For use at 12:00 p.m., eastern time
                                                                                            March 8, 2012




FEDERAL RESERVE statistical release

Z.1




Flow of Funds Accounts
of the United States
Flows and Outstandings
Fourth Quarter 2011




Board of Governors of the Federal Reserve System, Washington DC 20551
                                  Flow of Funds Summary Statistics
                                  C




                                        Fourth Quarter 2011

Debt of the domestic nonfinancial sectors expanded            annual rate of 1 percent in the fourth quarter. For
at a seasonally adjusted annual rate of 5 percent in          2011 as a whole, state and local debt declined almost
the fourth quarter of 2011, about 1⁄2 percentage point          2 percent, its first annual decrease since 1996.
more than the pace registered in the third quarter.           Federal government debt rose at an annual rate of 13
                                                              percent in the fourth quarter. For all of 2011, federal
Household debt increased at an annual rate of 1⁄4               debt rose 111⁄2 percent, the smallest annual increase
percent in the fourth quarter, the first increase since       since 2007.
the second quarter of 2008. Consumer credit rose at
an annual rate of 7 percent in the fourth quarter, the        At the end of 2011, the level of domestic
fifth consecutive quarterly increase. Home mortgage           nonfinancial debt outstanding was $38.3 trillion, of
debt declined 11⁄2 percent in the fourth quarter, the           which household debt was $13.2 trillion, nonfinancial
smallest decline since the end of 2009.                       business debt was $11.6 trillion, and total
                                                              government debt was $13.5 trillion.
Nonfinancial business debt rose at an annual rate of
41⁄2 percent in the fourth quarter, 1 percentage point          Household net worth—the difference between the
higher than its third-quarter pace. Corporate bonds           value of assets and liabilities—was $58.5 trillion at
outstanding and business loans increased while                the end of 2011, about $1.2 trillion more than at the
commercial mortgage debt continued to decline.                end of the third quarter. For 2011 as a whole,
                                                              household net worth fell close to 3⁄4 percent, the first
State and local government debt declined at an                annual decrease since 2008.


Growth of Domestic Nonfinancial Debt1         P
                                          P




Percentage changes; quarterly data are seasonally adjusted annual rates
                                                                                State and
                          Total               Households     Business                                  Federal
                                                                               local govts.
 2002                       7.4                   10.6          3.0               11.1                  7.6
 2003                       8.1                   12.0          2.2                8.3                 10.9
 2004                       9.2                   11.0          6.5               11.9                  9.0
 2005                       9.2                   11.1          9.0                5.5                  7.0
 2006                       8.7                   10.0         11.1                3.7                  3.9

 2007                       8.5                    6.7         13.6                5.4                  4.9
 2008                       6.0                    0.1          6.2                0.7                 24.2
 2009                       3.1                   -1.7         -2.4                3.9                 22.7
 2010                       4.1                   -2.1          0.7                2.2                 20.2
 2011                       3.7                   -0.9          4.2               -1.9                 11.4

 2010:Q1                    3.5                   -3.1          -0.1               2.4                 20.6
      Q2                    3.9                   -2.2          -1.3              -0.5                 22.5
      Q3                    3.7                   -2.2           1.8               2.1                 16.0
      Q4                    4.9                   -0.7           2.5               4.8                 16.4

 2011:Q1                  2.3               -1.9                 4.1              -3.3                  7.9
       Q2                 3.0               -0.6                 4.4              -3.5                  8.6
       Q3                 4.4               -1.2                 3.6               0.0                 14.1
       Q4                 4.9                0.3                 4.6              -1.0                 13.1
1. Changes shown are on an end-of-period basis.
                                             Table of Contents


Title                                                                            Table      Page


Flow of Funds Accounts, Fourth 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         61

Credit Market Borrowing by Nonfinancial Sectors                F.2        11     L.2         62

Credit Market Borrowing by Financial Sectors                   F.3        11     L.3         62

Credit Market Borrowing, All Sectors, by Instrument            F.4        12     L.4         63

