For use at 12:00 p.m., eastern time
                                                                                           March 10, 2011




FEDERAL RESERVE statistical release

Z.1




Flow of Funds Accounts
of the United States
Flows and Outstandings
Fourth Quarter 2010




Board of Governors of the Federal Reserve System, Washington DC 20551
                                  Flow of Funds Summary Statistics
                                  C




                                        Fourth Quarter 2010

Debt of the domestic nonfinancial sectors is                  mortgages and commercial paper outstanding.
estimated to have expanded at a seasonally adjusted
annual rate of about 5 percent in the fourth quarter of       State and local government debt rose about 8 percent
2010, after an increase of 41⁄4 percent in the previous         at an annual rate in the fourth quarter, after a 51⁄2
quarter. Private debt edged up 11⁄4 percent at an               percent increase in the third quarter.       Federal
annual rate in the fourth quarter, while government           government debt increased at an annual rate of
debt increased 123⁄4 percent.                                   141⁄2 percent in the fourth quarter; for 2010 as a
                                                              whole, federal government debt grew a bit more than
Household debt declined 1⁄2 percent in the fourth               20 percent.
quarter; it has contracted each quarter since 2008:Q1.
Home mortgage debt fell at an annual rate of 11⁄4               At the end of the fourth quarter of 2010, the level of
percent in the fourth quarter, compared to an average         domestic nonfinancial debt outstanding was $36.3
decline of more than 21⁄2 percent during the previous           trillion; household debt was $13.4 trillion,
four quarters. Consumer credit rose 2 percent at an           nonfinancial business debt was $11.1 trillion, and
annual rate, retracing the previous quarter’s decline.        total government debt was $11.9 trillion.

Nonfinancial business debt rose 31⁄2 percent in the             Household net worth—the difference between the
fourth quarter, on the heels of a 21⁄4 percent increase         value of assets and liabilities—was an estimated
in the third quarter. Corporate bonds outstanding             $56.8 trillion at the end of the fourth quarter, up
posted strong increases in both the third and fourth          about $2.1 trillion from the end of the previous
quarters, more than offsetting declines in commercial         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                   11.8           2.3               8.3                 10.9
 2004                       8.8                   11.0           6.2               7.3                  9.0
 2005                       9.5                   11.1           8.6              10.2                  7.0

 2006                       9.0                   10.1         10.5                8.3                  3.9
 2007                       8.6                    6.8         13.0                9.5                  4.9
 2008                       6.0                   -0.1          5.8                2.3                 24.2
 2009                       3.0                   -1.7         -2.7                4.8                 22.7
 2010                       4.6                   -1.8          1.5                4.4                 20.2

 2009:Q1                    4.6                   -0.8          -0.2               5.6                 24.4
      Q2                    4.5                   -1.9          -2.2               4.2                 28.9
      Q3                    2.1                   -2.2          -4.4               5.7                 19.0
      Q4                    0.8                   -1.9          -4.0               3.6                 11.9

 2010:Q1                    4.3                   -2.0           0.3               5.7                 20.5
      Q2                    4.6                   -2.5          -0.1              -1.4                 24.4
      Q3                    4.2                   -2.0           2.2               5.4                 16.0
      Q4                    5.1                   -0.6           3.6               7.9                 14.6

1. Changes shown are on an end-of-period basis.
                                             Table of Contents


Title                                                                            Table      Page


Flow of Funds Accounts, Fourth Quarter 2010                                                   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, Fourth Quarter 2010

                                                          saving between corporate and noncorporate farms. In
This publication presents the Flow of Funds
                                                          addition, the sector now shows a corporate farm
Accounts for 2010:Q4.
                                                          discrepancy.
Data revisions and other changes. The statistics in
                                                          6. In the bank holding companies sector (tables
the attached tables reflect the use of new or revised
                                                          F.112 and L.112), data have been revised from
source data. Most significant revisions appear in
                                                          2006:Q2 forward, owing to the inclusion of bank
recent quarters; however, new source information
                                                          holding companies with assets less than $500 million.
resulted in changes to data for earlier periods.

