---

`For Release at 
4:30 P.M. Eastern time 
December 19, 2002



The H.4.1 Statistical Release ("Factors Affecting Reserve Balances of Depository 
Institutions and Condition Statement of Federal Reserve Banks") has been reformatted to 
accommodate the Federal Reserve's switch from arranging matched sale-purchase 
transactions to arranging reverse repurchase agreements.

The Federal Reserve began using reverse repurchase agreements, instead of matched 
sale-purchase transactions, on December 13.  Reverse repurchase agreements�sales of 
securities under agreements to repurchase�are fundamentally equivalent to matched 
sale-purchase transactions, and they are commonly used in financial markets.  Like 
matched sale-purchase transactions, reverse repurchase agreements will be arranged with 
foreign official and international accounts and with primary dealers. 

The accounting treatment of reverse repurchase agreements differs from that of matched 
sale-purchase transactions.  Matched sale-purchase transactions were accounted for as an 
outright sale, and the securities sold under these agreements were removed from 
securities held outright.  In contrast, reverse repurchase agreements are accounted for as 
financing transactions in which the securities pledged remain in total outright holdings of 
securities by the Federal Reserve Banks, and a liability is recognized until the transaction 
matures.

For the week ended December 18, the weekly average data for Treasury bills held 
outright incorporate the depressing effect of the matched sale-purchase transaction 
arranged on December 12 and the shift to reverse repurchase agreements for the 
remaining days in the statement week.  One-week and one-year changes shown in table 1 
and in table 2 for Treasury bills held outright and other measures that include these 
holdings are quite large relative to typical movements because of the accounting changes.`

`FEDERAL RESERVE Statistical ReleaseH.4.1Factors Affecting Reserve Balances of Depository Institutions andCondition Statement of Federal Reserve Banks                                                                                          December 19, 20021. Factors Affecting Reserve Balances of Depository InstitutionsMillions of dollars`

|Reserve Bank credit, related items, and                reserve balances of depository institutions at         Federal Reserve Banks | Averages of daily figures | Wednesday Dec 18, 2002
|----------------------------------------------------------------------------------------------------------------------------------- | ------------------------- | ----------------------
|
|
|                                                                                                                                    |                           |                       
|692,654                                                                                                                             | +  21,905                 | +  65,300             
|626,479                                                                                                                             | +  16,564                 | +  72,238             
|626,469                                                                                                                             | +  16,564                 | +  72,238             
|223,757                                                                                                                             | +  16,558                 | +  37,582             
|389,219                                                                                                                             | 0                         | +  31,813             
|12,242                                                                                                                              | 0                         | +   2,531             
|1,250                                                                                                                               | +       5                 | +     311             
|10                                                                                                                                  | 0                         | 0                     
|28,179                                                                                                                              | +   6,179                 | -   8,414             
|55                                                                                                                                  | -     154                 | +       8             
|6                                                                                                                                   | -     158                 | -       6             
|49                                                                                                                                  | +       3                 | +      14             
|0                                                                                                                                   | 0                         | 0                     
|-61                                                                                                                                 | -   1,535                 | -     791             
|38,003                                                                                                                              | +     853                 | +   2,261             
|11,043                                                                                                                              | 0                         | -       2             
|2,200                                                                                                                               | 0                         | 0                     
|34,469                                                                                                                              | +      14                 | +   1,471             
|                                                                                                                                    |                           |                       
|740,365                                                                                                                             | +  21,918                 | +  66,768             
|                                                                                                                                    |                           |                       
|675,416                                                                                                                             | +   1,126                 | +  44,989             
|18,202                                                                                                                              | +  18,202                 | +  18,202             
|18,202                                                                                                                              | +  18,202                 | +  18,202             
|0                                                                                                                                   | 0                         | 0                     
|370                                                                                                                                 | -       6                 | -      70             
|17,217                                                                                                                              | +   2,210                 | +   1,707             
|5,959                                                                                                                               | +   1,852                 | +      95             
|148                                                                                                                                 | +      10                 | -     142             
|10,900                                                                                                                              | +     346                 | +   1,766             
|10,450                                                                                                                              | +     168                 | +   1,869             
|450                                                                                                                                 | +     177                 | -     103             
|210                                                                                                                                 | +       2                 | -      11             
|20,203                                                                                                                              | +     404                 | +   2,237             
|                                                                                                                                    |                           |                       
|                                                                                                                                    |                           |                       
|731,409                                                                                                                             | +  21,937                 | +  67,066             
|                                                                                                                                    |                           |                       
|8,957                                                                                                                               | -      18                 | -     297             
|                                                                                                                                    |                           |                       
|                                                                                                                                    |                           |                       
|                                                                                                                                    |                           |                       
|                                                                                                                                    |                           |                       
|846,299                                                                                                                             | +  10,830                 | ------                
|685,293                                                                                                                             | +   5,307                 | ------                
|161,005                                                                                                                             | +   5,522                 | ------                
|151                                                                                                                                 | +      98                 | -   2,775             

