Federal Reserve Statistical Release, H.3, Aggregate Reserves of Depository Institutions and the Monetary Base; title with eagle logo links to Statistical Release home page

Release Date: June 8, 2000

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For release at
4:30 PM EST
H.3 (502)								June 8, 2000

SPECIAL NOTICE
Data for reserves and the monetary base have been updated to incorporate
revisions to historical data that are not seasonally adjusted (n.s.a.) and to
the factors that adjust for discontinuities in required reserves, including
annual indexations of the low reserve tranche and the reserve requirement
exemption levels (break factors).  Starting in February 1984, seasonal factors
for required reserves and the surplus vault cash component of the monetary
base have been re-estimated using the revised break-adjusted n.s.a.
data.(fn.1)  

The revisions to break-adjusted, seasonally adjusted data for any maintenance
period generally were small, with a few exceptions that amount to about $600
million for reserves and about $1.5 billion for the monetary base in
individual periods.  The historical revisions to n.s.a. data for reserves and
the monetary base reflect a re-aggregation of revised data from depository
institutions. 
  
The revisions to the break-adjusted data for reserves and the monetary base
that result from  annual indexations begin in January 1999.  The actual 2000
low reserve tranche and reserve requirement exemption levels are a bit lower
than those estimated in early 1999.  The differences between the actual and
the previously estimated low reserve tranche and exemption levels result in
upward adjustments to the 1999 data of less than $200 million. 

To make 2000 data comparable with historical data, the 2000 data have been
break-adjusted using estimates of the low reserve tranche and reserve
requirement exemption that will take effect in January 2001.  The estimate for
the low reserve tranche for 2001 was updated by extrapolating the actual
growth rate of seasonally adjusted net transaction deposits from June 1999 to
April 2000, and that for the reserve requirement exemption was updated by
extrapolating the actual growth rate of total reservable liabilities over the
same period.  The updated estimates of $43.7 million for the low reserve
tranche and $5.1 million for the exemption level are close to preliminary
estimates made last year, resulting in revisions to the 2000 data under $20
million. 

Revised historical data for measures of reserves will soon be available in
printed form from the Monetary and Reserve Analysis Section, Division of
Monetary Affairs, Mail Stop 72, Board of Governors of the Federal Reserve
System, NW, Washington, DC 20551, (202) 452-3062.  See the note at the end of
table 3 of this release for information on how to obtain current and
historical data for the reserve aggregates and the monetary base as well as
their components through the Federal Reserve's web site and other electronic
means. 

	1. The Monetary Control Act of 1980 established a reserve ratio of 3
percent against the first $25 million in net transaction deposits (low
reserve tranche) at each depository institution.  Since 1982, the low
reserve tranche has been indexed each January by 80 percent of the
previous year's (June 30 to June 30) growth rate of net transaction
deposits at all depository institutions.  At present, the low reserve
tranche is $44.3 million. 
    Under the Garn-St Germain Depository Institutions Act of 1982, the first
$2 million of reservable liabilities of each depository institution was
exempted from reserve requirements.  Since 1983, this exemption amount has
been indexed each year by 80 percent of the rate of increase of the
reservable liabilities at all depository institutions over the preceding
year (June 30 to June 30).  At present, the reserve exemption level is
$5.0 million. 
    Both of these indexations take effect each year in a reserve maintenance
period that begins around January 1 for weekly respondents to the FR 2900
report. 
1
   
  
  
  
 FEDERAL RESERVE STATISTICAL RELEASE
  
 H.3 (502)
 Table 1	                                                                                            For Release at 4:30 p.m. Eastern Time
                                                                                                                           June 8, 2000
 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
 Adjusted for changes in reserve requirements1                                                                                              
 Averages of daily figures, seasonally adjusted unless noted otherwise
 Millions of dollars
 -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         
                               Reserves of depository institutions                            Borrowings of depository institutions from
                                                                                                         the Federal Reserve, NSA
                      ---------------------------------------------------                 --------------------------------------------------
                                                                                                                                  Special 
      Date             total2    nonborrowed3      required   excess NSA4     Monetary       total6     adjustment    seasonal    Liquidity
                                                                                base5                                             Facility7
 -------------------------------------------------------------------------------------------------------------------------------------------
  1999-May                 44381        44254           43159         1222       533813          127           39           89             
       June                42758        42613           41463         1295       536549          145           18          127             
                                                                                                                                           
       July                42035        41726           40911         1124       540488          309           83          226             
       Aug.                41910        41566           40750         1160       544354          344           72          271             
       Sep.                41772        41434           40563         1209       550333          338           56          282             
                                                                                                                                           
