H.4.1 Factors Affecting Reserve Balances of Depository Institutions

FEDERAL RESERVE statistical release H.4.1 Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks December 14, 2023 1. Factors Affecting Reserve Balances of Depository Institutions Millions of dollars Reserve Bank credit, related items, and Averages of daily figures Wednesday reserve balances of depository institutions at Week ended Change from week ended Dec 13, 2023 Federal Reserve Banks Dec 13, 2023 Dec 6, 2023 Dec 14, 2022 Reserve Bank credit 7,701,804 + 4,515 - 845,147 7,703,394 Securities held outright1 7,259,719 - 3,111 - 915,215 7,258,982 U.S. Treasury securities 4,810,356 - 3,092 - 703,510 4,809,734 Bills2 227,970 - 3,050 - 65,257 227,363 Notes and bonds, nominal2 4,102,776 0 - 638,777 4,102,776 Notes and bonds, inflation-indexed2 365,578 0 - 11,838 365,578 Inflation compensation3 114,032 - 41 + 12,362 114,017 Federal agency debt securities2 2,347 0 0 2,347 Mortgage-backed securities4 2,447,016 - 19 - 211,705 2,446,901 Unamortized premiums on securities held outright5 280,909 - 509 - 35,196 280,707 Unamortized discounts on securities held outright5 -26,494 + 211 + 1,111 -26,402 Repurchase agreements6 5 - 25 + 5 7 Foreign official 0 0 0 0 Others 5 - 25 + 5 7 Loans 128,347 + 4,585 + 110,154 129,574 Primary credit 2,058 - 52 - 4,167 2,173 Secondary credit 1 + 1 + 1 5 Seasonal credit 25 + 8 + 25 29 Paycheck Protection Program Liquidity Facility 3,681 - 179 - 8,286 3,603 Bank Term Funding Program 122,581 + 4,807 + 122,581 123,764 Other credit extensions7 0 0 0 0 Net portfolio holdings of MS Facilities LLC (Main Street Lending Program)8 16,621 + 18 - 6,197 16,638 Net portfolio holdings of Municipal Liquidity Facility LLC8 5,607 + 3 + 45 5,609 Net portfolio holdings of TALF II LLC8 323 0 - 1,657 324 Float -209 + 92 - 58 -257 Central bank liquidity swaps9 340 + 102 + 132 340 Other Federal Reserve assets10 36,636 + 3,150 + 1,729 37,871 Foreign currency denominated assets11 18,137 - 12 - 113 18,165 Gold stock 11,041 0 0 11,041 Special drawing rights certificate account 5,200 0 0 5,200 Treasury currency outstanding12 52,574 + 14 + 545 52,574 Total factors supplying reserve funds 7,788,756 + 4,517 - 844,715 7,790,375 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.

H.4.1 1. Factors Affecting Reserve Balances of Depository Institutions (continued) Millions of dollars Reserve Bank credit, related items, and Averages of daily figures Wednesday reserve balances of depository institutions at Week ended Change from week ended Dec 13, 2023 Federal Reserve Banks Dec 13, 2023 Dec 6, 2023 Dec 14, 2022 Currency in circulation12 2,330,909 - 551 + 35,828 2,331,429 Reverse repurchase agreements13 1,153,293 + 3,811 -1,375,482 1,152,232 Foreign official and international accounts 326,207 - 10,386 - 38,529 328,903 Others 827,085 + 14,196 -1,336,954 823,329 Treasury cash holdings 403 + 6 + 303 398 Deposits with F.R. Banks, other than reserve balances 825,203 - 27,637 + 256,468 799,744 Term deposits held by depository institutions 0 0 0 0 U.S. Treasury, General Account 658,440 - 24,069 + 302,923 630,618 Foreign official 9,691 - 730 + 1,255 9,693 Other14 157,073 - 2,837 - 47,709 159,434 Treasury contributions to credit facilities15 10,311 0 - 5,036 10,311 Other liabilities and capital16 -71,982 + 1,642 - 108,781 -71,513 Total factors, other than reserve balances, absorbing reserve funds 4,248,137 - 22,729 -1,196,700 4,222,603 Reserve balances with Federal Reserve Banks 3,540,619 + 27,245 + 351,985 3,567,772 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight securities lending facility; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of the securities. 5. Reflects the premium or discount, which is the difference between the purchase price and the face value of the securities that has not been amortized. For U.S. Treasury securities, Federal agency debt securities, and mortgage-backed securities, amortization is on an effective-interest basis. 6. Cash value of agreements. 7. Includes outstanding loans to depository institutions that were subsequently placed into Federal Deposit Insurance Corporation (FDIC) receivership, including depository institutions established by the FDIC. The Federal Reserve Banks' loans to these depository institutions are secured by pledged collateral and the FDIC provides repayment guarantees. 8. Includes assets purchased pursuant to terms of the credit facility and amounts related to Treasury contributions to the facility. Refer to note on consolidation below. 9. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank. 10. Includes bank premises, accrued interest, and other accounts receivable. 11. Revalued daily at current foreign currency exchange rates. 12. Estimated. 13. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities 14. Includes deposits held at the Reserve Banks by international and multilateral organizations, government-sponsored enterprises, designated financial market utilities, and deposits held by depository institutions in joint accounts in connection with their participation in certain private-sector payment arrangements. Also includes certain deposit accounts other than the U.S. Treasury, General Account, for services provided by the Reserve Banks as fiscal agents of the United States. 15. Book value. Amount of equity investments in MS Facilities LLC of $7.4 billion, Municipal Liquidity Facility LLC of $2.8 billion, and TALF II LLC of $0.1 billion. 16. Includes the liability for earnings remittances due to the U.S. Treasury. Sources: Federal Reserve Banks and the U.S. Department of the Treasury.

