For use at 12:00 p.m., eastern time 

 Thursday 

September 17, 2009 

FEDERAL RESERVE statistical release

Z.1 

 

Flow of Funds Accounts 

of the United States

Flows and Outstandings

Second Quarter 2009

Board of Governors of the Federal Reserve System, Washington DC 20551
CFlow of Funds Summary Statistics 

Second Quarter 2009 

 Debt of the domestic nonfinancial sectors is 

estimated to have expanded at a seasonally adjusted 

annual rate of 5 percent in the second quarter of 2009, 

about 3⁄4 percentage point faster than in the previous 

quarter. Private debt contracted in the second quarter 

while government debt expanded. 

 

 Household debt contracted at an annual rate of 

13⁄4 percent in the second quarter, marking the fourth 

consecutive quarter of contraction. In the second 

quarter, home mortgage debt decreased at an annual 

rate of 11⁄2 percent, while consumer credit decreased at 

an annual rate of 61⁄2 percent. 

 Nonfinancial business debt contracted at an 

annual rate of 13⁄4 percent in the second quarter, the 

largest quarterly decline since 1993. The decline was 

concentrated in commercial paper, loans, and 

commercial mortgage borrowing. 

State and local government debt expanded at 

an annual rate of 81⁄4 percent in the second quarter, 31⁄2 

percentage points faster than in the previous quarter. 

Federal government debt increased at an annual rate of 

281⁄4 percent in the second quarter, up a bit from the 

first-quarter pace but still lower than the nearly 40 

percent pace of growth posted in the second half of 

2008. 

 At the end of the second quarter of 2009, the 

level of domestic nonfinancial debt outstanding was 

$34.4 trillion; household debt was $13.7 trillion, 

nonfinancial business debt was $11.2 trillion, and total 

government debt was $9.5 trillion. 

 Household net worth—the difference between 

the value of assets and liabilities—was an estimated 

$53.1 trillion at the end of the second quarter of 2009, 

$2.0 trillion dollars more than in the preceding quarter 

and the first increase since 2007:Q3. 

Growth of Domestic Nonfinancial DebtP

1

P

Percentage changes; quarterly data are seasonally adjusted annual rates 

 Total Households Business State and 

local govts. Federal 

1999 6.4 8.4 10.7 3.3 -1.9 

2000 5.0 9.1 9.3 1.4 -8.0 

2001 6.3 9.6 5.8 8.8 -0.2 

2002 7.3 10.8 2.6 11.1 7.6 

2003 8.1 11.6 2.3 8.3 10.9 

 

2004 8.9 11.1 6.3 7.4 9.0 

2005 9.5 11.1 8.7 10.2 7.0 

2006 9.0 10.0 10.5 8.2 3.9 

2007 8.7 6.6 13.5 9.3 4.9 

2008 6.0 0.3 5.4 1.9 24.2 

 

2008:Q1 5.4 3.0 7.8 3.6 8.1 

 Q2 3.3 0.3 6.4 0.9 5.9 

 Q3 8.2 -0.5 5.1 3.3 39.2 

 Q4 6.4 -1.7 1.8 -0.2 37.0 

 

2009:Q1 4.1 -1.1 -0.2 4.9 22.6 

 Q2 4.9 -1.7 -1.8 8.3 28.2 

1. Changes shown are on an end-of-period basis.
Table of Contents 

Title Table Page 

Flow of Funds Accounts, Second Quarter 2009 1 

Availability of Data for Latest Quarter 4 

Debt Growth by Sector D.1 7 

Borrowing by Sector D.2 8 

Debt Outstanding by Sector D.3 9 

Flows Levels

Title Table Page Table Page 

Summaries 

Total Net Borrowing and Lending in Credit Markets 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 

Gold and Official Foreign Exchange Holdings F.200 39 L.200 84 

SDR 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 2008 116 117 

Balance Sheet of Households and Nonprofit Organizations 

 with Equity Detail B.100.e 118 
Flow of Funds Accounts, Second Quarter 2009 

This publication presents the flow of funds 

accounts for 2009:Q2. 

