For release at

4:30 PM EST

H.3 (502)                                                               March 21, 2002




SPECIAL NOTICE

Measures of reserves and the monetary base have been revised to incorporate the results of the annual break factor and seasonal factor

reviews.  Break-adjusted and seasonally adjusted data (Table 1 of the release) were revised in most cases by less than $1.0 billion

in a maintenance period, with maximum revisions of $2 billion for reserves and $2.4 billion for the monetary base.

Break factors remove discontinuities (or "breaks") associated with regulatory changes in reserve requirements, such as the annual

indexations of the low reserve tranche and the reserve requirement exemption levels.1   Break-adjusted data (Table 3 of the release)

incorporate updated break factors.  The revisions from this source begin in January 2001 and do not exceed $70 million in any

maintenance period.  

Seasonal factors for required reserves and the surplus vault cash component of the monetary base have been re-estimated

using the revised break-adjusted data, after excluding the estimated effects of the September 11, 2001 terrorist attacks.

  The revisions due to re-estimated seasonal factors start in February 1984, and they are the major source of the revisions

to break-adjusted, seasonally adjusted data.

A more detailed description of the methods for constructing the break factors and seasonal factors for the measures of

reserves and the monetary base, as well as printed tables of the revised historical data, will soon be available from the Monetary

and Reserve Analysis Section, Division of Monetary Affairs, Mail Stop 72, Board of Governors of the Federal Reserve System,

Washington, D.C. 20551, (202) 452-3062.  Complete historical data are available each week through the Federal Reserve's web site

(http://www.federalreserve.gov/releases/) with the H.3 statistical release.  The data are also available through other electronic

means, as described in the note at the end of table 3 of this release.

        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 $41.3 million.

        Under the Garn-St Germain Depository Institutions Act of 1982, the first $2 million of reservable liabilities of each

depository institution was exempted from reserve requirements.  Since 1983, this exemption amount has been indexed each

year by 80 percent of the rate of increase of the reservable liabilities at all depository institutions over the

preceding year (June 30 to June 30).  At present, the reserve exemption level is $5.7 million.

        Both of these indexations take effect each year in a reserve maintenance period that begins around January 1 for weekly

respondents to the FR 2900 report.



1
   
  
  
  
 FEDERAL RESERVE STATISTICAL RELEASE
  
 H.3 (502)
 Table 1	                                                                                            For Release at 4:30 p.m. Eastern Time
                                                                                                                         March 21, 2002
 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
 Adjusted for changes in reserve requirements1                                                                                              
 Averages of daily figures, seasonally adjusted unless noted otherwise
 Millions of dollars
 -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                         
                               Reserves of depository institutions                            Borrowings of depository institutions from
                                                                                                         the Federal Reserve, NSA
                      ---------------------------------------------------                 --------------------------------------------------
                                                                                                                                          
      Date             total2    nonborrowed3      required    excess NSA4     Monetary      total      adjustment    seasonal    extended
                                                                                base5                                              credit  
 -------------------------------------------------------------------------------------------------------------------------------------------
  2001-Feb.                38382        38331           36875         1507       589886           51           30           21            0
       Mar.                38460        38402           37061         1399       592272           58           38           20            0
                                                                                                                                           
       Apr.                38568        38517           37291         1277       595638           51           15           35            0
       May                 38316        38103           37297         1019       598894          213          134           79            0
       June                39066        38836           37704         1362       602835          229          110          120            0
                                                                                                                                           
       July                39785        39502           38377         1408       608105          283          109          174            0
       Aug.                40079        39895           38870         1209       616025          183           19          164            0
       Sep.                58214        54829           39195        19019       639717         3385         3292           93            0
                                                                                                                                           
       Oct.                45655        45528           44334         1321       630510          127           60           67            0
       Nov.                40904        40820           39417         1487       629596           84           51           33            0
       Dec.                41099        41032           39459         1641       634549           67           34           33            0
                                                                                                                                           
  2002-Jan.                41510        41460           40105         1405       640882           50           33           17            0
       Feb.                41058        41028           39685         1373       646028           30           12           17            0
 Two weeks ending
  2002-Jan. 23             41315        41287           40072         1243       640898           28           15           14            0
                                                                                                                                           
       Feb.  6             41356        41330           39957         1398       644103           26            8           18            0
            20             40875        40838           39461         1414       645850           37           17           20            0
                                                                                                                                           
       Mar.  6             41154        41132           39872         1282       647783           22            9           13            0
            20p            40642        40618           39378         1264       648234           24            4           20            0
---------------------------------------------------------------------------------------------------------------------------------------------  
 1. Reserves and monetary base figures incorporate adjustments for discontinuities, or "breaks", associated with regulatory changes in reserve 
    requirements. (For more information, see Table 3).
 2. 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.)
 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.
 4. Excess reserves NSA equals unadjusted total reserves (Table 2, column 1) less adjusted required reserves (Table 2, column 3).
 5. 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.)
 p  preliminary
1        
   
   
   
 H.3 (502)
 Table 2
 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
 Not adjusted for changes in reserve requirements1 
 Averages of daily figures, not seasonally adjusted
 Millions of dollars
 -------------------------------------------------------------------------------------------------------------------------------------------
  
