SPECIAL NOTICE

       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
      January 1999, and they are the major source of revisions to the data.  Revisions to break
      factors begin in January 2007, and revisions to break-adjusted data do not exceed $100
      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
      $1.0 billion; most revisions were less than $600 million.

       Break factors remove discontinuities (or "breaks") associated with regulatory changes in
      reserve requirements, such as the annual indexation 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 website (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 accounts (low reserve tranche) at each depository
      institution.  Since 1982, the low reserve tranche has been indexed each year by 80 
      percent of the growth in net transaction accounts of all depository institutions over the
      one-year period ending on the most recent June 30.  For all reserve maintenance periods
      ending in 2008, the low reserve tranche is $43.9 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 growth in total reservable liabilities of all depository institutions measured
      over the one-year period ending on the most recent June 30.  For all reserve maintenance
      periods ending in 2008, the reserve exemption level is $9.3 million.


	

FEDERAL RESERVE STATISTICAL RELEASE

  

 H.3 (502)

 Table 1                                                                                                For Release at 4:30 p.m. Eastern Time

                                                                                                                          June 26, 2008 

 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE

 Adjusted for changes in reserve requirements(1)                                                                                              

 Seasonally adjusted unless noted otherwise

 Millions of dollars

 1. Reserves and monetary base figures incorporate adjustments for discontinuities, or "breaks," associated with regulatory changes in reserve 

    requirements. (For more information, refer to table 3.)

 2. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break-adjusted required reserves plus unadjusted excess 

    reserves. (Also, refer to footnote 2 in table 2 and footnote 2 in table 3.)

 3. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, break-adjusted total reserves less unadjusted total

    borrowings from the Federal Reserve.

 4. Excess reserves NSA equals unadjusted total reserves (table 2, column 1) less unadjusted 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, refer to footnote 3 in table 2 and footnote 4 in table 3.)

 6. Prorated averages of biweekly averages.

 7. Averages of daily figures.

 p  preliminary

 
 
   

   

 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

 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

 
  

  

 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

 
 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 4).

 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. 

Statistical releases