For use at 12:00 p.m., eastern time
                                                                                            March 7, 2013




FEDERAL RESERVE statistical release

Z.1




Flow of Funds Accounts
of the United States
Flows and Outstandings
Fourth Quarter 2012




Board of Governors of the Federal Reserve System, Washington DC 20551
                                 Flow of Funds Summary Statistics
                                 C




                                       Fourth Quarter 2012

Debt of the domestic nonfinancial sectors expanded            government debt rose at an annual rate of 111⁄4
at a seasonally adjusted annual rate of 61⁄2 percent in         percent.
the fourth quarter of 2012, 4 percentage points more
than in the third quarter.                                    At the end of the fourth quarter of 2012, the level of
                                                              domestic nonfinancial debt outstanding was $40.1
Household debt increased at an annual rate of 21⁄2              trillion, of which household debt was $12.8 trillion,
percent in the fourth quarter. Home mortgage debt             nonfinancial business debt was $12.7 trillion, and
contracted 3⁄4 percent, continuing the downtrend that           total government debt was $14.6 trillion.
commenced in early 2008, while consumer credit
rose at an annual rate of 61⁄2 percent.                         Household net worth—the difference between the
                                                              value of households’ assets and liabilities—was
Nonfinancial business debt rose at an annual rate of          about $66.0 trillion at the end of the fourth quarter of
83⁄4 percent in the fourth quarter, a somewhat faster           2012, about $1.1 trillion more than at the end of the
pace than in the third quarter. As in recent years,           third quarter. In the fourth quarter, the value of
corporate bonds accounted for the largest increase.           corporate equities and mutual funds owned by
                                                              households expanded $130 billion and the value of
State and local government debt, which was about              real estate owned by households increased about
flat last quarter, declined 33⁄4 percent. Federal               $480 billion.


Growth of Domestic Nonfinancial Debt1        P
                                         P




Percentage changes; quarterly data are seasonally adjusted annual rates
                                                                                State and
                          Total              Households      Business                                  Federal
                                                                               local govts.
 2003                      8.0                   11.8           2.2                8.3                  10.9
 2004                      9.3                   11.1           6.7                9.5                   9.0
 2005                      9.2                   11.2           9.0                5.8                   7.0
 2006                      8.6                    9.9          10.9                3.9                   3.9
 2007                      8.5                    6.6          13.7                5.5                   4.9

 2008                      5.8                   -0.2            6.2               0.6                  24.2
 2009                      3.1                   -1.7           -2.1               4.0                  22.7
 2010                      4.1                   -2.7            1.4               2.3                  20.2
 2011                      3.7                   -1.6            4.8              -1.7                  11.4
 2012                      4.8                    0.2            5.7              -0.2                  10.9

 2011:Q1                   2.5                   -2.0            3.8              -2.8                   9.1
      Q2                   2.6                   -2.7            5.4              -2.8                   8.2
      Q3                   4.3                   -1.7            4.3              -0.2                  13.7
      Q4                   5.0                    0.1            5.2              -1.2                  12.7

 2012:Q1                  4.7               -0.9                 4.2              -0.0                  13.7
       Q2                 5.2                1.3                 4.9               3.1                  10.9
       Q3                 2.6               -2.0                 4.7              -0.1                   6.2
       Q4                 6.4                2.4                 8.7              -3.7                  11.2
1. Changes shown are on an end-of-period basis.
                                             Table of Contents


Title                                                                            Table      Page


Flow of Funds Accounts, Fourth Quarter 2012                                                   1

Availability of Data for Latest Quarter                                                       4

Credit Market Debt Growth by Sector                                              D.1          7

Credit Market Borrowing by Sector                                                D.2          8

Credit Market Debt Outstanding by Sector                                         D.3          9




                                                                    Flows             Levels
Title                                                          Table      Page   Table       Page


Summaries
Total Credit Market Borrowing and Lending                      F.1        10     L.1         64

Credit Market Borrowing by Nonfinancial Sectors                F.2        11     L.2         65

