Overview
Title
Proposed Agency Information Collection Activities; Comment Request
Agencies
ELI5 AI
The Federal Reserve wants to hear what people think about keeping the rules for banks when they lend money to each other, to help make sure they don't take on too much risk. They are asking for ideas on how to make these rules easier, and everyone has until April 5, 2021, to share their thoughts.
Summary AI
The Board of Governors of the Federal Reserve System has issued a notice to seek public feedback on a proposal to continue, for three more years without changes, the recordkeeping requirements related to interbank liabilities. These requirements are detailed under Regulation F and are intended to limit the credit exposure of insured depository institutions to other banks to reduce risk. Public comments are invited on various aspects of the proposal, including its necessity, the estimated burden on respondents, and possible ways to improve or streamline the data collection process. The deadline for submitting comments is April 5, 2021.
Abstract
The Board of Governors of the Federal Reserve System (Board) invites comment on a proposal to extend for three years, without revision, the Recordkeeping Requirements Associated with Limitations on Interbank Liabilities (FR F; OMB No. 7100-0331).
Keywords AI
Sources
AnalysisAI
The document in question is a notice from the Board of Governors of the Federal Reserve System detailing a proposal to extend, without change, the recordkeeping requirements related to interbank liabilities. These requirements aim to safeguard financial institutions by limiting their credit exposure to each other, thereby reducing financial risk. Public comment is invited on this proposal, with a submission deadline set for April 5, 2021.
General Summary
The primary purpose of this document is to solicit feedback from the public regarding the continuation of certain recordkeeping requirements under Regulation F. This regulation pertains to federally insured depository institutions and is intended to limit their financial exposure to other banks. The document specifies various methods for submitting comments and outlines the areas in which feedback is sought, such as the necessity and effectiveness of the proposed information collections and potential improvements.
Significant Issues and Concerns
Several issues arise from the document, most notably the lack of detailed financial implications. Without specific cost estimates associated with extending these requirements, stakeholders may find it difficult to assess their resource implications fully.
Additionally, while the document highlights minimizing the burden on respondents as a concern, it fails to offer specifics on how this will be achieved. This omission may leave some stakeholders uncertain about the practicality and efficiency of the proposed continuation.
The inclusion of legal and technical jargon presents another challenge. References to legal exemptions and specific sections of the Code of Federal Regulations (CFR) might confuse individuals unfamiliar with these terms. For the average reader, the document’s formal structure may be difficult to navigate and comprehend quickly, making it less accessible to a broader audience.
Moreover, the document does not summarize feedback received in past comment periods. Such information could offer valuable insights into the strengths and weaknesses of the policies being considered for extension.
Impact on the Public
For the general public, the document's significance may not be immediately apparent, as it deals with technical aspects of financial regulation that primarily involve institutional stakeholders. However, the indirect effects could resonate broadly. By potentially reducing the risk of financial instability, these measures can contribute to the overall health of the financial system, which is a public concern.
Impact on Specific Stakeholders
For depository institutions insured by the FDIC, this proposal has direct implications. These institutions will need to continue adhering to Regulation F's recordkeeping requirements, potentially involving time and resources for compliance. The notice also invites suggestions on more efficient methods of information collection, which could help these institutions reduce administrative burdens.
Regulatory authorities and policymakers may view this document as a routine step in maintaining oversight and safeguarding financial stability. They might appreciate public input to ensure that regulations remain effective and do not impose unnecessary burdens.
In summary, while the document's technical nature might limit its direct impact on the general public, it plays a crucial regulatory role. Its effects are particularly pertinent to insured depository institutions, and the proposal's outcome will influence ongoing compliance efforts and resource allocation within the banking sector.
Issues
• The document does not specify the total cost involved in extending the recordkeeping requirements, making it challenging to evaluate potential wasteful spending.
• No specific details are provided on how the proposed information collection will minimize the burden on respondents, despite being a recognized area of concern.
• The document uses technical and legal jargon, such as references to specific CFR sections and legal exemptions, which may be confusing to individuals not familiar with these terms.
• The structure of the document is highly formal and may be challenging for a layperson to navigate or understand quickly without legal or regulatory expertise.
• The document does not provide a clear summary of the feedback received during prior comment periods, which might help in assessing the effectiveness and acceptance of the policies being extended.