For use at 12:00 p.m., eastern time
                                                                                       September 16, 2011




FEDERAL RESERVE statistical release

Z.1




Flow of Funds Accounts
of the United States
Flows and Outstandings
Second Quarter 2011




Board of Governors of the Federal Reserve System, Washington DC 20551
                                 Flow of Funds Summary Statistics
                                 C




                                       Second Quarter 2011

Debt of the domestic nonfinancial sectors expanded            increased while commercial mortgage debt continued
at a seasonally adjusted annual rate of 3 percent in          to decline, albeit at a more moderate pace than during
the second quarter of 2011, about one percentage              the previous year and a half.
point faster than the pace registered in the first
quarter.                                                      State and local government debt fell about 31⁄4
                                                              percent at an annual rate in the second quarter.
Household debt declined at an annual rate of 1⁄2                Federal government debt increased at an annual rate
percent in the second quarter, continuing its                 of 81⁄2 percent in the second quarter.
contraction since the first quarter of 2008. Home
mortgage debt fell at an annual rate of 21⁄2 percent in         At the end of the second quarter of 2011, the level of
the second quarter, about the same pace of decline as         domestic nonfinancial debt outstanding was $36.5
in the previous quarter. In contrast, consumer credit         trillion; household debt was $13.3 trillion,
rose at an annual rate of 31⁄2 percent, the third               nonfinancial business debt was just over $11 trillion,
consecutive quarter of increase.                              and total government debt was $12.2 trillion.

Nonfinancial business debt rose at an annual rate of 4        Household net worth—the difference between the
percent in the second quarter, following an increase          value of assets and liabilities—was $58.5 trillion at
of nearly 3 percent in the first quarter of this year.        the end of the second quarter, about $150 billion less
Corporate bonds outstanding and business loans                than at the end of the previous quarter.


Growth of Domestic Nonfinancial Debt1        P
                                         P




Percentage changes; quarterly data are seasonally adjusted annual rates
                                                                                State and
                          Total              Households      Business                                 Federal
                                                                               local govts.
 2001                      6.3                    9.6            5.7               8.8                 -0.2
 2002                      7.4                   10.8            2.8              11.1                  7.6
 2003                      8.1                   11.9            2.2               8.3                 10.9
 2004                      8.9                   11.1            6.2               7.3                  9.0
 2005                      9.5                   11.1            8.6              10.2                  7.0

 2006                      9.0                   10.0          10.6                8.3                  3.9
 2007                      8.6                    6.7          13.1                9.5                  4.9
 2008                      6.0                    0.2           5.5                2.3                 24.2
 2009                      3.1                   -1.6          -2.7                4.9                 22.7
 2010                      4.2                   -2.0           0.4                4.5                 20.2

 2010:Q1                   3.5                   -3.1           -0.5               4.5                 20.6
      Q2                   3.9                   -2.1           -1.7              -0.3                 22.5
      Q3                   3.9                   -2.1            1.4               4.8                 16.0
      Q4                   5.1                   -0.8            2.2               8.9                 16.4

 2011:Q1                  1.9               -2.0                 2.8              -4.2                  7.9
      Q2                  3.0               -0.6                 4.0              -3.2                  8.6
1. Changes shown are on an end-of-period basis.
                                             Table of Contents


Title                                                                            Table      Page


Flow of Funds Accounts, Second 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                                    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, Second Quarter 2011

