FR 2024-28522

The Federal Reserve Board is proposing to extend, for three years, the collection of information known as the Report of Institution-to-Aggregate Granular Data on Assets and Liabilities (FR 2510). This extension involves no changes to the current reporting requirements. The FR 2510 report collects detailed financial data from large banking organizations, focusing on their assets, liabilities, and derivatives. The primary aim of this data collection is to enable the Board to closely examine the financial health of these institutions and assess their impact on the U.S. financial system.

Significant Issues and Concerns

Several concerns arise from this proposal. Firstly, the document mentions a potential format update for the FR 2510 instructions—from a two-column to a one-column layout—but provides no justification or explanation of the necessity or cost-effectiveness of this change. This raises questions about whether such a modification is truly warranted and what benefits it might provide.

Another issue involves the lack of information on the cost implications of extending the FR 2510 for three years. Understanding the financial and resource commitment required for this extension is vital for effective budgeting and resource allocation.

Additionally, the quarterly reporting requirement could be burdensome for the banks involved, especially smaller-sized institutions. The document does not mention any measures to support these respondents or reduce this potential burden.

While public comments are invited, the document does not detail how these comments will influence the decision-making process, nor does it assure stakeholders that their feedback will be acknowledged or incorporated into final outcomes. This could affect the transparency and trust in the comment process.

Moreover, the document states that public comments will be disclosed, yet it does not address how confidential business information submitted by commenters will be protected. This lack of protection may discourage individuals from providing full and honest feedback, undermining the engagement process.

Impact on the Public and Specific Stakeholders

The proposed extension of the FR 2510 has broad implications for the financial community and the general public. The information collected plays a crucial role in monitoring the systemic risks posed by large financial institutions, which, in turn, affects economic stability. This stability is significant for the general public, as it impacts everything from personal savings to broader economic policies.

For specific stakeholders, particularly the reporting institutions, the proposal could have mixed effects. On one hand, continuing the current reporting requirements without additional changes could mean stability and predictability in compliance efforts. On the other hand, the absence of revisions also implies a continued regulatory burden, especially for smaller entities that might struggle with the resources needed to meet these obligations.

The proposal's lack of clear guidelines on how feedback will be incorporated into the final decision might also negatively impact stakeholder confidence in the regulatory process, potentially reducing the effectiveness of stakeholder engagement during the comment period.

In conclusion, while the Federal Reserve Board's proposal to extend the FR 2510 aims to maintain robust monitoring of major banking entities, several concerns and potential implications require attention. Stakeholders, including both the financial community and the broader public, may be affected differently by these reporting requirements, highlighting the importance of transparent and responsive engagement processes.