Flow of Funds

A flow of funds account is a system of interrelated balance sheets for a nation , calculated from time to time. There are two types of balance sheets: those showing

  • total assets and liabilities for the financial and non-financial sectors , and
  • Which regions issue and hold a given type of financial asset (instrument).
Flow of Funds
Flow of Funds

Regions and equipment are listed below.

These balance sheets measure the level of assets and liabilities. A corresponding flow statement can be obtained by subtracting the prior period’s level data from the current period’s data from each balance sheet. ( In statistical analysis of time series , this operation is known as the ” first difference “.) The change in a level object between two adjacent periods is known as a “fund flow”; Hence the name of these accounts.

Top topics covered in FF accounts

  • Total debt divided by issuer and holder
  • connections to national accounts , and the derivation of measures of overall savings
  • Fund flow in each sector
  • Level:
    • Assets and liabilities for broad sectors and specific financial sectors
    • Issuing and holding areas of a given class of instruments
  • Miscellaneous Aggregate Financial Data

Organization of the flow of funds accounts of the US

United States Flow of Funds (FOF) accounts are prepared by the Flow of Funds section of the Board of Governors of the Federal Reserve System , and are published quarterly in a publication called Z.1 Statistical Release. Current and historical releases available in PDF, CSV, or XML format . The data frequency is annual since 1945 and quarterly beginning in 1952Q1. Detailed interactive documentation is also available.

Flow of funds accounts naturally with double-entry bookkeeping ; Every financial asset is also a liability of some human entity, domestic or foreign. A fundamental fact about any economic sector is its balance sheet, a breakdown of its physical and financial assets and its liabilities. The only physical assets noted in FF accounts are those of the private non-financial sectors.

Broad structure of the US economy

Non-financial sector:

  • Families and non-profit organizations
  • non-financial firm
    • corporations , except farms
    • unincorporated firms, other than farms
    • form
  • Government
    • Federal
    • state and local
  • Rest of the World (Overseas Territories)

financial sector:

  • firms
  • Device
  • federal Reserve System
  • Depository Institutions :
    • US Chartered Commercial Bank
    • branch offices of foreign banks
    • bank holding companies
    • bank in american property
    • frugality
    • Credit Union
  • Property Casualty Insurance
  • Insurance
  • Pension Fund :
    • federal government
    • state and local government
    • private employer
  • money market funds
  • Other Open-Ended Mutual Funds
  • Exchange-traded funds and closed-end funds
  • Government Sponsored Enterprises (GSE)
  • federal mortgage pool
  • issuers of asset-backed securities
  • finance companies
  • real estate investment trust
  • Security Brokers and Dealers
  • funding corporation

Equipment (property type)

  • official reserve property
  • Treasury Currency and SDRs
  • US-owned deposits in other countries
  • net interbank transactions
  • Checkable Deposits and Fed Currency
  • time and savings deposits
  • money market fund shares
  • Federal Fund and Repo
  • privately issued short term paper
  • Treasury securities
  • Agency and GSE Backed Securities
  • Municipal Bonds and Related Debts
  • Corporate and foreign bonds
  • Corporate equity
  • mutual fund shares
  • Mortgage :
    • house (single family residence)
    • multifamily residence
    • commercial
    • form
  • consumer loans
  • other bank loan
  • trade credit
  • security credit
  • Other Loans and Advances
  • Reserves of life insurance companies and pension funds
  • tax payable
  • Proprietors’ Equity in Unincorporated Firms
  • miscellaneous financial assets

Organization of the UK’s flow of funds accounts

UK Flow of Funds accounts are prepared by the Office for National Statistics in a series of matrices. The first tables will be published in Blue Book 2014, which will be released in September 2014. They include the sectors and equipment shown below:


  • public corporation
  • private non-financial corporation
  • monetary financial institution
  • other financial institutions
  • Insurance Corporation and Pension Fund
  • central government
  • local government
  • UK economy
  • rest of the world

Financial instruments

Monetary Gold and Special Drawing Rights

currency and deposits

  • currency
  • transferable deposit
    • with UK MFI
    • Rest of the World with MFI
  • other deposits

debt securities

  • Short term debt securities issued
    • by UK central government
    • by UK local government
    • by UK MFI
    • MMI by other UK residents
    • MMI by Rest of the World
  • Long term debt securities issued
    • by UK central government
    • by UK local government
    • medium term bonds by UK MFIs
    • Medium and long term bonds by other UK residents
    • Long Term Bonds by Rest of the World


  • Short Term Loans
    • by UK MFI
    • by ROW MFIs
  • long term loan
    • direct investment loan
    • safe at residences
    • finance lease
    • Other long term loans by UK residents
    • Other Long Term Debts by Rest of the World

Equity and Investment Fund Shares/Units

  • Shares and other equities other than mutual fund shares
    • listed UK shares
    • unlisted UK shares
    • Other UK Equities
    • UK shares and bonds issued by other UK residents
    • Shares and other equities issued by Rest of the World
  • Investment Fund Shares/Units
    • UK investment fund shares
    • Shares of Rest of the World Mutual Funds

insurance technical store

  • Non-Life Insurance Technical Stores
  • Life Insurance and Annuity Eligibility
  • retirement plans
  • Provision for calls under standardized guarantee

Financial Derivatives and Employee Stock Options

  • of which; financial derivatives

Other Accounts Payable / Receivable