                                                         of payments and the international investment position
This publication presents the Flow of Funds
                                                         from the BEA for 2007 through 2010. The new
Accounts for 2011:Q2.
                                                         estimates are detailed in the July 2011 issue of the
                                                         Survey of Current Business.
Data revisions and other changes. The statistics in
the attached tables reflect the use of new or revised
                                                         6.    A new table for the financial business sector
source data. Most significant revisions appear in
                                                         (tables F.108 and L.108) has been added to the Flow
recent quarters; however, new source information
                                                         of Funds Accounts (Z.1). The total commercial
resulted in changes to data for earlier periods.
                                                         banking sector, which aggregated the U.S.-chartered
                                                         commercial banks, foreign banking offices in U.S.,
1.    The web-based guide to the Flow of Funds
                                                         bank holding companies, and banks in U.S.-affiliated
Accounts has been expanded to include two new
                                                         areas, has been deleted from the accounts. The
features. The “Release Highlights” page lists major
                                                         monetary authority sector, previously shown on
data revisions and other changes to the accounts in a
                                                         tables F.108 and L.108, has been renumbered and is
searchable format for all Z.1 releases beginning with
                                                         now shown on tables F.109 and L.109.
2004:Q1. The “Code Changes” page lists changes to
flow of funds mnemonics in a sortable and searchable
                                                         7.    The tables for bank loans not elsewhere
format beginning with 2009:Q4. The guide is located
                                                         classified (tables F.215 and L.215) and net interbank
at:
                                                         transactions (tables F.203 and L.203) have been
                                                         redesigned to reflect the deletion of the total
http://www.federalreserve.gov/apps/fof/
                                                         commercial banking concept and to present
                                                         information for these two transaction tables more
2.     Seasonal factors for quarterly flows have
                                                         clearly.
been recalculated for the period 2001:Q1 forward.
The seasonal factors were generated using the X-12-
                                                         Explanatory notes for tables D.1, D.2, and D.3.
ARIMA/88 seasonal adjustment program from
                                                         Domestic debt comprises credit market funds
Statistics Canada. The seasonals of several series
                                                         borrowed by U.S. entities from both domestic and
received special treatment due to the recent financial
                                                         foreign sources, while foreign debt represents
crisis: seasonal factors for money market mutual fund
                                                         amounts borrowed by foreign financial and
assets and those for federal government deposits at
                                                         nonfinancial entities in U.S. markets only. Financial
the Federal Reserve and commercial banks were not
                                                         sectors consist of government-sponsored enterprises,
revised.
                                                         agency- and GSE-backed mortgage pools, the
                                                         monetary authority, and private financial institutions.
3.   The statistics in this publication reflect the
                                                         Credit market debt consists of debt securities,
annual revisions to the national income and product
                                                         mortgages, bank loans, commercial paper, consumer
accounts (NIPAs) from 2003 forward released by the
                                                         credit, U.S. government loans, and other loans and
Bureau of Economic Analysis (BEA) of the
                                                         advances; it excludes trade debt, loans for the
Department of Commerce on July 29, 2011, and
                                                         purpose of carrying securities, and funds raised from
subsequent information for 2011:Q2 released on
                                                         equity sources. This definition is consistent with the
August 26, 2011. The August 2011 issue of the
                                                         presentation of credit market borrowing and lending
Survey of Current Business provides details on the
                                                         on tables F.1 through F.4. Net lending (+) or net
major features of this annual revision.
                                                         borrowing (-) on the individual sector tables and the
                                                         matrix is defined as net acquisition of financial assets
4.    Data for investment and depreciation flows
                                                         less net increase in liabilities.
of all sectors, and capital stocks for the household,
nonfarm nonfinancial corporate business, and
                                                         Growth rates in table D.1 are calculated by dividing
nonfarm noncorporate business sectors have been
                                                         seasonally adjusted flows from table D.2 by
revised to reflect updated annual estimates of fixed
                                                         seasonally adjusted levels at the end of the previous
assets from the BEA.
                                                         period from table D.3. Seasonally adjusted levels in
                                                         flow of funds statistics are derived by carrying
5.   Revisions to the rest of the world sector (tables
                                                         forward year-end levels by seasonally adjusted flows.
F.107 and L.107) reflect new estimates of the balance
2
Growth rates calculated from changes in unadjusted                  types. A discrepancy for a sector is the difference
levels printed in table L.2 can differ from those in                between its measured sources of funds and its
table D.1.                                                          measured uses of funds. For an instrument category,
                                                                    a discrepancy is the difference between measured
Relation of Flows to Outstandings. Estimates of                     funds borrowed through the financial instrument and
financial assets and liabilities outstanding are linked             measured funds lent through that instrument. The size
to data on flows. However, figures on outstandings                  of such discrepancies relative to the main asset or
contain discontinuities or breaks in series that could              liability components is one indication of the quality
affect analysis of particular relationships over time.              of source data, especially on an annual basis. For
Specifically, outstandings in the Flow of Funds                     quarterly data, differences in seasonal adjustment
Accounts are related to flows in the following way:                 procedures for financial and nonfinancial components
                                                                    of the accounts sometimes result in discrepancies that
Outstanding t = Outstanding t-1+ Flow t+ Discontinuityt             cancel in annual data.
            B   B           B       B       B   B           B   B




where “t” is the time period.
                                                                    Availability of Data. Flow of funds statistics are
Discontinuities result from changes in valuation,                   updated about ten weeks following the end of a
breaks in source data, and changes in definitions. For              quarter. This publication — the Z.1 release — is
most series, the value of the discontinuity is zero for             available from the Board's Publications Services.
nearly all time periods. However, in a few instances,               Flow of funds data are also available electronically
the discontinuity is nonzero for almost all time                    through the Internet at the following location:
periods, or is quite large in a particular quarter, such
as a period when there is a sharp increase or decrease              www.federalreserve.gov/releases/Z1
in equity prices or a major break in source data.
                                                                    This Internet site also provides coded tables and
The discontinuities in a series can distort estimated               historical annual tables beginning in 1945 that
rates of growth in assets and liabilities between                   correspond to the tables published in this release.
periods. In order to minimize these distortions,                    There are also compressed ASCII files of quarterly
percentage changes in assets and liabilities in flow of             data for seasonally adjusted flows, unadjusted flows,
funds releases should be calculated as:                             outstandings, balance sheets, debt (tables D.1, D.2,
                                                                    and D.3), and supplementary tables.
Percentage change t = (Flow t / Outstanding t-1) * 100
                    B   B       B       B           B   B