Total Liabilities and Its Relation to Total Financial Assets   F.5        12     L.5         63

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        64
                                                                Flows             Levels
Title                                                      Table      Page   Table       Page


Sectors
Households and Nonprofit Organizations                     F.100      18     L.100       65

Nonfinancial Business                                      F.101      19     L.101       66

    Nonfinancial Corporate Business                        F.102      20     L.102       67
    Nonfinancial Noncorporate Business                     F.103      21     L.103       68
    Farm Business (Discontinued)

State and Local Governments                                F.105      22     L.105       69

Federal Government                                         F.106      23     L.106       69

Rest of the World                                          F.107      24     L.107       70

Financial Business                                         F.108      25     L.108       71

    Monetary Authority                                     F.109      26     L.109       72

    U.S.-Chartered Commercial Banks                        F.110      27     L.110       73

    Foreign Banking Offices in U.S.                        F.111      28     L.111       74

    Bank Holding Companies                                 F.112      29     L.112       75

    Banks in U.S.-Affiliated Areas                         F.113      29     L.113       75

    Savings Institutions                                   F.114      30     L.114       76

    Credit Unions                                          F.115      31     L.115       77

    Property-Casualty Insurance Companies                  F.116      31     L.116       77

    Life Insurance Companies                               F.117      32     L.117       78

    Private Pension Funds                                  F.118      32     L.118       78

    State and Local Government Employee Retirement Funds   F.119      33     L.119       79

    Federal Government Retirement Funds                    F.120      33     L.120       79

    Money Market Mutual Funds                              F.121      34     L.121       80

    Mutual Funds                                           F.122      34     L.122       80

    Closed-End and Exchange-Traded Funds                   F.123      34     L.123       80

    Government-Sponsored Enterprises                       F.124      35     L.124       81
                                                                     Flows             Levels
Title                                                           Table      Page   Table       Page


    Agency- and GSE-Backed Mortgage Pools                       F.125      35     L.125       81

    Issuers of Asset-Backed Securities                          F.126      36     L.126       82

    Finance Companies                                           F.127      36     L.127       82

    Real Estate Investment Trusts                               F.128      37     L.128       83

    Security Brokers and Dealers                                F.129      38     L.129       84

    Funding Corporations                                        F.130      38     L.130       84




Instruments
U.S. Official Reserve Assets and SDR Allocations                F.200      39     L.200       85

Special Drawing Rights (SDRs) Certificates and Treasury Currency F.201     39     L.201       85

U.S. Deposits in Foreign Countries                              F.202      39     L.202       85

Net Interbank Transactions                                      F.203      40     L.203       86

Checkable Deposits and Currency                                 F.204      41     L.204       87

Time and Savings Deposits                                       F.205      42     L.205       88

Money Market Mutual Fund Shares                                 F.206      42     L.206       88

Federal Funds and Security Repurchase Agreements                F.207      43     L.207       89

Open Market Paper                                               F.208      43     L.208       89

Treasury Securities                                             F.209      44     L.209       90

Agency- and GSE-Backed Securities                               F.210      45     L.210       91

Municipal Securities and Loans                                  F.211      46     L.211       92

Corporate and Foreign Bonds                                     F.212      47     L.212       93

Corporate Equities                                              F.213      48     L.213       94

Mutual Fund Shares                                              F.214      48     L.214       94

Bank Loans Not Elsewhere Classified                             F.215      49     L.215       95

Other Loans and Advances                                        F.216      50     L.216       96
                                                                  Flows                  Levels
Title                                                     Table           Page   Table        Page


Total Mortgages                                           F.217            51    L.217            97

    Home Mortgages                                        F.218            52    L.218            98
    Multifamily Residential Mortgages                     F.219            52    L.219            98
    Commercial Mortgages                                  F.220            53    L.220            99
    Farm Mortgages                                        F.221            53    L.221            99

Consumer Credit                                           F.222            54    L.222        100

Trade Credit                                              F.223            54    L.223        100

