                                                                     For use at 12:00 p.m., eastern time
                                                                                              Thursday
                                                                                    December 10, 2009




FEDERAL RESERVE statistical release


Z.1




Flow of Funds Accounts
of the United States

Flows and Outstandings
Third Quarter 2009




Board of Governors of the Federal Reserve System, Washington DC 20551

                                Flow of Funds Summary Statistics
                                CC




                                                Third Quarter 2009

         Debt of the domestic nonfinancial sectors is                   Government debt continued to grow in the
estimated to have expanded at a seasonally adjusted           third quarter.     State and local government debt
annual rate of 2 percent in the third quarter of 2009,       expanded at an annual rate of 5 percent, 1 percentage
about 1 percentage points slower than in the previous        points faster than in the second quarter.        Federal
quarter. Private debt contracted in the third quarter,        government debt increased at an annual rate of almost
while government debt expanded.                               21 percent in the third quarter, somewhat slower than in
                                                              the second quarter, but nonetheless the fifth consecutive
         Household debt contracted at an annual rate of       quarter of growth exceeding 20 percent.
2 percent in the third quarter, its fifth consecutive
quarter of decline and the largest decrease on record.                  At the end of the third quarter of 2009, the
Home mortgage debt fell at an annual rate of 3               level of domestic nonfinancial debt outstanding was
percent, a significantly steeper decline than in the          $34.6 trillion; household debt was $13.6 trillion,
second quarter, while consumer credit contracted at an        nonfinancial business debt was $11.1 trillion, and total
annual rate of 3 percent. Other components of                government debt was $9.9 trillion.
household debt expanded in the third quarter, partially
offsetting the decline in mortgages and consumer credit.                Household net worth--the difference between
                                                              the value of assets and liabilities--was an estimated
         Nonfinancial business debt contracted at an          $53.4 trillion at the end of the third quarter, up
annual rate of 2 percent in the third quarter; the           $2.7 trillion (5 percent) from the second quarter and the
decline   was    widespread    across   credit    market      second consecutive quarter of growth.
instruments.


Growth of Domestic Nonfinancial Debt1
                                           P
                                               P




Percentage changes; quarterly data are seasonally adjusted annual rates
                                                                                 State and
                           Total            Households       Business                                    Federal
                                                                                local govts.
 1999                        6.4                  8.4          10.7                 3.3                   -1.9
 2000                        5.0                  9.1           9.3                 1.4                   -8.0
 2001                        6.3                  9.6           5.8                 8.8                   -0.2
 2002                        7.3                 10.8           2.6                11.1                    7.6
 2003                        8.1                 11.7           2.3                 8.3                   10.9

 2004                        8.9                 11.1           6.3                 7.4                    9.0
 2005                        9.5                 11.1           8.8                10.2                    7.0
 2006                        9.0                 10.0          10.5                 8.2                    3.9
 2007                        8.7                  6.7          13.4                 9.3                    4.9
 2008                        5.9                  0.3           5.2                 2.0                   24.2

 2008:Q1                     5.5                  3.1           7.8                 3.6                    8.1
       Q2                    3.3                  0.2           6.4                 1.1                    5.9
       Q3                    8.2                 -0.4           5.2                 3.3                   39.2
       Q4                    6.1                 -1.8           1.0                 -0.2                  37.0

 2009:Q1                     4.3                 -1.2           0.5                 4.4                   22.6
       Q2                    4.5                 -1.6          -2.2                 3.6                   28.2
       Q3                    2.8                 -2.6          -2.6                 5.1                   20.6
1. Changes shown are on an end-of-period basis.