                                                                    In addition, these data, as well as data for the
Preliminary Estimates. Figures shown for the most                   quarterly and annual Integrated Macroeconomic
recent quarter in these tables are based on                         Accounts for the United States tables, are available as
preliminary and incomplete information. A summary                   customizable download datasets through the Data
list of the principal sources of information available              Download Program (DDP) at the following location:
when the latest quarter's data were compiled is
provided in a table following this introduction. The                www.federalreserve.gov/datadownload/Choose.aspx?rel=Z.1
distinction between “available” data and “missing”
                                                                    An interactive, web-based guide to the Flow of Funds
data is not between final and preliminary versions of
                                                                    Accounts is available through the Z.1 release page.
data, but rather between those source estimates that
                                                                    The tools and descriptions within this guide are
are fully ready when the latest quarterly publication
                                                                    designed to help users explore the structure and
is compiled and those that are not yet completed.
                                                                    content of the Z.1 and the Integrated Macroeconomic
However, the items that are shown as available are, in
                                                                    Accounts.
general, also preliminary in the sense that they are
subject to revision by source agencies.
                                                                    Subscription Information. The Federal Reserve
                                                                    Board charges for subscriptions to all statistical
Margins of Uncertainty. Flow of funds statistics are
                                                                    releases. Inquiries for releases should be directed to:
subject to uncertainties resulting from measurement
errors in source data, incompatibilities among data
                                                                               Publications Services, Stop 127
from different sources, potential revisions in both
                                                                                     Board of Governors
financial and nonfinancial series, and incomplete data
                                                                               of the Federal Reserve System
in parts of the accounts. The size of these
                                                                         20th Street and Constitution Avenue, N.W.
uncertainties cannot be quantified in precise
                                                                                   Washington, DC 20551
statistical terms, but allowance for them is explicitly
                                                                                       (202) 452-3244
made throughout the accounts by the inclusion of
“discrepancies” for various sectors and instrument
                                       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 2006.
    accounts (NIPA)                     for 2011:Q2.

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:Q2. The source for nonprofit organizations data (tables F.100.a and
                                        L.100.a) is the Internal Revenue Service Statistics of Income. Data for
                                        nonprofit organizations are available for 1987 through 2000.

3. Nonfarm nonfinancial corporate       Quarterly Financial Report (QFR) of            Statistics of Income data since
   business                             the Census Bureau through 2011:Q2;             2009.
   (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:Q2.

4. Nonfarm noncorporate business        IRS/SOI data through 2008; bank and            Statistics of Income data since
   (tables F.103 and L.103)             finance company loans and mortgage             2008.
                                        borrowing through 2011:Q2.

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:Q2; 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,       2008:Q2 and selected financial
                                        and nonmarketable U.S. government              asset detail since 2004:Q2.
                                        security issues through 2011:Q2; total
                                        financial assets through 2008:Q2 from
                                        the Census Bureau; breakdown of
                                        financial assets through 2004:Q2 from
                                        the comprehensive annual financial
                                        reports of state and local governments.

7. Federal government                   Data from the Monthly Treasury                 None.
                                        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:Q2.
                                                                                                                    5
8. Rest of the world                   Balance of payments data through         None.
   (U.S. international transactions)   2011:Q2. NIPA estimates; data from
   (tables F.107 and L.107)            bank Reports of Condition and from
                                       Treasury International Capital System
                                       through 2011:Q2.

9. Monetary authority                  All data through 2011:Q2.                None.
   (tables F.109 and L.109)

10. U.S.-chartered commercial banks    All data through 2011:Q2.                None.
    (tables F.110 and L.110)

11. Foreign banking offices in U.S.    All data through 2011:Q2.                None.
    (tables F.111 and L.111)

12. Bank holding companies             All data through 2011:Q2.                None.
    (table F.112 and L.112)

13. Banks in U.S.-affiliated areas     All data through 2011:Q2 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:Q2.                None.
    (tables F.114 and L.114)

15. Credit unions                      All data through 2011:Q2.                None.
    (tables F.115 and L.115)

16. Property-casualty insurance        All data through 2011:Q2.                None.
     companies
    (tables F.116 and L.116)

17. Life insurance companies           All data through 2011:Q2.                None.
    (tables F.117 and L.117)

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:Q2 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:Q2.
6

21. Money market mutual funds            All data through 2011:Q2.                    None.
    (tables F.121 and L.121)

22. Mutual funds                         All data through 2011:Q2.                    None.
    (tables F.122 and L.122)

23. Closed-end funds                                                                  None.
                                         All data through 2011:Q2.
    (tables F.123 and L.123)

24. Exchange-traded funds                All data through 2011:Q2.                    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:Q2.

26. Agency- and GSE-backed               Data for Fannie Mae, Freddie Mac, and        None.
   mortgage pools                        Ginnie Mae through 2011:Q2.
    (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:Q2.

28. Finance companies                    All data through 2011:Q2.                    None.
    (tables F.127 and L.127)

29. Real estate investment trusts        Data from SNL Financial through              None.
   (REITs)                               2011:Q2.
    (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:Q2.

31. Funding corporations                 Estimates for this sector are largely residuals and are derived from data for
    (tables F.130 and L.130)             other sectors.