Security Credit                                           F.224           54     L.224        100

Life Insurance and Pension Fund Reserves                  F.225            55    L.225        101

Taxes Payable by Businesses                               F.226           55     L.226        101

Proprietors' Equity in Noncorporate Business              F.227            55    L.227        101

Total Miscellaneous Financial Claims                      F.228           56     L.228        102

    Identified Miscellaneous Financial Claims - Part I    F.229            57    L.229        103
    Identified Miscellaneous Financial Claims - Part II   F.230            58    L.230        104
    Unidentified Miscellaneous Financial Claims           F.231           59     L.231        105

Sector Discrepancies                                      F.11             60

Instrument Discrepancies                                  F.12             60




                                                             Balance             Reconciliation
                                                               Sheet
Title                                                     Table      Page        Table        Page


Balance Sheet and Reconciliation Tables
Households and Nonprofit Organizations                    B.100           106    R.100        109

Nonfinancial Corporate Business                           B.102           107    R.102        110

Nonfarm Noncorporate Business                             B.103           108    R.103        111
                                                                        Flows             Levels
Title                                                              Table      Page   Table       Page


Supplementary Tables
Nonprofit Organizations                                            F.100.a   112     L.100.a    113

Consolidated Statement for Federal, State, and Local Governments   F.106.c   114     L.106.c    115

Private Pension Funds: Defined Benefit Plans                       F.118.b   116     L.118.b    117

Private Pension Funds: Defined Contribution Plans                  F.118.c   116     L.118.c    117

Individual Retirement Accounts (IRAs)                              F.225.i   116     L.225.i    117

Flow of Funds Matrix for 2011                                                118                119

Balance Sheet of Households and Nonprofit Organizations
 with Equity Detail                                                                  B.100.e    120
                                                                                                              1




                     Flow of Funds Accounts, Fourth Quarter 2011

                                                          Flow of Funds Guide.
This publication presents the Flow of Funds
Accounts for 2011:Q4. The statistics in the attached
                                                          4. In the Flow of Funds Guide, descriptions of some
tables reflect the use of new or revised source data.
                                                          sectors on the Series Structure page now include
Most significant revisions appear in recent quarters;
                                                          Corresponding 2008 SNA sector identifiers in
however, new source information resulted in changes
                                                          parentheses.
to data for earlier periods.