                                              Table of Contents



Title                                                                            Table     Page



Flow of Funds Accounts, Third Quarter 2009                                                  1

Availability of Data for Latest Quarter                                                     4

Debt Growth by Sector                                                            D.1        7

Borrowing by Sector                                                              D.2        8

Debt Outstanding by Sector                                                       D.3        9




                                                                    Flows            Levels
Title                                                           Table    Page    Table     Page




Summaries

Total Net Borrowing and Lending in Credit Markets               F.1       10     L.1        60

Credit Market Borrowing by Nonfinancial Sectors                 F.2       11     L.2        61

Credit Market Borrowing by Financial Sectors                    F.3       11     L.3        61

Credit Market Borrowing, All Sectors, by Instrument             F.4       12     L.4        62

Total Liabilities and Its Relation to Total Financial Assets    F.5       12     L.5        62

Distribution of Gross Domestic Product                          F.6       13

Distribution of National Income                                 F.7       14

Saving and Investment                                           F.8       15

Net Capital Transfers                                           F.9       16

Derivation of Measures of Personal Saving                       F.10      17     L.10       63

                                                            Flows            Levels

Title                                                   Table    Page    Table     Page


Sectors

Households and Nonprofit Organizations                  F.100     18     L.100      64

Nonfinancial Business                                   F.101     19     L.101      65

         Nonfarm Nonfinancial Corporate Business        F.102     20     L.102      66

         Nonfarm Noncorporate Business                  F.103     21     L.103      67

         Farm Business                                  F.104     21     L.104      67

State and Local Governments                             F.105     22     L.105      68

Federal Government                                      F.106     23     L.106      68

Rest of the World                                       F.107     24     L.107      69

Monetary Authority                                      F.108     25     L.108      70

Commercial Banking                                      F.109     26     L.109      71

         U.S.-Chartered Commercial Banks                F.110     27     L.110      72

         Foreign Banking Offices in U.S.                F.111     28     L.111      73

         Bank Holding Companies                         F.112     29     L.112      74

         Banks in U.S.-Affiliated Areas                 F.113     29     L.113      74

Savings Institutions                                    F.114     30     L.114      75

Credit Unions                                           F.115     31     L.115      76

Property-Casualty Insurance Companies                   F.116     31     L.116      76

Life Insurance Companies                                F.117     32     L.117      77

Private Pension Funds                                   F.118     32     L.118      77

State and Local Government Employee Retirement Funds    F.119     33     L.119      78

Federal Government Retirement Funds                     F.120     33     L.120      78

Money Market Mutual Funds                               F.121     34     L.121      79

Mutual Funds                                            F.122     34     L.122      79

                                                        Flows            Levels

Title                                               Table    Page    Table     Page



Closed-End and Exchange-Traded Funds                F.123     34     L.123      79

Government-Sponsored Enterprises                    F.124     35     L.124      80

Agency- and GSE-backed Mortgage Pools               F.125     35     L.125      80

Issuers of Asset-Backed Securities                  F.126     36     L.126      81

Finance Companies                                   F.127     36     L.127      81

Real Estate Investment Trusts                       F.128     37     L.128      82

Security Brokers and Dealers                        F.129     38     L.129      83

Funding Corporations                                F.130     38     L.130      83




Instruments

Gold and Official Foreign Exchange Holdings         F.200     39     L.200      84

SDR Certificates and Treasury Currency              F.201     39     L.201      84

U.S. Deposits in Foreign Countries                  F.202     39     L.202      84

Net Interbank Transactions                          F.203     40     L.203      85

Checkable Deposits and Currency                     F.204     41     L.204      86

Time and Savings Deposits                           F.205     42     L.205      87

Money Market Mutual Fund Shares                     F.206     42     L.206      87

Federal Funds and Security Repurchase Agreements    F.207     43     L.207      88

Open Market Paper                                   F.208     43     L.208      88

Treasury Securities                                 F.209     44     L.209      89

                                                                     Flows             Levels

Title                                                           Table     Page    Table     Page



Agency- and GSE-backed Securities                               F.210     45      L.210      90

Municipal Securities and Loans                                  F.211     46      L.211      91

Corporate and Foreign Bonds                                     F.212     46      L.212      91

Corporate Equities                                              F.213     47      L.213      92

Mutual Fund Shares                                              F.214     47      L.214      92

Bank Loans Not Elsewhere Classified                             F.215     48      L.215      93

Other Loans and Advances                                        F.216     49      L.216      94