                    Reserves of depository institutions                                          Vault cash5
                  --------------------------------------                            --------------------------------------
                                                                            Reserve                  used to                 Net carryover
      Date              total2   nonborrowed     required  Monetary base3  balances       total      satisfy      surplus7    of reserve
                                                                           with F.R.                required                  balances8
                                                                            Banks4                  reserves6
 -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                
  2001-Feb.                39307        39256        37800       595517         6542        48530        32765        15765
       Mar.                37723        37666        36324       598195         6733        44127        30991        13136
                                                                                                                           
       Apr.                38589        38538        37312       601841         6860        43672        31729        11943
       May                 39374        39161        38355       605475         7604        43267        31771        11497
       June                38217        37988        36855       608812         7043        43139        31174        11966
                                                                                                                           
       July                39337        39054        37929       615577         7693        43910        31644        12266
       Aug.                39668        39484        38459       622038         7578        44007        32090        11917
       Sep.                57567        54182        38549       645753        25633        43436        31934        11502
                                                                                                                           
       Oct.                45061        44934        43739       636449        12552        45021        32509        12512
       Nov.                40158        40074        38672       637865         8944        43065        31214        11851
       Dec.                40955        40888        39315       648889         9059        43918        31896        12023
                                                                                                                           
  2002-Jan.                43474        43424        42069       653310        10009        45731        33465        12266
       Feb.                42090        42060        40717       654732         9277        45699        32813        12886
 Two weeks ending
  2002-Jan. 23             43215        43187        41971       651692        10646        43724        32569        11155           40
                                                                                                                                        
       Feb.  6             45235        45210        43837       651516         9191        50352        36044        14308           61
            20             41244        41207        39830       655106         8985        45422        32259        13163           92
                                                                                                                                        
       Mar.  6             41213        41192        39931       656489         9853        42696        31360        11335          113
            20p            39094        39070        37830       657122         8543        42272        30551        11721           11
--------------------------------------------------------------------------------------------------------------------------------------------   
 1. Reflects actual required reserves, with no adjustments to eliminate the effects of discontinuities, or "breaks", associated with 
    regulatory changes in reserve requirements.
 2. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve requirements.
 3. 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. Currency and vault cash figures are measured over computation periods ending on Mondays.
 4. Excludes required clearing balances and adjustments to compensate for float and includes other off-balance sheet "as-of" adjustments.
 5. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by those banks and thrifts that are not exempt
    from reserve requirements. Dates refer to the maintenance periods in which the vault cash can be used to satisfy reserve requirements.
 6. All vault cash held during the lagged computation period by "bound" institutions (i.e., those whose required reserves exceed their vault 
    cash) plus the amount of vault cash applied during the maintenance period by "nonbound" institutions (i.e., those whose vault cash 
    exceeds their required reserves) to satisfy current reserve requirements.
 7. Total vault cash eligible to satisfy reserve requirements, held by depository institutions not exempt from reserve requirements, minus the
    amount used to satisfy reserve requirements.
 8. 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.
 p  preliminary
1
  
  
  
 H.3 (502)
 Table 3
 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
 Adjusted for changes in reserve requirements1 
 Averages of daily figures, not seasonally adjusted
 Millions of dollars
 ---------------------------------------------------------------------------------
  
                      Reserves of depository institutions
                    ---------------------------------------
      Date              total2   nonborrowed    required3    Monetary base4
 ----------------------------------------------------------------------------------
  2001-Feb.                39325        39274        37818         588962
       Mar.                37753        37696        36354         591357
                                                                         
       Apr.                38631        38581        37354         594914
       May                 39430        39217        38410         598559
       June                38283        38054        36921         601667
                                                                         
       July                39418        39135        38009         608235
       Aug.                39759        39576        38550         614551
       Sep.                57676        54291        38657         637995
                                                                         
       Oct.                45188        45061        43867         628340
       Nov.                40287        40203        38801         629897
       Dec.                41073        41007        39433         640058
                                                                         
  2002-Jan.                43460        43411        42055         644295
       Feb.                42072        42042        40699         645509
 Two weeks ending
  2002-Jan. 23             43201        43173        41958         642633
                                                                         
       Feb.  6             45222        45196        43823         642538
            20             41226        41189        39812         645688
                                                                         
       Mar.  6             41189        41168        39907         647423
            20p            39065        39041        37801         647753
  
 1. Figures reflect adjustments for discontinuities, or "breaks", associated with 
    regulatory changes in reserve requirements.
 2. Break-adjusted total reserves equal break-adjusted required reserves (Table 3, 
    column 3) plus excess reserves NSA (Table 1, column 5).
 3. To adjust required reserves for discontinuities due to regulatory changes in 
    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.
 4. 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.
 p  preliminary		

 Note: Current and historical H.3 data are available each week on the Federal Reserve 
       Board's web site (http://www.federalreserve.gov/). Monthly data are available 
       back to January 1959, and weekly data are available back to January 1975 for most 
       series. For information about individual copies or subscriptions, contact 
       Publications Services at the Federal Reserve Board (phone 202-452-3245, 
       fax 202-728-5886). For paid electronic access to current and historical data, 
       call STAT-USA at 1-800-782-8872 or 202-482-1986.