Data revisions and other changes. The statistics in 

the attached tables reflect the use of new or revised 

source data. Most significant revisions appear in recent 

quarters; however, new source information resulted in 

changes to data for earlier periods. 

1. Seasonal factors for quarterly flows have been 

recalculated for the period 1998:Q1 onward. The 

factors were generated using the X-12-ARIMA/88 

seasonal adjustment program from Statistics Canada. 

2. The statistics in this publication reflect the 

comprehensive revisions to the national income and 

product accounts (NIPA) from 1945 forward released 

by the Bureau of Economic Analysis (BEA) of the 

Department of Commerce on July 31, 2009, and 

subsequent information for 2009:Q2 released on August 

27, 2009. The August 2009 issue of the Survey of 

Current Business details the major features of the 

comprehensive revision of the national income and 

product accounts. 

3. Data for investment and depreciation flows of all 

sectors, and capital stocks for the household, nonfarm 

nonfinancial corporate business, and nonfarm 

noncorporate business sectors have been revised 

beginning in 1945 to reflect updated annual estimates of 

fixed assets from the BEA. 

4. The memo item on acquisition of nonproduced 

nonfinancial assets has been moved from the net capital 

transfers table (F.9) to the distribution of gross 

domestic product table (F.6). 

5. The NIPA comprehensive revision changed the 

treatment of disaster-related losses to fixed assets, with 

such losses now being classified as “other changes in 

volume of assets” rather than consumption of fixed 

capital. The new treatment is reflected in the tables 

showing the change in net worth for the households 

(table R.100) and nonfinancial businesses (tables R.102 

and R.103). 

6. The net capital transfers table (F.9) has been 

redesigned to reflect changes made by BEA in their 

comprehensive revision. Net capital transfers are now 

reported as net paid rather than net received on this 

table and on the corresponding sector tables. Detail on 

disaster-related insurance benefits paid by propertycasualty insurance companies (line 50) are now 

included in capital transfers on the property-casualty 

sector table (F.116, line 1), and benefits received are 

shown in the capital transfers lines on corresponding 

sector tables. In addition, detail on financial 

stabilization payments , which are the implied subsidy 

cost of capital injections to distressed financial 

businesses where the government acquired assets, is 

now shown on the net capital transfers table (F.9, lines 

52, 54, 55, and 56). 

7. Gross saving in the federal government sector 

(table F.106, line 22) has been revised to exclude 

contributions for government social insurance by U.S. 

affiliated areas (line 21), consistent with BEA’s concept 

of national income. 

 

8. The federal government sector (tables F.106 and 

L.106) includes a new asset category, corporate and 

foreign bonds, to reflect bonds purchased from banks 

under the Troubled Asset Relief Program (TARP). 

9. Revisions to the rest of the world sector (tables 

F.107 and L.107) reflect new estimates of the balance 

of payments and the international investment position 

from the BEA from 2006 forward. The new estimates 

are detailed in the July 2009 issue of the Survey of 

Current Business. 

10. Due to the purchase of Countrywide Bank, a 

savings institution, by Bank of America, a commercial 

banking organization, the U.S.-chartered commercial 

banks sector (table F.110) reports larger than usual 

positive flows in certain instrument categories while the 

savings institutions sector (table F.114) reports some 

larger than usual negative flows in 2009:Q2. The asset 

category most affected by these reclassifications is 

mortgages; the liability category most affected is other 

loans and advances. 

11. The credit unions sector (tables F.115 and L.115) 

has been revised to include a new asset category, other 

loans and advances. 

12. Total consumer credit (tables F.222 and L.222) 

has been revised from 1999:Q1 forward owing to new 

seasonal factors and other changes reflected in the 

Federal Reserve Board’s G.19 statistical release on 

September 7, 2009. 