Total Mortgages                                                 F.217     50      L.217      95

         Home Mortgages                                         F.218     51      L.218      96

         Multifamily Residential Mortgages                      F.219     51      L.219      96

         Commercial Mortgages                                   F.220     52      L.220      97

         Farm Mortgages                                         F.221     52      L.221      97

Consumer Credit                                                 F.222     53      L.222      98

Trade Credit                                                    F.223     53      L.223      98

Security Credit                                                 F.224     53      L.224      98

Life Insurance and Pension Fund Reserves                        F.225     54      L.225      99

Taxes Payable by Businesses                                     F.226     54      L.226      99

Proprietors' Equity in Noncorporate Business                    F.227     54      L.227      99

Total Miscellaneous Financial Claims                            F.228     55      L.228     100

         Identified Miscellaneous Financial Claims - Part I     F.229     56      L.229     101

         Identified Miscellaneous Financial Claims - Part II    F.230     57      L.230     102

         Unidentified Miscellaneous Financial Claims            F.231     58      L.231     103

Sector Discrepancies                                            F.11      59

Instrument Discrepancies                                        F.12      59

                                                                    Balance        Reconciliation
                                                                     Sheet
Title                                                            Table     Page    Table     Page



Balance Sheet and Reconciliation Tables

Households and Nonprofit Organizations                           B.100    104      R.100     107

Nonfinancial Corporate Business                                  B.102    105      R.102     108

Nonfarm Noncorporate Business                                    B.103    106      R.103     109




                                                                     Flows             Levels
Title                                                            Table     Page    Table     Page



Supplementary Tables

Nonprofit Organizations                                          F.100.a  110      L.100.a   111

Consolidated Statement for Federal, State, and Local Governments F.106.c  112      L.106.c   113

Private Pension Funds: Defined Benefit Plans                     F.118.b  114      L.118.b   115

Private Pension Funds: Defined Contribution Plans                F.118.c  114      L.118.c   115

Individual Retirement Accounts (IRAs)                            F.225.i  114      L.225.i   115

Flow of Funds Matrix for 2008                                             116                117

Balance Sheet of Households and Nonprofit Organizations
 with Equity Detail                                                                B.100.e   118

                                                                                                                                1




                        Flow of Funds Accounts, Third Quarter 2009

          This publication presents the flow of funds       institutions.       Credit market debt consists of debt
accounts for 2009:Q3.                                       securities, mortgages, bank loans, commercial paper,
                                                            consumer credit, U.S. government loans, and other
Data revisions and other changes. The statistics in         loans and advances; it excludes trade debt, loans for the
the attached tables reflect the use of new or revised       purpose of carrying securities, and funds raised from
source data. Most significant revisions appear in recent    equity sources.
quarters; however, new source information resulted in
changes to data for earlier periods.                                  Growth rates in table D.1 are calculated by
                                                            dividing seasonally adjusted flows from table D.2 by
1.        In the nonfarm noncorporate business sector       seasonally adjusted levels at the end of the previous
(tables F.103 and L.103), data have been revised from       period from table D.3. Seasonally adjusted levels in
2007:Q1 forward, owing to benchmark statistics              flow of funds statistics are derived by carrying forward
available from the IRS/SOI for 2007.                        year-end levels by seasonally adjusted flows. Growth
                                                            rates calculated from changes in unadjusted levels
2.        Assets of the state and local government          printed in table L.2 can differ from those in table D.1.
sector, excluding employee retirement funds, (tables
F.105 and L.105) have been revised from 2006:Q3             Relation of Flows to Outstandings.                       Estimates of
forward to reflect new 2007:Q2 benchmark data on            financial assets and liabilities outstanding are linked to
total financial assets from the Census Bureau.              data on flows.        However, figures on outstandings
                                                            contain discontinuities or breaks in series that could
3.        The exchange-traded funds sector (tables          affect analysis of particular relationships over time.
F.123 and L.123) was modified to include an additional      Specifically, outstanding in the flow of funds accounts
asset category, municipal securities.                       are related to the flows in the following way:


4.        Households' holdings of vacant land (table        Outstanding = Outstanding
                                                                         t                    t-1     + Flow + Discontinuityt
                                                                                                                 t
                                                                            B
                                                                              B
                                                                                                B
                                                                                                       B
                                                                                                                B
                                                                                                                  B
                                                                                                                                    B
                                                                                                                                      B




B.100) have been revised from 1983:Q4 forward to            where "t" is the time period.

reflect new methodology using the Federal Reserve's
Survey of Consumer Finances and other sources.                        Discontinuities        result         from      changes        in
                                                            valuation, breaks in source data, and changes in

5.        The market value of residential real estate       definitions.       For most     series,         the     value     of the

(B.100, B.102, and B.103) has been revised from             discontinuity       is zero     for          nearly all time periods.

2000:Q1 forward to reflect revised data for the             However, in a few instances, the discontinuity is

repeat-sales house-price index from LoanPerformance         nonzero for almost all time periods, or is quite large in a

(a division of First American CoreLogic).                   particular quarter, such as a period when there is a
                                                            sharp increase or decrease in equity prices or a major

6.        Supplementary tables on defined benefit (DB)      break in source data.

and defined contribution (DC) private pension plans
(tables F.118.b, F.118.c, L.118.b, and L.118.c) and                   The discontinuities in a series can distort

individual retirement accounts (IRAs) (tables F.225.i       estimated rates of growth in assets and liabilities

and L.225.i) are now reported quarterly, beginning in       between     periods.          In order         to      minimize    these

1985:Q1 for DB/DC private pension plans and 2007:Q1         distortions, percentage changes in assets and liabilities

for IRAs.   IRA data for the most recent quarter are        in flow of funds releases should be calculated as:

unavailable.
                                                            Percentage change = (Flow / Outstanding
                                                                                   t              t                      t-1
                                                                                                                           ) * 100
                                                                                      B
                                                                                        B
                                                                                                     B
                                                                                                        B
                                                                                                                        B
                                                                                                                             B




Explanatory notes for tables D.1, D.2, and D.3.
Domestic debt comprises credit market funds borrowed        Preliminary Estimates. Figures shown for the most

by   U.S. entities from   both   domestic and foreign       recent quarter in these tables are based on preliminary

sources,   while   foreign   debt represents  amounts       and incomplete information.                  A summary list of the

borrowed by foreign financial and nonfinancial entities     principal sources of information available when the

in  U.S. markets only.     Financial sectors consist of     latest quarter's data were compiled is provided in a table

government-sponsored      enterprises,   agency-    and     following this introduction. The distinction between

GSE-backed mortgage pools, and private financial            "available" data and "missing" data is not between final

2

and preliminary versions of data, but rather between          The Internet site also provides quarterly data beginning
those source estimates that are fully ready when the          in 1952, organized in compressed files that correspond
latest quarterly publication is compiled and those that       to the tables published in this release. There are files
are not yet completed.     However, the items that are        for quarterly data for seasonally adjusted flows,
shown as available are, in general, also preliminary in       unadjusted flows, outstandings, balance sheets, and debt
the sense that they are subject to revision by source         (tables D.1, D.2, and D.3). This data is also available
agencies.                                                     as a customizable download dataset through the Data
                                                              Download Program (DDP) at the following location:
Margins of Uncertainty. Flow of funds statistics are
subject to uncertainties resulting from measurement           www.federalreserve.gov/datadownload/Choose.aspx?rel=Z.1

