For use at 12:00 p.m., eastern time
                                                                                        December 6, 2012




FEDERAL RESERVE statistical release

Z.1




Flow of Funds Accounts
of the United States
Flows and Outstandings
Third Quarter 2012




Board of Governors of the Federal Reserve System, Washington DC 20551
                                  Flow of Funds Summary Statistics
                                  C




                                         Third Quarter 2012

Debt of the domestic nonfinancial sectors expanded            was nearly flat in the third quarter.         Federal
at a seasonally adjusted annual rate of 2 1⁄2 percent in        government debt rose at an annual rate of 6 1⁄4 percent
the third quarter of 2012, 2 1⁄2 percentage points less         in the third quarter, about half the average rate of
than in the second quarter.                                   change of the previous four quarters.

Household debt decreased at an annual rate of 2               At the end of the third quarter of 2012, the level of
percent in the third quarter. Home mortgage debt              domestic nonfinancial debt outstanding was $39.3
contracted 3 percent, continuing the downtrend that           trillion, of which household debt was $12.9 trillion,
commenced in early 2008. Consumer credit rose at              nonfinancial business debt was $12.1 trillion, and
an annual rate of 4 1⁄4 percent, the eighth consecutive         total government debt was $14.3 trillion.
quarterly increase.
                                                              Household net worth—the difference between the
Nonfinancial business debt rose at an annual rate of          value of households’ assets and liabilities—was
4 1⁄2 percent in the third quarter, in line with the rate       about $64.8 trillion at the end of the third quarter of
in the second quarter. As in recent years, corporate          2012, $1.7 trillion more than at the end of the second
bonds outstanding accounted for the largest increase.         quarter. In the third quarter, the value of corporate
                                                              equities and mutual funds owned by households
State and local government debt, which had declined           expanded $800 billion and the value of real estate
in 2011 and increased modestly in the second quarter,         owned by households increased about $370 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.
 2002                       7.3                   10.6          3.0               11.1                  7.6
 2003                       8.0                   11.8          2.2                8.3                 10.9
 2004                       9.2                   11.1          6.8                9.5                  9.0
 2005                       9.2                   11.1          8.9                5.8                  7.0
 2006                       8.6                   10.0         10.8                3.9                  3.9

 2007                       8.4                    6.6         13.6                5.5                  4.9
 2008                       5.8                   -0.2          6.1                0.6                 24.2
 2009                       3.1                   -1.7         -2.3                4.0                 22.7
 2010                       4.1                   -2.2          0.7                2.3                 20.2
 2011                       3.6                   -1.6          4.6               -1.7                 11.4

 2011:Q1                    2.5                   -2.0           3.6              -2.8                  9.1
      Q2                    2.5                   -2.7           5.2              -2.8                  8.2
      Q3                    4.4                   -1.7           4.2              -0.2                 13.7
      Q4                    4.9                    0.1           5.1              -1.2                 12.7

 2012:Q1                  4.6               -0.9                 3.9              -0.0                 13.7
       Q2                 5.1                1.2                 4.5               3.1                 10.9
       Q3                 2.4               -2.0                 4.4              -0.1                  6.2
1. Changes shown are on an end-of-period basis.
                                             Table of Contents


Title                                                                            Table      Page


Flow of Funds Accounts, Third 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

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

Nonfarm 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 2011                                                126                127
                                                                                                                   1




                       Flow of Funds Accounts, Third Quarter 2012


                                                           affect analysis of particular relationships over time.
This publication presents the Flow of Funds
                                                           Specifically, outstandings in the Flow of Funds
Accounts for 2012:Q3. The statistics in the attached
                                                           Accounts are related to flows in the following way:
tables reflect the use of new or revised source data.
Most significant revisions appear in recent quarters;
                                                           Outstanding t = Outstanding t-1+ Flow t+ Discontinuityt
however, new source information resulted in changes                    B   B           B   B       B   B               B   B




