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.
Reserve Bank credit, related items, and

reserve balances of depository institutions

at Federal Reserve Banks

Reserve Bank credit 692,654 + 21,905 + 65,300 698,649

Securities held outright 626,479 + 16,564 + 72,238 629,407

U.S. Treasury1 626,469 + 16,564 + 72,238 629,397

Bills2 223,757 + 16,558 + 37,582 226,682

Notes and bonds, nominal2 389,219 0 + 31,813 389,219

Notes and bonds, inflation-indexed2 12,242 0 + 2,531 12,242

Inflation compensation3 1,250 + 5 + 311 1,253

Federal agency2 10 0 0 10

Repurchase agreements4 28,179 + 6,179 - 8,414 30,000

Loans to depository institutions 55 - 154 + 8 45

Adjustment credit 6 - 158 - 6 2

Seasonal credit 49 + 3 + 14 43

Extended credit 0 0 0 0

Float -61 - 1,535 - 791 994

Other Federal Reserve assets 38,003 + 853 + 2,261 38,202

Gold stock 11,043 0 - 2 11,043

Special drawing rights certificate account 2,200 0 0 2,200

Treasury currency outstanding5 34,469 + 14 + 1,471 34,469

Total factors supplying reserve funds 740,365 + 21,918 + 66,768 746,360

Currency in circulation5 675,416 + 1,126 + 44,989 678,678

Reverse repurchase agreements6 18,202 + 18,202 + 18,202 21,905

Foreign official and international accounts 18,202 + 18,202 + 18,202 21,905

Dealers 0 0 0 0

Treasury cash holdings 370 - 6 - 70 360

Deposits with F.R. Banks, other than reserve balances 17,217 + 2,210 + 1,707 17,880

U.S. Treasury, general account 5,959 + 1,852 + 95 6,595

Foreign official 148 + 10 - 142 172

Service-related 10,900 + 346 + 1,766 10,900

Required clearing balances 10,450 + 168 + 1,869 10,450

Adjustments to compensate for float 450 + 177 - 103 450

Other 210 + 2 - 11 213

Other liabilities and capital 20,203 + 404 + 2,237 19,907

Total factors, other than reserve balances,

absorbing reserve funds 731,409 + 21,937 + 67,066 738,729

Reserve balances with Federal Reserve Banks 8,957 - 18 - 297 7,631

Memo (off-balance-sheet items):

Marketable securities held in custody for foreign

 official and international accounts2,7 846,299 + 10,830 . . . 847,705

U.S. Treasury 685,293 + 5,307 . . . 685,673

Federal agency 161,005 + 5,522 . . . 162,032

Securities lent to dealers 151 + 98 - 2,775 675

FEDERAL RESERVE statistical release

 December 19, 2002

H.4.1

Factors Affecting Reserve Balances of Depository Institutions and

Condition Statement of Federal Reserve Banks

1. Factors Affecting Reserve Balances of Depository Institutions

Millions of dollars

Averages of daily figures

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.

Change from week ended Wednesday

 Dec 18, 2002 Week ended

 Dec 18, 2002 Dec 11, 2002 Dec 19, 2001
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 collateralized by U.S. Treasury and federal agency securities.

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.

Assets

Gold certificate account 11,039 0 - 6

Special drawing rights certificate account 2,200 0 0

Coin 1,035 + 3 - 44

Securities, repurchase agreements, and loans 659,452 + 18,624 + 66,114

Securities held outright 629,407 + 20,450 + 73,813

U.S. Treasury1 629,397 + 20,450 + 73,813

Bills2 226,682 + 20,444 + 40,198

Notes and bonds, nominal2 389,219 0 + 30,765

Notes and bonds, inflation-indexed2 12,242 0 + 2,531

Inflation compensation3 1,253 + 6 + 318

Federal agency2 10 0 0

Repurchase agreements4 30,000 - 750 - 7,700

Loans 45 - 1,076 + 1

Items in process of collection (1,219) 8,800 - 1,316 - 301

Bank premises 1,534 + 2 + 16

Other assets5 36,540 + 661 + 1,013

Total assets (1,219) 720,601 + 17,976 + 66,794

Liabilities

Federal Reserve notes, net of F.R. Bank holdings 645,599 + 3,155 + 42,663

Reverse repurchase agreements6 21,905 + 21,905 + 21,905

Deposits ( 0 ) 24,923 - 6,948 + 148

Depository institutions 17,943 - 8,082 + 1,171

U.S. Treasury, general account 6,595 + 1,089 - 579

Foreign official 172 + 33 - 450

Other ( 0 ) 213 + 12 + 5

Deferred availability cash items (1,219) 8,266 - 257 - 132

Other liabilities and accrued dividends7 2,418 - 33 - 187

Total liabilities (1,219) 703,111 + 17,821 + 64,397

Capital accounts

Capital paid in 8,376 + 17 + 1,021

Surplus 7,312 0 + 587

Other capital accounts 1,802 + 138 + 790

Total capital 17,489 + 154 + 2,396

H.4.1

2. Consolidated Statement of Condition of All Federal Reserve Banks

Millions of dollars

Change since

Wednesday

 Dec 19, 2001

Eliminations from

consolidation Wednesday

 Dec 18, 2002

Wednesday

 Dec 11, 2002

3. Maturity Distribution of Loans and Securities, December 18, 2002

Millions of dollars

 Federal agency

securities

Weekly

changes Holdings

 U.S. Treasury

securities1

Holdings Weekly

changes

Loans Repurchase

agreements2

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 effects of inflation on the original

face value of such securities.