Credit Market Borrowing by Financial Sectors                   F.3        11     L.3         65

Credit Market Borrowing, All Sectors, by Instrument            F.4        12     L.4         66

Total Liabilities and Its Relation to Total Financial Assets   F.5        12     L.5         66

Distribution of Gross Domestic Product                         F.6        13

Distribution of National Income                                F.7        14

Saving and Investment                                          F.8        15

Net Capital Transfers                                          F.9        16

Derivation of Measures of Personal Saving                      F.10       17     L.10        67
                                                                      Flows             Levels
Title                                                            Table      Page   Table       Page


Sectors
Households and Nonprofit Organizations                            F.100     18     L.100       68

Nonfinancial Business                                             F.101     19     L.101       69

    Nonfinancial Corporate Business                               F.102     20     L.102       70
    Nonfinancial Noncorporate Business                            F.103     21     L.103       71

State and Local Governments                                       F.104     22     L.104       72

Federal Government                                                F.105     23     L.105       73

Rest of the World                                                 F.106     24     L.106       74

Financial Business                                                F.107     25     L.107       75

    Monetary Authority                                            F.108     26     L.108       76

    Private Depository Institutions                               F.109     27     L.109       77

         U.S.-Chartered Depository Institutions, ex. Credit Unions F.110    28     L.110       78
         Foreign Banking Offices in U.S.                          F.111     29     L.111       79
         Banks in U.S.-Affiliated Areas                           F.112     30     L.112       80
         Credit Unions                                            F.113     30     L.113       80

    Property-Casualty Insurance Companies                         F.114     31     L.114       81

    Life Insurance Companies                                      F.115     31     L.115       81

    Private Pension Funds                                         F.116     32     L.116       82

    State and Local Government Employee Retirement Funds          F.117     33     L.117       83

    Federal Government Retirement Funds                           F.118     33     L.118       83

    Money Market Mutual Funds                                     F.119     34     L.119       84

    Mutual Funds                                                  F.120     34     L.120       84

    Closed-End and Exchange-Traded Funds                          F.121     34     L.121       84

    Government-Sponsored Enterprises                              F.122     35     L.122       85
                                                                     Flows             Levels
Title                                                           Table      Page   Table       Page


    Agency- and GSE-Backed Mortgage Pools                       F.123      35     L.123       85

    Issuers of Asset-Backed Securities                          F.124      36     L.124       86

    Finance Companies                                           F.125      36     L.125       86

    Real Estate Investment Trusts                               F.126      37     L.126       87

    Security Brokers and Dealers                                F.127      38     L.127       88

    Holding Companies                                           F.128      39     L.128       89

    Funding Corporations                                        F.129      40     L.129       90




Instruments
U.S. Official Reserve Assets and SDR Allocations                F.200      41     L.200       91

Special Drawing Rights (SDRs) Certificates and Treasury Currency F.201     41     L.201       91

U.S. Deposits in Foreign Countries                              F.202      41     L.202       91

Net Interbank Transactions                                      F.203      42     L.203       92

Checkable Deposits and Currency                                 F.204      43     L.204       93

Time and Savings Deposits                                       F.205      44     L.205       94

Money Market Mutual Fund Shares                                 F.206      44     L.206       94

Federal Funds and Security Repurchase Agreements                F.207      45     L.207       95

Open Market Paper                                               F.208      46     L.208       96

Treasury Securities                                             F.209      47     L.209       97

Agency- and GSE-Backed Securities                               F.210      48     L.210       98

Municipal Securities and Loans                                  F.211      49     L.211       99

Corporate and Foreign Bonds                                     F.212      50     L.212      100

Corporate Equities                                              F.213      51     L.213      101

Mutual Fund Shares                                              F.214      51     L.214      101

Depository Institution Loans Not Elsewhere Classified           F.215      52     L.215      102

Other Loans and Advances                                        F.216      53     L.216      103
                                                                  Flows                  Levels
Title                                                     Table           Page   Table        Page


Total Mortgages                                           F.217            54    L.217        104