                                                          Explanatory notes for tables D.1, D.2, and D.3.
Release Highlights. Major data revisions, structural
                                                          Domestic debt comprises credit market funds
changes, and release enhancements introduced this
                                                          borrowed by U.S. entities from both domestic and
quarter are described below:
                                                          foreign sources, while foreign debt represents
                                                          amounts borrowed by foreign financial and
1. Tables in the Z.1 for the farm sector (tables F.104
                                                          nonfinancial entities in U.S. markets only. Financial
and L.104) have been discontinued, but no tables in
                                                          sectors consist of government-sponsored enterprises,
the release have been renumbered. Corporate farms
                                                          agency- and GSE-backed mortgage pools, the
are now included with the nonfinancial corporate
                                                          monetary authority, and private financial institutions.
sector (tables F.102, L.102, B.102, and R.102), and
                                                          Credit market debt consists of debt securities,
noncorporate farms are included with the
                                                          mortgages, bank loans, commercial paper, consumer
nonfinancial noncorporate sector (tables F.103,
                                                          credit, U.S. government loans, and other loans and
L.103, B.103, and R.103). These changes make the
                                                          advances; it excludes trade debt, loans for the
tables for the nonfinancial business sectors consistent
                                                          purpose of carrying securities, and funds raised from
in concept with the tables shown in the Integrated
                                                          equity sources. This definition is consistent with the
Macroeconomic Accounts (IMA). The IMAs are a
                                                          presentation of credit market borrowing and lending
joint publication of the Bureau of Economic Analysis
                                                          on tables F.1 through F.4. Net lending (+) or net
and the Federal Reserve Board that presents a full
                                                          borrowing (-) on the individual sector tables and the
sequence of accounts as described in the System of
                                                          matrix is defined as net acquisition of financial assets
National Accounts (SNA). In addition, farm land is
                                                          less net increase in liabilities.
now included on tables S.4.a, S.4.q, S.5.a, and S.5.q
in the IMA. The underlying farm series are still
                                                          Growth rates in table D.1 are calculated by dividing
available as unpublished series from the online
                                                          seasonally adjusted flows from table D.2 by
Federal Reserve Data Download Program (DDP).
                                                          seasonally adjusted levels at the end of the previous
                                                          period from table D.3. Seasonally adjusted levels in
2. Starting with 2006:Q1, the U.S. chartered
                                                          flow of funds statistics are derived by carrying
commercial banks sector (tables F.110 and L.110)
                                                          forward year-end levels by seasonally adjusted flows.
and the bank holding companies sector (tables F.112
                                                          Growth rates calculated from changes in unadjusted
and L.112) have been modified to show bank-owned
                                                          levels printed in table L.2 can differ from those in
life insurance (BOLI) reserves as a separate line item.
                                                          table D.1.
These reserves were formerly included in
miscellaneous assets. Life insurance reserves of the
                                                          Relation of Flows to Outstandings. Estimates of
household sector (tables F.100 and L.100) have been
                                                          financial assets and liabilities outstanding are linked
reduced by the amount of the BOLI assets, leaving
                                                          to data on flows. However, figures on outstandings
total life insurance reserve liabilities in the life
                                                          contain discontinuities or breaks in series that could
insurance sector (tables F.117 and L.117) unchanged.
                                                          affect analysis of particular relationships over time.
The instrument table for life insurance and pension
                                                          Specifically, outstandings in the Flow of Funds
fund reserves (F.225 and L.225) has been modified to
                                                          Accounts are related to flows in the following way:
show the BOLI assets of banks and bank holding
companies.
                                                          Outstanding t = Outstanding t-1+ Flow t+ Discontinuityt
                                                                      B   B           B   B     B   B             B   B




                                                          where “t” is the time period.
3. For the real estate investment trust (REITS) sector
(tables F.128 and L.128), separate data for equity
                                                          Discontinuities result from changes in valuation,
REITS and mortgage REITS are now available
                                                          breaks in source data, and changes in definitions. For
through the Federal Reserve Data Download Program
                                                          most series, the value of the discontinuity is zero for
(DDP). Detail on the calculations can be found in the
2

nearly all time periods. However, in a few instances,      quarterly data, differences in seasonal adjustment
the discontinuity is nonzero for almost all time           procedures for financial and nonfinancial components
periods, or is quite large in a particular quarter, such   of the accounts sometimes result in discrepancies that
as a period when there is a sharp increase or decrease     cancel in annual data.
in equity prices or a major break in source data.
                                                           Availability of Data. Flow of funds statistics are
The discontinuities in a series can distort estimated      updated about ten weeks following the end of a
rates of growth in assets and liabilities between          quarter. This publication — the Z.1 release — is
periods. In order to minimize these distortions,           available from the Board's Publications Services.
percentage changes in assets and liabilities in flow of    Flow of funds data are also available electronically
funds releases should be calculated as:                    through the Internet at the following location:

                                                           www.federalreserve.gov/releases/Z1
Percentage change t = (Flow t / Outstanding t-1) * 100
                   B   B      B   B          B   B




