For use at 12:00 p.m., eastern time
                                                                                              June 9, 2011




FEDERAL RESERVE statistical release

Z.1




Flow of Funds Accounts
of the United States
Flows and Outstandings
First Quarter 2011




Board of Governors of the Federal Reserve System, Washington DC 20551
                                  Flow of Funds Summary Statistics
                                  C




                                         First Quarter 2011

Debt of the domestic nonfinancial sectors expanded            small increase, but commercial mortgage debt
at a seasonally adjusted annual rate of 21⁄4 percent in         continued to decline, albeit at a more moderate pace
the first quarter of 2011, about two percentage points        than during the previous year and a half.
less than the pace registered in 2010.
                                                              State and local government debt fell about 3 percent
Household debt declined at an annual rate of 2                at an annual rate in the first quarter, partially
percent in the first quarter; it has contracted in each       retracing an 8 percent increase in the fourth quarter.
quarter since the first quarter of 2008. Home                 Federal government debt increased at an annual rate
mortgage debt fell at an annual rate of 31⁄2 percent in         of 73⁄4 percent in the first quarter.
the first quarter, 3⁄4 percentage point more than the
decline posted last year. Consumer credit rose 21⁄2             At the end of the first quarter of 2011, the level of
percent at an annual rate in the first quarter, the           domestic nonfinancial debt outstanding was $36.3
second consecutive quarterly increase.                        trillion; household debt was $13.3 trillion,
                                                              nonfinancial business debt was just under $11
Nonfinancial business debt rose 4 percent in the first        trillion, and total government debt was $12 trillion.
quarter, following an increase of nearly 2 percent in
the fourth quarter of last year. The changes in               Household net worth—the difference between the
corporate bonds outstanding and in business loans             value of assets and liabilities—was $58.1 trillion at
more than accounted for the increase in nonfinancial          the end of the first quarter, about $950 billion more
business debt; commercial paper outstanding posted a          than at the end of the previous quarter.


Growth of Domestic Nonfinancial Debt1         P
                                          P




Percentage changes; quarterly data are seasonally adjusted annual rates
                                                                                State and
                          Total               Households     Business                                 Federal
                                                                               local govts.
 2001                       6.3                    9.6           5.7               8.8                 -0.2
 2002                       7.4                   10.8           2.8              11.1                  7.6
 2003                       8.1                   11.9           2.2               8.3                 10.9
 2004                       8.8                   11.1           6.2               7.3                  9.0
 2005                       9.5                   11.1           8.6              10.2                  7.0

 2006                       9.0                   10.0         10.6                8.3                  3.9
 2007                       8.6                    6.7         13.1                9.5                  4.9
 2008                       6.0                    0.2          5.5                2.3                 24.2
 2009                       3.0                   -1.7         -2.7                4.8                 22.7
 2010                       4.2                   -1.9          0.3                4.4                 20.2

 2010:Q1                    3.7                   -3.0          -0.4               5.7                 20.5
      Q2                    4.4                   -2.2          -1.3              -1.4                 24.4
      Q3                    3.9                   -2.0           1.1               5.4                 16.0
      Q4                    4.6                   -0.6           1.9               7.9                 14.6

 2011:Q1                    2.3                   -2.0           4.0              -2.9                  7.8

1. Changes shown are on an end-of-period basis.
                                             Table of Contents


Title                                                                            Table      Page


Flow of Funds Accounts, First Quarter 2011                                                    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         60

Credit Market Borrowing by Nonfinancial Sectors                F.2        11     L.2         61

Credit Market Borrowing by Financial Sectors                   F.3        11     L.3         61

Credit Market Borrowing, All Sectors, by Instrument            F.4        12     L.4         62

Total Liabilities and Its Relation to Total Financial Assets   F.5        12     L.5         62

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        63
                                                            Flows             Levels
Title                                                  Table      Page   Table       Page


Sectors
Households and Nonprofit Organizations                 F.100      18     L.100       64