`Note: Components may not sum to totals because of rounding.---   Not available. 1  Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury securities. Daily average data for U.S. Treasury bills    held outright were net of $      2,926 million in matched sale-purchase transactions, all of which were with foreign official and international    accounts. No matched sale-purchase transactions were outstanding on the Wednesday statement date.2  Face value of the securities. 3  Compensation that adjusts for the effects of inflation on the original face value of inflation-indexed securities. 4  Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.5  Estimated. 6  Cash value of agreements, which are collateralized by U.S. Treasury securities.7  Includes U.S. Treasury STRIPS and other zero coupon bonds at face value.  Sources: Federal Reserve Banks and the U.S. Department of the Treasury.  2. Consolidated Statement of Condition of All Federal Reserve BanksMillions of Dollars`

|Assets, liabilities, and capital | Eliminationsfromconsolidation |           | Change Since
|-------------------------------- | ----------------------------- | --------- | ------------
|
|                                 |                               |           |             
|                                 | 11,039                        | 0         | -       6   
|                                 | 2,200                         | 0         | 0           
|                                 | 1,035                         | +       3 | -      44   
|                                 | 659,452                       | +  18,624 | +  66,114   
|                                 | 629,407                       | +  20,450 | +  73,813   
|                                 | 629,397                       | +  20,450 | +  73,813   
|                                 | 226,682                       | +  20,444 | +  40,198   
|                                 | 389,219                       | 0         | +  30,765   
|                                 | 12,242                        | 0         | +   2,531   
|                                 | 1,253                         | +       6 | +     318   
|                                 | 10                            | 0         | 0           
|                                 | 30,000                        | -     750 | -   7,700   
|                                 | 45                            | -   1,076 | +       1   
|(1,219)                          | 8,800                         | -   1,316 | -     301   
|                                 | 1,534                         | +       2 | +      16   
|                                 | 36,540                        | +     661 | +   1,013   
|(1,219)                          | 720,601                       | +  17,976 | +  66,794   
|                                 |                               |           |             
|                                 |                               |           |             
|                                 | 645,599                       | +   3,155 | +  42,663   
|                                 | 21,905                        | +  21,905 | +  21,905   
|(0)                              | 24,923                        | -   6,948 | +     148   
|                                 | 17,943                        | -   8,082 | +   1,171   
|                                 | 6,595                         | +   1,089 | -     579   
|                                 | 172                           | +      33 | -     450   
|(0)                              | 213                           | +      12 | +       5   
|(1,219)                          | 8,266                         | -     257 | -     132   
|                                 | 2,418                         | -      33 | -     187   
|(1,219)                          | 703,111                       | +  17,821 | +  64,397   
|                                 |                               |           |             
|                                 |                               |           |             
|                                 | 8,376                         | +      17 | +   1,021   
|                                 | 7,312                         | 0         | +     587   
|                                 | 1,802                         | +     138 | +     790   
|                                 | 17,489                        | +     154 | +   2,396   

`Note: Components may not sum to totals because of rounding. 1  Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury securities.2  Face value of the securities.3  Compensation that adjusts for the effects of inflation on the original face value of inflation-indexed securities. 4  Cash value of agreements, which are collatealized by U.S. Treasury and federal agency securites.5  Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates. 6  Cash value of agreements, which are collateralized by U.S. Treasury securities.7  Includes exchange-translation account reflecting the daily revaluation at market exchange rates of    foreign exchange commitments.   3. Maturity Distribution of Loans and Securities,  December 18, 2002Millions of dollars`

|Maturity | Loans   | U.S. Treasury   securities (1) | Federal agency securities | Repurchaseagreements(2) | Reverserepurchaseagreements(2)
|-------- | ------- | ------------------------------ | ------------------------- | ----------------------- | ------------------------------
|
|43       | 47,253  | +  27,298                      | 0                         | 0                       | 23,000                        
|3        | 134,262 | -   7,573                      | 0                         | 0                       | 7,000                         
|0        | 140,816 | +     719                      | 10                        | +      10               | ------                        
|------   | 173,935 | 0                              | 0                         | -      10               | ------                        
|------   | 53,295  | +       2                      | 0                         | 0                       | ------                        
|------   | 79,836  | +       3                      | 0                         | 0                       | ------                        
|         |         |                                |                           |                         |                               
|45       | 629,397 | +  20,450                      | 10                        | 0                       | 30,000                        

