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

December 9, 2010 

FEDERAL RESERVE statistical release

Z.1 

 

Flow of Funds Accounts 

of the United States

Flows and Outstandings

Third Quarter 2010

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

Third Quarter 2010 

Debt of the domestic nonfinancial sectors is 

estimated to have expanded at a seasonally adjusted

annual rate of 41⁄4 percent in the third quarter of 2010, 

1⁄2 percentage point less than in the previous quarter. 

Private debt changed little in the third quarter, while 

federal government debt continued to grow rapidly. 

 

Household debt contracted at an annual rate of 13⁄4 

percent in the third quarter, the tenth consecutive

quarterly decline. Home mortgage debt fell at an 

annual rate of 21⁄2 percent in the third quarter, about 

the same as in the previous quarter. Consumer credit 

was down 11⁄2 percent, after a decline of 31⁄4 in the 

previous quarter. 

Nonfinancial business debt rose 13⁄4 percent in the 

third quarter, after remaining about flat over the first 

half of this year. Corporate bonds outstanding posted 

another strong increase, more than offsetting declines 

in commercial mortgages and bank loans outstanding. 

State and local government debt rose 51⁄4 percent at 

an annual rate in the third quarter, after a 11⁄2 percent 

decline in the second quarter. Federal government 

debt increased at an annual rate of 16 percent in the 

third quarter, 61⁄2 percentage points less than the 

average during the first half of the year. 

At the end of the third quarter of 2010, the level of 

domestic nonfinancial debt outstanding was $35.9 

trillion; household debt was $13.4 trillion, 

nonfinancial business debt was $11.0 trillion, and 

total government debt was $11.5 trillion. 

Household net worth—the difference between the 

value of assets and liabilities—was an estimated 

$54.9 trillion at the end of the third quarter, up about 

$1.2 trillion from the end of the previous quarter. 

Growth of Domestic Nonfinancial DebtP

1

P

Percentage changes; quarterly data are seasonally adjusted annual rates 

 Total Households Business State and 

local govts. Federal 

2000 5.0 9.1 9.3 1.4 -8.0 

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 13.1 9.5 4.9 

2008 6.0 0.3 5.5 2.3 24.2 

2009 3.0 -1.7 -2.6 4.9 22.7 

 

2009:Q1 4.7 -0.8 0.1 5.6 24.4 

 Q2 4.4 -1.9 -2.6 4.3 28.9 

 Q3 2.1 -2.2 -4.3 5.8 19.0 

 Q4 0.9 -2.0 -3.7 3.8 11.9 

 

2010:Q1 4.3 -2.1 0.4 5.6 20.5 

 Q2 4.7 -2.2 -0.1 -1.5 24.4 

 Q3 4.2 -1.7 1.7 5.2 16.0 

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

 

 
Table of Contents 

Title Table Page 

Flow of Funds Accounts, Third 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 