Nonfinancial Business                                  F.101      19     L.101       65

         Nonfarm Nonfinancial Corporate Business       F.102      20     L.102       66
         Nonfarm Noncorporate Business                 F.103      21     L.103       67
         Farm Business                                 F.104      21     L.104       67

State and Local Governments                            F.105      22     L.105       68

Federal Government                                     F.106      23     L.106       68

Rest of the World                                      F.107      24     L.107       69

Monetary Authority                                     F.108      25     L.108       70

Commercial Banking                                     F.109      26     L.109       71

         U.S.-Chartered Commercial Banks               F.110      27     L.110       72
         Foreign Banking Offices in U.S.               F.111      28     L.111       73
         Bank Holding Companies                        F.112      29     L.112       74
         Banks in U.S.-Affiliated Areas                F.113      29     L.113       74

Savings Institutions                                   F.114      30     L.114       75

Credit Unions                                          F.115      31     L.115       76

Property-Casualty Insurance Companies                  F.116      31     L.116       76

Life Insurance Companies                               F.117      32     L.117       77

Private Pension Funds                                  F.118      32     L.118       77

State and Local Government Employee Retirement Funds   F.119      33     L.119       78

Federal Government Retirement Funds                    F.120      33     L.120       78

Money Market Mutual Funds                              F.121      34     L.121       79

Mutual Funds                                           F.122      34     L.122       79
                                                                     Flows             Levels
Title                                                           Table      Page   Table       Page


Closed-End and Exchange-Traded Funds                            F.123      34     L.123       79

Government-Sponsored Enterprises                                F.124      35     L.124       80

Agency- and GSE-Backed Mortgage Pools                           F.125      35     L.125       80

Issuers of Asset-Backed Securities                              F.126      36     L.126       81

Finance Companies                                               F.127      36     L.127       81

Real Estate Investment Trusts                                   F.128      37     L.128       82

Security Brokers and Dealers                                    F.129      38     L.129       83

Funding Corporations                                            F.130      38     L.130       83




Instruments
U.S. Official Reserve Assets                                    F.200      39     L.200       84

Special Drawing Rights (SDRs) Certificates and Treasury Currency F.201     39     L.201       84

U.S. Deposits in Foreign Countries                              F.202      39     L.202       84

Net Interbank Transactions                                      F.203      40     L.203       85

Checkable Deposits and Currency                                 F.204      41     L.204       86

Time and Savings Deposits                                       F.205      42     L.205       87

Money Market Mutual Fund Shares                                 F.206      42     L.206       87

Federal Funds and Security Repurchase Agreements                F.207      43     L.207       88

Open Market Paper                                               F.208      43     L.208       88

Treasury Securities                                             F.209      44     L.209       89
                                                                      Flows                  Levels
Title                                                         Table           Page   Table        Page


Agency- and GSE-Backed Securities                             F.210           45     L.210            90

Municipal Securities and Loans                                F.211           46     L.211            91

Corporate and Foreign Bonds                                   F.212           46     L.212            91

Corporate Equities                                            F.213           47     L.213            92

Mutual Fund Shares                                            F.214           47     L.214            92

Bank Loans Not Elsewhere Classified                           F.215           48     L.215            93

Other Loans and Advances                                      F.216           49     L.216            94

Total Mortgages                                               F.217           50     L.217            95

        Home Mortgages                                        F.218           51     L.218            96
        Multifamily Residential Mortgages                     F.219           51     L.219            96
        Commercial Mortgages                                  F.220           52     L.220            97
        Farm Mortgages                                        F.221           52     L.221            97

Consumer Credit                                               F.222           53     L.222            98

Trade Credit                                                  F.223           53     L.223            98

Security Credit                                               F.224           53     L.224            98

Life Insurance and Pension Fund Reserves                      F.225           54     L.225            99

Taxes Payable by Businesses                                   F.226           54     L.226            99

