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FEDERAL RESERVE statistical For release at 4:30 PM EST April 3, 1997 H.3 (502) SPECIAL NOTICE Aggregate data for reserves and the monetary base have been revised to incorporate adjustments for breaks in series resulting from indexations of the low reserve tranche and the reserve requirement exemption levels, and to reflect the annual re-estimates of seasonal factors for required reserves and the surplus vault cash component of the monetary base. 1 The break since 1989. 2 adjustmen~s employ the procedure that has been used The actual 1997 low reserve tranche and exemption level were slightly higher than those estimated in early 1996~us. the 1996 data for break-adjusted reserves and the monetary base were revised downward, but by less than $85 million. In order to make 1997 data comparable with historical data, the 1997 data have been adjusted using estimates of the low reserve tranche and reserve requirement exemption that will take effect in January 1998. 1. The Monetary Control Act of 1980 established a reserve ratio of 3 percent against the first $25 million in net transaction deposits (low reserve tranche) at each depository institution. Since 1982, the low reserve tranche has been indexed each January by 80 percent of the previous year's (June 30 to June 30) growth rate of net transaction deposits at all depository institutions. At present, the low reserve tranche is $49.3 million. Under the Garn-St Germain Depository Institutions Act of 1982, the first $2 million of reservable liabilities of each depository institution are exempted from reserve requirements. Since 1983, this exemption amount has been indexed each year by 80 percent of the rate of increase of total reservable liabilities at all depository institutions over the preceding year (June 30 to June 30). At present, the reserve exemption level is $4.4 million. Both of these indexations take effect each year in the reserve computation periods containing January 1. 2. For details, see the H.3 released on May 4, 1989. 2- New estimates for the January 1998 values for the low reserve tranche and exemption were obtained by extrapolating the actual growth rates from June 1996 to February 1997 of seasonally adjusted net transaction deposits and total reservable liabilities, respectively. The new estimates of $42.8 million for the low reserve tranche and $4.5 million for the exemption level replaced preliminary estimates made last year; the revisions resulted in small downward adjustments to 1997 data for break-adjusted reserves and the monetary base. Revised historical data for measures of reserves will soon be available in printed form from the Money and Reserves Projection Section, Division of Monetary Affairs, Mail Stop 72, Board of Governors of the Federal Reserve System, Washington, DC 20551, (202) 452-3062. Historical data are available each week via the web site for the Federal Reserve Board (http://www.bog.frb.fed.us) and also from the Economic Bulletin Board of the U.S. Commerce Department. Call (202) 482-1986 or toll-free (800) 782-8872 for information on how to access the Commerce bulletin board. FEDERAL RESERVE statistical release H.3(502) Table 1 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE For release at 4:30p.m. Eastern Time Adjusted for changes in reserve requirements' Averages of daily figures, seasonally adjusted unless noted otherwise Millions of dollars April 3, 1997 Borrowings of depository institutions from the Federal Reserve, NSA Reserves of depository institutions Date total2 nonborrowed3 nonborrowed plus extended credit4 required excess NSN Monetary base 6 total seasonal extended credit4 1996-Peb. Mar. 54810 55613 54775 55592 54775 55592 53959 54476 851 1137 433584 436733 35 21 8 10 0 0 Apr. May June 55155 54168 54038 55064 54040 53652 55064 54040 53652 54035 53308 52888 1120 860 1150 437075 437881 439686 91 127 386 34 105 192 0 0 0 July Aug. Ssp. 53221 52181 51280 52854 51847 50912 52854 51847 50912 52156 51221 50242 1065 961 1038 442262 443999 445812 368 334 368 284 309 306 0 0 0 Oct. Nov. Dec. 50076 49811 50063 49789 49597 49908 49789 49597 49908 49082 48776 48639 994 1035 1424 44707"1 449365 45:1669 287 214 155 212 109 68 0 0 0 1997-Jan. Peb. 49517 49008 49472 48966 49472 48966 48293 47977 1223 1031 454141 456290 45 42 19 21 0 0 1997-Jan. 29 49422 49390 49390 48201 1221 454485 32 18 0 Peb. 12 26 49371 48778 49337 48728 49337 48728 48334 47781 1036 996 455344 456925 34 so 18 23 0 0 Mar. 12 26p 48448 47976 48413 47783 48413 47783 47210 46883 1238 1093 457518 457412 35 194 27 38 0 0 Two weeks ending 1. 2. 3. 4. 5. 6. p pe Reserves and monetary base figures incorporate adjustments for discontinuities, or "breaks", associated with regulatory changes in reserve requirements. (For more information, see Table 3.) Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break-adjusted required reserves plus unadjusted excess reserves. (Also, see footnote 2 on Table 2 and footnote 2 on Table 3.) Seasonally adJUSted, break-aajusted nonborrowed reserves equal seasonally adjusted, break-adjusted total reserves less unadjusted total borrowings of depository institutions from the Federal Reserve. Extended credit consists of borrowing at the discount window under the terms and conditions established for the extended credit program to help depository institutions deal with sustained liquidity pressures. Because there is not the same need to repay such borrowing promptly as there is with traditional short-term adjustment credit, the money market impact of extended credit is similar to that of nonborrowed reserves. Excess reserves NSA equals unadjusted total reserves (Table 2, column 1) less unadjusted required reserves (Table 2, column 3). 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 see footnote 3 on Table 2 and footnote 4 on table 3.) preliminary preliminary estimate H.3(502) Table 2 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE Not adjusted for changes in reserve requirements 1 Averages of daily figures, not seasonally adjusted Millions of dollars Vaultcash5 Reserves of depository institutions Date total2 non borrowed required Monetary base3 Reserve balances with F.R. Banks4 total used to satisfy required reserves' surplus7 Net carryover of reserve balances• 1996-Feb. Mllr. 53749 54884 53715 54863 52898 53747 436259 440767 16792 18426 42109 40890 36957 36458 5152 4432 Apr. Mlly June 55869 53135 53686 55779 53007 53299 54750 52275 52535 442959 442170 445949 19181 16753 16590 40895 41153 42030 36688 36382 37095 4207 4771 4934 July Aug. Sep. 52843 51642 50997 52475 51308 50630 51778 50681 49959 449292 450765 451717 15392 14761 13688 42774 42511 43652 37451 36880 37309 5323 5631 6343 Oct. Dec. 49550 49756 51243 49263 49542 51088 48556 48721 49819 451911 455902 463491 12800 12895 13395 42925 42745 44426 36749 36862 37848 6175 5883 6578 1997-Jan. Feb. 50642 48043 50597 48001 49419 47012 462714 459644 11710 11455 47172 43375 38932 36588 8240 6788 1997-Jan. 29 49363 49331 48142 459927 10285 48679 39078 9601 294 Feb. 12 26 48724 47489 48690 47439 47688 46493 458970 459939 11052 11817 45130 41948 37673 35672 7458 6276 396 300 Mllr. 12 26p 47830 46853 47795 46659 46592 45760 461619 461879 11340 11293 42841 41616 36490 35560 6351 6056 264 137 Nov. ~~ ~e~kl eD~1Dg 1. 2. 3. 4. 5. 6. 7. 8. p pe Reflects actual required reserves, with no adjustments to eliminate the effects of discontinuities, or "breaks", associated with regulatory changes in reserve requirements. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve requirements. 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. After the introduction of CRR, currency and vault cash figures are measured over computation periods ending on Mondays. Excludes required clearing balances and adjustments to compensate for float and includes other off-balance sheet "as-of" adjustments. Dates refer to the maintenance periods in which the vault cash can be used to satisfv reserve requirements. Starting with the maintenance period ended November 25, 1992, each maintenance period for weekly reporters ends 16 days after the lagged computation period in which the vauft cash is held. Previously, each maintenance period ended 30 days after the lagged computation period. All vault cash held duri.ng !he.lagg~ compulation period by "bound" instituti~ns (i.~ .• those whose req~;~ired reserves exceed th~ir vault cash) plus the amount of vaull cash applied during the maintenance period by "nonbound" mstitutions (I.e., those whose vault cash exceeds their required reserves) to satisfy current re. serve requirements. Total vault cash held by depository institutions minus the amount applied to satisfy reserve requirements. 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. · preliminary preliminary estimate H.3 (502) Table 3 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE Adjusted for changes in reserve requirements' Averages of daily figures, not seasonally adjusted Millions of dollars Reserves of depository institutions Date total 2 ~ItO nonborrowed required3 Monetary base4 1996-Feb. Mar. 53792 54954 53758 54933 52941 53817 430275 434842 Apr. May June 55967 53252 53828 55876 53125 53442 54847 52392 52678 437094 436100 439851 July Aug. Sep. 53005 51826 51205 52637 51492 50837 51940 50865 50166 443178 444533 445490 Oct. Nov. Dec. 49777 50006 51522 49490 49792 51368 48783 48971 50098 445377 449201 456721 1997-Jan. Feb. 50665 48122 50620 48079 49442 47091 455553 452566 :weeks en~!Dg: 1997-Jan. 29 49393 49361 48172 452622 Feb. 12 26 48784 47578 48750 47528 47748 46581 451791 452942 Mar. 12 26p 47951 47001 47916 46808 46713 45908 454589 454931 Note: Historical data are available from the Money and Reserves Projections Section, Division of Monetary Affairs, Board of Governors of The Federal Reserve System, Washington, D.C. 20551 1. 2. 3. 4. p pe Figures r~flect adjustments for discontinuities, or "breaks", associated with regulatory changes in reserve requirements. Break-adjusted total reserves equal break-adjusted required reserves (Table 3, column 3) plus excess reserves NSA (Table 1, column 5). To adjust required reserves for discontinuities due to regulatory changes 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 requ1red reserves are equal to break-adjusted required reserves against transactions deposits. 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. preliminary preliminary estimate
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