Federal Reserve Statistical Release, H.4.1, Factors Affecting Reserve Balances; title with eagle logo links to Statistical Release home page
Release Date: December 19, 2002
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For Release at 
4:30 P.M. Eastern time 
December 19, 2002



The H.4.1 Statistical Release ("Factors Affecting Reserve Balances of Depository 
Institutions and Condition Statement of Federal Reserve Banks") has been reformatted to 
accommodate the Federal Reserve's switch from arranging matched sale-purchase 
transactions to arranging reverse repurchase agreements.

The Federal Reserve began using reverse repurchase agreements, instead of matched 
sale-purchase transactions, on December 13.  Reverse repurchase agreements°sales of 
securities under agreements to repurchase°are fundamentally equivalent to matched 
sale-purchase transactions, and they are commonly used in financial markets.  Like 
matched sale-purchase transactions, reverse repurchase agreements will be arranged with 
foreign official and international accounts and with primary dealers. 

The accounting treatment of reverse repurchase agreements differs from that of matched 
sale-purchase transactions.  Matched sale-purchase transactions were accounted for as an 
outright sale, and the securities sold under these agreements were removed from 
securities held outright.  In contrast, reverse repurchase agreements are accounted for as 
financing transactions in which the securities pledged remain in total outright holdings of 
securities by the Federal Reserve Banks, and a liability is recognized until the transaction 
matures.

For the week ended December 18, the weekly average data for Treasury bills held 
outright incorporate the depressing effect of the matched sale-purchase transaction 
arranged on December 12 and the shift to reverse repurchase agreements for the 
remaining days in the statement week.  One-week and one-year changes shown in table 1 
and in table 2 for Treasury bills held outright and other measures that include these 
holdings are quite large relative to typical movements because of the accounting changes.



FEDERAL RESERVE Statistical Release

H.4.1
Factors Affecting Reserve Balances of Depository Institutions and
Condition Statement of Federal Reserve Banks
                                                                                          December 19, 2002
1. Factors Affecting Reserve Balances of Depository Institutions
Millions of dollars
                                                                   Averages of daily figures
Reserve Bank credit, related items, and                   Week ended   Change from week ended     Wednesday
reserve balances of depository institutions at           Dec 18, 2002 Dec 11, 2002 Dec 19, 2001 Dec 18, 2002
Federal Reserve Banks

Reserve Bank Credit                                         692,654    +  21,905    +  65,300      698,649
 Securities held outright                                   626,479    +  16,564    +  72,238      629,407       
    U.S. Treasury (1)                                       626,469    +  16,564    +  72,238      629,397
       Bills (2)                                            223,757    +  16,558    +  37,582      226,682
       Notes and bonds, nominal (2)                         389,219            0    +  31,813      389,219
       Notes and bonds, inflation-indexed (2)                12,242            0    +   2,531       12,242
       Inflation compensation (3)                             1,250    +       5    +     311        1,253
    Federal agency (2)                                           10            0            0           10      
 Repurchase agreements(4)                                    28,179    +   6,179    -   8,414       30,000
 Loans to depository institutions                                55    -     154    +       8           45
    Adjustment credit                                             6    -     158    -       6            2
    Seasonal credit                                              49    +       3    +      14           43
    Extended credit                                               0            0            0            0
 Float                                                          -61    -   1,535    -     791          994
 Other Federal Reserve assets                                38,003    +     853    +   2,261       38,202
Gold stock                                                   11,043            0    -       2       11,043
Special drawing rights certificate account                    2,200            0            0        2,200
Treasury currency outstanding (5)                            34,469    +      14    +   1,471       34,469
       
Total factors supplying reserve funds                       740,365    +  21,918    +  66,768      746,360
                                                                   