    Home Mortgages                                        F.218            55    L.218        105
    Multifamily Residential Mortgages                     F.219            55    L.219        105
    Commercial Mortgages                                  F.220            56    L.220        106
    Farm Mortgages                                        F.221            56    L.221        106

Consumer Credit                                           F.222            57    L.222        107

Trade Credit                                              F.223            57    L.223        107

Security Credit                                           F.224            57    L.224        107

Life Insurance and Pension Fund Reserves                  F.225            58    L.225        108

Taxes Payable by Businesses                               F.226            58    L.226        108

Proprietors' Equity in Noncorporate Business              F.227            58    L.227        108

Total Miscellaneous Financial Claims                      F.228            59    L.228        109

    Identified Miscellaneous Financial Claims - Part I    F.229            60    L.229        110
    Identified Miscellaneous Financial Claims - Part II   F.230            61    L.230        111
    Unidentified Miscellaneous Financial Claims           F.231            62    L.231        112

Sector Discrepancies                                      F.11             63

Instrument Discrepancies                                  F.12             63




                                                              Balance            Reconciliation
                                                               Sheet
Title                                                     Table      Page        Table        Page


Balance Sheet and Reconciliation Tables
Households and Nonprofit Organizations                    B.100           113    R.100        116

Nonfinancial Corporate Business                           B.102           114    R.102        117

Nonfinancial Noncorporate Business                        B.103           115    R.103        118
                                                                        Flows             Levels
Title                                                              Table      Page   Table       Page


Supplementary Tables
Balance Sheet of Households and Nonprofit Organizations
 with Equity Detail                                                                  B.100.e    119

Nonprofit Organizations                                            F.100.a   120     L.100.a    121

Consolidated Statement for Federal, State, and Local Governments   F.105.c   122     L.105.c    123

Private Pension Funds: Defined Benefit Plans                       F.116.b   124     L.116.b    125

Private Pension Funds: Defined Contribution Plans                  F.118.c   124     L.118.c    125

Individual Retirement Accounts (IRAs)                              F.225.i   124     L.225.i    125

Flow of Funds Matrix for 2012                                                126                127
                                                                                                              1




                     Flow of Funds Accounts, Fourth Quarter 2012


                                                          Explanatory notes for tables D.1, D.2, and D.3.
This publication presents the Flow of Funds
                                                          Domestic debt comprises credit market funds
Accounts for 2012:Q4. The statistics in the attached
                                                          borrowed by U.S. entities from both domestic and
tables reflect the use of new or revised source data.
                                                          foreign sources, while foreign debt represents
Most significant revisions appear in recent quarters;
                                                          amounts borrowed by foreign financial and
however, new source information resulted in changes
                                                          nonfinancial entities in U.S. markets only. Financial
to data for earlier periods.
                                                          sectors consist of government-sponsored enterprises,
                                                          agency- and GSE-backed mortgage pools, the
Release Highlights. Major data revisions, structural
                                                          monetary authority, and private financial institutions.
changes, and release enhancements introduced this
                                                          Credit market debt consists of debt securities,
quarter are described below:
                                                          mortgages, bank loans, commercial paper, consumer
                                                          credit, U.S. government loans, and other loans and
1. Data for the noncorporate business sector (tables
                                                          advances; it excludes trade debt, loans for the
F.103, L.103, B.103, and R.103) have been revised
                                                          purpose of carrying securities, and funds raised from
from 2010:Q1 forward to reflect new 2010
                                                          equity sources. This definition is consistent with the
benchmark statistics from the Internal Revenue
                                                          presentation of credit market borrowing and lending
Service (IRS) Statistics of Income (SOI).
                                                          on tables F.1 through F.4. Net lending (+) or net
                                                          borrowing (-) on the individual sector tables and the
2. The state and local government employee
                                                          matrix is defined as net acquisition of financial assets
retirement funds sector (tables F.117 and L.117) has
                                                          less net increase in liabilities.
been updated to reflect the Census Bureau’s
benchmarks for 2009:Q2, 2010:Q2, and 2011:Q2.
                                                          Growth rates in table D.1 are calculated by dividing
Also, new information on asset holdings from
                                                          seasonally adjusted flows from table D.2 by
2011:Q2 Comprehensive Annual Financial Reports
                                                          seasonally adjusted levels at the end of the previous
(CAFRs) of a sample of state and local government
                                                          period from table D.3. Seasonally adjusted levels in
employee retirement funds, as well as minor changes
                                                          flow of funds statistics are derived by carrying
to the method of calculation, has been incorporated.
                                                          forward year-end levels by seasonally adjusted flows.
Data revisions begin in 2004:Q3.
                                                          Growth rates calculated from changes in unadjusted
                                                          levels printed in table L.2 can differ from those in
3. The Treasury securities instrument tables
                                                          table D.1.
(tables F.209 and L.209) have been modified to show
additional detail on the composition of Treasury
                                                          Relation of Flows to Outstandings. Estimates of
securities held by the life insurance company, the
                                                          financial assets and liabilities outstanding are linked
property-casualty insurance company, and the money
                                                          to data on flows. However, figures on outstandings
market mutual fund sectors.         Treasury bills,
                                                          contain discontinuities or breaks in series that could
considered short-term, are now shown separately
                                                          affect analysis of particular relationships over time.
from other Treasury securities. Data begin in
                                                          Specifically, outstandings in the Flow of Funds
2001:Q4 for the life insurance company sector,
                                                          Accounts are related to flows in the following way:
1981:Q2 for the property-casualty insurance
company sector, and 1984:Q1 for the money market
                                                          Outstanding t = Outstanding t-1+ Flow t+ Discontinuityt
mutual fund sector.                                                   B   B           B   B     B   B             B   B