1
13. Bank holding company investment in subsidiaries 

(tables F.229 and L.229) has been expanded to show 

investment in life insurance companies. 

Explanatory notes for tables D.1, D.2, and D.3. 

Domestic debt comprises credit market funds borrowed 

by U.S. entities from both domestic and foreign 

sources, while foreign debt represents amounts 

borrowed by foreign financial and nonfinancial entities 

in U.S. markets only. Financial sectors consist of 

government-sponsored enterprises, agency- and GSEbacked mortgage pools, and private financial 

institutions. Credit market debt consists of debt 

securities, mortgages, bank loans, commercial paper, 

consumer credit, U.S. government loans, and other 

loans and advances; it excludes trade debt, loans for the 

purpose of carrying securities, and funds raised from 

equity sources. 

 Growth rates in table D.1 are calculated by 

dividing seasonally adjusted flows from table D.2 by 

seasonally adjusted levels at the end of the previous 

period from table D.3. Seasonally adjusted levels in 

flow of funds statistics are derived by carrying forward 

year-end levels by seasonally adjusted flows. Growth 

rates calculated from changes in unadjusted levels 

printed in table L.2 can differ from those in table D.1. 

Relation of Flows to Outstandings. Estimates of 

financial assets and liabilities outstanding are linked to 

data on flows. However, figures on outstandings 

contain discontinuities or breaks in series that could 

affect analysis of particular relationships over time. 

Specifically, outstanding in the flow of funds accounts 

are related to the flows in the following way: 

Outstanding B

tB = Outstanding Bt-1B+ Flow BtB+ Discontinuity BtB

where “t” is the time period. 

 Discontinuities result from changes in 

valuation, breaks in source data, and changes in 

definitions. For most series, the value of the 

discontinuity is zero for nearly all time periods. 

However, in a few instances, the discontinuity is 

nonzero for almost all time periods, or is quite large in a 

particular quarter, such as a period when there is a 

sharp increase or decrease in equity prices or a major 

break in source data. 

 The discontinuities in a series can distort 

estimated rates of growth in assets and liabilities 

between periods. In order to minimize these 

distortions, percentage changes in assets and liabilities 

in flow of funds releases should be calculated as: 

Percentage change B

tB = (Flow BtB / Outstanding Bt-1B) * 100 

Preliminary Estimates. Figures shown for the most 

recent quarter in these tables are based on preliminary 

and incomplete information. A summary list of the 

principal sources of information available when the 

latest quarter's data were compiled is provided in a table 

following this introduction. The distinction between 

“available” data and “missing” data is not between final 

and preliminary versions of data, but rather between 

those source estimates that are fully ready when the 

latest quarterly publication is compiled and those that 

are not yet completed. However, the items that are 

shown as available are, in general, also preliminary in 

the sense that they are subject to revision by source 

agencies. 

Margins of Uncertainty. Flow of funds statistics are 

subject to uncertainties resulting from measurement 

errors in source data, incompatibilities among data from 

different sources, potential revisions in both financial 

and nonfinancial series, and incomplete data in parts of 

the accounts. The size of these uncertainties cannot be 

quantified in precise statistical terms, but allowance for 

them is explicitly made throughout the accounts by the 

inclusion of “discrepancies” for various sectors and 

instrument types. A discrepancy for a sector is the 

difference between its measured sources of funds and 

its measured uses of funds. For an instrument category, 

a discrepancy is the difference between measured funds 

borrowed through the financial instrument and 

measured funds lent through that instrument. The size 

of such discrepancies relative to the main asset or 

liability components is one indication of the quality of 

source data, especially on an annual basis. For 

quarterly data, differences in seasonal adjustment 

procedures for financial and nonfinancial components 

of the accounts sometimes result in discrepancies that 

cancel in annual data. 

