WASHINGTON–Total assets declined at Federal Reserve Banks during 2023 by nearly 12%, according to newly released audited statements.
The statements show total assets dropped by $700 billion at the Federal Reserve Banks in 2023, a decrease of 11.76% from the previous year.
According to the Fed, total assets for year-end 2023 at the Reserve Banks were $7.8 trillion, composed primarily of $7.5 trillion of U.S. Treasury securities and federal agency and government-sponsored-enterprise mortgage-backed securities acquired through the conduct of monetary policy.
Other Findings
The Fed’s new statements also show that at year-end 2023:
- In 2023, the deferred asset reported by the Reserve Banks increased by $116.7 billion resulting in a cumulative deferred asset at year-end of $133.3 billion. The Fed said the deferred asset is the amount of net excess earnings the Reserve Banks will need to realize before remittances to the U.S. Treasury resume.
- Operating expenses were $9.2 billion in 2023, including assessments of $2.9 billion for Federal Reserve Board expenses, currency costs, and the operations of the Consumer Financial Protection Bureau (CFPB). Specifically, those expenses totaled, according to financials released earlier this month, $1.0 billion for the costs related to producing, issuing, and retiring currency; $1.1 billion for Fed Board expenditures; and $0.7 billion to fund the operations of the CFPB, the Fed said
- The Reserve Banks’ 2023 sum total of expenses exceeded earnings by $114.3 billion. In 2022, net income was $58.8 billion
- Interest income on securities acquired through open market operations totaled $163.8 billion in 2023, a decrease of $6.2 billion from 2022
- Interest expense on depository institutions’ reserve balances was $176.8 billion in 2023, an increase of $116.4 billion from 2022
- Total interest income earned on loans to depository institutions and other eligible borrowers, including from the Bank Term Funding Program and Paycheck Protection Program Liquidity Facility, was $10.4 billion
- Interest expense on securities sold under agreements to repurchase was $104.3 billion in 2023, an increase of $62.4 billion from 2022
- The Reserve Banks realized net income of $0.1 billion from emergency credit facilities established in response to the COVID-19 pandemic
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