SDR Certificates and Treasury Currency F.201 39 L.201 84 

U.S. Deposits in Foreign Countries F.202 39 L.202 84 

Net Interbank Transactions F.203 40 L.203 85 

Checkable Deposits and Currency F.204 41 L.204 86 

Time and Savings Deposits F.205 42 L.205 87 

Money Market Mutual Fund Shares F.206 42 L.206 87 

Federal Funds and Security Repurchase Agreements F.207 43 L.207 88 

Open Market Paper F.208 43 L.208 88 

Treasury Securities F.209 44 L.209 89 
 Flows Levels

Title Table Page Table Page

Agency- and GSE-backed Securities F.210 45 L.210 90

Municipal Securities and Loans F.211 46 L.211 91 

Corporate and Foreign Bonds F.212 46 L.212 91 

Corporate Equities F.213 47 L.213 92 

Mutual Fund Shares F.214 47 L.214 92 

Bank Loans Not Elsewhere Classified F.215 48 L.215 93 

Other Loans and Advances F.216 49 L.216 94 

Total Mortgages F.217 50 L.217 95 

Home Mortgages F.218 51 L.218 96 

Multifamily Residential Mortgages F.219 51 L.219 96 

Commercial Mortgages F.220 52 L.220 97 

Farm Mortgages F.221 52 L.221 97 

Consumer Credit F.222 53 L.222 98 

Trade Credit F.223 53 L.223 98 

Security Credit F.224 53 L.224 98 

Life Insurance and Pension Fund Reserves F.225 54 L.225 99 

Taxes Payable by Businesses F.226 54 L.226 99 

Proprietors' Equity in Noncorporate Business F.227 54 L.227 99 

Total Miscellaneous Financial Claims F.228 55 L.228 100 

 Identified Miscellaneous Financial Claims - Part I F.229 56 L.229 101 

Identified Miscellaneous Financial Claims - Part II F.230 57 L.230 102 

Unidentified Miscellaneous Financial Claims F.231 58 L.231 103 

Sector Discrepancies F.11 59 

Instrument Discrepancies F.12 59 
Balance Reconciliation

Sheet

Title Table Page Table Page 

Balance Sheet and Reconciliation Tables

Households and Nonprofit Organizations B.100 104 R.100 107 

Nonfinancial Corporate Business B.102 105 R.102 108

Nonfarm Noncorporate Business B.103 106 R.103 109 

Flows Levels

Title Table Page Table Page

Supplementary Tables 

Nonprofit Organizations F.100.a 110 L.100.a 111 

Consolidated Statement for Federal, State, and Local Governments F.106.c 112 L.106.c 113 

Private Pension Funds: Defined Benefit Plans F.118.b 114 L.118.b 115 

Private Pension Funds: Defined Contribution Plans F.118.c 114 L.118.c 115 

Individual Retirement Accounts (IRAs) F.225.i 114 L.225.i 115 

Flow of Funds Matrix for 2009 116 117 

Balance Sheet of Households and Nonprofit Organizations 

 with Equity Detail B.100.e 118 
Flow of Funds Accounts, Third Quarter 2010 

This publication presents the Flow of Funds 

Accounts for 2010:Q3. 

Data revisions and other changes. The statistics in 

the attached tables reflect the use of new or revised 

source data. Most significant revisions appear in 

recent quarters; however, new source information 

resulted in changes to data for earlier periods. 

1. Many nine-digit flow of funds mnemonics 

have been changed to make the coding more 

consistent across instrument categories. A list of

these code changes is available online at: 

http://www.federalreserve.gov/Releases/Z1/preview/Code_chan

ges/ 

2. The term “net financial investment” has been 

changed on a number of tables to “net lending (+) or 

net borrowing (-)” to be consistent with System of 

National Accounts (SNA) terminology. 

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

Domestic debt comprises credit market funds 

borrowed by U.S. entities from both domestic and 

foreign sources, while foreign debt represents 

amounts borrowed by foreign financial and 

nonfinancial entities in U.S. markets only. Financial 

sectors consist of government-sponsored enterprises, 

agency- and GSE-backed mortgage pools, the 

monetary authority, and private financial institutions. 

Credit market debt consists of debt securities, 

mortgages, bank loans, commercial paper, consumer 

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

advances; it excludes trade debt, loans for the 

purpose of carrying securities, and funds raised from 

equity sources. This definition is consistent with the 

presentation of credit market borrowing and lending

on tables F.1 through F.4. Net lending (+) or net 

borrowing (-) on the individual sector tables and the 

matrix is defined as net acquisition of financial assets 

less net increase in liabilities. 

Growth rates in table D.1 are calculated by dividing 

seasonally adjusted flows from table D.2 by 

seasonally adjusted levels at the end of the previous 

period from table D.3. Seasonally adjusted levels in 

flow of funds statistics are derived by carrying 

forward year-end levels by seasonally adjusted flows. 

Growth rates calculated from changes in unadjusted 

levels printed in table L.2 can differ from those in 

table D.1. 

Relation of Flows to Outstandings. Estimates of 

financial assets and liabilities outstanding are linked 

to data on flows. However, figures on outstandings

contain discontinuities or breaks in series that could 

affect analysis of particular relationships over time. 

Specifically, outstandings in the flow of funds 

accounts are related to the flows in the following 

way: 

Outstanding B

t

B = Outstanding B

t-1B+ Flow Bt

B+ DiscontinuityB

t

B 

where “t” is the time period. 

Discontinuities result from changes in valuation, 

breaks in source data, and changes in definitions. For 

most series, the value of the discontinuity is zero for 

nearly all time periods. However, in a few instances, 

the discontinuity is nonzero for almost all time 

periods, or is quite large in a particular quarter, such 

as a period when there is a sharp increase or decrease 

in equity prices or a major break in source data. 