Proprietors' Equity in Noncorporate Business                  F.227           54     L.227            99

Total Miscellaneous Financial Claims                          F.228           55     L.228        100

        Identified Miscellaneous Financial Claims - Part I    F.229           56     L.229        101
        Identified Miscellaneous Financial Claims - Part II   F.230           57     L.230        102
        Unidentified Miscellaneous Financial Claims           F.231           58     L.231        103

Sector Discrepancies                                          F.11            59

Instrument Discrepancies                                      F.12            59
                                                                      Balance        Reconciliation
                                                                        Sheet
Title                                                              Table      Page   Table      Page


Balance Sheet and Reconciliation Tables
Households and Nonprofit Organizations                             B.100     104     R.100      107

Nonfinancial Corporate Business                                    B.102     105     R.102      108

Nonfarm Noncorporate Business                                      B.103     106     R.103      109




                                                                        Flows             Levels
Title                                                              Table      Page   Table       Page


Supplementary Tables
Nonprofit Organizations                                            F.100.a   110     L.100.a    111

Consolidated Statement for Federal, State, and Local Governments   F.106.c   112     L.106.c    113

Private Pension Funds: Defined Benefit Plans                       F.118.b   114     L.118.b    115

Private Pension Funds: Defined Contribution Plans                  F.118.c   114     L.118.c    115

Individual Retirement Accounts (IRAs)                              F.225.i   114     L.225.i    115

Flow of Funds Matrix for 2010                                                116                117

Balance Sheet of Households and Nonprofit Organizations
 with Equity Detail                                                                  B.100.e    118
                                                                                                            1




                          Flow of Funds Accounts, First Quarter 2011

                                                         mortgages held in consolidated trusts and other
This publication presents the Flow of Funds
                                                         mortgages.
Accounts for 2011:Q1.

                                                         5. In the nonfarm nonfinancial corporate business
Data revisions and other changes. The statistics in
                                                         sector (tables F.102 and L.102) syndicated loans from
the attached tables reflect the use of new or revised
                                                         domestic entities outside the banking and finance
source data. Most significant revisions appear in
                                                         company sectors have been revised from 2010:Q1
recent quarters; however, new source information
                                                         forward due to newly available 2010 benchmark
resulted in changes to data for earlier periods.
                                                         statistics from the Shared National Credit Program
                                                         (SNC). These loans are included in the liability
1. A new interactive, web-based guide to the
                                                         category other loans and advances. Revised holdings
Flow of Funds Accounts was released on March 28,
                                                         of the lenders are shown on the other loans and
2011. The tools and descriptions within this guide
                                                         advances tables (F.216 and L.216).
are designed to help users explore the structure and
content of the Z.1 and the Integrated Macroeconomic
                                                         6.    The market value of nonresidential and the
Accounts. Importantly, it allows users to search for
                                                         apartment component of residential real estate owned
series, browse tables of data, and identify links
                                                         by the households and nonprofit organizations, the
among series within these accounts. It also provides
                                                         nonfinancial corporate business, and the nonfarm
descriptions of each of the published tables and
                                                         nonfinancial noncorporate business sectors (tables
information on the source data underlying each
                                                         B.100, B.102, and B.103) have been revised from
series. Although this guide is separate from the
                                                         2004:Q4 forward due to revisions in the real estate
release of the quarterly Z.1 data, it will also be
                                                         price indices from the National Council of Real
updated quarterly and will be consistent with the
                                                         Estate Investment Fiduciaries (NCREIF).
most recently published data. The hardcopy Guide to
the Flow of Funds Accounts published in 2000 is no
                                                         Explanatory notes for tables D.1, D.2, and D.3.
longer available for purchase. This new guide is
                                                         Domestic debt comprises credit market funds
located at:
                                                         borrowed by U.S. entities from both domestic and
                                                         foreign sources, while foreign debt represents
http://www.federalreserve.gov/apps/fof/
                                                         amounts borrowed by foreign financial and
2.    Assets of the nonfarm nonfinancial corporate       nonfinancial entities in U.S. markets only. Financial
business sector (tables F.102, L.102, B.102, and         sectors consist of government-sponsored enterprises,
R.102) have been revised from 2009:Q1 forward, to        agency- and GSE-backed mortgage pools, the
reflect advance data from the Internal Revenue           monetary authority, and private financial institutions.
Service (IRS) Statistics of Income (SOI) for 2009.       Credit market debt consists of debt securities,
                                                         mortgages, bank loans, commercial paper, consumer
3. The U.S.-chartered commercial banks sector            credit, U.S. government loans, and other loans and
(tables F.110 and L.110) and the savings institutions    advances; it excludes trade debt, loans for the
sector (tables F.114 and L.114) have been modified       purpose of carrying securities, and funds raised from
to show additional detail for agency- and GSE-           equity sources. This definition is consistent with the
backed securities and corporate and foreign bonds        presentation of credit market borrowing and lending
beginning in 2009q2. Residential and commercial          on tables F.1 through F.4. Net lending (+) or net
mortgage pass-through securities and CMOs and            borrowing (-) on the individual sector tables and the
other structured MBS are now shown separately.           matrix is defined as net acquisition of financial assets
                                                         less net increase in liabilities.
4. Beginning in 2010, in response to new
accounting rules (FAS 166 and 167), Freddie Mac          Growth rates in table D.1 are calculated by dividing
and Fannie Mae moved most of the securitized             seasonally adjusted flows from table D.2 by
mortgages they had held in special purpose vehicles      seasonally adjusted levels at the end of the previous
onto their consolidated balance sheets. In response to   period from table D.3. Seasonally adjusted levels in
this shift, the government-sponsored enterprises’        flow of funds statistics are derived by carrying
(GSE) sector table (F.124 and L.124) has been            forward year-end levels by seasonally adjusted flows.
modified to show detail for home and multifamily         Growth rates calculated from changes in unadjusted
2

