Data on reserves and the monetary base have been revised to reflect the results of annual reviews of break factors and seasonal factors. Revisions to seasonal factors start in August 1998, and they are the major source of revisions to the data. Revisions to break factors begin in January 2004, and revisions to break-adjusted data do not exceed $200 million in any maintenance period. The maximum revision to total reserves, nonborrowed reserves, required reserves, and the monetary base (Table 1) in any maintenance period was $1.1 billion; most revisions were less than $500 million.
Break factors remove discontinuities (or �breaks�) associated with regulatory changes in reserve requirements, such as the annual indexations of the low-reserve tranche and the reserve requirement exemption levels. 1 Seasonal factors for required reserves and the surplus vault cash component of the monetary base have been reestimated with the revised break-adjusted data.
A more detailed description of the methods for constructing break factors and seasonal factors is available under �Annual Review of Break and Seasonal Factors� on the Federal Reserve�s web site (http://www.federalreserve.gov/releases/h3/hist/). Historical data, updated each week, are available there as well. For paid electronic access to current and historical data, call STAT-USA at 1-800-782-8872 or 202-482-1986.
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. For all reserve maintenance periods ending in 2005, the low-reserve tranche is $47.6 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). For all reserve maintenance periods ending in 2005, the reserve exemption level is $7.0 million. Return to text
FEDERAL RESERVE STATISTICAL RELEASE H.3 (502) Table 1 For Release at 4:30 p.m. Eastern Time June 9, 2005 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE Adjusted for changes in reserve requirements(1) Seasonally adjusted unless noted otherwise Millions of dollars -------------------------------------------------------------------------------------------------------------------------------------------- Reserves of depository institutions Borrowings of depository institutions from the Federal Reserve, NSA -------------------------------------------------- -------------------------------------------------- Date total(2) non- required excess Monetary total primary secondary seasonal borrowed(3) NSA(4) base(5) -------------------------------------------------------------------------------------------------------------------------------------------- Month(6) 2004-May 45638 45526 43994 1644 734416 112 9 0 103 June 46276 46096 44389 1887 739315 180 40 0 140 July 46460 46216 44758 1702 745842 245 42 0 203 Aug. 45510 45258 43973 1537 747491 251 18 0 233 Sep. 46520 46185 44941 1579 751539 335 97 0 238 Oct. 46427 46248 44709 1719 754174 179 15 0 164 Nov. 46393 46210 44623 1771 758500 183 105 0 78 Dec. 46761 46698 44849 1911 758601 63 11 0 52 2005-Jan. 47436 47374 45694 1742 761135 62 39 0 23 Feb. 45949 45907 44420 1529 764284 42 26 0 16 Mar. 46810 46761 45003 1807 766490 49 13 0 37 Apr. 46613 46482 44935 1678 767395 132 52 0 80 May p 45914 45774 44393 1520 768339 139 6 0 133 2 weeks ending(7) 2005-Apr. 13 45781 45607 43980 1801 766207 175 112 0 63 27 47485 47391 45857 1627 768359 94 6 0 88 May 11 46152 46029 44771 1380 768044 123 7 0 117 25 45273 45127 43776 1497 767348 146 5 0 141 June 8p 46972 46818 45141 1831 771193 154 7 0 148 --------------------------------------------------------------------------------------------------------------------------------------------- 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. Prorated averages of biweekly averages. 7. Averages of daily figures. p preliminary 1 H.3 (502) Table 2 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE Not adjusted for changes in reserve requirements(1) Not seasonally adjusted Millions of dollars ------------------------------------------------------------------------------------------------------------------------------------------- Reserves of depository institutions Vault cash(5) -------------------------------------- -------------------------------------- Reserve used to Net carryover Date total(2) nonborrowed required Monetary balances total satisfy surplus(7) of reserve base(3) with F.R. required balances(8) Banks(4) reserves(6) ------------------------------------------------------------------------------------------------------------------------------------------- Month(9) 2004-May 46334 46223 44691 743750 14082 43023 32253 10770 June 45711 45531 43824 749469 13194 43592 32517 11075 July 46835 46591 45133 757062 13374 44458 33461 10997 Aug. 45872 45620 44334 757175 12418 45042 33454 11588 Sep. 46532 46197 44953 760994 13044 44840 33489 11352 Oct. 45747 45568 44028 763663 12010 46659 33736 12923 Nov. 45652 45469 43881 768803 12116 45570 33536 12035 Dec. 46812 46750 44901 774745 12017 47259 34795 12463 2005-Jan. 50397 50335 48656 773204 14032 47668 36365 11303 Feb. 46703 46661 45174 772467 12255 47640 34447 13193 Mar. 46033 45983 44226 773828 12043 46726 33989 12736 Apr. 46704 46572 45026 775315 12962 45319 33742 11577 May p 46505 46366 44985 775646 12039 45575 34466 11109 2 weeks ending(10) 2005-Apr. 13 43233 43058 41432 774909 11065 45381 32168 13213 298 27 50287 50193 48659 775934 15087 45232 35200 10033 310 May 11 45027 44904 43646 774191 11268 45456 33759 11697 307 25 47901 47755 46404 775308 12709 45867 35192 10676 -53 June 8p 45959 45805 44128 779103 11888 45112 34072 11041 -22 -------------------------------------------------------------------------------------------------------------------------------------------- 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. 9. Prorated averages of biweekly averages. 10. Averages of daily figures. p preliminary 1 H.3 (502) Table 3 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE Adjusted for changes in reserve requirements(1) Not seasonally adjusted Millions of dollars --------------------------------------------------------------------------------- Reserves of depository institutions --------------------------------------- Date total(2) nonborrowed required(3) Monetary base(4) ---------------------------------------------------------------------------------- Month(5) 2004-May 46174 46062 44530 733500 June 45523 45343 43636 738967 July 46596 46352 44894 746584 Aug. 45589 45338 44052 746684 Sep. 46221 45886 44642 750580 Oct. 45402 45223 43684 752840 Nov. 45256 45073 43485 758364 Dec. 46486 46423 44574 764630 2005-Jan. 50328 50266 48586 763736 Feb. 46678 46636 45149 763214 Mar. 45993 45944 44187 764682 Apr. 46635 46503 44957 766315 May p 46410 46270 44890 766906 2 weeks ending(6) 2005-Apr. 13 43184 43009 41383 765368 27 50202 50109 48575 767452 May 11 44939 44816 43558 765108 25 47803 47657 46306 766904 June 8p 45855 45701 44024 770207 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. 5. Prorated averages of biweekly averages. 6. Averages of daily figures. p preliminary 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.