2. Cash value of agreements classified by remaining maturity of the agreements.

Reverse

repurchase

agreements2

Within 15 days 43 47,253 + 27,298 0 0 23,000 21,905

16 days to 90 days 3 134,262 - 7,573 0 0 7,000 0

91 days to 1 year 0 140,816 + 719 10 + 10 . . . . . . 

Over 1 year to 5 years . . . 173,935 0 0 - 10 . . . . . . 

Over 5 years to 10 years . . . 53,295 + 2 0 0 . . . . . . 

Over 10 years . . . 79,836 + 3 0 0 . . . . . . 

All 45 629,397 + 20,450 10 0 30,000 21,905

Assets, liabilities, and capital

Maturity
H.4.1

4. Statement of Condition of Each Federal Reserve Bank on December 18, 2002Millions of dollars

Total Boston Cleveland Richmond Atlanta Chicago St. Louis New York Philadelphia Minneap

AssetsGold certificate accountSpecial drawing rights certificate acct.CoinSecurities, repurchase agreements,

and loans

Securities held outright

U.S. Treasury1

Bills2Notes and bonds3

Federal agency2

Repurchase agreements4Loans

Items in process of collectionBank premisesOther assets5Interdistrict settlement account

Total assets

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 se

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.

 11,039 2,200 1,035 659,452 629,407 629,397 226,682 402,715 10 30,000 45 10,019 1,534 36,540 0 721,820

Assets, liabilities, and capital

 4,364 874 34 277,647 247,647 247,643 89,191 158,453 4 30,000 0 1,071 185 12,776 +29,305 326,255

 533 115 48 36,062 36,062 36,061 12,988 23,073 1 0 0 541 91 1,907 - 6,192 33,105

 430 83 63 24,202 24,202 24,202 8,717 15,486 0 0 0 520 49 1,162 - 5,243 21,266

 522 104 47 34,727 34,727 34,727 12,507 22,220 1 0 0 585 152 2,473 - 5,555 33,056

 819 147 147 49,089 49,089 49,088 17,680 31,409 1 0 0 934 130 5,443 - 1,991 54,718

 926 166 111 44,822 44,816 44,816 16,141 28,675 1 0 6 950 279 2,444 - 4,059 45,640

 1,080 212 131 74,071 74,069 74,068 26,676 47,392 1 0 2 489 116 3,738 -16,025 63,812

 346 71 61 22,393 22,380 22,380 8,060 14,320 0 0 13 631 43 960 - 3,540 20,965

 1   9,8 9,8 9,8 3,5 6,2    4 1 6 + 4,0 15,3
 645,599

 645,599 11,039 2,200 632,361 0 659,407 21,913 637,494

Total Boston Cleveland Richmond Atlanta Chicago St. Louis New York Philadelphia Minneap

LiabilitiesFederal Reserve notes outstanding

Less: notes held by F.R. Banks

Federal Reserve notes, net

Reverse repurchase agreements1

Deposits

Depository institutionsU.S. Treasury, general accountForeign officialOther

Deferred availability cash itemsOther liabilities and accrued

dividends2

Total liabilities

CapitalCapital paid inSurplusOther capital

Total liabilities and capital

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.

 762,435 116,836 645,599 21,905 24,923 17,943 6,595 172 213 9,485 2,418 704,330 8,376 7,312 1,802 721,820

 33,280 4,674 28,605 1,255 1,513 1,509 0 2 2 672 146 32,191 436 418 59 33,105

 330,896 28,286 302,609 8,619 9,439 2,546 6,595 148 149 1,005 738 322,410 1,801 1,504 541 326,255

 25,599 7,451 18,149 842 1,190 1,188 0 1 1 471 105 20,757 242 221 46 21,266

 32,861 4,772 28,089 1,209 1,590 1,586 0 3 2 571 143 31,601 702 665 88 33,056

 54,768 9,889 44,879 1,708 2,930 2,871 0 7 51 693 263 50,473 2,073 1,757 415 54,718

 58,851 18,189 40,662 1,560 1,301 1,298 0 2 1 864 193 44,579 475 535 51 45,640

 64,873 8,654 56,219 2,578 2,177 2,173 0 3 1 798 255 62,028 851 793 140 63,812

 22,181 3,490 18,691 779 625 623 0 1 1 347 104 20,545 199 149 72 20,965

 15,1 1,9 13,1 3 4 4    6  14,6 3 1 2 15,3

H.4.1

4. Statement of Condition of Each Federal Reserve Bank on December 18, 2002 (continued)Millions of dollars

Assets, liabilities, and capital

Federal Reserve notes, net of F.R. Bank holdingsCollateral held against Federal Reserve notes

Gold certificate accountSpecial drawing rights certificate accountU.S. Treasury and agency securities pledged1Other eligible assets

Memo:Total U.S. Treasury and agency securities1

Less: face value of securities under

reverse repurchase agreements

U.S. Treasury and agency securities

eligible to be pledged

5. Collateral Held against Federal Reserve Notes:Federal Reserve Agents' AccountsMillions of dollarsFederal Reserve notes and collateral Wednesday

 Dec 18, 2002

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 valueof inflation-indexed securities, and cash value of repurchase agreements.