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12/29/2008 10:30 PM
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Note on Nonborrowed Reserves
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The H.3 statistical release indicates that nonborrowed reserves of depository institutions were negative for much of 2008 but more recently have turned positive.
By definition, nonborrowed reserves are equal to total reserves minus borrowed reserves. Borrowed reserves are equal to the sum of credit extended through the Federal Reserve's regular discount window programs and credit extended through certain Federal Reserve liquidity facilities. Total borrowings from the Federal Reserve are presented in table 1a of the release. Over much of 2008, in order to maintain a level of total reserves consistent with the Federal Open Market Committee's objective for the federal funds rate, increases in borrowed reserves were offset through a nearly commensurate decrease in nonborrowed reserves, which was accomplished through a reduction in the Federal Reserve's holdings of securities and other assets. The negative level of nonborrowed reserves was an arithmetic result of the fact that borrowings from the Federal Reserve liquidity facilities were larger than total reserves.
More recently, nonborrowed reserves have again turned positive. This development is purely an arithmetic result, in this case of the fact that a large volume of reserves has recently been provided through channels that, for purposes of the Federal Reserve's statistical releases, are not considered borrowings. These channels include foreign currency swap arrangements with foreign central banks and certain special purpose vehicles. Credit extended to these special purpose vehicles are not shown on the Federal Reserve's balance sheet. Rather, as noted on the H.4.1 statistical release, the assets of these vehicles are consolidated onto the Federal Reserve's balance sheet, and consequently credit extended to these special purpose entities is not treated as a borrowing for purposes of the H.3 statistical release.
Mas Info
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02/08/2008 01:30 AM
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Recent Declines in Nonborrowed Reserves
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The H.3 statistical release indicates that nonborrowed reserves of
depository institutions have declined substantially since mid-December
to a level that is now negative. This development reflects the
provision of a large volume of reserves through the Term Auction
Facility (TAF) and has no adverse implications for the availability of
reserves to the banking system.
By definition, nonborrowed reserves are equal to total reserves
minus borrowed reserves. Borrowed reserves are equal to credit extended
through the Federal Reserve's regular discount window programs as well
as credit extended through the TAF. To maintain a level of total
reserves consistent with the Federal Open Market Committee's target
federal funds rate, increases in borrowed reserves must generally be
met by a commensurate decrease in nonborrowed reserves, which is
accomplished through a reduction in the Federal Reserve's holdings of
securities and other assets. The negative level of nonborrowed reserves
is an arithmetic result of the fact that TAF borrowings are larger than
total reserves.
Mas Info
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09/18/2007 07:00 PM
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H.3 Data Update
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The DDP values for 09/5/07 and 09/12/07 for Total borrowings of Depository Institutions from the Federal Reserve (RESBR14A_N.WW) have been updated to reflect the correct values as posted on the H.3 release and H.3 Weekly Historical Aggregate Table 6: Memorandum Items dated 09/13/2007.
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06/14/2007 10:30 PM
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H.3 - Aggregate Reserves of Depository Institutions and the Monetary Base
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Annual Seasonal Factor Review
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04/30/2007 02:30 PM
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Aggregate Reserves data are now available from the Data Download
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The Federal Reserve Board announces that data from the Aggregate Reserves of Depository Institutions and the Monetary Base release (H.3) are now available for customizeable download through the Data Download Program (DDP). These data will updated weekly with the H.3 release on Thursday afternoon after 4:30 p.m.
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