Question
In the FRB "Flow of Funds" reports, how are the "financial instruments" aggregated? (Interbank transactions, open market paper, mortgages, etc.)
Answer
The quarterly "Flow of Funds" report produced by the U.S. Board of Governors of the Federal Reserve consists of numerous tables, which examine transactions from the perspective of sectors or of financial instruments.
The richness of the flow of funds accounts lies, in part, in their detailed presentation of economic sectors and financial instruments. ... The large number of instrument categories ... provides additional detail. Instruments can also be combined into analytically useful groups ... credit market instruments ... is important because the transactions carried out through these instruments are the ones besides equities that take place in organized financial markets.
The instruments are grouped as follows, per the Guide to the Flow of Funds Accounts, Volume 1, Part 1, Diagram 2 (Page 21 in the 2000 edition). The Guide, and these definitional tables, are not available online.
| (1-3) Monetary reserves |
| 1. Gold and official foreign exchange holdings |
| 2. SDR certificates |
| 3. Treasury currency |
| (4-8) Deposits and federal funds |
| 4. U.S. deposits in foreign countries |
| 5. Checkable deposits and currency |
| 6. Time and savings deposits |
| 7. Money market mutual fund shares |
| 8. Federal funds and security repurchase agreements |
| (9-9) Interbank transactions |
| 9. Net interbank transactions |
| (10-37) Credit market instruments |
| 10. Open market paper |
| 11. Commercial paper |
| 12. Bankers acceptances |
| 13. Treasury securities |
| 14. Savings bonds |
| 15. Other Treasury issues |
| 16. Agency securities |
| 17. Issues by federal agencies |
| 18. Issues by government-sponsored entities |
| 19. Issues by federally related mortgage pools |
| 20. Municipal securities and loans |
| 21. Corporate and foreign bonds |
| 22. Bank loans not elsewhere classified |
| 23. Other loans and advances |
| 24. Loans from the U.S. government |
| 25. Foreign loans to U.S. corporate business |
| 26. Customers' liability on acceptances |
| 27. Savings institution loan to business |
| 28. Policy loans on life insurance |
| 29. Loans from government-sponsored enterprises |
| 30. Loans held by issuers of asset-backed securities |
| 31. Finance company loans to business |
| 32. Total mortgages |
| 33. Home mortgages |
| 34. Multifamily residential mortgages |
| 35. Commercial mortgages |
| 36. Farm mortgages |
| 37. Consumer credit |
| (38-39) Equity issues |
| 38. Corporate equities |
| 39. Mutual fund shares |
| (40-41) Insurance and pension fund reserves |
| 40. Life insurance reserves |
| 41. Pension fund reserves |
| (42-49) Other claims |
| 42. Trade credit |
| 43. Security credit |
| 44. Taxes payable by businesses |
| 45. Investment in bank personal trusts |
| 46. Proprietors' equity in noncorporate business |
| 47. Total miscellaneous financial claims |
| 48. Identified miscellaneous claims I, II |
| 49. Unidentified miscellaneous claims |
| (50-51) Discrepancies |
| 50. Sector discrepancies |
| 51. Instrument discrepancies |
Related Releases
Z.1 Financial Accounts (A) (f.k.a. Flow of Funds)
Z.1 Financial Accounts of the United States (f.k.a. Flow of Funds)