`Note: Components may not sum to totals because of rounding.---   Not applicable. 1  Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face    value of such securities. 2  Cash value of agreements classified by remaining maturity of the agreements.   4. Statement of Condition of Each Federal Reserve Bank on  December 18, 2002Millions of dollars`

|Assets, liabilities, and capital | Total   | Boston  | New York | Philadelphia | Cleveland | Richmond | Atlanta | Chicago | St. Louis | Minneapolis | Kansas City | Dallas  | SanFrancisco
|-------------------------------- | ------- | ------- | -------- | ------------ | --------- | -------- | ------- | ------- | --------- | ----------- | ----------- | ------- | ------------
|                                 |         |         |          |              |           |          |         |         |           |             |             |        
|11,039                           | 533     | 4,364   | 430      | 522          | 819       | 926      | 1,080   | 346     | 179       | 309         | 485         | 1,046  
|2,200                            | 115     | 874     | 83       | 104          | 147       | 166      | 212     | 71      | 30        | 66          | 98          | 234    
|1,035                            | 48      | 34      | 63       | 47           | 147       | 111      | 131     | 61      | 37        | 69          | 168         | 119    
|                                 |         |         |          |              |           |          |         |         |           |             |             |        
|659,452                          | 36,062  | 277,647 | 24,202   | 34,727       | 49,089    | 44,822   | 74,071  | 22,393  | 9,848     | 18,615      | 13,973      | 54,001 
|629,407                          | 36,062  | 247,647 | 24,202   | 34,727       | 49,089    | 44,816   | 74,069  | 22,380  | 9,839     | 18,605      | 13,969      | 54,001 
|629,397                          | 36,061  | 247,643 | 24,202   | 34,727       | 49,088    | 44,816   | 74,068  | 22,380  | 9,839     | 18,605      | 13,968      | 54,000 
|226,682                          | 12,988  | 89,191  | 8,717    | 12,507       | 17,680    | 16,141   | 26,676  | 8,060   | 3,544     | 6,701       | 5,031       | 19,448 
|402,715                          | 23,073  | 158,453 | 15,486   | 22,220       | 31,409    | 28,675   | 47,392  | 14,320  | 6,295     | 11,904      | 8,938       | 34,551 
|10                               | 1       | 4       | 0        | 1            | 1         | 1        | 1       | 0       | 0         | 0           | 0           | 1      
|30,000                           | 0       | 30,000  | 0        | 0            | 0         | 0        | 0       | 0       | 0         | 0           | 0           | 0      
|45                               | 0       | 0       | 0        | 0            | 0         | 6        | 2       | 13      | 9         | 10          | 5           | 1      
|10,019                           | 541     | 1,071   | 520      | 585          | 934       | 950      | 489     | 631     | 486       | 647         | 332         | 2,833  
|1,534                            | 91      | 185     | 49       | 152          | 130       | 279      | 116     | 43      | 126       | 50          | 140         | 173    
|36,540                           | 1,907   | 12,776  | 1,162    | 2,473        | 5,443     | 2,444    | 3,738   | 960     | 626       | 951         | 800         | 3,261  
|0                                | - 6,192 | +29,305 | - 5,243  | - 5,555      | - 1,991   | - 4,059  | -16,025 | - 3,540 | + 4,004   | - 2,765     | +13,829     | - 1,768
|721,820                          | 33,105  | 326,255 | 21,266   | 33,056       | 54,718    | 45,640   | 63,812  | 20,965  | 15,335    | 17,942      | 29,824      | 59,900 