                                                          7. The property-casualty insurance sector (tables
     1. A new interactive, web-based guide to the
                                                          F.116 and L.116) has been modified to show security
Flow of Funds Accounts is scheduled to be released
                                                          RPs separately as an asset and a liability. Previously
on March 28, 2011. The tools and descriptions
                                                          security RPs were shown only as a net amount on the
within this guide will help users explore the structure
                                                          asset side of the balance sheet.
and content of the Z.1 and the Integrated
Macroeconomic Accounts. Importantly, it will allow
                                                          8. The life insurance sector (tables F.117 and
users to search for series, browse tables of data, and
                                                          L.117) has been modified to show security RPs
identify links among series within these accounts. It
                                                          separately as an asset and a liability. Previously
will also provide descriptions of each of the
                                                          security RPs were shown only as a net amount on the
published tables and information on the source data
                                                          liability side of the balance sheet.
underlying each series. Although this guide is
separate from the release of the quarterly Z.1 data, it
                                                          Explanatory notes for tables D.1, D.2, and D.3.
will also be updated quarterly and will be consistent
                                                          Domestic debt comprises credit market funds
with the most recently published data. The hardcopy
                                                          borrowed by U.S. entities from both domestic and
Guide to the Flow of Funds Accounts published in
                                                          foreign sources, while foreign debt represents
2000 will no longer be available for purchase. This
                                                          amounts borrowed by foreign financial and
new guide’s location will be announced at:
                                                          nonfinancial entities in U.S. markets only. Financial
                                                          sectors consist of government-sponsored enterprises,
www.federalreserve.gov/feeds/z1.html
                                                          agency- and GSE-backed mortgage pools, the
2. All unpublished series that are necessary to           monetary authority, and private financial institutions.
compile the Flow of Funds Accounts are available for      Credit market debt consists of debt securities,
the first time through the Data Download Program          mortgages, bank loans, commercial paper, consumer
(DDP) at the following location:                          credit, U.S. government loans, and other loans and
                                                          advances; it excludes trade debt, loans for the
www.federalreserve.gov/datadownload/Choose.aspx?rel=Z.1   purpose of carrying securities, and funds raised from
                                                          equity sources. This definition is consistent with the
3. Corporate farms have been removed from the             presentation of credit market borrowing and lending
personal sector (table F.10). In addition, complete       on tables F.1 through F.4. Net lending (+) or net
detail on the difference between the flow of funds        borrowing (-) on the individual sector tables and the
concept of personal saving and the National Income        matrix is defined as net acquisition of financial assets
and Product Account concept is now shown on this          less net increase in liabilities.
table.
                                                          Growth rates in table D.1 are calculated by dividing
4. In the nonfarm noncorporate business sector            seasonally adjusted flows from table D.2 by
(tables F.103, L.103, B.103, and R.103), data have        seasonally adjusted levels at the end of the previous
been revised from 2008:Q1 forward, owing to               period from table D.3. Seasonally adjusted levels in
benchmark statistics available from the IRS/SOI for       flow of funds statistics are derived by carrying
2008.                                                     forward year-end levels by seasonally adjusted flows.
                                                          Growth rates calculated from changes in unadjusted
5. The table for the farm sector (table F.104) has        levels printed in table L.2 can differ from those in
been redesigned to better show the split for gross        table D.1.
2

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 is scheduled to be released on March
data, but rather between those source estimates that
                                                                28, 2011. The tools and descriptions within this
are fully ready when the latest quarterly publication
                                                                guide will 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 will be available through
general, also preliminary in the sense that they are
                                                                the 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
between its measured sources of funds and its
measured uses of funds. For an instrument category,
a discrepancy is the difference between measured
                                       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 2010:Q4.

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
                                  2010:Q4. 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:Q3;             2008. QFR data for 2010:Q4.
   (tables F.102 and L.102)       Internal Revenue Service Statistics of
                                  Income (IRS/SOI) data through 2008;
                                  securities offerings, mortgages, bank
                                  loans, commercial paper, and other
                                  loans through 2010:Q4.

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 2010:Q4.

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 2010:Q4; 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 2010:Q4.
                                                                                                                    5


8. Rest of the world                Balance of payments data through            Balance of payments data for
    (U.S. international             2010:Q3. NIPA estimates; data from          2010:Q4.
   transactions)                    bank Reports of Condition and from
    (tables F.107 and L.107)        Treasury International Capital System
                                    through 2010:Q4.

9. Monetary authority               All data through 2010:Q4.                   None.
   (tables F.108 and L.108)


10. Commercial banking              All data through 2010:Q4 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 2010:Q4.                   None.
    (tables F.114 and L.114)

12. Credit unions                   All data through 2010:Q4.                   None.
    (tables F.115 and L.115)
13. Property-casualty insurance     All data through 2010:Q3. Preliminary       Final data for 2010:Q4.
    companies                       data for 2010:Q4.
    (tables F.116 and L.116)

14. Life insurance companies        All data through 2010:Q3. Preliminary       Final data for 2010:Q4.
    (tables F.117 and L.117)        data for 2010:Q4.
                                    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)        2010:Q4 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 2010:Q4.
18. Money market mutual             All data through 2010:Q4.                   None.
   funds
    (tables F.121 and L.121)
19. Mutual funds                    All data through 2010:Q4.                   None.
    (tables F.122 and L.122)

20. Closed-end funds                                                            None.
                                    All data through 2010:Q4.
    (tables F.123 and L.123)

21. Exchange-traded funds           All data through 2010:Q4.                   None.
    (tables F.123 and L.123)
22. Government-sponsored            Data for Fannie Mae, Freddie Mac,           Data for FHLBs for 2010:Q4.
   enterprises                      Farmer Mac, FICO, FCS, and
    (tables F.124 and L.124)        REFCORP through 2010:Q4. Data for
                                    FHLBs for 2010:Q3
6


    23. Agency- and GSE-backed     Data for Fannie Mae, Freddie Mac, and        None.
       mortgage pools              Ginnie Mae through 2010:Q4.
        (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 2010:Q4.


    25. Finance companies          All data through 2010:Q4.                    None.
        (tables F.127 and L.127)

    26. Real estate investment     Data from SNL Financial through              None.
       trusts (REITs)              2010:Q4.
        (tables F.128 and L.128)
                                                                                None.
    27. Security brokers and       Data for firms filing FOCUS and FOGS
       dealers                     reports through 2010:Q4.
        (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.