                                                          where “t” is the time period.
4. A new section for International Data
                                                          Discontinuities result from changes in valuation,
Submissions has been added to the list of tables in the
                                                          breaks in source data, and changes in definitions. For
Flow of Funds online Guide. Two OECD matrices
                                                          most series, the value of the discontinuity is zero for
(tables 620 and 720) show unconsolidated financial
                                                          nearly all time periods. However, in a few instances,
flows and balance sheets by sector and financial
                                                          the discontinuity is nonzero for almost all time
instrument. Two additional OECD matrices (tables
                                                          periods, or is quite large in a particular quarter, such
610 and 710) show financial flows and balance sheets
                                                          as a period when there is a sharp increase or decrease
for the consolidated general government sector. The
                                                          in equity prices or a major break in source data. The
format of the matrices is consistent with the System of
                                                          discontinuities in a series can distort estimated rates
National Accounts, 1993 (1993 SNA).
2

                                                          Availability of Data. Flow of funds statistics are
of growth in assets and liabilities between periods.
In order to minimize these distortions, percentage        updated about ten weeks following the end of a
changes in assets and liabilities in flow of funds        quarter. This publication — the Z.1 release — is
releases should be calculated as:                         available from the Board's Publications Services.
                                                          Flow of funds data are also available electronically
Percentage change t = (Flow t / Outstanding t-1) * 100    through the Internet at the following location:
                   B   B     B   B           B   B




                                                          www.federalreserve.gov/releases/Z1
Preliminary Estimates. Figures shown for the most
                                                          This Internet site also provides coded tables and
recent quarter in these tables are based on
                                                          historical annual tables beginning in 1945 that
preliminary and incomplete information. A summary
                                                          correspond to the tables published in this release.
list of the principal sources of information available
                                                          There are also compressed ASCII files of quarterly
when the latest quarter's data were compiled is
                                                          data for seasonally adjusted flows, unadjusted flows,
provided in a table following this introduction. The
                                                          outstandings, balance sheets, debt (tables D.1, D.2,
distinction between “available” data and “missing”
                                                          and D.3), and supplementary tables.
data is not between final and preliminary versions of
data, but rather between those source estimates that
                                                          In addition, these data, as well as data for the
are fully ready when the latest quarterly publication
                                                          quarterly and annual Integrated Macroeconomic
is compiled and those that are not yet completed.
                                                          Accounts for the United States tables, are available as
However, the items that are shown as available are, in
                                                          customizable download datasets through the Data
general, also preliminary in the sense that they are
                                                          Download Program (DDP) at the following location:
subject to revision by source agencies.