Currency in circulation(5)                                  675,416    +   1,126    +  44,989      678,678
Reverse repurchase agreements (6)                            18,202    +  18,202    +  18,202       21,905
   Foreign official and international accounts               18,202    +  18,202    +  18,202       21,905
   Dealers                                                        0            0            0            0
Treasury cash holdings                                          370    -       6    -      70          360
Deposits with F.R.Banks, other than reserve balances         17,217    +   2,210    +   1,707       17,880       
  U.S. Treasury, general account                              5,959    +   1,852    +      95        6,595
  Foreign official                                              148    +      10    -     142          172
  Service-related                                            10,900    +     346    +   1,766       10,900
     Required clearing balances                              10,450    +     168    +   1,869       10,450
     Adjustments to compensate for float                        450    +     177    -     103          450
  Other                                                         210    +       2    -      11          213
Other liabilities and capital                                20,203    +     404    +   2,237       19,907

Total factors, other than reserve balances,                                        
   absorbing reserve funds                                  731,409    +  21,937    +  67,066      738,729

Reserve balances with Federal Reserve Banks                   8,957    -      18    -     297        7,631
                                                                

Memo (off-balance-sheet items):
  Marketable securities held in custody for foreign
         official and international accounts(2,7)           846,299    +  10,830    ------         847,705
     U.S. Treasury                                          685,293    +   5,307    ------         685,673
     Federal agency                                         161,005    +   5,522    ------         162,032
  Securities lent to dealers                                    151    +      98    -   2,775          675   


Note: Components may not sum to totals because of rounding.
---   Not available.

1  Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury securities. Daily average data for U.S. Treasury bills 
   held outright were net of $      2,926 million in matched sale-purchase transactions, all of which were with foreign official and international 
   accounts. No matched sale-purchase transactions were outstanding on the Wednesday statement date.
2  Face value of the securities. 
3  Compensation that adjusts for the effects of inflation on the original face value of inflation-indexed securities. 
4  Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.
5  Estimated. 
6  Cash value of agreements, which are collateralized by U.S. Treasury securities.
7  Includes U.S. Treasury STRIPS and other zero coupon bonds at face value.


Sources: Federal Reserve Banks and the U.S. Department of the Treasury.


2. Consolidated Statement of Condition of All Federal Reserve Banks
Millions of Dollars
                                              Eliminations                          Change Since
                                                  from       Wednesday        Wednesday        Wednesday
Assets, liabilities, and capital             consolidation Dec 18, 2002     Dec 11, 2002     Dec 19, 2001

Assets
Gold certificate account                                        11,039                0        -       6
Special drawing rights certificate account                       2,200                0                0
Coin                                                             1,035        +       3        -      44
Securities, repurchase agreements, and loans                   659,452        +  18,624        +  66,114
   Securities held outright                                    629,407        +  20,450        +  73,813
      U.S. Treasury (1)                                        629,397        +  20,450        +  73,813       
         Bills (2)                                             226,682        +  20,444        +  40,198
         Notes and bonds, nominal (2)                          389,219                0        +  30,765
         Notes and bonds, inflation-indexed (2)                 12,242                0        +   2,531
         Inflation compensation (3)                              1,253        +       6        +     318
      Federal agency (2)                                            10                0                0
   Repurchase agreements (4)                                    30,000        -     750        -   7,700    
   Loans                                                            45        -   1,076        +       1
Items in process of collection                    (1,219)        8,800        -   1,316        -     301
Bank premises                                                    1,534        +       2        +      16
Other assets (5)                                                36,540        +     661        +   1,013
      Total assets                                (1,219)      720,601        +  17,976        +  66,794
                          
Liabilities
Federal Reserve notes, net of F.R. Bank holdings               645,599        +   3,155        +  42,663
Reverse repurchase agreements (6)                               21,905        +  21,905        +  21,905
Deposits                                              (0)       24,923        -   6,948        +     148       
  Depository institutions                                       17,943        -   8,082        +   1,171
  U.S. Treasury, general account                                 6,595        +   1,089        -     579
  Foreign official                                                 172        +      33        -     450
  Other                                               (0)          213        +      12        +       5
Deferred availability cash items                  (1,219)        8,266        -     257        -     132
Other liabilities and accrued dividends (7)                      2,418        -      33        -     187
      Total liabilities                           (1,219)      703,111        +  17,821        +  64,397
                          
Capital Accounts
Capital paid in                                                  8,376        +      17        +   1,021
Surplus                                                          7,312                0        +     587
Other capital accounts                                           1,802        +     138        +     790
      Total capital                                             17,489        +     154        +   2,396


Note: Components may not sum to totals because of rounding.

