For use at 12:00 p.m., eastern time
                                                                                        December 8, 2011




FEDERAL RESERVE statistical release

Z.1




Flow of Funds Accounts
of the United States
Flows and Outstandings
Third Quarter 2011




Board of Governors of the Federal Reserve System, Washington DC 20551
                                  Flow of Funds Summary Statistics
                                  C




                                         Third Quarter 2011

Debt of the domestic nonfinancial sectors expanded            debt continued to decline, albeit at a more moderate
at a seasonally adjusted annual rate of 41⁄4 percent in         pace than during 2010.
the third quarter of 2011, about 11⁄4 percentage points
faster than the pace registered in the second quarter.        State and local government debt remained unchanged
                                                              in the third quarter. Federal government debt
Household debt declined at an annual rate of 11⁄4               increased at an annual rate of 14 percent in the third
percent in the third quarter, continuing the                  quarter.
contraction that began in the third quarter of 2008.
Home mortgage debt fell at an annual rate of 13⁄4               At the end of the third quarter of 2011, the level of
percent in the third quarter, slightly less of a decline      domestic nonfinancial debt outstanding was $37.8
than in the first half of the year. In contrast,              trillion; household debt was $13.2 trillion,
consumer credit rose at an annual rate of 11⁄4 percent,         nonfinancial business debt was $11.5 trillion, and
the fourth consecutive quarter of increase.                   total government debt was $13.1 trillion.

Nonfinancial business debt rose at an annual rate of          Household net worth—the difference between the
31⁄2 percent in the third quarter, 1 percentage point           value of assets and liabilities—was $57.4 trillion at
slower than the pace registered in the second quarter         the end of the third quarter, about $2.4 trillion less
of this year. Corporate bonds outstanding and                 than at the end of the previous quarter.
business loans increased while commercial mortgage


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                     9.4          5.9               8.8                 -0.2
 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                     9.9        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                       3.0                    -1.7        -2.4                3.9                 22.7
 2010                       4.1                    -2.1         0.7                2.2                 20.2

 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          2.4               4.8                 16.4

 2011:Q1                  2.3               -1.8                 4.2              -3.3                  7.9
      Q2                  3.1               -0.6                 4.5              -3.5                  8.6
      Q3                  4.3               -1.2                 3.5               0.0                 14.1
1. Changes shown are on an end-of-period basis.
                                             Table of Contents


Title                                                                            Table      Page


Flow of Funds Accounts, Third 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

    Nonfarm Nonfinancial Corporate Business                F.102      20     L.102       67
    Nonfarm Noncorporate Business                          F.103      21     L.103       68
    Farm Business                                          F.104      21     L.104       68

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 2010                                                118                119

Balance Sheet of Households and Nonprofit Organizations
 with Equity Detail                                                                  B.100.e    120
                                                                                                                  1




                      Flow of Funds Accounts, Third Quarter 2011

                                                          equity sources. This definition is consistent with the
This publication presents the Flow of Funds
                                                          presentation of credit market borrowing and lending
Accounts for 2011:Q3.
                                                          on tables F.1 through F.4. Net lending (+) or net
                                                          borrowing (-) on the individual sector tables and the
Data revisions and other changes. The statistics in
                                                          matrix is defined as net acquisition of financial assets
the attached tables reflect the use of new or revised
                                                          less net increase in liabilities.
source data. Most significant revisions appear in
recent quarters; however, new source information
                                                          Growth rates in table D.1 are calculated by dividing
resulted in changes to data for earlier periods.
                                                          seasonally adjusted flows from table D.2 by
                                                          seasonally adjusted levels at the end of the previous
1. In the nonfarm noncorporate business sector
                                                          period from table D.3. Seasonally adjusted levels in
(tables F.103, L.103, B.103, and R.103), data have
                                                          flow of funds statistics are derived by carrying
been revised from 2009:Q1 forward, owing to
                                                          forward year-end levels by seasonally adjusted flows.
benchmark statistics available from the IRS/SOI for
                                                          Growth rates calculated from changes in unadjusted
2009.
                                                          levels printed in table L.2 can differ from those in
                                                          table D.1.
2. The federal government sector (tables F.106
and L.106) has been modified to show additional
                                                          Relation of Flows to Outstandings. Estimates of
detail on the composition of Treasury debt. Treasury
                                                          financial assets and liabilities outstanding are linked
bills, considered short-term debt, are now shown
                                                          to data on flows. However, figures on outstandings
separately from other Treasury debt. This new detail
                                                          contain discontinuities or breaks in series that could
is also shown on the instrument table for the Treasury
                                                          affect analysis of particular relationships over time.
securities (tables F.209 and L.209).
                                                          Specifically, outstandings in the Flow of Funds
                                                          Accounts are related to flows in the following way:
3. The instrument tables on municipal securities
and loans (tables F.211 and L.211) have been revised
                                                          Outstanding t = Outstanding t-1+ Flow t+ Discontinuityt
from 2004:Q1 forward to reflect a change in data                      B   B           B   B       B   B               B   B