                                                           where “t” is the time period.
to data for earlier periods.
                                                           Discontinuities result from changes in valuation,
Release Highlights. A structural change has been
                                                           breaks in source data, and changes in definitions. For
introduced this quarter: The monetary authority
                                                           most series, the value of the discontinuity is zero for
sector (tables F.108 and L.108) has been modified to
                                                           nearly all time periods. However, in a few instances,
show additional detail on the composition of agency-
                                                           the discontinuity is nonzero for almost all time
and GSE-backed securities held by the monetary
                                                           periods, or is quite large in a particular quarter, such
authority.    Mortgage-backed securities are now
                                                           as a period when there is a sharp increase or decrease
shown separately from other agency- and GSE-
                                                           in equity prices or a major break in source data. The
backed securities. Data begin in 2009:Q1.
                                                           discontinuities in a series can distort estimated rates
                                                           of growth in assets and liabilities between periods.
Explanatory notes for tables D.1, D.2, and D.3.
                                                           In order to minimize these distortions, percentage
Domestic debt comprises credit market funds
                                                           changes in assets and liabilities in flow of funds
borrowed by U.S. entities from both domestic and
                                                           releases should be calculated as:
foreign sources, while foreign debt represents
amounts borrowed by foreign financial and
                                                           Percentage change t = (Flow t / Outstanding t-1) * 100
nonfinancial entities in U.S. markets only. Financial                          B   B       B   B           B   B




sectors consist of government-sponsored enterprises,
                                                           Preliminary Estimates. Figures shown for the most
agency- and GSE-backed mortgage pools, the
                                                           recent quarter in these tables are based on
monetary authority, and private financial institutions.
                                                           preliminary and incomplete information. A summary
Credit market debt consists of debt securities,
                                                           list of the principal sources of information available
mortgages, bank loans, commercial paper, consumer
                                                           when the latest quarter's data were compiled is
credit, U.S. government loans, and other loans and
                                                           provided in a table following this introduction. The
advances; it excludes trade debt, loans for the
                                                           distinction between “available” data and “missing”
purpose of carrying securities, and funds raised from
                                                           data is not between final and preliminary versions of
equity sources. This definition is consistent with the
                                                           data, but rather between those source estimates that
presentation of credit market borrowing and lending
                                                           are fully ready when the latest quarterly publication
on tables F.1 through F.4. Net lending (+) or net
                                                           is compiled and those that are not yet completed.
borrowing (-) on the individual sector tables and the
                                                           However, the items that are shown as available are, in
matrix is defined as net acquisition of financial assets
                                                           general, also preliminary in the sense that they are
less net increase in liabilities.
                                                           subject to revision by source agencies.
Growth rates in table D.1 are calculated by dividing
                                                           Margins of Uncertainty. Flow of funds statistics are
seasonally adjusted flows from table D.2 by
                                                           subject to uncertainties resulting from measurement
seasonally adjusted levels at the end of the previous
                                                           errors in source data, incompatibilities among data
period from table D.3. Seasonally adjusted levels in
                                                           from different sources, potential revisions in both
flow of funds statistics are derived by carrying
                                                           financial and nonfinancial series, and incomplete data
forward year-end levels by seasonally adjusted flows.
                                                           in parts of the accounts. The size of these
Growth rates calculated from changes in unadjusted
                                                           uncertainties cannot be quantified in precise
levels printed in table L.2 can differ from those in
                                                           statistical terms, but allowance for them is explicitly
table D.1.
                                                           made throughout the accounts by the inclusion of
                                                           “discrepancies” for various sectors and instrument
Relation of Flows to Outstandings. Estimates of
                                                           types. A discrepancy for a sector is the difference
financial assets and liabilities outstanding are linked
                                                           between its measured sources of funds and its
to data on flows. However, figures on outstandings
                                                           measured uses of funds. For an instrument category,
contain discontinuities or breaks in series that could
2
a discrepancy is the difference between measured         In addition, these data, as well as data for the
funds borrowed through the financial instrument and      quarterly and annual Integrated Macroeconomic
measured funds lent through that instrument. The size    Accounts for the United States tables, are available as
of such discrepancies relative to the main asset or      customizable download datasets through the Data
liability components is one indication of the quality    Download Program (DDP) at the following location:
of source data, especially on an annual basis. For
                                                         www.federalreserve.gov/datadownload/Choose.aspx?rel=Z.1
quarterly data, differences in seasonal adjustment
procedures for financial and nonfinancial components
                                                         An interactive, web-based guide to the Flow of Funds
of the accounts sometimes result in discrepancies that
                                                         Accounts is available through the Z.1 release page.
cancel in annual data.
                                                         The tools and descriptions within this guide are
                                                         designed to help users explore the structure and
Availability of Data. Flow of funds statistics are
                                                         content of the Z.1 and the Integrated Macroeconomic
updated about ten weeks following the end of a
                                                         Accounts.
quarter. This publication — the Z.1 release — is
available from the Board's Publications Services.
                                                         Subscription Information. The Federal Reserve
Flow of funds data are also available electronically
                                                         Board charges for subscriptions to all statistical
through the Internet at the following location:
                                                         releases. Inquiries for releases should be directed to:
www.federalreserve.gov/releases/Z1

