AFFIRMATIVE ACTION PLANNING AND IMPLEMENTATION

The Bank's affirmative action planning process is carried out at the group and function levels and for the Bank as a whole. The process consists of four phases:

● Collecting and analyzing data on the sex and ethnic composition of the Bank's local labor market to determine whether the representation of minorities and females in various job groups in the Bank coincides with representation in comparable occupations in the Bank's labor market;

• Developing specific strategies, plans and timetables, where warranted, to improve the representation of minorities and females in specific job groups and areas of the Bank;

• Implementing such strategies and plans, and;

• Evaluating and reporting on equal employment opportunity developments and the results of the Bank's affirmative action plans to senior management and to the Board of Directors.

Although strategies and plans may differ from area to area, they should address the following: • Identification and development of talented minorities and females within the function for advancement to senior staff and officer positions;

• Active recruitment and retention initiatives within the function and Bankwide; and

• Other initiatives, such as internships or training efforts, to improve the area's success in meeting its affirmative action goals.

The Personnel Function Officers and the Equal Employment Opportunity Officers monitor progress toward the affirmative action goals set by the individual groups and functions and the Bank as a whole. The Vice President in Charge of the Personnel Function reports to the Board of Directors annually on equal opportunity developments in the Bank.

The Equal Employment Opportunity Officer periodically reports on the Bank's affirmative action efforts to the Committee on Management Development and Compensation, and at year-end, reports to the President and First Vice President on significant EEO matters, including affirmative action achievements and the status of internal and external discrimination complaints. The Equal Employment Opportunity Officer also conducts periodic reviews of personnel practices in the context of equal employment opportunity.

The senior officers in charge of groups and functions report on attainment of their affirmative action goals during the annual review of their area's performance by the Resource Planning

Committee.

BANK PROFILE VS. LOCAL LABOR MARKET

Overall, the Bank continues to compare favorably with the local labor market1 with respect to the representation of minorities and females in the total staff, as well as in management and professional positions in salary grades 10-17.

While comparable labor market data for the officer group do not exist, we continue to believe that the Bank compares favorably with the market in this respect, too. A summary of the Bank's employee profile relative to the labor market in 1991 is presented in Table I.

1 Source: National Planning Data Corporation report: "1991 Labor Force Projections". This Bank's labor market includes: Bronx, Kings, Nassau, New York, Putnam, Queens, Rockland, Staten Island, Suffolk, and Westchester counties in New York; Bergen, Essex, Hudson, Morris, Passaic, Somerset and Union counties in

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AFFIRMATIVE ACTION PROGRESS SINCE 1981

Since 1981, the Bank has made progress in improving the number and percentage of minorities and females at all levels and in broadening their representation in all areas.

Over the past decade, and as indicated in Table II, the number of minorities in the senior staff has nearly doubled, increasing from 84 in 1981 to 167 in 1991. Similarly, the number of females in the senior staff has risen steadily, from 148 in 1981 to 259 at year-end 1991. It is important to note that the growth rates for both minorities and females during this period have been significantly greater than the growth of the overall senior staff population. With respect to the officer group, the number of minority officers has more than doubled and the number of female officers has risen by almost 90%, even though the overall officer population grew only 25% over the past decade.

1991 AFFIRMATIVE ACTION RESULTS

During 1991, the Bank made progress toward achieving its interim affirmative action goals as summarized in Table III. The representation of minorities and females increased at the senior staff level in both absolute number and percentage terms, despite a significant increase in the number of senior staff overall. The Bank essentially attained its 1991 target for minority senior staff and met its target for female officers. On the other hand, the Bank fell somewhat short of reaching its targets for minority officers and senior staff females.

The Bank's affirmative action achievements from 1981 to 1991 are shown in charts A and B

on page 15 of this report.

The soft labor market during the year facilitated our recruiting efforts by creating an expanded pool of minorities and females upon which we were able to draw in connection with Bank Supervision's special hiring initiatives. Outside of Bank Supervision, however, the Bank's unusually low turnover (6.7%) limited the number of openings in the senior staff that could be filled through internal promotions or external recruiting.