levels printed in table L.2 can differ from those in            between its measured sources of funds and its
table D.1.                                                      measured uses of funds. For an instrument category,
                                                                a discrepancy is the difference between measured
Relation of Flows to Outstandings. Estimates of                 funds borrowed through the financial instrument and
financial assets and liabilities outstanding are linked         measured funds lent through that instrument. The size
to data on flows. However, figures on outstandings              of such discrepancies relative to the main asset or
contain discontinuities or breaks in series that could          liability components is one indication of the quality
affect analysis of particular relationships over time.          of source data, especially on an annual basis. For
Specifically, outstandings in the Flow of Funds                 quarterly data, differences in seasonal adjustment
Accounts are related to flows in the following way:             procedures for financial and nonfinancial components
                                                                of the accounts sometimes result in discrepancies that
Outstanding t = Outstanding t-1+ Flow t+ Discontinuityt         cancel in annual data.
            B   B           B   B       B   B           B   B




where “t” is the time period.
                                                                Availability of Data. Flow of funds statistics are
Discontinuities result from changes in valuation,               updated about ten weeks following the end of a
breaks in source data, and changes in definitions. For          quarter. This publication — the Z.1 release — is
most series, the value of the discontinuity is zero for         available from the Board's Publications Services.
nearly all time periods. However, in a few instances,           Flow of funds data are also available electronically
the discontinuity is nonzero for almost all time                through the Internet at the following location:
periods, or is quite large in a particular quarter, such
as a period when there is a sharp increase or decrease          www.federalreserve.gov/releases/Z1
in equity prices or a major break in source data.
                                                                This Internet site also provides coded tables and
The discontinuities in a series can distort estimated           historical annual tables beginning in 1945 that
rates of growth in assets and liabilities between               correspond to the tables published in this release.
periods. In order to minimize these distortions,                There are also compressed ASCII files of quarterly
percentage changes in assets and liabilities in flow of         data for seasonally adjusted flows, unadjusted flows,
funds releases should be calculated as:                         outstandings, balance sheets, debt (tables D.1, D.2,
                                                                and D.3), and supplementary tables.
Percentage change t = (Flow t / Outstanding t-1) * 100
                    B   B       B   B           B   B