H.4.1 1A. Memorandum Items Millions of dollars Averages of daily figures Wednesday Memorandum item Week ended Change from week ended Dec 13, 2023 Dec 13, 2023 Dec 6, 2023 Dec 14, 2022 Securities held in custody for foreign official and international accounts 3,388,580 + 2,544 + 80,135 3,393,978 Marketable U.S. Treasury securities1 2,959,567 + 3,118 + 62,361 2,965,258 Federal agency debt and mortgage-backed securities2 345,559 - 188 + 15,789 345,321 Other securities3 83,454 - 386 + 1,986 83,398 Securities lent to dealers 30,839 - 6,345 - 12,510 32,704 Overnight facility4 30,839 - 6,345 - 12,510 32,704 U.S. Treasury securities 30,839 - 6,345 - 12,489 32,704 Federal agency debt securities 0 0 - 21 0 Note: Components may not sum to totals because of rounding. 1. Includes securities and U.S. Treasury STRIPS at face value, and inflation compensation on TIPS. Does not include securities pledged as collateral to foreign official and international account holders against reverse repurchase agreements with the Federal Reserve presented in tables 1, 5, and 6. 2. Face value of federal agency securities and current face value of mortgage-backed securities, which is the remaining principal balance of the securities. 3. Includes non-marketable U.S. Treasury securities, supranationals, corporate bonds, asset-backed securities, and commercial paper at face value. 4. Face value. Fully collateralized by U.S. Treasury securities.

H.4.1 2. Maturity Distribution of Securities, Loans, and Selected Other Assets and Liabilities, December 13, 2023 Millions of dollars Within 15 16 days to 91 days to Over 1 year Over 5 year Over 10 Remaining Maturity All days 90 days 1 year to 5 years to 10 years years Loans1 1,998 3,234 120,744 3,599 0 ... 129,574 U.S. Treasury securities2 Holdings 37,026 280,611 572,212 1,635,336 779,358 1,505,191 4,809,734 Weekly changes + 7,018 - 9,508 - 557 - 18 - 10 - 11 - 3,086 Federal agency debt securities3 Holdings 0 0 0 0 2,347 0 2,347 Weekly changes 0 0 0 0 0 0 0 Mortgage-backed securities4 Holdings 0 1 27 5,025 36,990 2,404,857 2,446,901 Weekly changes 0 0 0 0 0 - 134 - 134 Loan participations held by MS Facilities LLC (Main Street Lending Program)5 0 0 0 8,394 ... ... 8,394 Municipal notes held by Municipal Liquidity Facility LLC6 2,907 0 0 0 ... ... 2,907 Loans held by TALF II LLC7 0 0 0 0 ... ... 0 Repurchase agreements8 7 0 ... ... ... ... 7 Central bank liquidity swaps9 340 0 0 0 0 0 340 Reverse repurchase agreements8 1,152,232 0 ... ... ... ... 1,152,232 Term deposits 0 0 0 ... ... ... 0 Note: Components may not sum to totals because of rounding. ...Not applicable. 1. Loans includes primary, secondary, and seasonal loans and credit extended through the Paycheck Protection Program Liquidity Facility (PPPLF), Bank Term Funding Program, and other credit extensions. A component of PPPLF loans presented in the Within 15 day category has reached maturity and is recognized as performing loans based upon the underlying guarantee of the collateral by the Small Business Administration. Loans exclude the loans from the Federal Reserve Bank of New York (FRBNY) to Municipal Liquidity Facility LLC and TALF II LLC, and from the Federal Reserve Bank of Boston (FRBB) to MS Facilities LLC, which were eliminated when preparing the FRBNY's and FRBB's statement of condition, respectively, consistent with consolidation under generally accepted accounting principles. 2. Face value. For inflation-indexed securities, includes the original face value and compensation that adjusts for the effect of inflation on the original face value of such securities. 3. Face value. 4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of the securities. 5. Book value of the loan participations held by the MS Facilities LLC. 6. Book value of the municipal notes held by the Municipal Liquidity Facility LLC. 7. Book value of the loans held by the TALF II LLC. 8. Cash value of agreements. 9. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank.