                                                           This Internet site also provides coded tables and
Preliminary Estimates. Figures shown for the most
                                                           historical annual tables beginning in 1945 that
recent quarter in these tables are based on
                                                           correspond to the tables published in this release.
preliminary and incomplete information. A summary
                                                           There are also compressed ASCII files of quarterly
list of the principal sources of information available
                                                           data for seasonally adjusted flows, unadjusted flows,
when the latest quarter's data were compiled is
                                                           outstandings, balance sheets, debt (tables D.1, D.2,
provided in a table following this introduction. The
                                                           and D.3), and supplementary tables.
distinction between “available” data and “missing”
data is not between final and preliminary versions of
                                                           In addition, these data, as well as data for the
data, but rather between those source estimates that
                                                           quarterly and annual Integrated Macroeconomic
are fully ready when the latest quarterly publication
                                                           Accounts for the United States tables, are available as
is compiled and those that are not yet completed.
                                                           customizable download datasets through the Data
However, the items that are shown as available are, in
                                                           Download Program (DDP) at the following location:
general, also preliminary in the sense that they are
subject to revision by source agencies.
                                                           www.federalreserve.gov/datadownload/Choose.aspx?rel=Z.1
Margins of Uncertainty. Flow of funds statistics are
                                                           An interactive, web-based guide to the Flow of Funds
subject to uncertainties resulting from measurement
                                                           Accounts is available through the Z.1 release page.
errors in source data, incompatibilities among data
                                                           The tools and descriptions within this guide are
from different sources, potential revisions in both
                                                           designed to help users explore the structure and
financial and nonfinancial series, and incomplete data
                                                           content of the Z.1 and the Integrated Macroeconomic
in parts of the accounts. The size of these
                                                           Accounts.
uncertainties cannot be quantified in precise
statistical terms, but allowance for them is explicitly
                                                           Subscription Information. The Federal Reserve
made throughout the accounts by the inclusion of
                                                           Board charges for subscriptions to all statistical
“discrepancies” for various sectors and instrument
                                                           releases. Inquiries for releases should be directed to:
types. A discrepancy for a sector is the difference
between its measured sources of funds and its
                                                                     Publications Services, Stop 127
measured uses of funds. For an instrument category,
                                                                            Board of Governors
a discrepancy is the difference between measured
                                                                      of the Federal Reserve System
funds borrowed through the financial instrument and
                                                                20th Street and Constitution Avenue, N.W.
measured funds lent through that instrument. The size
                                                                          Washington, DC 20551
of such discrepancies relative to the main asset or
                                                                              (202) 452-3244
liability components is one indication of the quality
of source data, especially on an annual basis. For
                                       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 product       Second estimate, seasonally adjusted,      Unadjusted flows since 2010 for
   accounts (NIPA)                   for 2011:Q4.                               the government sectors.
                                                                                Unadjusted flows since 2006 for all
                                                                                other sectors.

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: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. Nonfinancial corporate business   Quarterly Financial Report (QFR) of            Statistics of Income data since
   (tables F.102 and L.102)          the Census Bureau through 2011:Q3;             2009. QFR for 2011:Q4.
                                     Internal Revenue Service Statistics of
                                     Income (IRS/SOI) data through 2009;
                                     securities offerings, mortgages, bank
                                     loans, commercial paper, other loans,
                                     and corporate farms through 2011:Q4.

4. Nonfinancial noncorporate         IRS/SOI data through 2009; bank and            Statistics of Income data since
   business                          finance company loans, mortgage                2009.
   (tables F.103 and L.103)          borrowing, and noncorporate farms
                                     through 2011:Q4.

5. State and local governments       Gross offerings and retirements of             Total financial assets since
   (tables F.105 and L.105)          municipal securities, deposits at banks,       2009:Q2 and selected financial
                                     and nonmarketable U.S. government              asset detail since 2004:Q2.
                                     security issues through 2011:Q4; total
                                     financial assets through 2009:Q2 from
                                     the Census Bureau; breakdown of
                                     financial assets through 2004:Q2 from
                                     the comprehensive annual financial
                                     reports of state and local governments.

6. Federal government                Data from the Monthly Treasury                 None.
                                     Statement of Receipts and Outlays and
   (tables F.106 and L.106)
                                     Treasury data for loan programs and the
                                     Troubled Assets Relief Program
                                     (TARP) through 2011:Q4.
                                                                                                                    5
7. Rest of the world                   Balance of payments data through         Balance of payments data for
   (U.S. international transactions)   2011:Q3. NIPA estimates; data from       2011:Q4.
   (tables F.107 and L.107)            bank Reports of Condition and from
                                       Treasury International Capital System
                                       through 2011:Q4.

