Overview
Title
Proposed Agency Information Collection Activities; Comment Request
Agencies
ELI5 AI
The Federal Reserve wants to keep asking big banks questions for three more years to understand how money works, and they're asking people if this is a good idea or if it makes things too hard for the banks. They're also making sure people's answers can stay secret, but some folks think they need to explain why this is important and how it helps everyone a little better.
Summary AI
The Board of Governors of the Federal Reserve System has announced a proposal to extend the Senior Financial Officer Surveys for three more years without changes. This data collection helps the Board gather information on financial markets and services from large banks. They are seeking public feedback on whether this information collection is necessary, its burden on respondents, and possible improvements. The feedback will help the Board decide if any modifications to the proposal are needed.
Abstract
The Board of Governors of the Federal Reserve System (Board) invites comment on a proposal to extend for three years, without revision, the Senior Financial Officer Surveys (FR 2023; OMB No. 7100- 0223).
Keywords AI
Sources
AnalysisAI
The Federal Reserve System plans to continue a survey initiative targeting senior financial officers at major banks for another three years. The document proposes extending the Senior Financial Officer Surveys without making any changes and invites public feedback on the necessity and impacts of this data collection.
General Summary
This notice, issued by the Board of Governors of the Federal Reserve System, outlines a proposal to extend the Senior Financial Officer Surveys, known as FR 2023. The surveys gather data from large domestic and foreign banks, focusing on aspects like liability management and financial services. Representation from these institutions is crucial because the insights help the Federal Reserve monitor financial markets and develop policies. The Board seeks comments about the practicality of this survey and whether the information collected is beneficial for their work.
Significant Issues and Concerns
One issue with the document is the lack of specific outcomes or benefits outlined for extending the surveys. Without this information, it is challenging for stakeholders to assess the true necessity and value of continuing with these surveys. Additionally, the estimated burden on respondents seems high, with up to 80 institutions potentially dedicating 960 total hours annually. However, questions remain regarding how these figures were calculated. The legal and confidentiality sections also use complex terminology, which might not be easily understandable for the general public. Furthermore, the survey's contribution to Federal Reserve's statutory objectives remains unclear. There is also an ambiguity in terms of confidentiality, as the document indicates that privacy will be handled on a case-by-case basis, which could raise concerns regarding data protection.
Public Impact
Broadly, this proposal might impact the public by influencing how the Federal Reserve forms monetary policy and manages financial stability. The information collected could help in shaping decisions that ensure stable financial markets, which indirectly affects societal financial well-being. However, without transparency on expected benefits or concrete outcomes, the public might find it hard to understand the importance of these surveys.
Impact on Specific Stakeholders
For the surveyed banks, the impact is immediate as these institutions need to allocate time and resources regularly to comply with data submissions. While larger banks might handle this as part of routine compliance activities, the cumulative time spent can be significant. It raises the question of whether this time could be better spent on direct financial operations or customer services improvements instead of extended survey participation.
Confidentiality concerns may also impact these financial institutions, as uncertainty over data privacy could influence how candidly they respond. Ensuring that responses remain confidential is crucial to obtaining honest and useful data, which, in turn, benefits the broader financial monitoring efforts. Meanwhile, the Office of Management and Budget, engaged through comments and review, plays a role in maintaining oversight and justifying the necessity of these surveys.
Overall, while the surveys aim to enhance the Federal Reserve's data-driven capacities, clear evidence or communication of specific benefits could help justify the continued burden on financial institutions. Addressing these concerns could boost participation willingness and the overall effectiveness of the project.
Issues
• The document lacks information on the specific outcomes or benefits expected from extending the Senior Financial Officer Surveys, making it difficult to assess the necessity or value of this action.
• The estimated number of respondents and the estimated burden hours seem relatively high without clear justification or information on how these figures were calculated.
• The language used in the legal authorization and confidentiality sections may be too technical and complex for general readers to easily understand.
• The document does not provide detailed clarification on how the surveys contribute directly to the Board's statutory objectives under the Federal Reserve Act.
• There might be concerns about the confidentiality of the responses as the document states that confidentiality will be determined on a case-by-case basis, leaving ambiguity regarding the protection of the respondents' data.