                                                                   Publications Services, Stop 127
This Internet site also provides coded tables and
                                                                          Board of Governors
historical annual tables beginning in 1945 that                     of the Federal Reserve System
correspond to the tables published in this release.           20th Street and Constitution Avenue, N.W.
There are also compressed ASCII files of quarterly                      Washington, DC 20551
data for seasonally adjusted flows, unadjusted flows,                       (202) 452-3244
outstandings, balance sheets, debt (tables D.1, D.2,
and D.3), and supplementary tables.
                                       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:Q3.                               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:Q3. 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. Corporate farm data for
                                     Internal Revenue Service Statistics of         2012.
                                     Income (IRS/SOI) data through 2010;
                                     securities offerings, mortgages, bank
                                     loans, commercial paper, and other
                                     loans through 2012:Q3.

4. Nonfinancial noncorporate         IRS/SOI data through 2009; bank and            Statistics of Income data since
   business                          finance company loans, and mortgage            2009. Noncorporate farm data
   (tables F.103 and L.103)          borrowing through 2012:Q3.                     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:Q3.
                                                                                                                    5
7. Rest of the world                   Balance of payments data through         Balance of payments data for
   (U.S. international transactions)   2012:Q2. NIPA estimates; data from       2012:Q3.
   (tables F.106 and L.106)            bank Reports of Condition and from
                                       Treasury International Capital System
                                       through 2012:Q3.

8. Monetary authority                  All data through 2012:Q3.                None.
   (tables F.108 and L.108)

9. U.S.-chartered depository           All data through 2012:Q3.                None.
    institutions
   (tables F.110 and L.110)

10. Foreign banking offices in U.S.    All data through 2012:Q3.                None.
    (tables F.111 and L.111)

11. Banks in U.S.-affiliated areas     All data through 2012:Q3 for             Data since 2011 for branches of
    (tables F.112 and L.112)           commercial banks in U.S.-affiliated      domestic commercial banks
                                       areas. All data through 2011 for         located in U.S.-affiliated areas.
                                       branches of domestic commercial banks
                                       located in U.S.-affiliated areas.

12. Credit unions                      All data through 2012:Q3.                None.
    (tables F.113 and L.113)

13. Property-casualty insurance        All data through 2012:Q3.                None.
     companies
    (tables F.114 and L.114)

14. Life insurance companies           All data through 2012:Q3.                None.
    (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 2008:Q2 from the   Detailed data since 2008:Q2.
   employee retirement funds           Census Bureau; sample data through
    (tables F.117 and L.117)           2012:Q1 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:Q3.                  None.
        (tables F.119 and L.119)


    19. Mutual funds                         All data through 2012:Q3.                  None.
        (tables F.120 and L.120)

    20. Closed-end funds                                                                None.
                                             All data through 2012:Q3.
        (tables F.121 and L.121)

    21. Exchange-traded funds                All data through 2012:Q3.                  None.
        (tables F.121 and L.121)

    22. Government-sponsored                 Data for Fannie Mae, Freddie Mac,          None.
       enterprises                           Farmer Mac, FHLB, FICO, FCS, and
        (tables F.122 and L.122)             REFCORP through 2012:Q3.

    23. Agency- and GSE-backed               Data for Fannie Mae, Freddie Mac,          None.
       mortgage pools                        Farmer Mac, and Ginnie Mae through
        (tables F.123 and L.123)             2012:Q3.

    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:Q3.

    25. Finance companies                    All data through 2012:Q3.                  None.
        (tables F.125 and L.125)

    26. Real estate investment trusts        Final data from SNL Financial through      None.
       (REITs)                               2012:Q3.
        (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:Q3.

    28. Holding companies                    All data through 2012:Q3.                  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.