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Federal R eserve Bank

F e b r u a r y 7, 1994

75265-590 6

Notice 94-18

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
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

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 .
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.
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 (

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.
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.
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.
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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102