5. Consolidated Statement of Condition of All Federal Reserve Banks accessible
H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks [title]: No description
5. Consolidated Statement of Condition of All Federal Reserve Banks [title]: No description
Millions of dollars [title]: No description
Assets, liabilities, and capital [column]: No description
Eliminations from consolidation [column]: This partially filled column, labeled "Eliminations from Consolidation", precedes the Wednesday column. These data are amounts that are eliminated when consolidating the balance sheets of the 12 Reserve Banks into a single balance sheet. Cash items in transit between Reserve Banks (or Reserve Bank branches) are eliminated from "Items in Process of Collection" and from "Deferred Availability Cash Items" to avoid double counting. Items in transit within the Federal Reserve appear in parentheses in the column labeled "Eliminations from Consolidation."
Wednesday [column]: No description
Change Since [column]: No description
Wednesday - sub-column of Change Since : No description
Wednesday - sub-column of Change Since : No description
Assets [row]: No description
Gold certificate account - sub-row of Assets [row]: The gold certificate account reflects 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.
Special drawing rights certificate account - sub-row of Assets [row]: No description
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]: No description
Securities held outright - sub-row of Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]: The amount of securities held by Federal Reserve Banks. This quantity is the cumulative result of permanent open market operations--outright purchases or sales of securities--conducted by the Federal Reserve. Section 14 of the Federal Reserve Act defines the securities that the Federal Reserve is authorized to buy and sell.
U.S. Treasury securities - sub-row of Securities held outright - sub-row of Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]: The total face value of U.S. Treasury securities held by the Federal Reserve. This total is broken out in the lines below. Purchases or sales of U.S. Treasury securities by the Federal Reserve Bank of New York (FRBNY) are made in the secondary market, or with various foreign official and international organizations that maintain accounts at the Federal Reserve. FRBNY's purchases or sales in the secondary market are conducted only through primary dealers.
- Bills: The current face value of the Federal Reserve's outright holdings of Treasury bills.
- Notes and bonds, nominal: The current face value of the Federal Reserve's outright holdings of nominal Treasury notes and bonds.
- Notes and bonds, inflation-indexed: The current face value of the Federal Reserve's outright holdings of inflation-indexed Treasury notes and bonds.
- Inflation compensation: Inflation compensation reflects adjustments for the effects of inflation to the principal of inflation-indexed securities.
Bills - sub-row of U.S. Treasury securities - sub-row of Securities held outright - sub-row of Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]: No description
Notes and bonds, nominal - sub-row of U.S. Treasury securities - sub-row of Securities held outright - sub-row of Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]: No description
Notes and bonds, inflation-indexed - sub-row of U.S. Treasury securities - sub-row of Securities held outright - sub-row of Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]: No description
Inflation compensation - sub-row of U.S. Treasury securities - sub-row of Securities held outright - sub-row of Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]: No description
Federal agency debt securities - sub-row of Securities held outright - sub-row of Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]: The current face value of federal agency obligations held by Federal Reserve Banks. These securities are direct obligations of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.
Mortgage-backed securities - sub-row of Securities held outright - sub-row of Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]: The current face value of mortgage-backed obligations held by Federal Reserve Banks. These securities are guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae.
Unamortized premiums on securities held outright - sub-row of Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]: This release reports Federal Reserve holdings of securities at face value, not necessarily at market value. If the Federal Reserve pays more than the face value for securities it purchases, the premiums over the face value are amortized over time. For U.S. Treasury and Federal agency debt securities, amortization is on a straight-line basis, which results in a constant amount of amortization in each period. For mortgage-backed securities, amortization is on an effective-interest basis, which results in a constant effective yield in each period, and the amortization is accelerated when principal payments are received. As the unamortized premiums on securities are reduced, a simultaneous balancing reduction is made in the capital account. Securities purchased at a premium over face value are accounted for in this way because, at maturity, the Federal Reserve Banks receive only the face amount of the securities, not the amount actually paid.
The premiums paid on securities bought under repurchase agreements, though, are not amortized. These premiums are, in effect, returned to the Federal Reserve Banks when the securities are repurchased by the dealer, since the negotiated price in the original transaction reflects the premiums.
Unamortized discounts on securities held outright - sub-row of Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]: This release reports Federal Reserve holdings of securities at face value, not necessarily at market value. If the Federal Reserve pays less than the face value for securities it purchases, the discounts under the face value are amortized over time. For U.S. Treasury and Federal agency debt securities, amortization is on a straight-line basis, which results in a constant amount of amortization in each period. For mortgage-backed securities, amortization is on an effective-interest basis, which results in a constant effective yield in each period, and the amortization is accelerated when principal payments are received. Securities purchased at a discount under face value are accounted for in this way because, at maturity, the Federal Reserve Banks receive only the face amount of the securities, not the amount actually paid. While discounts are typically reported as a liability, this release is presenting them with the corresponding securities held outright, which is in the assets section.
