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`For release at

									4:30 PM EST

H.3 (502)								March 8, 2001



		SPECIAL NOTICE



Measures of reserves and the monetary base have been revised to incorporate the results 

of the annual benchmark and the break factor and seasonal factor reviews.  

Break-adjusted and seasonally adjusted data (Table 1 of the release) generally changed 

very little, although data for a few maintenance periods were revised by as much as 

$800 million for reserves and $2.7 billion for the monetary base.  Data for reserves and 

the monetary base that are not seasonally adjusted (Table 2 of the release) were revised 

to reflect the re-aggregation of historical data corrected by depository institutions.  

These revisions begin in August 1998, and the maximum revision from this source in a 

single maintenance period is about $280 million for reserves and $810 million for the 

monetary base.  Break factors remove discontinuities (or "breaks") associated with 

regulatory changes in reserve requirements, such as the annual indexations of the low 

reserve tranche and the reserve requirement exemption levels.1   Break-adjusted data 

(Table 3 of the release) incorporate updated break factors.  The revisions from this 

source begin in January 2000 and do not exceed $40 million in any maintenance period.  

Seasonal factors for required reserves and the surplus vault cash component of the 

monetary base have been re-estimated using the revised break-adjusted data, after 

excluding the estimated effects of the century date change.  The latter adjustments were 

made to ensure that unusual movements around the century date change did not influence 

the estimated seasonal factors.  The revisions due to re-estimated seasonal factors start 

in February 1984, and they are the major source of the revisions to break-adjusted, 

seasonally adjusted data.  A more detailed description of the methods for constructing 

the break factors and seasonal factors for the measures of reserves and the monetary 

base as well as printed tables of the revised historical data are available from the 

Monetary and Reserve Analysis Section, Division of Monetary Affairs, Mail Stop 72, 

Board of Governors of the Federal Reserve System, Washington, D.C. 20551, (202) 452-3062.  

Complete historical data are released each week through the Federal Reserve's web site 

(http://www.federalreserve.gov/releases/) with the H.3 statistical release.  

The data are also available through other electronic means, as described in the note at 

the end of Table 3 of this release.



1. The Monetary Control Act of 1980 established a reserve ratio of 3 percent against the 

first $25 million in net transaction deposits (low reserve tranche) at each depository 

institution.  Since 1982, the low reserve tranche has been indexed each January by 80 

percent of the previous year's (June 30 to June 30) growth rate of net transaction 

deposits at all depository institutions.  At present, the low reserve tranche is 

$42.8 million.  Under the Garn-St Germain Depository Institutions Act of 1982, 

the first $2 million of reservable liabilities of each depository institution 

was exempted from reserve requirements.  Since 1983, this exemption amount has been 

indexed each year by 80 percent of the rate of increase of the reservable liabilities at 

all depository institutions over the preceding year (June 30 to June 30).  At present, 

the reserve exemption level is $5.5 million.  Both of these indexations take effect each 

year in a reserve maintenance period that begins around January 1 for weekly respondents 

to the FR 2900 report.



1
 



FEDERAL RESERVE STATISTICAL RELEASE

H.3 (502)
Table 1	                                                                                            For Release at 4:30 p.m. Eastern Time
                                                                                                                        March 8, 2001
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
Adjusted for changes in reserve requirements1                                                                                              
Averages of daily figures, seasonally adjusted unless noted otherwise
Millions of dollars
-------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       
                             Reserves of depository institutions                            Borrowings of depository institutions from
                                                                                                       the Federal Reserve, NSA
                    ---------------------------------------------------                 --------------------------------------------------
                                                                                                                                Special 
    Date             total2    nonborrowed3      required   excess NSA4     Monetary       total6     adjustment    seasonal    Liquidity
                                                                              base5                                             Facility7
-------------------------------------------------------------------------------------------------------------------------------------------
2000-Feb.                41573        41465           40461         1112       574297          108           45           44           19
     Mar.                40306        40127           39097         1209       571470          179          101           71            7
                                                                                                                                         
     Apr.                40783        40479           39626         1157       572495          304          184          120            0
     May                 41003        40641           40031          972       574144          362           86          276             
     June                39882        39403           38766         1117       575307          479           90          389             
                                                                                                                                         
     July                40124        39555           38981         1144       576957          570           60          510             
     Aug.                39643        39064           38639         1004       577531          579           25          554             
     Sep.                39386        38908           38267         1119       578336          477           50          427             
                                                                                                                                         