                                                          www.federalreserve.gov/datadownload/Choose.aspx?rel=Z.1
Margins of Uncertainty. Flow of funds statistics are
subject to uncertainties resulting from measurement
                                                          An interactive, web-based guide to the Flow of Funds
errors in source data, incompatibilities among data
                                                          Accounts is available through the Z.1 release page.
from different sources, potential revisions in both
                                                          The tools and descriptions within this guide are
financial and nonfinancial series, and incomplete data
                                                          designed to help users explore the structure and
in parts of the accounts. The size of these
                                                          content of the Z.1 and the Integrated Macroeconomic
uncertainties cannot be quantified in precise
                                                          Accounts.
statistical terms, but allowance for them is explicitly
made throughout the accounts by the inclusion of
                                                          Subscription Information. The Federal Reserve
“discrepancies” for various sectors and instrument
                                                          Board charges for subscriptions to all statistical
types. A discrepancy for a sector is the difference
                                                          releases. Inquiries for releases should be directed to:
between its measured sources of funds and its
measured uses of funds. For an instrument category,                  Publications Services, Stop 127
a discrepancy is the difference between measured                           Board of Governors
funds borrowed through the financial instrument and                  of the Federal Reserve System
measured funds lent through that instrument. The size          20th Street and Constitution Avenue, N.W.
                                                                         Washington, DC 20551
of such discrepancies relative to the main asset or
                                                                             (202) 452-3244
liability components is one indication of the quality
of source data, especially on an annual basis. For
quarterly data, differences in seasonal adjustment
procedures for financial and nonfinancial components
of the accounts sometimes result in discrepancies that
cancel in annual data.
                                       3




[THIS PAGE INTENTIONALLY LEFT BLANK]
4


                         Availability of Data for Latest Quarter

                                     Available at time of publication           Major items missing
                                     U                                 U        U                       U




1. National income and product       Second estimate, seasonally adjusted,      Unadjusted flows since 2010 for
   accounts (NIPA)                   for 2012:Q4.                               the government sectors.
                                                                                Unadjusted flows since 2006 for all
                                                                                other sectors.

2. Households and nonprofit          Estimates for this sector are largely residuals and are derived from data for
   organizations sector              other sectors. Availability of data depends on schedules for other sectors.
   (tables F.100 and L.100)          Data for consumer credit, which are estimated directly, are available through
                                     2012:Q4. The source for nonprofit organizations data (tables F.100.a and
                                     L.100.a) is the Internal Revenue Service Statistics of Income. Data for
                                     nonprofit organizations are available for 1987 through 2000.

3. Nonfinancial corporate business   Quarterly Financial Report (QFR) of            Statistics of Income data since
   (tables F.102 and L.102)          the Census Bureau through 2012:Q3;             2010. QFR of the Census Bureau
                                     Internal Revenue Service Statistics of         since 2012:Q3.
                                     Income (IRS/SOI) data through 2010;
                                     securities offerings, mortgages, bank
                                     loans, commercial paper, and other
                                     loans through 2012:Q4. Corporate farm
                                     data for 2012.

4. Nonfinancial noncorporate         IRS/SOI data through 2010; bank and            Statistics of Income data since
   business                          finance company loans, and mortgage            2010.
   (tables F.103 and L.103)          borrowing through 2012:Q4.
                                     Noncorporate farm data for 2012.

5. State and local governments       Gross offerings and retirements of             Total financial assets since
   (tables F.104 and L.104)          municipal securities, deposits at banks,       2010:Q2 and selected financial
                                     and nonmarketable U.S. government              asset detail since 2011:Q2.
                                     security issues through 2012:Q3; total
                                     financial assets through 2010:Q2 from
                                     the Census Bureau; breakdown of
                                     financial assets through 2011:Q2 from
                                     the comprehensive annual financial
                                     reports of state and local governments.