                                                          where “t” is the time period.
sources. Data on debt outstanding and net issuance
for state and local governments, nonprofit
                                                          Discontinuities result from changes in valuation,
organizations, and nonfinancial corporate business
                                                          breaks in source data, and changes in definitions. For
(industrial revenue bonds) are now based on data
                                                          most series, the value of the discontinuity is zero for
from Mergent, a private data vendor. The new data
                                                          nearly all time periods. However, in a few instances,
indicate that municipal securities and loans
                                                          the discontinuity is nonzero for almost all time
outstanding in 2004:Q1 is $740 billion greater than
                                                          periods, or is quite large in a particular quarter, such
previously estimated in the flow of funds accounts.
                                                          as a period when there is a sharp increase or decrease
The estimate of household holdings of municipal
                                                          in equity prices or a major break in source data.
securities and loans is revised up by about $840
billion, on average, from 2004 forward.
                                                          The discontinuities in a series can distort estimated
                                                          rates of growth in assets and liabilities between
Explanatory notes for tables D.1, D.2, and D.3.
                                                          periods. In order to minimize these distortions,
Domestic debt comprises credit market funds
                                                          percentage changes in assets and liabilities in flow of
borrowed by U.S. entities from both domestic and
                                                          funds releases should be calculated as:
foreign sources, while foreign debt represents
amounts borrowed by foreign financial and
                                                          Percentage change t = (Flow t / Outstanding t-1) * 100
nonfinancial entities in U.S. markets only. Financial                         B   B       B   B           B   B




sectors consist of government-sponsored enterprises,
                                                          Preliminary Estimates. Figures shown for the most
agency- and GSE-backed mortgage pools, the
                                                          recent quarter in these tables are based on
monetary authority, and private financial institutions.
                                                          preliminary and incomplete information. A summary
Credit market debt consists of debt securities,
                                                          list of the principal sources of information available
mortgages, bank loans, commercial paper, consumer
                                                          when the latest quarter's data were compiled is
credit, U.S. government loans, and other loans and
                                                          provided in a table following this introduction. The
advances; it excludes trade debt, loans for the
                                                          distinction between “available” data and “missing”
purpose of carrying securities, and funds raised from
2


data is not between final and preliminary versions of     Flow of funds data are also available electronically
data, but rather between those source estimates that      through the Internet at the following location:
are fully ready when the latest quarterly publication
                                                          www.federalreserve.gov/releases/Z1
is compiled and those that are not yet completed.
However, the items that are shown as available are, in
                                                          This Internet site also provides coded tables and
general, also preliminary in the sense that they are
                                                          historical annual tables beginning in 1945 that
subject to revision by source agencies.
                                                          correspond to the tables published in this release.
                                                          There are also compressed ASCII files of quarterly
Margins of Uncertainty. Flow of funds statistics are
                                                          data for seasonally adjusted flows, unadjusted flows,
subject to uncertainties resulting from measurement
                                                          outstandings, balance sheets, debt (tables D.1, D.2,
errors in source data, incompatibilities among data
                                                          and D.3), and supplementary tables.
from different sources, potential revisions in both
financial and nonfinancial series, and incomplete data
                                                          In addition, these data, as well as data for the
in parts of the accounts. The size of these
                                                          quarterly and annual Integrated Macroeconomic
uncertainties cannot be quantified in precise
                                                          Accounts for the United States tables, are available as
statistical terms, but allowance for them is explicitly
                                                          customizable download datasets through the Data
made throughout the accounts by the inclusion of
                                                          Download Program (DDP) at the following location:
“discrepancies” for various sectors and instrument
types. A discrepancy for a sector is the difference
                                                          www.federalreserve.gov/datadownload/Choose.aspx?rel=Z.1
between its measured sources of funds and its
measured uses of funds. For an instrument category,
                                                          An interactive, web-based guide to the Flow of Funds
a discrepancy is the difference between measured
                                                          Accounts is available through the Z.1 release page.
funds borrowed through the financial instrument and
                                                          The tools and descriptions within this guide are
measured funds lent through that instrument. The size
                                                          designed to help users explore the structure and
of such discrepancies relative to the main asset or
                                                          content of the Z.1 and the Integrated Macroeconomic
liability components is one indication of the quality
                                                          Accounts.
of source data, especially on an annual basis. For
quarterly data, differences in seasonal adjustment
                                                          Subscription Information. The Federal Reserve
procedures for financial and nonfinancial components
                                                          Board charges for subscriptions to all statistical
of the accounts sometimes result in discrepancies that
                                                          releases. Inquiries for releases should be directed to:
cancel in annual data.
                                                                    Publications Services, Stop 127
Availability of Data. Flow of funds statistics are
                                                                           Board of Governors
updated about ten weeks following the end of a
                                                                     of the Federal Reserve System
quarter. This publication — the Z.1 release — is
                                                               20th Street and Constitution Avenue, N.W.
available from the Board's Publications Services.
                                                                         Washington, DC 20551
                                                                             (202) 452-3244
                                       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:Q3.                               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:Q3. 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   Quarterly Financial Report (QFR) of            Statistics of Income data since
   business                         the Census Bureau through 2011:Q2;             2009. QFR for 2011:Q3.
   (tables F.102 and L.102)         Internal Revenue Service Statistics of
                                    Income (IRS/SOI) data through 2009;
                                    securities offerings, mortgages, bank
                                    loans, commercial paper, and other
                                    loans through 2011:Q3.