1  Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury securities.
2  Face value of the securities.
3  Compensation that adjusts for the effects of inflation on the original face value of inflation-indexed securities. 
4  Cash value of agreements, which are collatealized by U.S. Treasury and federal agency securites.
5  Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. 
6  Cash value of agreements, which are collateralized by U.S. Treasury securities.
7  Includes exchange-translation account reflecting the daily revaluation at market exchange rates of 
   foreign exchange commitments.



3. Maturity Distribution of Loans and Securities,  December 18, 2002
Millions of dollars
                                    U.S. Treasury           Federal agency                      Reverse
Maturity             Loans           securities (1)          securities           Repurchase   repurchase
                                              Weekly                    Weekly    agreements(2)agreements(2)
                                  Holdings    changes      Holdings    changes    
Within 15 days              43       47,253   +  27,298            0           0       23,000       21,905
16 days to 90 days           3      134,262   -   7,573            0           0        7,000            0
91 days to 1 year            0      140,816   +     719           10   +      10     ------      ------
Over 1 to 5 years     ------        173,935           0            0   -      10     ------      ------
Over 5 to 10 years    ------         53,295   +       2            0           0     ------      ------
Over 10 years         ------         79,836   +       3            0           0     ------      ------
                   		 	
All                         45      629,397   +  20,450           10           0       30,000      21,905

Note: Components may not sum to totals because of rounding.
---   Not applicable.

1  Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face 
   value of such securities. 
2  Cash value of agreements classified by remaining maturity of the agreements.



4. Statement of Condition of Each Federal Reserve Bank on  December 18, 2002
Millions of dollars
                                                                                                                                                            Kansas                 San
Assets, liabilities, and capital               Total     Boston   New York Philadelphia Cleveland   Richmond   Atlanta    Chicago   St. Louis  Minneapolis   City      Dallas   Francisco

Assets                        
Gold certificate account                      11,039        533      4,364        430        522        819        926      1,080        346        179        309        485      1,046
Special drawing rights certificate acct.       2,200        115        874         83        104        147        166        212         71         30         66         98        234
Coin                                           1,035         48         34         63         47        147        111        131         61         37         69        168        119
Securities, repurchase agreements,
      and loans                              659,452     36,062    277,647     24,202     34,727     49,089     44,822     74,071     22,393      9,848     18,615     13,973     54,001
   Securities held outright                  629,407     36,062    247,647     24,202     34,727     49,089     44,816     74,069     22,380      9,839     18,605     13,969     54,001
      U.S. Treasury (1)                      629,397     36,061    247,643     24,202     34,727     49,088     44,816     74,068     22,380      9,839     18,605     13,968     54,000
         Bills (2)                           226,682     12,988     89,191      8,717     12,507     17,680     16,141     26,676      8,060      3,544      6,701      5,031     19,448
         Notes and bonds(3)                  402,715     23,073    158,453     15,486     22,220     31,409     28,675     47,392     14,320      6,295     11,904      8,938     34,551
         Federal agency (2)                       10          1          4          0          1          1          1          1          0          0          0          0          1
      Repurchase agreements(4)                30,000          0     30,000          0          0          0          0          0          0          0          0          0          0
      Loans                                       45          0          0          0          0          0          6          2         13          9         10          5          1
Items in process of collection                10,019        541      1,071        520        585        934        950        489        631        486        647        332      2,833
Bank premises                                  1,534         91        185         49        152        130        279        116         43        126         50        140        173
Other assets(5)                               36,540      1,907     12,776      1,162      2,473      5,443      2,444      3,738        960        626        951        800      3,261
Interdistrict settlement account                   0    - 6,192    +29,305    - 5,243    - 5,555    - 1,991    - 4,059    -16,025    - 3,540    + 4,004    - 2,765    +13,829    - 1,768
          Total Assets                       721,820     33,105    326,255     21,266     33,056     54,718     45,640     63,812     20,965     15,335     17,942     29,824     59,900

Note: Components may not sum to totals because of rounding.