     Oct.                39021        38602           37874         1147       579698          418          119          299             
     Nov.                39023        38739           37821         1201       581398          283          124          159             
     Dec.                38507        38297           37182         1325       583963          210           99          111             
                                                                                                                                         
2001-Jan.                38827        38754           37574         1253       589286           73           39           34             
     Feb. p              38834        38783           37468         1365       592395           51           30           21             
Two weeks ending
2001-Jan. 10             38523        38413           37024         1499       586564          110           56           55             
          24             38764        38698           37658         1106       589803           66           42           25             
                                                                                                                                         
     Feb.  7             39385        39351           38188         1196       592140           34            9           25             
          21             38565        38527           37010         1555       590472           38           18           20             
                                                                                                                                         
     Mar.  7p            38820        38726           37666         1154       596495           95           76           19             
---------------------------------------------------------------------------------------------------------------------------------------------  
1. Reserves and monetary base figures incorporate adjustments for discontinuities, or "breaks", associated with regulatory changes in reserve 
  requirements. For more information, see Table 3.
2. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break-adjusted required reserves plus unadjusted excess 
  reserves. (Also, see footnote 2 on Table 2 and footnote 2 on Table 3.)
3. Seasonally  adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, break-adjusted total reserves less unadjusted total
  borrowings of depository institutions from the Federal Reserve.
4. Excess reserves NSA equals unadjusted total reserves (Table 2, column 1) less adjusted required reserves (Table 2, column 3).
5. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally adjusted, break-adjusted total reserves plus (2)
  the seasonally adjusted currency component of the money stock plus (3), for all quarterly reporters on the "Report of Transaction 
  Accounts, Other Deposits and Vault Cash" and for all those weekly reporters whose vault cash exceeds their required reserves, the 
  seasonally adjusted, break-adjusted difference between current vault cash and the amount applied to satisfy current reserve requirements. 
  (Also see footnote 3 on Table 2 and footnote 4 on table 3.)
6. Total borrowing includes borrowing under the extended credit program.
7. Borrowing at the discount window under the terms and conditions established for Century Date Change Special Liquidity Facility in effect
  from October 1, 1999 through April 7, 2000.

p--preliminary
1        
 
 
 
H.3 (502)
Table 2
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
Not adjusted for changes in reserve requirements1 
Averages of daily figures, not seasonally adjusted
Millions of dollars
-------------------------------------------------------------------------------------------------------------------------------------------

                  Reserves of depository institutions                                          Vault cash5
                --------------------------------------                            --------------------------------------
                                                                          Reserve                  used to                 Net carryover
    Date              total2   nonborrowed     required  Monetary base3  balances       total      satisfy      surplus7    of reserve
                                                                         with F.R.                required                  balances8
                                                                          Banks4                  reserves6
-------------------------------------------------------------------------------------------------------------------------------------------
                                                                              
2000-Feb.                42097        41989        40984       579331         5075        63770        37022        26748
     Mar.                39751        39572        38542       577306         6518        48952        33233        15719
                                                                                                                         
     Apr.                40601        40297        39444       578468         7093        46456        33508        12948
     May                 41585        41224        40614       580222         7692        44643        33894        10749
     June                39363        38884        38247       581687         6610        44560        32753        11807
                                                                                                                         
     July                39884        39315        38741       584283         6802        45473        33082        12391
     Aug.                39464        38885        38460       583401         6933        45319        32531        12788
     Sep.                39168        38691        38050       583519         6852        44807        32316        12491
                                                                                                                         
     Oct.                38776        38358        37629       585014         6778        45178        31998        13180
     Nov.                38786        38502        37584       589120         7156        44546        31629        12917
     Dec.                38540        38331        37216       597116         7159        45120        31381        13739
                                                                                                                         
2001-Jan.                39791        39718        38538       598261         7190        47506        32601        14905
     Feb. p              39317        39265        37951       596939         6626        48397        32691        15706
Two weeks ending
2001-Jan. 10             38664        38554        37165       604508         7085        46696        31579        15117           78
          24             39972        39906        38866       596451         7656        45558        32316        13243           31
                                                                                                                                      
     Feb.  7             41041        41007        39844       592960         6410        52561        34631        17930           99
          21             38923        38885        37368       596013         6611        48505        32313        16192           88
                                                                                                                                      