H.4.1 3. Supplemental Information on Mortgage-Backed Securities Millions of dollars Wednesday Account name Dec 13, 2023 Mortgage-backed securities held outright1 2,446,901 Residential mortgage-backed securities 2,438,632 Commercial mortgage-backed securities 8,269 Commitments to buy mortgage-backed securities2 9 Commitments to sell mortgage-backed securities2 0 Cash and cash equivalents3 0 1. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of the securities. 2. Current face value. Includes residential and commercial mortgage-backed securities. Residential mortgage-backed securities generally settle within 180 calendar days and include commitments associated with outright transactions, dollar rolls, and coupon swaps. Commercial mortgage-backed securities generally settle within three business days. 3. This amount is included in other Federal Reserve assets in table 1 and in other assets in table 5 and table 6. 4. Information on Principal Accounts of Credit Facilities LLCs Millions of dollars Wednesday Dec 13, 2023 Net portfolio holdings of Credit Facilities LLCs Outstanding Credit Facilities LLCs: principal Outstanding amount amount of Treasury of loan facility contributions extended to asset and the LLC1 purchases2 other assets3 Total MS Facilities LLC (Main Street Lending Program) 7,948 7,676 8,962 16,638 Municipal Liquidity Facility LLC 2,907 2,907 2,702 5,609 TALF II LLC 145 0 324 324 Note: Components may not sum to totals because of rounding. 1. Book value. This amount was eliminated when preparing the Federal Reserve Banks' statement of condition consistent with consolidation under generally accepted accounting principles. Refer to the note on consolidation accompanying table 6. Loans are extended from the Federal Reserve Bank to the LLC upon settlement of the investment activity. 2. Outstanding amount of facility asset purchases: a. For the MS Facilities LLC (Main Street Lending Program) includes loan participations at face value, net of an allowance for loan losses updated as of September 30, 2023. b. For the Municipal Liquidity Facility LLC includes municipal notes at book value. Asset balances from trading activity may be reported on a one-day lag after the transaction date. c. For the TALF II LLC includes loans to holders of eligible asset-backed securities at book value. 3. Includes short term receivables, interest and dividend receivables, and other assets of the facility. Also includes the portion of the Treasury contribution to the credit facilities, which is held as investments in nonmarketable Treasury securities and the residual portion which is held as cash and cash equivalents at the FRBNY. The amount of cash and cash equivalents held at the FRBNY are eliminated in consolidation and, as result, are excluded from net portfolio holdings in Tables 1, 5, and 6. Amounts excluded are approximately 15% of Treasury contributions to the Municipal Liquidity Facility LLC and TALF II LLC. Refer to the note on consolidation accompanying table 6.