1  Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury securities.
2  Face value of the securities.
3  Includes the original face value of inflation-indexed securities and compensation that adjusts for the effects of inflation on the original face 
   value of such securities. 
4  Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.
5  Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates.




4. Statement of Condition of Each Federal Reserve Bank on  December 18, 2002
Millions of dollars
                                                                                                                                                            Kansas                 San
Assets, liabilities, and capital                Total     Boston   New York Philadelphia Cleveland   Richmond   Atlanta    Chicago   St. Louis  Minneapolis   City      Dallas   Francisco

Liabilities                         
Federal Reserve notes outstanding             762,435     33,280    330,896     25,599     32,861     54,768     58,851     64,873     22,181     15,157     20,091     36,703     67,177
  Less: notes held by F.R. Banks              116,836      4,674     28,286      7,451      4,772      9,889     18,189      8,654      3,490      1,998      4,249      9,028     16,156
    Federal Reserve notes, net                645,599     28,605    302,609     18,149     28,089     44,879     40,662     56,219     18,691     13,159     15,842     27,674     51,021
Reverse repurchase agreements (1)              21,905      1,255      8,619        842      1,209      1,708      1,560      2,578        779        342        648        486      1,879
Deposits                                       24,923      1,513      9,439      1,190      1,590      2,930      1,301      2,177        625        412        514        707      2,525
  Depository institutions                      17,943      1,509      2,546      1,188      1,586      2,871      1,298      2,173        623        411        512        704      2,521
  U.S. Treasury, general account                6,595          0      6,595          0          0          0          0          0          0          0          0          0          0
  Foreign official                                172          2        148          1          3          7          2          3          1          1          1          1          3
  Other                                           213          2        149          1          2         51          1          1          1          0          1          3          1
Deferred availability cash items                9,485        672      1,005        471        571        693        864        798        347        678        424        479      2,483
Other liabilities and accrued                 
  dividends (2)                                 2,418        146        738        105        143        263        193        255        104         83         96         91        200
   
    Total liabilities                         704,330     32,191    322,410     20,757     31,601     50,473     44,579     62,028     20,545     14,675     17,524     29,438     58,109
                              
Capital                    
Capital paid in                                 8,376        436      1,801        242        702      2,073        475        851        199        340        201        186        870
Surplus                                         7,312        418      1,504        221        665      1,757        535        793        149        118        191        164        796
Other capital                                   1,802         59        541         46         88        415         51        140         72        202         26         37        126
     Total liabilities and capital            721,820     33,105    326,255     21,266     33,056     54,718     45,640     63,812     20,965     15,335     17,942     29,824     59,900
                              

Note: Components may not sum to totals because of rounding.

1  Cash value of agreements, which are collateralized by U.S. Treasury securities.
2  Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments.


5. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts
Millions of dollars



Federal Reserve notes and collateral        Wednesday
                                          Dec 18, 2002
              
Federal Reserve notes, net of F.R. 
 Bank holdings                                645,599 
Collateral held against Federal Reserve            
   notes                                      645,599
   Gold certificate account                    11,039
   Special drawing rights                 
     certificate account                        2,200
   U.S. Treasury and agency securities   
     pledged (1)                              632,361
   Other eligible assets                            0

Memo:
Total U.S. Treasury and agency 
       securities (1)                         659,407
   Less:face value of securities under
         reverse repurchase agreements         21,913
      U.S. Treasury and agency securities
             eligible to be pledged           637,494
   

Note: Components may not sum to totals because of rounding.

1  Includes face value of U.S. Treasury and agency securities held outright, compensation to adjust for the effects of inflation on the original face 
   value of inflation-indexed securities, and cash value of repurchase agreements.


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