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FEDERAL RESERVE statistical release For release at 4:30 PM EST March 25, 1993 H.3 (502) Aggregate data for reserves and the monetary base have been revised to incorporate adjustments for breaks in series resulting from the January 1993 indexations of the low reserve tranche and the reserve requirement exemption levels, and the annual re-estimates of seasonal factors. 1 The break adjustments for the indexations of the low reserve tranche and exemption levels in January 1993 employ the procedure that has been used since 1989. 2 Differences between the estimated and actual low reserve tranche, and between the estimated and actual exemption amount in January 1993, resulted in small revisions to reserves and the monetary base in 1992. In order to make 1993 data comparable with historical data, the 1993 data are adjusted using estimates of the low reserve tranche and reserve requirement exemption that will take effect next January. The 1994 low reserve tranche and exemption levels are estimated, respectively, by extrapolation of the 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. Under the Garn-St Germain Depository Institution 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). 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- monthly growth of seasonally adjusted net transaction deposits and reservable liabilities from June 1992 to.January 1993. The estimates for the 1994 low reserve tranche and exemption levels, $51.5 million and $3.8 million respectively, are used to break-adjust reserves and the monetary base in 1993. Because these estimates are slightly lower than those incorporated in the previous reserves series, break-adjustments for the low reserve tranche and exemption indexations resulted in small upward revisions to reserves and the monetary base in early 1993. The change in Regulation D that shortened the lag in counting vault cash toward required reserves from four weeks to two weeks for weekly reporters, effective November 12, 1992, did not create breaks in reserve data. However, it was believed to cause changes in seasonal patterns of the surplus vault cash component of the monetary base. Because of insufficient historical data, counter-factual data for the period from January 2, 1986 to November 11, 1992 were used with actual break-adjusted data for the period from November 12, 1992 to March 3, 1993 to estimate seasonal factors after November 11, 1992 for this surplus vault cash component. The counter-factual data were generated from micro data for each maintenance period by counting vault cash in the previous maintenance period toward current required reserves. Revised historical data will be available in late April from the Money and Reserves Projection Section, Division of Monetary Affairs, mail stop 75, Board of Governors of the Federal Reserve System, Washington, DC 20051, (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 138, Board of Governors of the Federal Reserve System, Washington, DC 20551, 452-3245. (202) FEDERAL RESERVE statistical release H.3 1502) Table 1 For Release at 4:30 p.m. Eastern Time ~~~~dE~~l~n~~~nE~Ye~! ~~i~e~!:,~~ITORY INSTITUTIONS AND THE MONETARY BASE MARCH 25 • 1993 Averages of daily figures, seasonally adjusted unless noted otherwise Millions of dollars , Borrowings of depository insti tutictns from the Federal Reserve, NSA Reserves of depository institutions Date total 2 nonborrowed 3 nonborrowed plus exte~ded credit required eN~~~s Honeta~y 1992-FEB. MAR. 47795 48509 47717 48418 47719 48420 46730 47481 1065 1028 322849 324655 77 91 22 32 2 2 APR. HAY JUNE 48992 49496 49316 48902 49341 49087 48904 49341 49087 47855 48495 48403 1137 1000 913 326691 328863 330228 90 155 229 47 98 149 2 0 0 JULY AUG. SEP. 49629 50341 51274 49345 50091 50987 49345 50091 50987 48664 49407 50280 965 935 994 333177 336844 341585 284 251 287 203 223 193 0 0 0 OCT. NOV. DEC. 52836 53815 54351 52693 53711 54228 52693 53711 '54228 51763 52772 53196 1074 1043 1155 344849 347832 350799 143 104 124 114 40 18 0 0 1 1993-JAN. FEB. 54665 54922 54500 54876 54501 54877 53405 53818 1260 1104 353224 355743 165 45 11 18 1 0 base total seasonal extended cr,edi t4 Two weeks ending 54525 54324 54324 53297 1229 352695 202 11 1 FEB. 3 17 54854 55096 54791 55063 54793 55063 53624 53601 1230 1495 354353 355278 64 33 11 18 3 0 MAR. 3 17p 54718 55340 54662 55247 54662 55247 54147 54025 571 1315 356713 357867 56 93 20 0 0 1993-JAN. 20 p--preliminary 1. 2. 3. 4. 5. 6. zz pe--preliminary estimate Reserves and monetary base figures incorporate adjustments for discontinuities, or "breaks", associated with regulatory changes in reserve requirements. I For more information, see Table 3. I Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break-adjusted required reserves plus unadjusted excess reserves. I Also, see footnote 2 on Table 2 and footnote 2 on Table 3. I Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, break-adjusted total reserves less unadjusted total borrowings of depository inst1tutions 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 tTable 2, column 11 less unadjusted required reserves tTable 2, column 31. The seasonal!