errors in source data, incompatibilities among data from
different sources, potential revisions in both financial               A Guide to the Flow of Funds Accounts
and nonfinancial series, and incomplete data in parts of      is available. The 1,200-page Guide, published in two
the accounts. The size of these uncertainties cannot be       volumes in January 2000, explains in detail how the
quantified in precise statistical terms, but allowance for    U.S. financial accounts are prepared and the principles
them is explicitly made throughout the accounts by the        underlying the accounts. The Guide can be purchased
inclusion of "discrepancies" for various sectors and          for $20.00 from the Board's Publications Services.
instrument types.   A discrepancy for a sector is the         Publications Services accepts orders accompanied by
difference between its measured      sources of funds and     checks as well as credit card orders.
its measured uses of funds. For an instrument category,
a discrepancy is the difference between measured funds                 The Internet site for this release at the location
borrowed     through    the  financial   instrument  and      shown above contains a link to an order form for the
measured funds lent through that instrument. The size         Guide that can be mailed or faxed to Publications
of such discrepancies relative to the main asset or           Services. In addition, the Internet site includes a link to
liability components is one indication of the quality of      the Guide's descriptions of the tables in the flow of
source data,   especially   on   an  annual    basis. For     funds accounts.
quarterly data, differences in seasonal adjustment
procedures for financial and nonfinancial components          Subscription Information.         The Federal Reserve
of the accounts sometimes result in discrepancies that        Board charges for subscriptions to all statistical
cancel in annual data.                                        releases. Inquiries for releases should be directed to:


Availability of Data.      Flow of funds statistics are                  Publications Services, Stop 127
updated about ten weeks following the end of a quarter.                         Board of Governors
This publication -- the Z.1 release -- is available from                  of the Federal Reserve System
the Board's Publications Services. Flow of funds data              20th Street and Constitution Avenue, N.W.
are also available electronically through the Internet at                    Washington, DC 20551
the following location:                                                           (202) 452-3244


www.federalreserve.gov/releases/Z1

                                        3




[THIS PAGE INTENTIONALLY LEFT BLANK]

4



                          Availability of Data for Latest Quarter



                                   Available at time of publication            Major items missing
                                   U
                                                                       U
                                                                               U
                                                                                                      U




1. National income and              Preliminary estimates, seasonally           Unadjusted flows since 2007 for
   product accounts (NIPA)          adjusted, for 2009:Q3.                      the government sectors.
                                                                                Unadjusted flows since 2006 for
                                                                                all other sectors.

2. Households and nonprofit         Estimates for this sector are largely residuals and are derived from data for
   organizations sector             other sectors. Availability of data depends on schedules for other sectors.
   (tables F.100 and L.100)         Data for consumer credit, which are estimated directly, are available
                                    through 2009:Q3. The source for nonprofit organizations data (tables
                                    F.100.a and L.100.a) is the Internal Revenue Service Statistics of Income.
                                    Data for nonprofit organizations are available for 1987 through 2000.

3. Nonfarm nonfinancial             Quarterly Financial Report (QFR) of           Statistics of Income data since
   corporate business               the Census Bureau through 2009:Q2;            2007. QFR data since 2009:Q2.
   (tables F.102 and L.102)         Internal Revenue Service Statistics of
                                    Income (IRS/SOI) advance data
                                    through 2007; securities offerings,
                                    mortgages, bank loans, commercial
                                    paper, and other loans through
                                    2009:Q3.

4. Nonfarm noncorporate             IRS/SOI data through 2007; bank and           Statistics of Income data since
   business                         finance company loans and mortgage            2007.
   (tables F.103 and L.103)         borrowing through 2009:Q3.

5. Farm business                    Mortgages, bank loans, loans from             Consumption of fixed capital
   (tables F.104 and L.104)         government-sponsored enterprises,             and undistributed profits since
                                    U.S. government loans to farms, and           2008.
                                    equity in government-sponsored
                                    enterprises through 2009:Q3;
                                    preliminary data for checkable deposits
                                    and currency and trade payables
                                    through 2007.

6. State and local governments     Gross offerings and retirements of             Total financial assets since
  (tables F.105 and L.105)         municipal securities, deposits at banks,       2007:Q2 and selected financial
                                   and nonmarketable U.S. government              asset detail since 2004:Q2.
                                   security issues through 2009:Q3; total
                                   financial assets through 2007:Q2 from
                                   the Census Bureau; breakdown of
                                   financial assets through 2004:Q2 from
                                   the comprehensive annual financial
                                   reports of state and local governments.