The discontinuities in a series can distort estimated 

rates of growth in assets and liabilities between 

periods. In order to minimize these distortions, 

percentage changes in assets and liabilities in flow of 

funds releases should be calculated as: 

Percentage change B

t

B = (Flow B

t

B / Outstanding B

t-1B) * 100 

Preliminary Estimates. Figures shown for the most 

recent quarter in these tables are based on 

preliminary and incomplete information. A summary 

list of the principal sources of information available 

when the latest quarter's data were compiled is 

provided in a table following this introduction. The 

distinction between “available” data and “missing” 

data is not between final and preliminary versions of 

data, but rather between those source estimates that 

are fully ready when the latest quarterly publication 

is compiled and those that are not yet completed. 

However, the items that are shown as available are, in 

general, also preliminary in the sense that they are 

subject to revision by source agencies. 

Margins of Uncertainty. Flow of funds statistics are 

subject to uncertainties resulting from measurement

errors in source data, incompatibilities among data

from different sources, potential revisions in both

financial and nonfinancial series, and incomplete data 

in parts of the accounts. The size of these 

uncertainties cannot be quantified in precise 

statistical terms, but allowance for them is explicitly 

1 
made throughout the accounts by the inclusion of 

“discrepancies” for various sectors and instrument 

types. A discrepancy for a sector is the difference

between its measured sources of funds and its 

measured uses of funds. For an instrument category,

a discrepancy is the difference between measured 

funds borrowed through the financial instrument and

measured funds lent through that instrument. The size 

of such discrepancies relative to the main asset or

liability components is one indication of the quality 

of source data, especially on an annual basis. For

quarterly data, differences in seasonal adjustment 

procedures for financial and nonfinancial components 

of the accounts sometimes result in discrepancies that 

cancel in annual data. 

Availability of Data. Flow of funds statistics are 

updated about ten weeks following the end of a 

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

available from the Board's Publications Services. 

Flow of funds data are also available electronically 

through the Internet at the following location: 

www.federalreserve.gov/releases/Z1

This Internet site also provides coded tables and 

historical annual tables beginning in 1945 that 

correspond to the tables published in this release.

There are also compressed ASCII files of quarterly 

data for seasonally adjusted flows, unadjusted flows, 

outstandings, balance sheets, debt (tables D.1, D.2, 

and D.3), and supplementary tables. 

In addition, these data, as well as data for the 

quarterly and annual Integrated Macroeconomic 

Accounts for the United States tables, are available as 

customizable download datasets through the Data 

Download Program (DDP) at the following location: 

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

A Guide to the Flow of Funds Accounts is available. 

The 1,200-page Guide, published in two volumes in 

January 2000, explains in detail how the U.S. 

financial accounts are prepared and the principles 

underlying the accounts. The Guide can be purchased 

for $20.00 from the Board’s Publications Services. 

Publications Services accepts orders accompanied by

checks as well as credit card orders. 

 

The Internet site for this release at the location shown 

above contains a link to an order form for the Guide

that can be mailed or faxed to Publications Services. 

In addition, the Internet site includes a link to the 

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

accounts. 

Subscription Information. The Federal Reserve 

Board charges for subscriptions to all statistical 

releases. Inquiries for releases should be directed to: 

Publications Services, Stop 127 

Board of Governors 

of the Federal Reserve System 

20th Street and Constitution Avenue, N.W. 

Washington, DC 20551 

(202) 452-3244

2 
[THIS PAGE INTENTIONALLY LEFT BLANK] 

3 
Availability of Data for Latest Quarter 

UAvailable at time of publicationU UMajor items missingU 

1. National income and 

product accounts (NIPA) 

Second estimate, seasonally adjusted, 

for 2010:Q3. 

Unadjusted flows since 2006. 

 2. Households and nonprofit 

organizations sector 

 (tables F.100 and L.100) 

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

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

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

through 2010: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 business 

 (tables F.102 and L.102) 

Quarterly Financial Report (QFR) of 

the Census Bureau through 2010:Q2; 

Internal Revenue Service Statistics of 

Income (IRS/SOI) data through 2008; 

securities offerings, mortgages, bank 

loans, commercial paper, and other 

loans through 2010:Q3. 

Statistics of Income data since 

2008. 

 4. Nonfarm noncorporate 

business 

 (tables F.103 and L.103) 

IRS/SOI data through 2007; bank and 

finance company loans and mortgage 

borrowing through 2010:Q3. 

Statistics of Income data since 

2007. 

 5. Farm business 

 (tables F.104 and L.104) 

Mortgages, bank loans, loans from 

government-sponsored enterprises, 

U.S. government loans to farms, and 

equity in government-sponsored 

enterprises through 2010:Q3; 

preliminary data for checkable deposits 

and currency and trade payables 

through 2008. 