H.4.1 5. Consolidated Statement of Condition of All Federal Reserve Banks Millions of dollars Change since Eliminations from Wednesday Assets, liabilities, and capital Wednesday Wednesday consolidation Dec 13, 2023 Dec 6, 2023 Dec 14, 2022 Assets Gold certificate account 11,037 0 0 Special drawing rights certificate account 5,200 0 0 Coin 1,439 + 19 + 258 Securities, unamortized premiums and discounts, repurchase agreements, and loans 7,642,869 - 1,353 - 837,830 Securities held outright1 7,258,982 - 3,220 - 915,752 U.S. Treasury securities 4,809,734 - 3,086 - 704,020 Bills2 227,363 - 3,045 - 65,591 Notes and bonds, nominal2 4,102,776 0 - 638,777 Notes and bonds, inflation-indexed2 365,578 0 - 11,838 Inflation compensation3 114,017 - 41 + 12,186 Federal agency debt securities2 2,347 0 0 Mortgage-backed securities4 2,446,901 - 134 - 211,732 Unamortized premiums on securities held outright5 280,707 - 511 - 35,170 Unamortized discounts on securities held outright5 -26,402 + 209 + 1,135 Repurchase agreements6 7 + 1 + 4 Loans7 129,574 + 2,167 + 111,951 Net portfolio holdings of MS Facilities LLC (Main Street Lending Program)8 16,638 + 20 - 6,197 Net portfolio holdings of Municipal Liquidity Facility LLC8 5,609 + 3 + 45 Net portfolio holdings of TALF II LLC8 324 + 1 - 1,657 Items in process of collection (0) 74 + 19 - 15 Bank premises 431 + 9 - 58 Central bank liquidity swaps9 340 + 102 + 132 Foreign currency denominated assets10 18,165 + 95 - 233 Other assets11 37,440 + 3,267 + 1,707 Total assets (0) 7,739,566 + 2,181 - 843,847 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.

H.4.1 5. Consolidated Statement of Condition of All Federal Reserve Banks (continued) Millions of dollars Change since Eliminations from Wednesday Assets, liabilities, and capital Wednesday Wednesday consolidation Dec 13, 2023 Dec 6, 2023 Dec 14, 2022 Liabilities Federal Reserve notes, net of F.R. Bank holdings 2,280,688 - 619 + 36,171 Reverse repurchase agreements12 1,152,232 - 32,296 -1,399,208 Deposits (0) 4,367,516 + 33,654 + 632,817 Term deposits held by depository institutions 0 0 0 Other deposits held by depository institutions 3,567,772 + 71,018 + 396,965 U.S. Treasury, General Account 630,618 - 37,060 + 288,514 Foreign official 9,693 + 11 + 1,257 Other13 (0) 159,434 - 313 - 53,918 Deferred availability cash items (0) 331 - 348 + 41 Treasury contributions to credit facilities14 10,311 0 - 5,036 Other liabilities and accrued dividends15 -114,363 + 1,789 - 109,685 Total liabilities (0) 7,696,716 + 2,181 - 844,899 Capital accounts Capital paid in 36,065 0 + 1,052 Surplus 6,785 0 0 Other capital accounts 0 0 0 Total capital 42,850 0 + 1,052 Note: Components may not sum to totals because of rounding. 1. Includes securities lent to dealers under the overnight securities lending facility; refer to table 1A. 2. Face value of the securities. 3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. 4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The current face value shown is the remaining principal balance of the securities. 5. Reflects the premium or discount, which is the difference between the purchase price and the face value of the securities that has not been amortized. For U.S. Treasury securities, Federal agency debt securities, and mortgage-backed securities, amortization is on an effective-interest basis. 6. Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. 7. Loans includes primary, secondary, and seasonal loans and credit extended through the Paycheck Protection Program Liquidity Facility, Bank Term Funding Program, and other credit extensions. 8. Includes assets purchased pursuant to terms of the credit facility and amounts related to Treasury contributions to the facility. Refer to note on consolidation below. 9. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank. 10. Revalued daily at current foreign currency exchange rates. 11. Includes accrued interest, which represents the daily accumulation of interest earned, and other accounts receivable. 12. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities. 13. Includes deposits held at the Reserve Banks by international and multilateral organizations, government-sponsored enterprises, designated financial market utilities, and deposits held by depository institutions in joint accounts in connection with their participation in certain private-sector payment arrangements. Also includes certain deposit accounts other than the U.S. Treasury, General Account, for services provided by the Reserve Banks as fiscal agents of the United States. 14. Book value. Amount of equity investments in MS Facilities LLC of $7.4 billion, Municipal Liquidity Facility LLC of $2.8 billion, and TALF II LLC of $0.1 billion. 15. Includes the liability for earnings remittances due to the U.S. Treasury.