7. Federal government              Data from the Monthly Treasury                 None.
  (tables F.106 and L.106)         Statement of Receipts and Outlays and
                                   Treasury data for loan programs and
                                   the Troubled Assets Relief Program
                                   (TARP) through 2009:Q3.

                                                                                                               5



8.  Rest of the world                Balance of payments data through        Balance of payments data for
    (U.S. international              2009:Q2. NIPA estimates; data from      2009:Q3.
    transactions)                    bank Reports of Condition and from
    (tables F.107 and L.107)         Treasury International Capital System
                                     through 2009:Q3.


9.  Monetary authority               All data through 2009:Q3.               None.
    (tables F.108 and L.108)


10. Commercial banking               All data through 2009:Q3 for            Data since 2008 for branches of
    (tables F.109 through F.113      U.S.-chartered commercial banks,        domestic commercial banks
    and tables L.109 through         foreign banking offices in the U.S.,    located in U.S.-affiliated areas.
    L.113)                           bank holding companies, and
                                     commercial banks in U.S.-affiliated
                                     areas.

11. Savings institutions             All data through 2009:Q3.               None.
    (tables F.114 and L.114)

12. Credit unions                    All data through 2009:Q3.               None.
    (tables F.115 and L.115)

13. Property-casualty insurance      All data through 2009:Q2. Preliminary   Final data for 2009:Q3.
    companies                        data for 2009:Q3.
    (tables F.116 and L.116)

14. Life insurance companies         All data through 2009:Q2. Preliminary   Final data for 2009:Q3.
    (tables F.117 and L.117)         data for 2009:Q3.

15. Private pension funds            Quarterly data through 2009:Q2;         Form 5500 data since 2006.
    (tables F.118 and L.118)         Internal Revenue Service/Department     Quarterly data since 2009:Q2.
                                     of Labor/Pension Benefit Guaranty
                                     Corporation Form 5500 data through
                                     2006.

16. State and local government       Detailed data through 2007:Q2 from      Detailed data since 2007:Q2 and
    employee retirement funds        the Census Bureau; sample data          sample data for 2009:Q3.
    (tables F.119 and L.119)         through 2009:Q2 from the Census
                                     Bureau.

17. Federal government retirement    Data from the Monthly Treasury          None.
    funds                            Statement of Receipts and Outlays, the
    (tables F.120 and L.120)         Thrift Savings Plan, and the National
                                     Railroad Retirement Investment Trust
                                     through 2009:Q3.

18. Money market mutual              All data through 2009:Q3.               None.
    funds
    (tables F.121 and L.121)

19. Mutual funds                     All data through 2009:Q3.               None.
    (tables F.122 and L.122)


20. Closed-end funds                 All data through 2009:Q3.               None.
    (tables F.123 and L.123)

21. Exchange-traded funds            All data through 2009:Q3.               None.
    (tables F.123 and L.123)

6


 22. Government-sponsored        Data for Fannie Mae, Freddie Mac,           None.
     enterprises                 FHLBs, FICO, Farmer Mac, FCS, and
     (tables F.124 and L.124)    REFCORP through 2009:Q3.

 23. Agency- and GSE-backed      Data for Fannie Mae, Freddie Mac, and       None.
     mortgage pools              Ginnie Mae through 2009:Q3.
     (tables F.125 and L.125)

 24. Issuers of asset-backed     All data for private mortgage pools,        None.
     securities (ABSs)           consumer credit, business loans,
     (tables F.126 and L.126)    student loans, consumer leases, and
                                 trade credit securitization through
                                 2009:Q3.

 25. Finance companies           All data through 2009:Q3.                   None.
     (tables F.127 and L.127)

 26. Real estate investment      Data from SNL Financial through             None.
     trusts (REITs)              2009:Q3.
     (tables F.128 and L.128)

                                                                             None.
 27. Security brokers and        Data for firms filing FOCUS and
     dealers                     FOGS reports through 2009:Q3.
     (tables F.129 and L.129)

 28. Funding corporations        Estimates for this sector are largely residuals and are derived from data for
     (tables F.130 and L.130)    other sectors.