                                                                In addition, these data, as well as data for the
Preliminary Estimates. Figures shown for the most               quarterly and annual Integrated Macroeconomic
recent quarter in these tables are based on                     Accounts for the United States tables, are available as
preliminary and incomplete information. A summary               customizable download datasets through the Data
list of the principal sources of information available          Download Program (DDP) at the following location:
when the latest quarter's data were compiled is
provided in a table following this introduction. The            www.federalreserve.gov/datadownload/Choose.aspx?rel=Z.1
distinction between “available” data and “missing”
                                                                A new interactive, web-based guide to the Flow of
data is not between final and preliminary versions of
                                                                Funds Accounts was released on March 28, 2011.
data, but rather between those source estimates that
                                                                The tools and descriptions within this guide are
are fully ready when the latest quarterly publication
                                                                designed to help users explore the structure and
is compiled and those that are not yet completed.
                                                                content of the Z.1 and the Integrated Macroeconomic
However, the items that are shown as available are, in
                                                                Accounts. This new guide is available through the
general, also preliminary in the sense that they are
                                                                Z.1 release page.
subject to revision by source agencies.

                                                                Subscription Information. The Federal Reserve
Margins of Uncertainty. Flow of funds statistics are
                                                                Board charges for subscriptions to all statistical
subject to uncertainties resulting from measurement
                                                                releases. Inquiries for releases should be directed to:
errors in source data, incompatibilities among data
from different sources, potential revisions in both
                                                                          Publications Services, Stop 127
financial and nonfinancial series, and incomplete data
                                                                                 Board of Governors
in parts of the accounts. The size of these
                                                                           of the Federal Reserve System
uncertainties cannot be quantified in precise
                                                                     20th Street and Constitution Avenue, N.W.
statistical terms, but allowance for them is explicitly
                                                                               Washington, DC 20551
made throughout the accounts by the inclusion of
                                                                                   (202) 452-3244
“discrepancies” for various sectors and instrument
types. A discrepancy for a sector is the difference
                                       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            Second estimate, seasonally adjusted,      Unadjusted flows since 2006.
   product accounts (NIPA)        for 2011:Q1.

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
                                  2011:Q1. 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. Nonfarm nonfinancial           Quarterly Financial Report (QFR) of            Statistics of Income data since
   corporate business             the Census Bureau through 2010:Q4;             2009. QFR data for 2011:Q1.
   (tables F.102 and L.102)       Internal Revenue Service Statistics of
                                  Income (IRS/SOI) data through 2009;
                                  securities offerings, mortgages, bank
                                  loans, commercial paper, and other
                                  loans through 2011:Q1.

4. Nonfarm noncorporate           IRS/SOI data through 2008; bank and            Statistics of Income data since
   business                       finance company loans and mortgage             2008.
   (tables F.103 and L.103)       borrowing through 2011:Q1.

5. Farm business                  Mortgages, bank loans, loans from              Consumption of fixed capital and
   (tables F.104 and L.104)       government-sponsored enterprises, U.S.         undistributed profits since 2008.
                                  government loans to farms, and equity
                                  in government-sponsored enterprises
                                  through 2010:Q4; preliminary data for
                                  checkable deposits and currency and
                                  trade payables through 2009.

6. State and local governments    Gross offerings and retirements of             Total financial assets since
   (tables F.105 and L.105)       municipal securities, deposits at banks,       2008:Q2 and selected financial
                                  and nonmarketable U.S. government              asset detail since 2004:Q2.
                                  security issues through 2011:Q1; total
                                  financial assets through 2008:Q2 from
                                  the Census Bureau; breakdown of
                                  financial assets through 2004:Q2 from
                                  the comprehensive annual financial
                                  reports of state and local governments.

