6. Statement of Condition of Each Federal Reserve Bank. accessible
H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks [title]: No description
6. Statement of Condition of Each Federal Reserve Bank [title]: No description
Millions of dollars [title]: No description
Assets, liabilities, and capital [column]: No description
Total [column]: No description
Boston [column]: No description
New York [column]: No description
Philadelphia [column]: No description
Cleveland [column]: No description
Richmond [column]: No description
Atlanta [column]: No description
Assets [row]: No description
Gold certificates and special drawing rights certificates - sub-row of Assets [row]: The gold certificates and drawing rights certificates account includes the receipts issued to the Reserve Banks by the Treasury against its gold holdings. In return, the Reserve Banks issue an equal value of credits to the general account of the Treasury, computed at the statutory price of $42.22 per troy ounce. Because nearly all of the gold held by the Treasury has been monetized in this fashion, the Federal Reserve Banks' gold certificate account of $11 billion represents the nation's entire official gold stock.
Coin - sub-row of Assets [row]: This item indicates the value of coin on hand at Federal Reserve Banks. The Reserve Banks buy coin at face value from the U.S. Treasury's Bureau of the Mint in order to fill orders from depository institutions.
Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]: Securities include outright holdings of U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities, including securities lent to dealers under the overnight securities lending facility; refer to table 1A. Mortgage-backed securities are guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Unamortized premiums and discounts are the differences between the purchase price and the face value of the securities that have not been amortized. For U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities, amortization is on an effective-interest basis. Repurchase agreements reflect the cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. Loans include "Primary credit," "Secondary credit," "Seasonal credit," credit extended through the "Paycheck Protection Program Liquidity Facility," and "Other credit extensions."
Net portfolio holdings of MS Facilities 2020 LLC (Main Street Lending Program) - sub-row of Assets [row]:
On July 6, 2020, the Main Street Lending Program announced it was operationally ready to purchase participations in loans originated by eligible lenders, and on July 15 2020, the MS Facilities 2020 LLC began purchasing those loan participations. The Federal Reserve Bank of Boston extended credit to the MS Facilities 2020 LLC under the authority of section 13(3) of the Federal Reserve Act. MS Facilities 2020 LLC is a special purpose vehicle that was formed to help ensure credit flows to small and medium-sized businesses under the Main Street New Loan Facility, Main Street Private Loan Facility, and the Main Street Expanded Loan Facility. The assets of the MS Facilities 2020 LLC and the amount provided by U.S. Treasury as credit protection to the FRBB are used to secure the loan from the FRBB.
The Federal Reserve Bank of Boston (FRBB) is the managing member of the MS Facilities 2020 LLC. Consistent with generally accepted accounting principles, the assets and liabilities of the MS Facilities 2020 LLC have been consolidated with the assets and liabilities of the FRBB in the preparation of the statements of condition. As a consequence of the consolidation, the loan from the FRBB to MS Facilities 2020 LLC is eliminated, the net assets of the MS Facilities 2020 LLC appear as assets above, and the liabilities of the MS Facilities 2020 LLC to entities other than the FRBB, including those with recourse only to the portfolio holdings of the MS Facilities 2020 LLC are included in other liabilities in this table. Net portfolio holdings of the LLC includes assets purchased pursuant to terms of the credit facility and amounts related to Treasury contributions to the facility.
Central bank liquidity swaps - sub-row of Assets [row]: The FOMC has authorized temporary reciprocal currency arrangements (central bank liquidity swaps) with certain foreign central banks to help provide liquidity in U.S. dollars to overseas markets.
These swaps involve two transactions. First, when the foreign central bank draws on the swap line, it sells a specified amount of its currency to the Federal Reserve in exchange for dollars at the prevailing market exchange rate. The foreign currency that the Federal Reserve acquires is placed in an account for the Federal Reserve at the foreign central bank. This line in the statistical release reports the dollar value of the foreign currency held under these swaps.
Second, the dollars that the Federal Reserve provides are deposited in an account for the foreign central bank at the Federal Reserve Bank of New York. At the same time as the draw on the swap line, the Federal Reserve and the foreign central bank enter into a binding agreement for a second transaction in which the foreign central bank is obligated to repurchase the foreign currency at a specified future date at the same exchange rate. At the conclusion of the second transaction, the foreign central bank pays a market-based rate of interest to the Federal Reserve. Central bank liquidity swaps are of various maturities, ranging from overnight to three months.
Foreign currency denominated assets - sub-row of Assets [row]: Foreign currencies are revalued daily to reflect movements in market exchange rates each day. If the dollar depreciates relative to a foreign currency, the dollar value of the respective foreign currency denominated asset increases. On the other side of the balance sheet, the increase in value of the foreign currency denominated asset is reflected as an increase within the capital account. The capital account then declines in value while the Treasury's general account increases by the same amount, as the earnings are remitted to the U.S. Treasury by the Reserve Banks.
Conversely, if the dollar appreciates relative to a foreign currency, the dollar value of the respective foreign currency denominated asset decreases and ultimately results in a reduction in the U.S. Treasury's general account.
Since 1963, the Federal Reserve has occasionally agreed to warehouse foreign currency for the Treasury. In such transactions, the Federal Reserve takes the foreign currency from the Treasury in return for dollars provided to the Treasury. The Federal Reserve makes a spot purchase of the currency and protects the value of those currencies purchased by simultaneously selling the same amount of currencies forward at the same price to the Treasury.
When the Federal Reserve warehouses foreign currencies for the Treasury, both "Foreign currency denominated assets" and "U.S. Treasury, general account" increase in value at the time of the spot transaction. Both accounts decline when the forward transaction is completed or when currencies are withdrawn from the warehousing arrangement prior to maturity.
Other assets - sub-row of Assets [row]:
The major components of other Federal Reserve assets include items in process of collection, bank premises, accrued interest, (which represents the daily accumulation of interest earned), and other accounts receivable.
Interdistrict settlement account - sub-row of Assets [row]: The interdistrict settlement account reflects the netting of transactions between Reserve Banks and transactions that involve depository institution accounts held by other Reserve Banks, such as Fedwire funds, check, and ACH transactions.
Total assets - sub-row of [row]: No description