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`For Release at
4:30 P.M. Eastern time
H.3 (502)																												February 27, 2003

SPECIAL NOTICE

	Data on reserves and the monetary base have been revised to reflect the results of annual reviews of seasonal factors and break 
factors. Revisions due to reestimated seasonal factors start in August 1998, and they are the major source of the revisions to the data. 
Revisions due to reestimated break factors begin in January 2002 and do not exceed $17 million in any maintenance period. The maximum 
revision to the monetary base (table 1) in any maintenance period was $1.0 billion; most of these revisions were less than $500 million. 
The maximum revision to total reserves, nonborrowed reserves, and required reserves (also in table 1) in any maintenance period was $750 
million; most of these revisions were also less than $500 million.

	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.1 Seasonal factors for required reserves and the surplus 
vault cash component of the monetary base have been reestimated with the revised break-adjusted data.

	A more detailed description of the methods for constructing break factors and seasonal factors is available under "Annual Review 
of Break and Seasonal Factors" on the Federal Reserve's web site (http://www.federalreserve.gov/releases/h3/hist/). Historical data, updated
each week, are available there as well. For paid electronic access to current and historical data, call STAT-USA at 1-800-782-8872 or 
202-482-1986.
	
	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 $42.1 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 $6.0 million.

	Both of these indexations take effect each year in the reserve maintenance period that includes January 1 for weekly respondents 
to the FR 2900 report.


 FEDERAL RESERVE STATISTICAL RELEASE
  
 H.3 (502)
 Table 1	                                                                                            For Release at 4:30 p.m. Eastern Time
                                                                                                                      February 27, 2003
 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
                      ---------------------------------------------               ----------------------------------------------------------
                                                                                                                                          
      Date              total2  nonborrowed3  required      excess    Monetary       total     primary   secondary    seasonal   adjustment
                                                             NSA4       base5  
 -------------------------------------------------------------------------------------------------------------------------------------------
  2002-Jan.               41576       41526       40181        1395      641545          50                                  17           33
       Feb.               41335       41305       39964        1371      646607          30                                  17           12
       Mar.               40768       40689       39347        1421      649996          79                                  20           59
                                                                                                                                            
       Apr.               40635       40565       39424        1211      654098          71                                  50           21
       May                39406       39294       38145        1261      657819         112                                 105            7
       June               39469       39327       38231        1238      662370         142                                 136            6
                                                                                                                                            
       July               39674       39482       38300        1374      666912         191                                 176           16
       Aug.               39977       39644       38340        1637      669930         333                                 185          148
       Sep.               39252       39023       37776        1476      671453         229                                 169           60
                                                                                                                                            
       Oct.               39184       39041       37634        1550      674301         143                                 120           23
       Nov.               39686       39414       38070        1616      677528         272                                  60          211
       Dec.               40117       40037       38120        1997      681805          80                                  45           35
                                                                                                                                            
  2003-Jan.               40594       40567       38930        1664      685662          27          12           0          13            2
 Two weeks ending
  2002-Dec. 25            40052       39995       37577        2475      681859          57                                  48            10
                                                                                                                                             
  2003-Jan.  8            40447       40411       38807        1640      683348          36                                  29             8
            22            40756       40738       38992        1763      685327          18           9           0           9              
                                                                                                                                             
       Feb.  5            40473       40440       38943        1530      688238          34          28           0           6              
            19p           40145       40120       37824        2320      690978          25          21           0           4              
---------------------------------------------------------------------------------------------------------------------------------------------  
 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.)
 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
 -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                
  2002-Jan.                43712        43662        42317       653269         9981        45711        33731        11980
       Feb.                42491        42461        41120       654906         9252        45685        33239        12446
       Mar.                40333        40254        38912       658753         9124        42636        31209        11427
                                                                                                                           
       Apr.                40941        40871        39730       663354         9719        42016        31222        10794
       May                 40292        40180        39030       668123         9188        41819        31104        10716
       June                38617        38474        37378       673012         7923        41655        30694        10961
                                                                                                                           
       July                39412        39220        38038       678976         8099        42718        31313        11406
       Aug.                39854        39521        38217       679548         8520        42892        31335        11557
       Sep.                38907        38678        37431       679956         8731        42231        30176        12055
                                                                                                                           
       Oct.                38685        38542        37134       681833         8836        42933        29849        13084
       Nov.                39141        38870        37525       687226         9695        42144        29446        12698
       Dec.                40173        40093        38176       697089         9873        43334        30300        13033
                                                                                                                           
  2003-Jan.                42727        42700        41063       699213        10008        46210        32719        13491
 Two weeks ending
  2002-Dec. 25             40700        40643        38225       697930        10408        43740        30292        13448          -61
                                                                                                                                        
  2003-Jan.  8             41135        41099        39495       702883         9200        45148        31935        13213          320
            22             42394        42377        40631       698147        10894        44363        31500        12863           -6
                                                                                                                                        
       Feb.  5             44661        44628        43131       697609         9349        50026        35312        14714          277
            19p            40293        40268        37972       700679         9418        46005        30875        15131           52
--------------------------------------------------------------------------------------------------------------------------------------------   
 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
 ----------------------------------------------------------------------------------
  2002-Jan.                43699        43649        42304         644254
       Feb.                42473        42443        41102         645683
       Mar.                40303        40225        38882         649205
                                                                         
       Apr.                40895        40824        39683         653268
       May                 40226        40114        38965         657980
       June                38541        38398        37302         662866
                                                                         
       July                39317        39126        37943         668753
       Aug.                39741        39407        38104         669312
       Sep.                38782        38553        37306         669714
                                                                         
       Oct.                38543        38400        36993         671484
       Nov.                38981        38709        37365         676656
       Dec.                40027        39947        38030         686166
                                                                         
  2003-Jan.                42713        42686        41049         688300
 Two weeks ending
  2002-Dec. 25             40523        40466        38048         686789
                                                                         
  2003-Jan.  8             41106        41070        39466         692088
            22             42379        42362        40616         686985
                                                                         
       Feb.  5             44660        44626        43130         686978
            19p            40291        40266        37970         689855
  
 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.
 p  preliminary		

 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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