The discounts paid on securities bought under repurchase agreements, though, are not amortized. These discounts are, in effect, returned to the Federal Reserve Banks when the securities are repurchased by the dealer, since the negotiated price in the original transaction reflects the discounts.
Repurchase agreements - sub-row of Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]:
Repurchase agreements reflect some of the Federal Reserve's temporary open market operations. Repurchase agreements are transactions in which securities are purchased from a foreign official or others, such as a primary dealer under an agreement to sell them back on a specified date in the future. The difference between the purchase price and the repurchase price reflects an interest payment.
The Federal Reserve may enter into repurchase agreements for up to 65 business days, but the typical maturity is between one and 14 days. Federal Reserve repurchase agreements supply reserve balances to the banking system for the length of the agreement. The Federal Reserve employs a naming convention for these transactions based on the perspective of the foreign and international monetary authorities under the FIMA Repo Facility and others, such as primary dealers: the dealers receive cash while the Federal Reserve receives the collateral.
Loans - sub-row of Securities, unamortized premiums and discounts, repurchase agreements, and loans - sub-row of Assets [row]:
Loans is the sum of "Primary credit," "Secondary credit," "Seasonal credit," and credit extended through the "Paycheck Protection Program Liquidity Facility," "Bank Term Funding Program," 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 and to eligible nonprofits, under the Main Street New Loan Facility, Main Street Priority Loan Facility, Main Street Expanded Loan Facility, Nonprofit Organization New Loan Facility, and Nonprofit Organization 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.
Net portfolio holdings of Municipal Liquidity Facility LLC - sub-row of Assets [row]:
On June 2, 2020, the Municipal Liquidity Facility LLC (MLF LLC) began purchasing eligible municipal notes and on June 5, 2020, settlement of the first purchase transactions occurred. The Federal Reserve Bank of New York (FRBNY) began extending loans to the MLF LLC under the authority of section 13(3) of the Federal Reserve Act. MLF LLC is a special purpose vehicle that was formed to help support state and local governments better manage cash flow pressures in order to continue to serve households and business in their communities. The assets of the MLF LLC and the amount provided by U.S. Treasury as credit protection to the FRBNY are used to secure the loan from the FRBNY.
The FRBNY is the managing member of MLF LLC. Consistent with generally accepted accounting principles, the assets and liabilities of the MLF LLC have been consolidated with the assets and liabilities of the FRBNY in the preparation of the statements of condition. As a consequence of the consolidation, the loan from the FRBNY to MLF LLC is eliminated, the net assets of the MLF LLC appear as assets above, and the liabilities of the MLF LLC to entities other than the FRBNY, including those with recourse only to the portfolio holdings of the MLF 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. MLF LLC asset balances from trading activity may be reported in this release on a one-day lag after the transaction date.
Net portfolio holdings of TALF II LLC - sub-row of Assets [row]:
On June 25, 2020, the TALF II LLC began extending eligible loans under the Term Asset-Backed Securities Loan Facility to facilitate the issuance of asset-based securities. The Federal Reserve Bank of New York extended credit to the TALF II LLC under the authority of section 13(3) of the Federal Reserve Act. TALF II LLC is a special purpose vehicle that was formed to help support the flow of credit to consumers and businesses. The assets of the TALF II LLC and the amount provided by the U.S. Treasury as credit protection for the TALF II LLC are used to secure the loan from the FRBNY.
The Federal Reserve Bank of New York (FRBNY) is the managing member of TALF II LLC, the Term Asset-Backed Securities Loan Facility. Consistent with generally accepted accounting principles, the assets and liabilities of the TALF II LLC have been consolidated with the assets and liabilities of the FRBNY in the preparation of the statements of condition. As a consequence of the consolidation, the loan from the FRBNY to TALF II LLC is eliminated, the net assets of the TALF II LLC appear as assets above, and the liabilities of the TALF II LLC to entities other than the FRBNY, including those with recourse only to the portfolio holdings of the TALF II 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.
Items in process of collection - sub-row of Assets [row]: Items in the process of collection are checks and other items payable on demand that have been presented to Reserve Banks for collection. On the reporting date, they are in the process of being transported to the institutions on which they are drawn. These items include negotiable orders of withdrawal and matured corporate and municipal coupons. U.S. government checks, postal money orders, and food coupons, although classified as cash items, are not included because they are charged to the Treasury's account on the day they are received by the Federal Reserve.
Bank premises - sub-row of Assets [row]: This item is the initial cost of the land and buildings of the Reserve Banks and branches, less an allowance for depreciation on buildings and including building-related machinery and equipment.
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 accrued interest, which represent the daily accumulation of interest earned but not yet received on U.S. government securities--other than bills--owned by the Federal Reserve or held under repurchase agreements, on loans to depository institutions, and on foreign currency investments. Interest is accrued daily.
Also includes other accounts receivable.
Total assets - sub-row of [row]: No description