       Oct.                41339        41058           40189         1150       557847          281           52          221            8
       Nov.                41560        41325           40231         1330       569432          236          157           71            7
       Dec.                41742        41422           40434         1308       591188          320          179           67           74
                                                                                                                                           
  2000-Jan.                43113        42739           41088         2025       591965          374          296           31           46
       Feb.                41635        41527           40521         1113       573419          108           45           44           19
       Mar.                40453        40274           39244         1209       571162          179          101           71            7
                                                                                                                                           
       Apr.                40919        40615           39768         1152       572449          304          184          120            0
       May  p              41347        40985           40390          957       573445          362           86          276             
 Two weeks ending
  2000-Apr.  5             41093        40904           39461         1632       572332          189          104           85            0
            19             40322        39954           39238         1083       572286          368          264          104            0
                                                                                                                                           
       May   3             41601        41325           40581         1019       572708          276          120          156             
            17             40573        40271           39660          913       572704          303           65          238             
            31p            42066        41626           41078          987       574344          440          100          340             
                                                                                                                                           
---------------------------------------------------------------------------------------------------------------------------------------------  
 1. Reserves and monetary base figures incorporate adjustments for discontinuities, or "breaks", associated with regulatory changes in reserve 
    requirements. For more information, see Table 3.
 2. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break-adjusted required reserves plus unadjusted excess 
    reserves. (Also, see footnote 2 on Table 2 and footnote 2 on Table 3.)
 3. Seasonally  adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, break-adjusted total reserves less unadjusted total
    borrowings of depository institutions from the Federal Reserve.
 4. Excess reserves NSA equals unadjusted total reserves (Table 2, column 1) less adjusted required reserves (Table 2, column 3).
 5. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally adjusted, break-adjusted total reserves plus (2)
    the seasonally adjusted currency component of the money stock plus (3), for all quarterly reporters on the "Report of Transaction 
    Accounts, Other Deposits and Vault Cash" and for all those weekly reporters whose vault cash exceeds their required reserves, the 
    seasonally adjusted, break-adjusted difference between current vault cash and the amount applied to satisfy current reserve requirements. 
    (Also see footnote 3 on Table 2 and footnote 4 on table 3.)
 6. Total borrowing includes borrowing under the extended credit program.
 7. Borrowing at the discount window under the terms and conditions established for Century Date Change Special Liquidity Facility in effect
    from October 1, 1999 through April 7, 2000.

 p--preliminary
1        
   
   
   
 H.3 (502)
 Table 2
 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
 Not adjusted for changes in reserve requirements1 
 Averages of daily figures, not seasonally adjusted
 Millions of dollars
 -------------------------------------------------------------------------------------------------------------------------------------------
  
                    Reserves of depository institutions                                          Vault cash5
                  --------------------------------------                            --------------------------------------
                                                                            Reserve                  used to                 Net carryover
      Date              total2   nonborrowed     required  Monetary base3  balances       total      satisfy      surplus7    of reserve
                                                                           with F.R.                required                  balances8
                                                                            Banks4                  reserves6
 -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                
  1999-May                 44828        44700        43606       539942        10019        42590        34809         7781
       June                42331        42186        41036       542732         8467        42624        33864         8760
                                                                                                                           
       July                41762        41452        40637       548006         7745        44081        34017        10064
       Aug.                41702        41358        40542       550773         7721        44603        33981        10622
       Sep.                41314        40976        40105       555336         7646        44448        33669        10779
                                                                                                                           
       Oct.                40733        40451        39583       562681         6777        47039        33956        13083
       Nov.                40970        40735        39641       578975         6283        50830        34688        16142
       Dec.                41655        41334        40347       607934         5263        60630        36392        24238
                                                                                                                           
  2000-Jan.                44232        43859        42207       604626         5169        74015        39063        34952
       Feb.                42095        41987        40982       579134         5078        63764        37017        26747
       Mar.                39742        39563        38533       576917         6515        48946        33227        15719
                                                                                                                           
       Apr.                40584        40280        39433       577910         7078        46454        33507        12947
       May  p              41548        41186        40591       579385         7655        44634        33893        10740
 Two weeks ending
  2000-Apr.  5             40516        40327        38883       577090         7186        48613        33330        15283           61
            19             39600        39232        38516       578091         6715        47144        32885        14259           84
                                                                                                                                        