Availability of Data. Flow of funds statistics are 

updated about ten weeks following the end of a 

quarter. This publication — the Z.1 release — is 

available from the Board's Publications Services. Flow 

of funds data are also available electronically through 

the Internet at the following location: 

www.federalreserve.gov/releases/Z1

 The Internet site also provides quarterly data 

beginning in 1952, organized in compressed files that 

correspond to the tables published in this release. 

There are files for quarterly data for seasonally adjusted 

flows, unadjusted flows, outstandings, balance sheets, 

and debt (tables D.1, D.2, and D.3). This data is also 

available as a customizable download dataset through 

2 
the Data Download Program (DDP) at the following 

location: 

www.federalreserve.gov/datadownload/Choose.aspx?rel=Z.1 

 A Guide to the Flow of Funds Accounts is 

available. The 1,200-page Guide, published in two 

volumes in January 2000, explains in detail how the 

U.S. financial accounts are prepared and the principles 

underlying the accounts. The Guide can be purchased 

for $20.00 from the Board’s Publications Services. 

Publications Services accepts orders accompanied by 

checks as well as credit card orders. 

 

 

The Internet site for this release at the location 

shown above contains a link to an order form for the 

Guide that can be mailed or faxed to Publications 

Services. In addition, the Internet site includes a link to 

the Guide’s descriptions of the tables in the flow of 

funds accounts. 

Subscription Information. The Federal Reserve 

Board charges for subscriptions to all statistical 

releases. Inquiries for releases should be directed to: 

Publications Services, Stop 127 

Board of Governors 

of the Federal Reserve System 

20th Street and Constitution Avenue, N.W. 

Washington, DC 20551 

(202) 452-3244

3
Availability of Data for Latest Quarter 

UAvailable at time of publicationU UMajor items missingU

 1. National income and 

 product accounts (NIPA) 

Preliminary estimates, seasonally 

adjusted, for 2009:Q2. 

Unadjusted flows since 2007 for 

the government sectors. 

Unadjusted flows since 2006 for 

all other sectors. 

 2. Households and nonprofit 

 organizations sector 

 (tables F.100 and L.100) 

Estimates for this sector are largely residuals and are derived from data for 

other sectors. Availability of data depends on schedules for other sectors. 

Data for consumer credit, which are estimated directly, are available 

through 2009:Q2. 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 

 corporate business 

 (tables F.102 and L.102) 

Quarterly Financial Report (QFR) of 

the Census Bureau through 2008:Q2; 

Internal Revenue Service Statistics of 

Income (IRS/SOI) advance data 

through 2007; securities offerings, 

mortgages, bank loans, commercial 

paper, and other loans through 

2009:Q2. 

Statistics of Income data since 

2007. 

 4. Nonfarm noncorporate 

 business 

 (tables F.103 and L.103) 

IRS/SOI data through 2006; bank and 

finance company loans and mortgage 

borrowing through 2009:Q2. 

Statistics of Income data since 

2006. 

 5. Farm business 

 (tables F.104 and L.104) 

Mortgages, bank loans, loans from 

government-sponsored enterprises, 

U.S. government loans to farms, and 

equity in government-sponsored 

enterprises through 2009:Q2; 

preliminary data for checkable deposits 

and currency and trade payables 

through 2007. 

Consumption of fixed capital 

and undistributed profits since 

2008. 

6. State and local governments 

 (tables F.105 and L.105) 

Gross offerings and retirements of 

municipal securities, deposits at banks, 

and nonmarketable U.S. government 

security issues through 2009:Q2; total 

financial assets through 2006:Q2 from 

the Census Bureau; breakdown of 

financial assets through 2004:Q2 from 

the comprehensive annual financial 

reports of state and local governments. 

Total financial assets since 

2006:Q2 and selected financial 

asset detail since 2004:Q2. 

7. Federal government 

 (tables F.106 and L.106) 

Data from the Monthly Treasury 

Statement of Receipts and Outlays and 

Treasury data for loan programs and 

the Troubled Assets Relief Program 

(TARP) through 2009:Q2. 

None. 