7. Federal government             Data from the Monthly Treasury                 None.
   (tables F.106 and L.106)       Statement of Receipts and Outlays and
                                  Treasury data for loan programs and the
                                  Troubled Assets Relief Program
                                  (TARP) through 2011:Q1.
                                                                                                                    5


8. Rest of the world                Balance of payments data through            Balance of payments data for
    (U.S. international             2010:Q4. NIPA estimates; data from          2011:Q1.
   transactions)                    bank Reports of Condition and from
    (tables F.107 and L.107)        Treasury International Capital System
                                    through 2011:Q1.

9. Monetary authority               All data through 2011:Q1.                   None.
   (tables F.108 and L.108)


10. Commercial banking              All data through 2011:Q1 for                Data since 2009 for branches of
    (tables F.109 through F.113     U.S.-chartered commercial banks,            domestic commercial banks
   and tables L.109 through         foreign banking offices in the U.S., bank   located in U.S.-affiliated areas.
   L.113)                           holding companies, and commercial
                                    banks in U.S.-affiliated areas.

11. Savings institutions            All data through 2011:Q1.                   None.
    (tables F.114 and L.114)

12. Credit unions                   All data through 2011:Q1.                   None.
    (tables F.115 and L.115)
13. Property-casualty insurance     All data through 2010:Q4. Preliminary       Final data for 2011:Q1.
    companies                       data for 2011:Q1.
    (tables F.116 and L.116)

14. Life insurance companies        All data through 2010:Q4. Preliminary       Final data for 2011:Q1.
    (tables F.117 and L.117)        data for 2011:Q1.
                                    Internal Revenue Service/Department of      Form 5500 data since 2007.
15. Private pension funds
                                    Labor/Pension Benefit Guaranty
    (tables F.118 and L.118)
                                    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.119 and L.119)        2011:Q1 from the Census Bureau.

17. Federal government retirement   Data from the Monthly Treasury              None.
   funds                            Statement of Receipts and Outlays, the
   (tables F.120 and L.120)         Thrift Savings Plan, and the National
                                    Railroad Retirement Investment Trust
                                    through 2011:Q1.
18. Money market mutual             All data through 2011:Q1.                   None.
   funds
    (tables F.121 and L.121)
19. Mutual funds                    All data through 2011:Q1.                   None.
    (tables F.122 and L.122)

20. Closed-end funds                                                            None.
                                    All data through 2011:Q1.
    (tables F.123 and L.123)

21. Exchange-traded funds           All data through 2011:Q1.                   None.
    (tables F.123 and L.123)
22. Government-sponsored            Data for Fannie Mae, Freddie Mac,           None.
   enterprises                      Farmer Mac, FHLB, FICO, FCS, and
    (tables F.124 and L.124)        REFCORP through 2011:Q1.
6


    23. Agency- and GSE-backed     Data for Fannie Mae, Freddie Mac, and        None.
       mortgage pools              Ginnie Mae through 2011:Q1.
        (tables F.125 and L.125)

    24. Issuers of asset-backed    All data for private mortgage pools,         None.
       securities (ABSs)           consumer credit, business loans, student
        (tables F.126 and L.126)   loans, consumer leases, and trade credit
                                   securitization through 2011:Q1.


    25. Finance companies          All data through 2011:Q1.                    None.
        (tables F.127 and L.127)

    26. Real estate investment     Data from SNL Financial through              None.
       trusts (REITs)              2011:Q1.
        (tables F.128 and L.128)
                                                                                None.
    27. Security brokers and       Data for firms filing FOCUS and FOGS
       dealers                     reports through 2011:Q1.
        (tables F.129 and L.129)

    28. Funding corporations       Estimates for this sector are largely residuals and are derived from data for
        (tables F.130 and L.130)   other sectors.