Keystone National Bank W EXHIBIT 6 Keystone National BonitaAsset and Liability Management Committee Consensus View oi Local and National Economic Conditions WW LOAN DEMAND . Loan demand in 1991, especially in real estate and consumer credit card activity, will pick up in our market area in response to increased population as three major national rms an electronics company, an automotive parts and accessories manufacturer, and a building materials supplierwill open new facilities and hire about 2,700 employees during the year. Nationally we see a' recession in the rst two quarters, followed by reasonable recov- ery in the latter half of 1991. \\ INTEREST RATES In spite of an economic slowdown in the United States, business activity is stronger than ' anticipated in our region. Easy monetary policy suggests that the Fed will attempt to in- crease money growth d'uring the year to stem the recession. Short-term interest rates will fall about 200 basis points, then rise from 50 to 100 basis points above those levels. New York prime should average from 8.50 to 9.00 percent, while 3-month Treasury bill and CD rates should move up to 6.50 to 7.00 percent. All rate bets are off if there is a continuing . recession into 1992. If the recession continues or the. recovery is weak, all interest rates will continue to fall. Keystone National Bank will pay competitive deposit rates at the high end to enlarge its base of core deposits. It will not match rates offered by some of the thrifts in our market area but will pay rates above those of our bank competitors. |37 _-_---_--_'''\"_