4 
 8. Rest of the world 

 (U.S. international 

 transactions) 

 (tables F.107 and L.107) 

Balance of payments data through 

2009:Q2. NIPA estimates; data from 

bank Reports of Condition and from 

Treasury International Capital System 

through 2009:Q2. 

None. 

 9. Monetary authority 

 (tables F.108 and L.108) 

All data through 2009:Q2. None. 

10. Commercial banking 

 (tables F.109 through F.113 

 and tables L.109 through 

 L.113) 

All data through 2009:Q2 for 

U.S.-chartered commercial banks, 

foreign banking offices in the U.S., 

bank holding companies, and 

commercial banks in U.S.-affiliated 

areas. 

Data since 2008 for branches of 

domestic commercial banks 

located in U.S.-affiliated areas. 

11. Savings institutions 

 (tables F.114 and L.114) 

All data through 2009:Q2. None. 

12. Credit unions 

 (tables F.115 and L.115) 

All data through 2009:Q2. None. 

13. Property-casualty insurance 

companies 

 (tables F.116 and L.116) 

All data through 2009:Q1. Preliminary 

data for 2009:Q2. 

Final data for 2009:Q2. 

14. Life insurance companies 

 (tables F.117 and L.117) 

All data through 2009:Q1. Preliminary 

data for 2009:Q2. 

Final data for 2009:Q2. 

 

15. Private pension funds 

 (tables F.118 and L.118) 

Quarterly data through 2009:Q2; 

Internal Revenue Service/Department 

of Labor/Pension Benefit Guaranty 

Corporation Form 5500 data through 

2006. 

Form 5500 data since 2006. 

16. State and local government 

 employee retirement funds 

 (tables F.119 and L.119) 

Detailed data through 2006:Q2 from 

the Census Bureau; sample data 

through 2009:Q1 from the Census 

Bureau. 

Detailed data since 2006:Q2 and 

sample data for 2009:Q2. 

17. Federal government retirement 

 funds 

 (tables F.120 and L.120) 

Data from the Monthly Treasury 

Statement of Receipts and Outlays, the 

Thrift Savings Plan, and the National 

Railroad Retirement Investment Trust 

through 2009:Q2. 

None. 

18. Money market mutual 

 funds 

 (tables F.121 and L.121) 

All data through 2009:Q2. None. 

19. Mutual funds 

 (tables F.122 and L.122) 

All data through 2009:Q2. None. 

20. Closed-end funds 

 (tables F.123 and L.123) 

All data through 2009:Q2. None. 

21. Exchange-traded funds 

 (tables F.123 and L.123) 

All data through 2009:Q2. None. 

5 
22. Government-sponsored 

 enterprises 

 (tables F.124 and L.124) 

Data for Fannie Mae, Freddie Mac, 

FHLBs, FICO, Farmer Mac, FCS, and 

REFCORP through 2009:Q2. 

None. 

23. Agency- and GSE-backed 

 mortgage pools 

 (tables F.125 and L.125) 

Data for Fannie Mae, Freddie Mac, and 

Ginnie Mae through 2009:Q2. 

None.

24. Issuers of asset-backed 

 securities (ABSs) 

 (tables F.126 and L.126) 

All data for private mortgage pools, 

consumer credit, business loans, 

student loans, consumer leases, and 

trade credit securitization through 

2009:Q2. 

None. 

25. Finance companies 

 (tables F.127 and L.127) 

All data through 2009:Q2. None. 

26. Real estate investment 

 trusts (REITs) 

 (tables F.128 and L.128) 

Data from SNL REIT DataSource 

through 2009:Q2. 

None. 

27. Security brokers and 

 dealers 

 (tables F.129 and L.129) 

Data for firms filing FOCUS and 

FOGS reports through 2009:Q2. 

None. 

28. Funding corporations 

 (tables F.130 and L.130) 

Estimates for this sector are largely residuals and are derived from data for 

other sectors. 

6