FR 2025-02360

The document titled "Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB," published by the Board of Governors of the Federal Reserve System, provides insights into the extension of the Supervisory and Regulatory Survey (FR 3052). This survey plays a pivotal role in collecting data from financial institutions to assist the Federal Reserve in fulfilling its supervisory and regulatory roles.

General Summary

The Board of Governors has decided to extend the Supervisory and Regulatory Survey (FR 3052) for an additional three years. This decision comes without any revisions to the existing survey format. The primary function of this survey is to gather information from a variety of financial institutions, helping the Federal Reserve execute its supervisory and regulatory duties effectively. Participation in this survey is voluntary, and the estimated response burden is fairly light, with an average response time of about 0.5 hours per participant.

Significant Issues or Concerns

The document raises several important issues:

1. Lack of Cost Analysis: The document does not provide any details about the financial implications of extending this survey, which could lead to concerns about budget allocations or potential waste.

2. Voluntary Participation Concerns: While the survey is voluntary, the document fails to address how this might influence participation rates and the quality of the data collected. There is an inherent risk that limited participation could affect the representativeness and reliability of the survey findings.

3. Vague Implementation of Recommendations: A recommendation to incorporate international auditing standards and establish a collaborative group was acknowledged, yet the document does not outline any specific plans for how these suggestions will be integrated or assessed in the future.

4. Unclear Frequency and Content Adjustments: The document states that the survey's questions can change based on economic and legislative developments, but it does so without any detailed explanation, which creates ambiguity about when and how these changes might occur.

5. Estimated Response Time: An average response time of 0.5 hours is mentioned, but there is no detailed breakdown of how this estimate was reached, undercutting the ability to properly evaluate the realistic burden on respondents.

6. Data Confidentiality: The document does not touch upon the measures in place to ensure the confidentiality and security of the data collected, which could be a cause for concern among participants.

Public Impact

For the general public, the continuation of this survey may indicate ongoing oversight and regulation of financial institutions, potentially contributing to economic stability. However, without clearer communication on the benefits and secure handling of the gathered data, public trust might be compromised.

Impact on Specific Stakeholders

For financial institutions, the continuation of this survey provides a consistent structure for reporting to the Federal Reserve. However, the voluntary nature of the survey and its lack of updated revisions might affect institutions that hope for a more nuanced approach to regulatory reporting. Stakeholders advocating for higher standards may view this as a missed opportunity to integrate more international guidelines and collaborative efforts into the process.

In conclusion, while the extension of the FR 3052 survey reflects the Federal Reserve's commitment to oversight, it also highlights several areas where transparency and specificity could be improved, ultimately benefiting both the surveyed institutions and the broader regulatory landscape.