4. Nonfarm noncorporate business    IRS/SOI data through 2009; bank and            Statistics of Income data since
   (tables F.103 and L.103)         finance company loans and mortgage             2009.
                                    borrowing through 2011:Q3.

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 2010.
                                    government loans to farms, and equity
                                    in government-sponsored enterprises
                                    through 2011:Q3; preliminary data for
                                    checkable deposits and currency and
                                    trade payables through 2010.

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,       2009:Q2 and selected financial
                                    and nonmarketable U.S. government              asset detail since 2004:Q2.
                                    security issues through 2011:Q3; 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.

7. 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:Q3.
                                                                                                                    5


8. Rest of the world                   Balance of payments data through         Balance of payments data for
   (U.S. international transactions)   2011:Q2. NIPA estimates; data from       2011:Q3.
   (tables F.107 and L.107)            bank Reports of Condition and from
                                       Treasury International Capital System
                                       through 2011:Q3.

9. Monetary authority                  All data through 2011:Q3.                None.
   (tables F.109 and L.109)

10. U.S.-chartered commercial banks    All data through 2011:Q3.                None.
    (tables F.110 and L.110)

11. Foreign banking offices in U.S.    All data through 2011:Q3.                None.
    (tables F.111 and L.111)

12. Bank holding companies             All data through 2011:Q3.                None.
    (table F.112 and L.112)

13. Banks in U.S.-affiliated areas     All data through 2011:Q3 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.

14. Savings institutions               All data through 2011:Q3.                None.
    (tables F.114 and L.114)

15. Credit unions                      All data through 2011:Q3.                None.
    (tables F.115 and L.115)

16. Property-casualty insurance        All data through 2011:Q2. Preliminary    None.
     companies                         data for 2011:Q3.
    (tables F.116 and L.116)

17. Life insurance companies           All data through 2011:Q2. Preliminary    None.
    (tables F.117 and L.117)           data for 2011:Q3.



18. 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.

19. 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:Q3 from the Census Bureau.

20. 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:Q3.
6

    21. Money market mutual funds            All data through 2011:Q3.                    None.
        (tables F.121 and L.121)

    22. Mutual funds                         All data through 2011:Q3.                    None.
        (tables F.122 and L.122)

    23. Closed-end funds                                                                  None.
                                             All data through 2011:Q3.
        (tables F.123 and L.123)

    24. Exchange-traded funds                All data through 2011:Q3.                    None.
        (tables F.123 and L.123)

    25. Government-sponsored                 Data for Fannie Mae, Freddie Mac,            None.
       enterprises                           Farmer Mac, FHLB, FICO, FCS, and
        (tables F.124 and L.124)             REFCORP through 2011:Q3.

    26. Agency- and GSE-backed               Data for Fannie Mae, Freddie Mac, and        None.
       mortgage pools                        Ginnie Mae through 2011:Q3.
        (tables F.125 and L.125)

    27. 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:Q3.

    28. Finance companies                    All data through 2011:Q3.                    None.
        (tables F.127 and L.127)

    29. Real estate investment trusts        Data from SNL Financial through              None.
       (REITs)                               2011:Q3.
        (tables F.128 and L.128)

    30. Security brokers and dealers         Data for firms filing FOCUS and FOGS         None.
        (tables F.129 and L.129)             reports through 2011:Q3.

    31. Funding corporations                 Estimates for this sector are largely residuals and are derived from data for
        (tables F.130 and L.130)             other sectors.