¥ adjusted, break-adjusted monetary base consists of I l l seasonally adjusted, break-adjusted total reserves plus 12) the seasonally adJusted currencY. component of the money stock plus 131, for all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" an~ for all those weekly reporters whose vault cash exceeds their required reserves, the seasonally adjusted, breakadjusted difference between current vault cash and the amount applied to satisfy current reserve requirements. tAlso see footnote 3 on Table 2 and footnote 4 on table 3. l H.3 15021 Table 2 AGGREGATE RESERVES OF DEPOSIT9RY INSTITUTIONS AND THE MONETARY BASE Not adjusted for changes in reserve reguirements Averages of daily figures, not seasonally adjusted Millions of dollars Vault cashs Reserves of depository institutions total used to satisfy requirei:l reserves 6 surplus 7 Net carryover of reservw balances Date total 2 nonborrowed required Monetasy base Reserve balances with F.R. Banks 4 1992-FEB. MAR. 55238 56282 55161 56191 54174 55254 333190 335817 24918 28057 34233 31649 30320 28225 3912 3424 APR. MAY ..JUNE 50455 48825 49496 50365 48670 49267 49318 47825 48584 332694 333792 336431 22655 21071 21223 31071 31198 31728 27800 27754 28273 3271 3444 3456 ..JULY 49823 50162 51521 49538 49911 51234 48857 49227 50527 339865 342494 346207 21206 21272 22627 32145 32458 32342 28617 28890 28894 3528 3568 3448 NOV. DEC. OCT. 53136 54666 56540 52993 54562 56416 52062 53624 55385 349812 354251 360895 23626 25462 25368 32987 32457 34535 29510 29205 31172 3477 3252 3364 1993-..JAN. FEB. 56004 53882 55838 53837 54744 52778 360875 359566 23636 23515 35991 33915 32368 30368 3624 3547 56886 56685 55657 362323 24057 36389 32829 3560 58 17 53970 54370 53906 54337 52740 52875 356696 360741 21500 23301 36369 34765 32470 31069 3899 3696 101 127 3 17p 53237 54992 53181 54899 52666 53677 358854 363445 24335 24050 32164 34488 28902 30942 3262 3546 465 -71 AUG. SEP. Two weeks ending 1993-JAN. 20 FEB. MAR. 3· p--preliminary 1. 2. 3. 4. 5. 6. 7. 8. pe--preliminary estimate 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 re~irements. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total reserves plus 121 required cleari~ balances and adjustments to compensate for float at Federal Reserve Banks plus 131 the currency component of the money stock plus 141, for all quarterly repc?rters on the "Report of Transaction Accounts, Other Depc?sits and Vault Cash" and for all those weekly reporters whose vault cash exceei:ls their re~ired 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 re~ired 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 computat1on period in which the vault cash is held. Previously, each maintenance period ended 30 i:lays after the lagged computation per1od. All vault cash held during the lagged computation period by "bound" institutions I 1.e., those whose required reserves exceed their vault cash) plus the amount of vault cash applied during the maintenance period by "nonbound" institutions li.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 I+) or deficit 1-) reserves elig1ble to be carried forward into the two-week reserve maintenance period ending on the date shown. H.3 1502) Table 3 AGGREGATE RESERVES OF DEPO~ITORY 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 nonborrowed required 3 Monetary base 4 1992-FEB. MAR. 46841 47674 46764 47583 45777 46646 320376 322685 APR. HAY JUNE 49998 48602 49220 49908 48447 48991 48861 47601 48307 327438 328355 330919 JULY AUG. SEP. 49494 49777 51071 49210 49526 50784 48529 48843 50077 334075 336573 340080 OCT. NOV. DEC. 52616 54079 56056 52474 53974. 55933 51543 53036 54901 343626 347888 354546 1993-JAN. FEB. 55969 53810 55803 53765 54709 52707 354414 353192 56849 56647 55620 355535 Two weeks ending 1993-JAN. 20 FEB. 3 17 53926 54304 53863 54271 52696 52809 350546 354316 MAR. 3 17p 53151 54880 53095 54787 52579 53565 352484 356928 p--preliminary 1. 2. 3. 4. pe--preliminary estimate 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 ITable 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 required reserves are equal to break-adjusted required reserves against transactions deposits. The break-adjusted monetary base eguals Ill break-adjusted total reserves plus 121 the lunadjustedl currency component of the money stock plus 13), 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. Note: Historical data are available from the Honey and Reserves Projections Section, Division of Monetary Affairs, Board of Governors of The Federal Reserve System, Hashington, D.C. 20551
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