H.3 (502) June 26, 2008 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. 1 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 ---------------------------------------------------------------------------------------------------------------------------------------------- Reserves of depository institutions Other borrowings from the Federal Reserve, NSA ------------------------------------------ Term ------------------------------------------------------ Date Total Non- Required Excess, Monetary auction Primary Secondary Seasonal Primary Other (2) borrowed NSA base credit, dealer credit (3) (4) (5) NSA credit extensions facility ---------------------------------------------------------------------------------------------------------------------------------------------- Month(6) 2007-May 43181 43077 41728 1453 818680 14 0 90 June 43369 43182 41618 1751 819825 43 0 145 July 41816 41554 40179 1637 821128 45 0 217 Aug. 45018 44043 40189 4828 824439 701 19 255 Sep. 42668 41101 40942 1726 821972 1345 0 221 Oct. 42443 42188 41008 1435 824655 126 13 115 Nov. 42672 42306 40976 1696 825471 315 0 50 Dec. 42704 27273 40952 1752 823268 11613 3787 1 30 2008-Jan. 42152 -3507 40519 1633 821416 44516 1137 0 6 Feb. 42856 -17301 41146 1709 822524 60000 155 0 3 Mar. 44259 -50264 41269 2990 826999 75484 1617 0 6 16168 1249 Apr. 43535 -91875 41607 1928 824420 100000 9624 0 21 25764 0 May 44158 -111622 42050 2108 826473 127419 14076 0 47 14238 0 2 weeks ending(7) 2008-Apr. 23 42643 -90384 40926 1716 823487 100000 9286 0 22 23719 0 May 7 43828 -85367 41845 1983 823663 100000 11622 0 31 17544 0 21 43406 -111012 41413 1994 825186 125000 13976 1 42 15401 0 June 4 45441 -130855 43087 2355 830242 150000 15936 1 66 10295 0 18p 41805 -130140 40030 1775 830797 150000 13260 112 69 8505 0 ----------------------------------------------------------------------------------------------------------------------------------------------- 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 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 Date Total Non- Required Monetary balances Total satisfy Surplus carryover (2) borrowed base with F.R. required (7) of reserve (3) Banks reserves balances (4) (6) (8) ------------------------------------------------------------------------------------------------------------------------------------------- Month(9) 2007-May 43982 43878 42529 824982 9117 48659 34864 13794 June 43653 43466 41902 826502 8734 49432 34919 14513 July 42594 42332 40957 828306 8276 50207 34319 15889 Aug. 44567 43592 39739 829677 10922 51043 33645 17398 Sep. 42236 40669 40510 826566 8757 49633 33479 16154 Oct. 41505 41251 40070 828380 8293 49755 33212 16543 Nov. 41895 41530 40199 833101 8553 48995 33342 15653 Dec. 42730 27300 40978 836350 8203 52162 34527 17635 2008-Jan. 44064 -1596 42430 831106 8738 53162 35325 17837 Feb. 42829 -17328 41120 828657 8172 53650 34657 18993 Mar. 42675 -51848 39685 832364 9760 50447 32915 17532 Apr. 43477 -91933 41550 830497 9257 49315 34220 15096 May 45135 -110645 43027 833974 9688 48579 35447 13132 2 weeks ending(10) 2008-Apr. 23 43261 -89767 41544 829656 8859 49367 34402 14965 -184 May 7 45008 -84188 43025 829815 9629 48941 35379 13562 -42 21 43854 -110564 41860 832349 8990 48925 34864 14061 -35 June 4 47018 -129278 44663 839162 10707 47842 36311 11531 -17 18p 40630 -131315 38855 837270 7996 48535 32635 15900 101 -------------------------------------------------------------------------------------------------------------------------------------------- 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) Non- Required Monetary borrowed (3) base(4) ------------------------------------------------------------------------- Month(5) 2007-May 44013 43909 42560 818484 June 43693 43506 41942 819999 July 42638 42376 41001 821881 Aug. 44611 43636 39783 822994 Sep. 42289 40722 40563 819971 Oct. 41560 41306 40125 821851 Nov. 41949 41584 40253 826646 Dec. 42745 27314 40993 829761 2008-Jan. 44037 -1623 42404 824418 Feb. 42826 -17331 41117 821880 Mar. 42671 -51852 39681 825566 Apr. 43461 -91949 41533 823382 May 45104 -110676 42996 826882 2 weeks ending(6) 2008-Apr. 23 43243 -89784 41527 822493 May 7 44978 -84218 42995 822702 21 43823 -110595 41829 825282 June 4 46985 -129311 44630 832048 18p 40599 -131346 38824 830133 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.