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Federal R eserve Bank OF DALLAS TO N Y J . SALVAGGIO FIR S T V IC E P R ES ID EN T F e b r u a r y 7, 1994 D A LLAS, TEXAS 75265-590 6 Notice 94-18 TO: T h e C h i e f O p e r a t i n g O f f i c e r o f each f i nancial i n s t i t u t i o n and o t h e r s c o n c e r n e d in the E l e v e n t h Federal R e s e r v e D i s t r i c t SUBJECT P r e l i m i n a r y F i g u r e s on t h e O p e r a t i n g Income o f t h e Federal R e s e r v e Banks DETAILS The B o a r d of G o v e r n o r s of the Federal R e s e r v e S y s t e m has a n n o u n c e d p r e l i m i n a r y f i g u r e s on the o p e r a t i n g income of the Federal R e s e r v e Banks d u r i n g 1993. Federal R e s e r v e S y s t e m income is d e r i v e d p r i m a r i l y f r o m inte r e s t e a r n e d on U.S. g o v e r n m e n t s e c u r i t i e s that the Federal R e s e r v e has a c q u i r e d t h r o u g h open m a r k e t ope r a t i o n s . ATTACHMENT A c o p y o f the B o a r d ’s p ress r e l e a s e a n n o u n c i n g the p r e l i m i n a r y f i g u r e s is p r i n t e d on the r e v e r s e o f this notice. MORE INFORMATION For f u r t h e r i n f o r mation, p l e a s e c o n t a c t C l a u d e D a v i s at (214) 922- 5 6 0 7 . For a d d itional c o p i e s of this B a n k ’s n o t i c e and the B o a r d ’s press release, p l e a s e c o n t a c t the P u blic A f f a i r s D e p a r t m e n t at (214) 9 2 2-5254. Sinc e r e l y , For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERAL RESERVE press release For immediate release January 7, 1994 Preliminary figures indicate that operating income of the Federal Reserve Banks amounted to $18,913 billion during 1993. Net income before payment of dividends, additions to surplus, and payments to the Treasury totaled $16,528 billion. About $15,985 billion was paid to the U.S. Treasury during 1993. Federal Reserve System income is derived primarily from interest earned on U.S. government securities that the Federal Reserve has acquired through open market operations. Income from the provision of financial services amounted to $756 million. Operating expenses of the 12 Reserve totaled $1,609 billion. In addition, $182 million were granted to depository institutions under the of 1980. Assessments to Reserve Banks for Board $140 million and the cost of currency amounted to Banks and branches for earnings credits Monetary Control Act expenditures totaled $356 million. Net deductions from income amounted to $201 million. Net deductions from income resulted primarily from the initial accrual of postretirement employee benefits required by the adoption of Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." This accrual was partially offset by gains on the sales of assets denominated in foreign currencies and securities from the System Open Market Account. Statutory dividends to member banks were $195 million. Under the policy established by the Board of Governors at the end of 1964, all net income after the statutory dividend to member banks and the amount necessary to equate surplus to paid-in capital is transferred to the U.S. Treasury as interest on Federal Reserve notes. - O -