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Federal R eserve Bank
OF DALLAS
HELEN E. HOLCOM B
FIRST VICE PRESIDENT AND
CHIEF OPERATING OFFICER

D ALLAS, TEXAS
752 65 -590 6

February 14, 1997

Notice 97-19

TO: The Chief Operating Officer o f each
financial institution and others concerned
in the Eleventh Federal Reserve District

SUBJECT
Preliminary Figures on the Operating Income
of the Federal Reserve Banks
DETAILS
The Board o f Governors o f the Federal Reserve System has announced preliminary
figures on the operating income o f the Federal Reserve Banks during 1996. 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.
ATTACHMENT
A copy o f the Board’s press release announcing the preliminary figures is attached.
MORE INFORMATION
For further information, please contact Claude Davis at (214) 922-5607. For
additional copies o f this Bank's notice and the Board’s press release, please contact the Public
Affairs Department at (214) 922-5254.
Sincerely,

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)

W:

FEDERAL RESERVE press release
* • • • • *

For immediate release

January 13, 1997

Preliminary figures indicate that operating income of
the Federal Reserve Banks amounted to $25,163 billion during
1996.

Net income before payment of dividends, additions to

surplus, and payments to the Treasury totaled $20,974 billion.
About $20,083 billion of this net income was distributed to the
U.S. Treasury during 199 6.
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 $787.7 million.
Operating expenses of the 12 Reserve Banks and branches
totaled $1,781 billion.

In addition, earnings credits in the

amount of $3 06.8 million were granted to depository institutions
under the Monetary Control Act of 1980.

Assessments to Reserve

Banks for Board expenditures totaled $162.6 million and the cost
of currency amounted to $402.5 million.
Net deductions from income amounted to $1,639 billion,
resulting primarily from unrealized losses on assets denominated
in foreign currencies revalued to reflect current market exchange
rates.

Statutory dividends to member banks were $255.9 million.
Under the policy established by the Board of Governors

at the end of 1964, all net income after the statutory dividend

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to member banks and the amount necessary to equate surplus to
paid-in capital is transferred to the U.S. Treasury.

In October

1996 the Reserve Banks also transferred $106 million from their
surplus accounts to the Treasury, as statutorily required.
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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102