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FEDERAL RESERVE statistical release H.3 For release at 4:30 PM EST March 2. 1995 (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. as well as the annual re-estimates of seasonal factors for required reserves and the surplus vault cash component of the monetary base. I The break adjustments employ the procedure that has been used since 1989. 2 The actual January 1995 low reserve tranche is lower than that estimated in early 1994. 3 As a result, the 1994 data for break-adjusted reserves and the monetary base were revised upward by as much as $400 million and $325 million, respectively. 1. The Monetary Control Act of 1980 established a reserve ratio of 3 percent against the first $25 million in 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 $54.0 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 $4.2 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. 3. The January 1995 reserve exemption projected in early 1994 turned out to be equal to the actual level. - 2- In order to make 1995 data comparable with historical data, the 1995 data are adjusted using estimates of the low reserve tranche and reserve requirement exemption that will take effect in January 1996. The new estimates of the 1996 low reserve tranche and exemption levels were derived by extrapolation of the actual monthly growth from June 1994 to January 1995 of seasonally adjusted net transaction deposits and reservable liabilities, respectively. million and $4.2 million, respectively. The new estimates are $52.4 The new low reserve tranche estimate is slightly higher than that incorporated in the reserves data previously published for 1995. As a result, there were small downward revisions to the 1995 data for break-adjusted reserves and the monetary base. Revised historical data will soon be available 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. The historical data will also be available on floppy diskette for a fee of $25 per diskette from the Federal Reserve Board's Publications Section. mail stop 402, Board of Governors of the Federal Reserve System, Washington, DC 20551. (202) 452-3245. Revised historical data for reserves measures and components will also be available shortly from the Economic Bulletin Board of the U.S. Commerce Department. Call (202) 482-1986 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 Adjusted for changes in reserve requirements 1 Averages of daily figures, seasonally adjusted unless noted otherwise Millions of dollars Date 1994-FEB. Eastern Borrowings of depository institutions from the Federal Reserve, NSA nonborrowed 3 nonborrowed plus extended credit< required excess NSA5 Monetary base• total seasonal extended credit4 MAR. 60775 60587 60705 60532 60705 60532 59635 59620 1140 967 393771 396668 70 55 15 24 0 0 APR. MAY JUNE 60480 60105 59989 60356 59905 59656 60356 59905 59656 59329 59190 58885 1151 915 1105 399229 401680 404213 124 200 333 57 134 226 0 0 0 JULY AUG. SEP. 60105 59839 59794 59647 59370 59307 59647 59370 59307 58998 58835 58734 1107 1004 1060 407175 4092 43 411337 458 469 487 364 445 444 0 0 0 OCT. NOV. DEC. 59496 59401 59342 59116 59152 59133 59116 59152 59133 58693 58394 58174 804 1008 1168 413854 416788 418223 380 249 209 339 164 100 0 0 0 59124 58909 58988 58849 58992 58850 57785 57951 1339 958 421047 422595 136 59 46 33 4 0 Two weeks ending 1995-JAN. 4 18 58937 59124 58691 59057 58691 59057 57769 57764 1167 1360 416280 420301 246 68 95 38 0 0 1 15p 59181 59096 59005 59045 59015 59045 57811 58116 1370 980 422702 422492 176 51 41 31 10 0 58687 58627 58627 57784 903 422697 60 36 0 1995-JAN. FEB. pe FEB. MAR. 1. 2. 3. 4. 5. 6. p pe lpe Time MARCH 2, 1995 Reserves of depository institutions total' 4:30p.m. Reserves and monetary base figures incorporate adjustments for discontinuities, or "breaks", associated with regulatory changes in resE>rve 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-adjusted 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 estirr:da H.3(502) Table 2 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE Not adjusted for changes in reserve requirements' Averages of daily figures, not seasonally adjusted Millions of dollars Vault cash5 Reserves of depository institutions Date total 2 1994-FBB. ~o 6. 7. 8. p total surplus 7 Net carryover of reserve balances 8 59593 59605 59523 59550 58454 58638 397929 400783 26922 27396 36296 35589 32671 32208 3625 3380 APR. MAY JUNE 61641 59273 59924 61516 59073 59591 60489 58358 58819 406319 406592 410939 29614 26790 26502 35222 35897 36906 32027 32483 33422 3195 3414 3484 JULY AUG. SEP. 60092 59337 59951 59634 58868 59465 58985 58333 58891 414391 414923 416701 25996 25284 25157 37644 37618 38433 34096 34052 34794 3548 3566 3639 OCT. NOV. DEC. 59490 60006 61340 59110 59757 61131 58686 58999 60172 418187 421904 427247 24745 24715 24658 38231 38933 40365 34745 35291 36682 3486 3642 3683 1995-JAN. FEB. pe 60521 57689 60385 57630 59182 56731 426304 423874 22291 21766 42289 39791 38230 35923 4059 3868 weels;!} en!;U,ng 1995-JAN. 4 18 61618 62181 61372 62114 60451 60822 430258 428473 25189 23958 39967 42165 36429 38223 3539 3942 196 139 58396 58311 58220 58260 57026 57331 422750 424423 19603 21037 43139 41291 38793 37274 4346 4017 396 598 56966 56906 56063 423369 22719 37920 34247 3672 455 MAR. 4. 5. required used to satisfy required reserves 6 MAR. FEB. 1. 2. 3. non borrowed Monetary base3 Reserve balances with F.R. Banks 4 1 15p 1pe 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 required clearing balances and adjustments to compensate for noat at Federal Reserve Banks plus (3) the currency component of the money stock plus (4), for all quarter1y reporters on the "Report o 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 satisfy 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 vault cash is held. Previously, each maintenance period ended 30 days after the lagged computation period. All yault cash held during the lagged compu1ation period by "bound" institutions (i.e., those whose required reserves exceed their vault cash) plus the amount of vault cash applied during the maintenance penod by "nonbound" institutions (i.e., those whose vault cash exceeds their required reserves) to satisfy current reserve 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. 12) preliminary ---"~'""'"' A~timate H.3 (502) Table 3 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE Adjusted for changes in reserve requirements 1 Averages of daily figures, not seasonally adjusted Millions of dollars Reserves of depository institutions Date total 2 non borrowed required3 Monetary base• 1994-FEB. MAR. 59555 59541 59485 59486 58415 58574 390881 394191 APR. MAY JUNE 61548 59155 59781 61423 58::J5S 59447 60396 58240 58676 399882 4004.11 404900 JULY AUG. SEP. 59923 59141 59728 59465 58673 59241 58816 58137 58668 408378 409214 411371 OCT. NOV. DEC. 59241 59731 61133 58860 59482 60924 58437 58724 59964 413149 417075 422514 60520 57712 60384 57653 59181 56754 421833 419551 61601 62172 61355 62104 60433 60812 425778 424062 58409 58331 58234 58280 57039 57351 418218 419990 56992 56933 56090 419182 1995-JAN. FEB. pe Two weeks ending 1995-JAN. 4 18 FEB. MAR. 1 15p 1pe Note: Historical data are available from the Money and Reserves Projections Section, Division of Monetary Affairs, Board of Governors of Tl1e Federal Reserve System, Washington, D.C. 20551 1. 2. 3. 4. p pe Figures reflect 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 pericds had current reserve requirements been in effect. Break-adjusted reqwed 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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