     Mar.  7p            38380        38285        37225       602773         6873        44017        31507        12510          342
--------------------------------------------------------------------------------------------------------------------------------------------   
1. Reflects actual required reserves, with no adjustments to eliminate the effects of discontinuities, or "breaks", associated with 
  regulatory changes in reserve requirements.
2. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve requirements.
3. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total reserves plus (2) required clearing balances
  and adjustments to compensate for float at Federal Reserve Banks plus (3) the currency component of the money stock plus (4), for all 
  quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters whose 
  vault cash exceeds their required reserves, the difference between current vault cash and the amount applied to satisfy current reserve 
  requirements. Currency and vault cash figures are measured over computation periods ending on Mondays.
4. Excludes required clearing balances and adjustments to compensate for float and includes other off-balance sheet "as-of" adjustments.
5. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by those banks and thrifts that are not exempt
  from reserve requirements. Dates refer to the maintenance periods in which the vault cash can be used to satisfy reserve requirements.
6. All vault cash held during the lagged computation period by "bound" institutions (i.e., those whose required reserves exceed their vault 
  cash) plus the amount of vault cash applied during the maintenance period by "nonbound" institutions (i.e., those whose vault cash 
  exceeds their required reserves) to satisfy current reserve requirements.
7. Total vault cash eligible to satisfy reserve requirements, held by depository institutions not exempt from reserve requirements, minus the
  amount used to satisfy reserve requirements.
8. Consists of carryover only at depository institutions maintaining reserves on the basis of two-week maintenance periods. Reflects excess (+) 
  or deficit (-) reserves eligible to be carried forward into the two-week reserve maintenance period ending on the date shown.
p--preliminary
1



H.3 (502)
Table 3
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
Adjusted for changes in reserve requirements1 
Averages of daily figures, not seasonally adjusted
Millions of dollars
---------------------------------------------------------------------------------

                    Reserves of depository institutions
                  ---------------------------------------
    Date              total2   nonborrowed    required3    Monetary base4
----------------------------------------------------------------------------------
2000-Feb.                42111        42003        40999         571991
     Mar.                39776        39597        38567         570428
                                                                       
     Apr.                40631        40327        39474         571657
     May                 41618        41256        40646         573395
     June                39404        38925        38287         574811
                                                                       
     July                39930        39360        38786         577493
     Aug.                39509        38930        38505         576664
     Sep.                39224        38746        38105         576836
                                                                       
     Oct.                38837        38419        37690         578291
     Nov.                38846        38563        37645         582356
     Dec.                38596        38386        37271         590196
                                                                       
2001-Jan.                39775        39702        38522         591383
     Feb. p              39345        39294        37980         590387
Two weeks ending
2001-Jan. 10             38618        38508        37119         597270
          24             39958        39892        38852         589641
                                                                       
     Feb.  7             41061        41027        39864         586457
          21             38952        38914        37396         589493
                                                                       
     Mar.  7p            38417        38323        37263         596106

p--preliminary		pe--preliminary estimate
1. Figures reflect adjustments for discontinuities, or "breaks", associated with 
  regulatory changes in reserve requirements.
2. Break-adjusted total reserves equal break-adjusted required reserves (Table 3, 
  column 3) plus excess reserves NSA (Table 1, column 5).
3. To adjust required reserves for discontinuities due to regulatory changes in 
  in reserve requirements, a multiplicative procedure is used to estimate what 
  required reserves would have been in past periods had current reserve 
  requirements been in effect. Break-adjusted required reserves are equal to 
  break-adjusted required reserves against transactions deposits.
4. The break-adjusted monetary base equals (1) break-adjusted total reserves plus 
  (2) the (unadjusted) currency component of the money stock plus (3), for all 
  quarterly reporters on the "Report of Transaction Accounts, Other Deposits and 
  Vault Cash" and for all those weekly reporters whose vault cash exceeds their 
  required reserves, the break-adjusted difference between current vault cash and 
  the amount applied to satisfy current reserve requirements.
Note: Current and historical H.3 data are available each week on the Federal Reserve 
     Board's web site (http://www.federalreserve.gov/). Monthly data are available 
     back to January 1959, and weekly data are available back to January 1975 for most 
     series. For information about individual copies or subscriptions, contact 
     Publications Services at the Federal Reserve Board (phone 202-452-3245, 
     fax 202-728-5886). For paid electronic access to current and historical data, 
     call STAT-USA at 1-800-782-8872 or 202-482-1986.`

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