The Federal Reserve Board on Friday launched the 2022 mixed annual audited monetary statements for the Reserve Banks. An unbiased public accounting agency engaged by the Board issued unqualified opinions, asserting that its audit discovered the monetary statements for the Board and the Reserve Banks to be free of fabric misstatements in accordance with the relevant auditing requirements. The Board launched preliminary revenue and expense knowledge earlier this year.
Moreover, the Board launched particular person statements for the 12 Federal Reserve Banks, the Board, and three restricted legal responsibility firms (LLCs) associated to lending services established to help the Federal Reserve’s pandemic response. The audited monetary statements present details about the belongings, liabilities, and earnings of the Federal Reserve Banks, the Board, and the LLCs as of December 31, 2022.
The Federal Reserve Act requires the Reserve Banks to remit extra earnings to the U.S. Treasury after offering for working prices, funds of dividends, and any quantity essential to take care of surplus on the statutory restrict. Throughout a interval when earnings are lower than these prices, a deferred asset is recorded, representing a shortfall in earnings from the latest level that remittances to the Treasury have been suspended.
Throughout 2022, the Reserve Banks transferred $76.0 billion from weekly earnings as in comparison with $109 billion in 2021, and within the fall, they first suspended weekly remittances to the Treasury and commenced accumulating a deferred asset, which totaled $16.6 billion by the tip of the 12 months. A deferred asset has no implications for the Federal Reserve’s conduct of financial coverage, its operations, or its skill to satisfy its monetary obligations.
Extra info within the audited monetary statements of the Reserve Banks consists of:
- Earnings have been roughly $58.8 billion in 2022, representing a lower of $49.1 billion from 2021;
- Curiosity revenue on securities acquired by way of open market operations totaled $170.0 billion in 2022, a rise of $47.6 billion from 2021;
- Curiosity expense on depository establishments’ reserve balances was $60.4 billion in 2022, a rise of $55.1 billion from 2021;
- Curiosity expense on securities offered underneath agreements to repurchase was $42.0 billion in 2022, a rise of $41.6 billion from 2021.
- Internet revenue from services associated to the Federal Reserve’s pandemic response was $108.0 million in 2022; and
- Working bills have been $9.2 billion in 2022, together with assessments of $2.8 billion for Board bills, foreign money prices, and the operations of the Shopper Monetary Safety Bureau.
Complete belongings of the Reserve Banks as of December 31, 2022, have been roughly $8.6 trillion, a lower of $187.0 billion from the earlier 12 months. Complete belongings have been composed primarily of $8.4 trillion of U.S. Treasury securities, and federal company and government-sponsored enterprise mortgage-backed securities acquired by way of open market operations. The Federal Reserve Financial institution of New York offers extra detailed details about open market operations and securities holdings on an ongoing foundation on its website.
The Board engaged KPMG LLP to audit the monetary statements of the Reserve Banks and the LLCs in accordance with requirements issued by the American Institute of Licensed Public Accountants and the Public Firm Accounting Oversight Board, and the audit of the Board’s monetary statements was additionally carried out in accordance with the Typically Accepted Authorities Auditing Requirements. KPMG additionally carried out audits of inner controls over monetary reporting for the 12 particular person Reserve Banks and the Board.
The Federal Reserve System monetary statements can be found on the Federal Reserve Board’s website.
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