       May   3             41869        41593        40849       578052         7491        44594        34378        10216           71
            17             40842        40540        39929       579048         7615        44116        33227        10889           91
            31p            42185        41745        41198       580008         7730        45160        34455        10705          115
                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------   
 1. Reflects actual required reserves, with no adjustments to eliminate the effects of discontinuities, or "breaks", associated with 
    regulatory changes in reserve requirements.
 2. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve requirements.
 3. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total reserves plus (2) required clearing balances
    and adjustments to compensate for float at Federal Reserve Banks plus (3) the currency component of the money stock plus (4), for all 
    quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters whose 
    vault cash exceeds their required reserves, the difference between current vault cash and the amount applied to satisfy current reserve 
    requirements. Currency and vault cash figures are measured over computation periods ending on Mondays.
 4. Excludes required clearing balances and adjustments to compensate for float and includes other off-balance sheet "as-of" adjustments.
 5. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by those banks and thrifts that are not exempt
    from reserve requirements. Dates refer to the maintenance periods in which the vault cash can be used to satisfy reserve requirements.
 6. All vault cash held during the lagged computation period by "bound" institutions (i.e., those whose required reserves exceed their vault 
    cash) plus the amount of vault cash applied during the maintenance period by "nonbound" institutions (i.e., those whose vault cash 
    exceeds their required reserves) to satisfy current reserve requirements.
 7. Total vault cash eligible to satisfy reserve requirements, held by depository institutions not exempt from reserve requirements, minus the
    amount used to satisfy reserve requirements.
 8. Consists of carryover only at depository institutions maintaining reserves on the basis of two-week maintenance periods. Reflects excess (+) 
    or deficit (-) reserves eligible to be carried forward into the two-week reserve maintenance period ending on the date shown.
 p--preliminary
1
  
  
  
 H.3 (502)
 Table 3
 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
 Adjusted for changes in reserve requirements1 
 Averages of daily figures, not seasonally adjusted
 Millions of dollars
 ---------------------------------------------------------------------------------
  
                      Reserves of depository institutions
                    ---------------------------------------
      Date              total2   nonborrowed    required3    Monetary base4
 ----------------------------------------------------------------------------------
  1999-May                 44925        44798        43703         533142
       June                42446        42301        41151         535874
                                                                         
       July                41899        41590        40775         541017
       Aug.                41861        41518        40702         543894
       Sep.                41496        41158        40287         548405
                                                                         
       Oct.                40935        40653        39785         555697
       Nov.                41195        40960        39866         572012
       Dec.                41889        41568        40580         600632
                                                                         
  2000-Jan.                44229        43856        42204         596899
       Feb.                42102        41994        40989         571789
       Mar.                39754        39575        38545         570029
                                                                         
       Apr.                40600        40296        39449         571090
       May  p              41568        41206        40611         572552
 Two weeks ending
  2000-Apr.  5             40530        40341        38897         570107
            19             39616        39249        38533         571315
                                                                         
       May   3             41885        41610        40866         571251
            17             40861        40559        39948         572139
            31p            42207        41767        41220         573244
                                                                         
  
 p--preliminary		pe--preliminary estimate
 1. Figures reflect adjustments for discontinuities, or "breaks", associated with 
    regulatory changes in reserve requirements.
 2. Break-adjusted total reserves equal break-adjusted required reserves (Table 3, 
    column 3) plus excess reserves NSA (Table 1, column 5).
 3. To adjust required reserves for discontinuities due to regulatory changes in 
    in reserve requirements, a multiplicative procedure is used to estimate what 
    required reserves would have been in past periods had current reserve 
    requirements been in effect. Break-adjusted required reserves are equal to 
    break-adjusted required reserves against transactions deposits.
 4. The break-adjusted monetary base equals (1) break-adjusted total reserves plus 
    (2) the (unadjusted) currency component of the money stock plus (3), for all 
    quarterly reporters on the "Report of Transaction Accounts, Other Deposits and 
    Vault Cash" and for all those weekly reporters whose vault cash exceeds their 
    required reserves, the break-adjusted difference between current vault cash and 
    the amount applied to satisfy current reserve requirements.
 Note: Current and historical H.3 data are available each week on the Federal Reserve 
       Board's web site (http://www.federalreserve.gov/). Monthly data are available 
       back to January 1959, and weekly data are available back to January 1975 for most 
       series. For information about individual copies or subscriptions, contact 
       Publications Services at the Federal Reserve Board (phone 202-452-3245, 
       fax 202-728-5886). For paid electronic access to current and historical data, 
       call STAT-USA at 1-800-782-8872 or 202-482-1986. 

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Last update: June 8, 2000