H.4.1 6. Statement of Condition of Each Federal Reserve Bank, December 13, 2023 Millions of dollars Kansas San Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Dallas City Francisco Assets Gold certificates and special drawing rights certificates 16,237 557 5,175 525 752 1,187 2,287 1,104 479 264 452 1,290 2,165 Coin 1,439 51 42 133 53 177 109 253 33 52 96 179 260 Securities, unamortized premiums and discounts, repurchase agreements, and loans1 7,642,869 149,966 4,203,736 126,338 233,986 533,527 518,259 475,563 119,991 58,481 106,434 381,029 735,559 Net portfolio holdings of MS Facilities LLC (Main Street Lending Program)2 16,638 16,638 0 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of Municipal Liquidity Facility LLC2 5,609 0 5,609 0 0 0 0 0 0 0 0 0 0 Net portfolio holdings of TALF II LLC2 324 0 324 0 0 0 0 0 0 0 0 0 0 Central bank liquidity swaps3 340 15 121 12 32 69 10 12 8 2 4 7 49 Foreign currency denominated assets4 18,165 782 6,464 653 1,713 3,678 545 632 409 115 193 383 2,600 Other assets5 37,946 884 17,370 718 1,168 2,887 3,835 2,233 899 621 969 2,041 4,319 Interdistrict settlement account 0+ 6,518- 122,890- 18,409+ 60,064+ 197,018- 32,973- 82,655- 9,114- 5,034- 15,079- 56,112 + 78,667 Total assets 7,739,566 175,410 4,115,949 109,970 297,767 738,543 492,072 397,143 112,705 54,501 93,069 328,817 823,619 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.

H.4.1 6. Statement of Condition of Each Federal Reserve Bank, December 13, 2023 (continued) Millions of dollars Kansas San Assets, liabilities, and capital Total Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Dallas City Francisco Liabilities Federal Reserve notes, net 2,280,688 78,733 742,468 49,910 109,218 160,169 353,506 121,972 72,535 32,769 47,329 188,744 323,334 Reverse repurchase agreements6 1,152,232 22,261 643,464 18,990 35,408 80,183 78,057 71,826 17,237 7,813 14,897 56,179 105,916 Deposits 4,367,516 66,100 2,788,404 40,521 152,892 507,443 58,373 210,000 21,869 13,735 30,632 84,197 393,350 Depository institutions 3,567,772 66,045 2,093,398 40,520 152,862 507,070 58,346 106,001 21,851 13,676 30,602 84,095 393,307 U.S. Treasury, General Account 630,618 0 630,618 0 0 0 0 0 0 0 0 0 0 Foreign official 9,693 2 9,667 1 4 8 1 1 1 0 0 1 6 Other7 159,434 53 54,722 0 26 365 27 103,998 17 58 30 101 37 Earnings remittances due to the U.S. Treasury8 -127,647 -2,414 -82,045 -1,198 -4,745 -19,761 21 -9,365 -85 -222 -478 -1,651 -5,704 Treasury contributions to credit facilities9 10,311 7,438 2,873 0 0 0 0 0 0 0 0 0 0 Other liabilities and accrued dividends 13,616 1,496 5,902 233 516 2,018 729 702 185 139 224 338 1,134 Total liabilities 7,696,716 173,613 4,101,066 108,456 293,290 730,053 490,687 395,136 111,740 54,233 92,604 327,807 818,031 Capital Capital paid in 36,065 1,505 12,469 1,270 3,837 7,116 1,182 1,770 812 226 393 867 4,617 Surplus 6,785 292 2,414 244 640 1,374 203 236 153 43 72 143 971 Other capital 0 0 0 0 0 0 0 0 0 0 0 0 0 Total liabilities and capital 7,739,566 175,410 4,115,949 109,970 297,767 738,543 492,072 397,143 112,705 54,501 93,069 328,817 823,619 Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table.