6. Federal government                Data from the Monthly Treasury                 None.
                                     Statement of Receipts and Outlays and
   (tables F.105 and L.105)
                                     Treasury data for loan programs and the
                                     Troubled Assets Relief Program
                                     (TARP) through 2012:Q4.
                                                                                                               5
7. Rest of the world                   Balance of payments data through         Balance of payments data for
   (U.S. international transactions)   2012:Q3. NIPA estimates; data from       2012:Q4.
   (tables F.106 and L.106)            bank Reports of Condition and from
                                       Treasury International Capital System
                                       through 2012:Q4.

8. Monetary authority                  All data through 2012:Q4.                None.
   (tables F.108 and L.108)

9. U.S.-chartered depository           All data through 2012:Q4.                None.
    institutions
   (tables F.110 and L.110)

10. Foreign banking offices in U.S.    All data through 2012:Q4.                None.
    (tables F.111 and L.111)

11. Banks in U.S.-affiliated areas     All data through 2012:Q4.                None.
    (tables F.112 and L.112)

12. Credit unions                      All data through 2012:Q4.                None.
    (tables F.113 and L.113)

13. Property-casualty insurance        All data through 2012:Q3.                Data since 2012:Q3.
     companies
    (tables F.114 and L.114)

14. Life insurance companies           All data through 2012:Q3.                Data since 2012:Q3.
    (tables F.115 and L.115)

15. Private pension funds              Internal Revenue Service/Department of   Form 5500 data since 2007.
    (tables F.116 and L.116)           Labor/Pension Benefit Guaranty
                                       Corporation Form 5500 data through
                                       2007.

16. State and local government         Detailed data through 2011:Q2 from the   Detailed data since 2011:Q2.
   employee retirement funds           Census Bureau; sample data through
    (tables F.117 and L.117)           2012:Q4 from the Census Bureau.

17. Federal government retirement      Data from the Monthly Treasury           None.
   funds                               Statement of Receipts and Outlays, the
                                       Thrift Savings Plan, and the National
    (tables F.118 and L.118)
                                       Railroad Retirement Investment Trust
                                       through 2012:Q3.
6

    18. Money market mutual funds            All data through 2012:Q4.                  None.
        (tables F.119 and L.119)


    19. Mutual funds                         All data through 2012:Q4.                  None.
        (tables F.120 and L.120)

    20. Closed-end funds                                                                None.
                                             All data through 2012:Q4.
        (tables F.121 and L.121)

    21. Exchange-traded funds                All data through 2012:Q4.                  None.
        (tables F.121 and L.121)

    22. Government-sponsored                 Data for Freddie Mac, Farmer Mac,          Fannie Mae and FHLB data since
       enterprises                           FICO, FCS, and REFCORP through             2012:Q3.
        (tables F.122 and L.122)             2012:Q4.

    23. Agency- and GSE-backed               Data for Freddie Mac, Farmer Mac, and      Fannie Mae data since 2012:Q3.
       mortgage pools                        Ginnie Mae through 2012:Q4.
        (tables F.123 and L.123)

    24. Issuers of asset-backed securities   All data for private mortgage pools,       None.
       (ABSs)                                consumer credit, business loans, student
        (tables F.124 and L.124)             loans, consumer leases, and trade credit
                                             securitization through 2012:Q4.

    25. Finance companies                    All data through 2012:Q4.                  None.
        (tables F.125 and L.125)

    26. Real estate investment trusts        Final data from SNL Financial through      None.
       (REITs)                               2012:Q4.
        (tables F.126 and L.126)

    27. Security brokers and dealers         Data for firms filing FOCUS and FOGS       None.
        (tables F.127 and L.127)             reports through 2012:Q4.

    28. Holding companies                    All data through 2012:Q4.                  None.
        (table F.128 and L.128)

    29. Funding corporations                 Estimates for this sector are largely
        (tables F.129 and L.129)             residuals and are derived from data for
                                             other sectors.