Overview
Title
Proposed Agency Information Collection Activities; Comment Request
Agencies
ELI5 AI
The Federal Reserve wants to keep a rule that makes certain banks tell them when they plan to give out money to people who own shares in the bank. They want everyone to tell them if this rule is still needed or if it should be changed.
Summary AI
The Board of Governors of the Federal Reserve System is seeking public comments on their proposal to extend an information collection exercise for another three years. This proposal pertains to the Notice of Proposed Declaration of Dividend, known as FR 1583, which requires certain savings associations to notify the Federal Reserve before declaring dividends. The Board is inviting feedback on whether this information collection is necessary, if the burden estimates are accurate, and how it can be improved. Comments need to be submitted by April 7, 2025.
Abstract
The Board of Governors of the Federal Reserve System (Board) invites comment on a proposal to extend for three years, without revision, the Notice of Proposed Declaration of Dividend (FR 1583; OMB No. 7100-0339).
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Sources
AnalysisAI
The document under review is a public notice from the Board of Governors of the Federal Reserve System that seeks comments on their proposal to extend an information collection requirement. Specifically, the proposal involves the Notice of Proposed Declaration of Dividend, referred to as FR 1583. This process requires certain savings associations to notify the Federal Reserve before they declare dividends. The involvement of the public is being solicited to weigh in on the necessity and efficacy of collecting this information for an additional three years.
General Overview
This notice invites public commentary on whether the continuation of this information collection is necessary. It also seeks to determine the accuracy of the burden estimates in carrying out this process and requests suggestions on how it could be improved. The Board is interested in understanding the utility of the collected data, and whether there are alternative, less burdensome methods to gather this information efficiently.
Significant Issues and Concerns
One issue with the document is the use of technical language, such as referencing FR 1583 and OMB numbers, which may not be familiar to individuals not versed in federal regulatory procedures. This could make it challenging for the general public to fully grasp the subject and implications of the document. Moreover, the detailed instructions for comment submission, including multiple contact methods, could appear overly complex to laypersons, potentially discouraging participation.
Furthermore, the notice explains that all comments will be publicly available and advises against including confidential information. However, it may not sufficiently emphasize the repercussions of public disclosure, possibly leaving some commenters unaware of the potential risks to privacy and confidentiality.
Public Impact
Broadly, this document impacts the public by engaging a key component of the U.S. financial system—the Federal Reserve System—in a transparent regulatory process. By seeking public input, the Board upholds a democratic approach to regulatory oversight, ensuring that the interests and insights of citizens are considered before finalizing policies that govern savings associations' dividend declarations.
However, there might be apprehension among general members of the public who wish to comment due to fear of exposing personal or sensitive information in the process, even though the notice advises against such disclosure.
Impact on Specific Stakeholders
For stakeholders such as savings associations and the affiliated savings and loan holding companies (SLHCs), this extension represents a continued adherence to a structured financial oversight mechanism. These organizations might view the requirement as either a burdensome administrative task or as a necessary compliance measure ensuring financial stability and transparency.
Additionally, for policymakers and regulatory bodies, public feedback could lead to more refined and effective processes, potentially resulting in reduced operational burdens while maintaining the integrity of financial declarations.
In conclusion, this Federal Register notice is crucial for maintaining an open dialogue between the Federal Reserve and the public regarding the regulatory oversight of savings associations. While the document has its complexities, it ultimately aims to foster an environment of accountability and improved governance.
Issues
• The document uses some technical language and references such as 'Notice of Proposed Declaration of Dividend (FR 1583; OMB No. 7100-0339)' that might not be immediately clear to readers not familiar with federal regulatory processes.
• The language used to describe methods of submitting comments might be overly detailed for laypeople, especially with the inclusion of multiple contact methods and specific addresses.
• The description of how comments are made available to the public and the instructions to refrain from including confidential information might not fully communicate the potential consequences of public disclosure, which could be clearer to ensure commenters understand the implications.