8. Monetary authority                  All data through 2011:Q4.                None.
   (tables F.109 and L.109)



9. U.S.-chartered commercial banks     All data through 2011:Q4.                None.
    (tables F.110 and L.110)

10. Foreign banking offices in U.S.    All data through 2011:Q4.                None.
    (tables F.111 and L.111)

11. Bank holding companies             All data through 2011:Q4.                None.
    (table F.112 and L.112)

12. Banks in U.S.-affiliated areas     All data through 2011:Q4 for             Data since 2010 for branches of
    (tables F.113 and L.113)           commercial banks in U.S.-affiliated      domestic commercial banks
                                       areas. All data through 2010 for         located in U.S.-affiliated areas.
                                       branches of domestic commercial banks
                                       located in U.S.-affiliated areas.

13. Savings institutions               All data through 2011:Q4.                None.
    (tables F.114 and L.114)

14. Credit unions                      All data through 2011:Q4.                None.
    (tables F.115 and L.115)

15. Property-casualty insurance        All data through 2011:Q3. Preliminary    Final data for 2011:Q4.
     companies                         data for 2011:Q4.
    (tables F.116 and L.116)

16. Life insurance companies           All data through 2011:Q3. Preliminary    Final data for 2011:Q4.
    (tables F.117 and L.117)           data for 2011:Q4.



17. Private pension funds              Internal Revenue Service/Department of   Form 5500 data since 2007.
    (tables F.118 and L.118)           Labor/Pension Benefit Guaranty
                                       Corporation Form 5500 data through
                                       2007.

18. 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:Q4 from the Census Bureau.

19. Federal government retirement      Data from the Monthly Treasury           None.
   funds                               Statement of Receipts and Outlays, the
                                       Thrift Savings Plan, and the National
    (tables F.120 and L.120)
                                       Railroad Retirement Investment Trust
                                       through 2011:Q4.
6

    20. Money market mutual funds            All data through 2011:Q4.                  None.
        (tables F.121 and L.121)

    21. Mutual funds                         All data through 2011:Q4.                  None.
        (tables F.122 and L.122)

    22. Closed-end funds                                                                None.
                                             All data through 2011:Q4.
        (tables F.123 and L.123)

    23. Exchange-traded funds                All data through 2011:Q4.                  None.
        (tables F.123 and L.123)

    24. Government-sponsored                 Data for Fannie Mae, FHLB, FICO,           Data for Freddie Mac and Farmer
       enterprises                           FCS, and REFCORP through 2011:Q4.          Mac for 2011:Q4.
        (tables F.124 and L.124)             Data for Freddie Mac and Farmer Mac
                                             through 2011:Q3.

    25. Agency- and GSE-backed               Data for Fannie Mae, and Ginnie Mae        Data for Freddie Mac and Farmer
       mortgage pools                        through 2011:Q4. Data for Freddie Mac      Mac for 2011:Q4.
        (tables F.125 and L.125)             and Farmer Mac through 2011:Q3.

    26. Issuers of asset-backed securities   All data for private mortgage pools,       None.
       (ABSs)                                consumer credit, business loans, student
        (tables F.126 and L.126)             loans, consumer leases, and trade credit
                                             securitization through 2011:Q4.

    27. Finance companies                    All data through 2011:Q4.                  None.
        (tables F.127 and L.127)


    28. Real estate investment trusts        Final data from SNL Financial through      Final data from SNL Financial
       (REITs)                               2011:Q3.                                   for 2011:Q4.
        (tables F.128 and L.128)

    29. Security brokers and dealers         Data for firms filing FOCUS and FOGS       None.
        (tables F.129 and L.129)             reports through 2011:Q4.

    30. Funding corporations                 Estimates for this sector are largely
        (tables F.130 and L.130)             residuals and are derived from data for
                                             other sectors.