`Note: Components may not sum to totals because of rounding. 1  Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury securities.2  Face value of the securities.3  Includes the original face value of inflation-indexed securities and compensation that adjusts for the effects of inflation on the original face    value of such securities. 4  Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.5  Includes assets denominated in foreign currencies, which are revalued daily at market exchange rates.    4. Statement of Condition of Each Federal Reserve Bank on  December 18, 2002Millions of dollars`

|Assets, liabilities, and capital | Total  | Boston  | New York | Philadelphia | Cleveland | Richmond | Atlanta | Chicago | St. Louis | Minneapolis | KansasCity | Dallas | SanFrancisco
|-------------------------------- | ------ | ------- | -------- | ------------ | --------- | -------- | ------- | ------- | --------- | ----------- | ---------- | ------ | ------------
|                                 |        |         |          |              |           |          |         |         |           |             |            |       
|762,435                          | 33,280 | 330,896 | 25,599   | 32,861       | 54,768    | 58,851   | 64,873  | 22,181  | 15,157    | 20,091      | 36,703     | 67,177
|116,836                          | 4,674  | 28,286  | 7,451    | 4,772        | 9,889     | 18,189   | 8,654   | 3,490   | 1,998     | 4,249       | 9,028      | 16,156
|645,599                          | 28,605 | 302,609 | 18,149   | 28,089       | 44,879    | 40,662   | 56,219  | 18,691  | 13,159    | 15,842      | 27,674     | 51,021
|21,905                           | 1,255  | 8,619   | 842      | 1,209        | 1,708     | 1,560    | 2,578   | 779     | 342       | 648         | 486        | 1,879 
|24,923                           | 1,513  | 9,439   | 1,190    | 1,590        | 2,930     | 1,301    | 2,177   | 625     | 412       | 514         | 707        | 2,525 
|17,943                           | 1,509  | 2,546   | 1,188    | 1,586        | 2,871     | 1,298    | 2,173   | 623     | 411       | 512         | 704        | 2,521 
|6,595                            | 0      | 6,595   | 0        | 0            | 0         | 0        | 0       | 0       | 0         | 0           | 0          | 0     
|172                              | 2      | 148     | 1        | 3            | 7         | 2        | 3       | 1       | 1         | 1           | 1          | 3     
|213                              | 2      | 149     | 1        | 2            | 51        | 1        | 1       | 1       | 0         | 1           | 3          | 1     
|9,485                            | 672    | 1,005   | 471      | 571          | 693       | 864      | 798     | 347     | 678       | 424         | 479        | 2,483 
|                                 |        |         |          |              |           |          |         |         |           |             |            |       
|2,418                            | 146    | 738     | 105      | 143          | 263       | 193      | 255     | 104     | 83        | 96          | 91         | 200   
|                                 |        |         |          |              |           |          |         |         |           |             |            |       
|704,330                          | 32,191 | 322,410 | 20,757   | 31,601       | 50,473    | 44,579   | 62,028  | 20,545  | 14,675    | 17,524      | 29,438     | 58,109
|                                 |        |         |          |              |           |          |         |         |           |             |            |       
|                                 |        |         |          |              |           |          |         |         |           |             |            |       
|8,376                            | 436    | 1,801   | 242      | 702          | 2,073     | 475      | 851     | 199     | 340       | 201         | 186        | 870   
|7,312                            | 418    | 1,504   | 221      | 665          | 1,757     | 535      | 793     | 149     | 118       | 191         | 164        | 796   
|1,802                            | 59     | 541     | 46       | 88           | 415       | 51       | 140     | 72      | 202       | 26          | 37         | 126   
|721,820                          | 33,105 | 326,255 | 21,266   | 33,056       | 54,718    | 45,640   | 63,812  | 20,965  | 15,335    | 17,942      | 29,824     | 59,900

`Note: Components may not sum to totals because of rounding. 1  Cash value of agreements, which are collateralized by U.S. Treasury securities.2  Includes exchange-translation account reflecting the daily revaluation at market exchange rates of foreign exchange commitments.  5. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' AccountsMillions of dollars`

|Federal Reserve notes and collateral | Wednesday Dec 18, 2002
|------------------------------------ | ----------------------
|                                    
|645,599                             
|                                    
|645,599                             
|11,039                              
|                                    
|2,200                               
|                                    
|632,361                             
|0                                   
|                                    
|                                    
|                                    
|659,407                             
|                                    
|21,913                              
|                                    
|637,494                             

`Note: Components may not sum to totals because of rounding. 1  Includes face value of U.S. Treasury and agency securities held outright, compensation to adjust for the effects of inflation on the original face    value of inflation-indexed securities, and cash value of repurchase agreements.`

Statistical releases

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