramm-Leach-Bliley Act, as reported on schedule HC-M of the FR Y-9C
report. Data for insurance activities are all insurance-related
assets held by the bank holding company as reported on schedule
HC-I of the FR Y-9C report.
Beginning in 2002:Q1, insurance totals exclude intercompany
transactions and subsidiaries engaged in credit-related insurance
or those engaged principally in insurance agency activities.
Beginning in 2002:Q2, insurance totals include only newly authorized
insurance activities under the Gramm-Leach-Bliley Act.
(16.) Aggregate assets of thrift subsidiaries were affected
significantly by the conversion of Charter One's thrift subsidiary
(with assets of $37 billion) to a commercial bank in the second
quarter of 2002 and the acquisition by Citigroup of Golden State
Bancorp (a thrift institution with assets of $55 billion) in the
fourth quarter of 2002.
(17.) Changes over time in the total assets of the time-varying
panel of fifty large bank holding companies are attributable to
(1) changes in the companies that make up the panel and (2) to a
small extent, restatements of financial reports between periods.
n.a. Not available.
SOURCE: Federal Reserve Reports FR Y-9C and FR Y-9LP, Federal
Reserve National Information Center, and published financial reports.
(1.) The composition of the panel is revisited each spring to address changes in the asset-size rankings, and more frequently as necessary to maintain a full panel of fifty institutions when mergers occur between institutions already in the panel. (2.) The Federal Reserve may require a bank holding company to file amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. regulatory reports under certain circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , including instances in which there are differences in interpretation of generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), if previous reports contained significant errors, or if restatements occur as a result of internal or external audits. Institutions may also choose to submit revised reports for earlier historical periods, if they restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state their financial results for any reason. (3.) Because neither table 2 nor table 3 includes the few large bank holding companies whose commercial banking operations represent a small part of consolidated operations, the figures reported in these two tables sum to something less than the total figures presented in table 1. (4.) The manner in which these ratios are calculated may differ slightly from conventions used in the Bank Holding Company Performance Report (BHCPR). In general, these differences arise because information in tables 1, 2, and 3 incorporates data from published financial statements as well as regulatory filings with the Federal Reserve. (5.) In addition to reporting bank holding companies, other types of entities can qualify for financial holding company status, including small (nonreporting) bank holding companies and foreign banking organizations. As of December December: see month. 2002, about 190 such institutions qualified as financial holding companies. |
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