H.4.1 6. Statement of Condition of Each Federal Reserve Bank, December 13, 2023 (continued) 1. Securities include outright holdings of U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities, including securities lent to dealers under the overnight securities lending facility; refer to table 1A. Mortgage-backed securities are guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Unamortized premiums and discounts are the differences between the purchase price and the face value of the securities that have not been amortized. For U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities, amortization is on an effective-interest basis. Repurchase agreements reflect the cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities. Loans includes primary, secondary, and seasonal loans and credit extended through the Paycheck Protection Program Liquidity Facility, Bank Term Funding Program, and other credit extensions. 2. Includes assets purchased pursuant to terms of the credit facility and amounts related to Treasury contributions to the facility. Refer to note on consolidation below. 3. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank. 4. Revalued daily at current foreign currency exchange rates. 5. Includes items in process of collection, bank premises, accrued interest (which represents the daily accumulation of interest earned), and other accounts receivable. 6. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities. 7. Includes deposits held at the Reserve Banks by international and multilateral organizations, government-sponsored enterprises, designated financial market utilities, and deposits held by depository institutions in joint accounts in connection with their participation in certain private-sector payment arrangements. Also includes certain deposit accounts other than the U.S. Treasury, General Account, for services provided by the Reserve Banks as fiscal agents of the United States. 8. The Federal Reserve Banks remit residual net earnings to the U.S. Treasury after providing for the costs of operations, payment of dividends, and the amount necessary to maintain each Federal Reserve Bank's allotted surplus cap. Positive amounts represent the estimated weekly remittances due to U.S. Treasury. Negative amounts represent the cumulative deferred asset position, which is incurred during a period when earnings are not sufficient to provide for the cost of operations, payment of dividends, and maintaining surplus. The deferred asset is the amount of net earnings that the Federal Reserve Banks need to realize before remittances to the U.S. Treasury resume. 9. Book value. Amount of equity investments in MS Facilities LLC of $7.4 billion, Municipal Liquidity Facility LLC of $2.8 billion, and TALF II LLC of $0.1 billion. Note on consolidation: The Federal Reserve Bank of New York (FRBNY) and the Federal Reserve Bank of Boston (FRBB) have extended loans to limited liability companies under the authority of section 13(3) of the Federal Reserve Act. On June 5, 2020, FRBNY began extending loans to the Municipal Liquidity Facility LLC (MLF LLC), a limited liability company formed to purchase municipal notes from eligible issuers. The assets of the MLF LLC and the amount provided by U.S. Treasury as credit protection to the FRBNY are used to secure the loan from the FRBNY. On June 25, 2020, FRBNY began extending loans to the TALF II LLC, a special purpose vehicle that was formed to help support the flow of credit to consumers and businesses. The assets of the TALF II LLC and the amount provided by U.S. Treasury as credit protection to the FRBNY are used to secure the loan from the FRBNY. On July 15, 2020, the FRBB began extending loans to the MS Facilities LLC (Main Street Lending Program), a special purpose vehicle that was formed to help ensure credit flows to small and medium-sized businesses and to eligible nonprofits. The assets of the MS Facilities LLC and the amount provided by U.S. Treasury as credit protection to the FRBB are used to secure the loan from the FRBB. The FRBNY is the managing member of MLF LLC and TALF II LLC. The FRBB is the managing member of MS Facilities LLC (Main Street Lending Program). Consistent with generally accepted accounting principles, the assets and liabilities of each LLC have been accounted for and consolidated with the assets and liabilities of the FRBNY or FRBB, in the preparation of the statements of condition shown on this release. As a consequence of the consolidation, the loan from the Reserve Bank to the LLC is eliminated as are any balances held at the FRBNY for LLCs consolidated to FRBNY or FRBB for LLCs consolidated to FRBB. Treasury contributions to credit facilities are held at FRBNY until invested. Net assets of the LLC appears as assets on table 6 (and in table 1 and table 5), and the liabilities of the LLC to entities other than the FRBNY or FRBB, including those with recourse only to the portfolio holdings of the LLC, are included in other liabilities in this table (and table 1 and table 5). The amount provided by U.S. Treasury as credit protection to FRBNY and FRBB appears as liabilities on table 6 (and in table 1 and table 5).

H.4.1 7. Collateral Held against Federal Reserve Notes: Federal Reserve Agents' Accounts Millions of dollars Wednesday Federal Reserve notes and collateral Dec 13, 2023 Federal Reserve notes outstanding 2,709,898 Less: Notes held by F.R. Banks not subject to collateralization 429,210 Federal Reserve notes to be collateralized 2,280,688 Collateral held against Federal Reserve notes 2,280,688 Gold certificate account 11,037 Special drawing rights certificate account 5,200 U.S. Treasury, agency debt, and mortgage-backed securities pledged1,2 2,264,451 Other assets pledged 0 Memo: Total U.S. Treasury, agency debt, and mortgage-backed securities1,2 7,258,989 Less: Face value of securities under reverse repurchase agreements 1,288,732 U.S. Treasury, agency debt, and mortgage-backed securities eligible to be pledged 5,970,258 Note: Components may not sum to totals because of rounding. 1. Includes face value of U.S. Treasury, agency debt, and mortgage-backed securities held outright, compensation to adjust for the effect of inflation on the original face value of inflation-indexed securities, and cash value of repurchase agreements. 2. Includes securities lent to dealers under the overnight securities lending facility; refer to table 1A.