Consumption of fixed capital 

and undistributed profits since 

2008. 

6. State and local governments 

 (tables F.105 and L.105) 

Gross offerings and retirements of 

municipal securities, deposits at banks, 

and nonmarketable U.S. government 

security issues through 2010:Q3; 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. 

Total financial assets since 

2008:Q2 and selected financial 

asset detail since 2004:Q2. 

7. Federal government 

(tables F.106 and L.106) 

Data from the Monthly Treasury 

Statement of Receipts and Outlays and 

Treasury data for loan programs and 

the Troubled Assets Relief Program 

(TARP) through 2010:Q3. 

None. 

4 
 8. Rest of the world 

 (U.S. international 

transactions) 

 (tables F.107 and L.107) 

Balance of payments data through 

2010:Q2. NIPA estimates; data from 

bank Reports of Condition and from 

Treasury International Capital System 

through 2010:Q3. 

Balance of payments data for 

2010:Q3. 

 9. Monetary authority 

 (tables F.108 and L.108) 

All data through 2010:Q3. None. 

10. Commercial banking 

 (tables F.109 through F.113 

and tables L.109 through 

L.113) 

All data through 2010:Q3 for 

U.S.-chartered commercial banks, 

foreign banking offices in the U.S., 

bank holding companies, and 

commercial banks in U.S.-affiliated 

areas. 

Data since 2009 for branches of 

domestic commercial banks 

located in U.S.-affiliated areas. 

11. Savings institutions 

 (tables F.114 and L.114) 

All data through 2010:Q3. None. 

12. Credit unions 

 (tables F.115 and L.115) 

All data through 2010:Q3. None. 

13. Property-casualty insurance 

 companies 

 (tables F.116 and L.116) 

All data through 2010:Q2. Preliminary 

data for 2010:Q3. 

Final data for 2010:Q3. 

14. Life insurance companies 

 (tables F.117 and L.117) 

All data through 2010:Q2. Preliminary 

data for 2010:Q3. 

Final data for 2010:Q3. 

 

15. Private pension funds 

 (tables F.118 and L.118) 

Quarterly data through 2010:Q1; 

Internal Revenue Service/Department 

of Labor/Pension Benefit Guaranty 

Corporation Form 5500 data through 

2007. 

Form 5500 data since 2007. 

Quarterly data since 2010:Q1. 

16. State and local government 

employee retirement funds 

 (tables F.119 and L.119) 

Detailed data through 2008:Q2 from 

the Census Bureau; sample data 

through 2010:Q3 from the Census 

Bureau. 

Detailed data since 2008:Q2. 

17. Federal government retirement 

funds 

(tables F.120 and L.120) 

Data from the Monthly Treasury 

Statement of Receipts and Outlays, the 

Thrift Savings Plan, and the National 

Railroad Retirement Investment Trust 

through 2010:Q3. 

None. 

18. Money market mutual 

funds 

 (tables F.121 and L.121) 

All data through 2010:Q3. None. 

19. Mutual funds 

 (tables F.122 and L.122) 

All data through 2010:Q3. None. 

20. Closed-end funds 

 (tables F.123 and L.123) 

All data through 2010:Q3. None. 

21. Exchange-traded funds 

 (tables F.123 and L.123) 

All data through 2010:Q3. None. 

5 
22. Government-sponsored 

enterprises 

 (tables F.124 and L.124) 

Data for Fannie Mae, Freddie Mac, 

FHLBs, Farmer Mac, FICO, FCS, and 

REFCORP through 2010:Q3. 

None. 

23. Agency- and GSE-backed 

mortgage pools 

 (tables F.125 and L.125) 

Data for Fannie Mae, Freddie Mac, and 

Ginnie Mae through 2010:Q3. 

None.

24. Issuers of asset-backed 

securities (ABSs) 

 (tables F.126 and L.126) 

All data for private mortgage pools, 

consumer credit, business loans, 

student loans, consumer leases, and 

trade credit securitization through 

2010:Q3. 

None. 

25. Finance companies 

 (tables F.127 and L.127) 

All data through 2010:Q3. None. 

26. Real estate investment 

trusts (REITs) 

 (tables F.128 and L.128) 

Data from SNL Financial through 

2010:Q3. 

None. 

27. Security brokers and 

dealers 

 (tables F.129 and L.129) 

Data for firms filing FOCUS and 

FOGS reports through 2010:Q3. 

None. 

28. Funding corporations 

 (tables F.130 and L.130) 

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

other sectors. 

6