FR 2025-05233

The document from the Federal Reserve System outlines a decision to extend, with certain revisions, the Report of Selected Assets and Liabilities of Domestically Chartered Commercial Banks and U.S. Branches and Agencies of Foreign Banks, also known as FR 2644. This report is crucial in collecting data on the financial health and activities of banks in the U.S., including both domestic and foreign entities.

General Summary

The Federal Reserve System is adopting a proposal to continue collecting data through the FR 2644 for another three years. This report compiles weekly balance sheet information from a sample of 850 banks, providing insights into the banking sector's current developments. A notable change is that smaller banks, those with less than $5 billion in assets, are now allowed to report just once a month rather than weekly. These revisions take effect on April 2, 2025. Interestingly, there were no public comments received during the proposal review period.

Significant Issues and Concerns

Several issues arise from the document's content and the implications of the actions described:

• Complex Language and References: The document uses technical language and refers to processes and codes (like FR 2644 and OMB numbers) that may not be easily understood by individuals who are not familiar with financial reporting or the Federal Reserve's procedures.

• Potential for Data Collection Inconsistencies: Allowing smaller banks to report less frequently could create inconsistencies or gaps in the data collected, which may affect the overall accuracy of banking sector analyses.

• Lack of Public Engagement: The absence of public comments might indicate either a lack of awareness among stakeholders or that the proposal does not raise significant concerns. However, this also suggests a potential gap in communication or community engagement from the Federal Reserve.

• Impact on Smaller Banks: There is no detailed assessment of how this change might affect smaller banks' operations or data accuracy, which could be crucial for those with limited resources.

• Access to Additional Information: While the document provides links to further resources, it assumes that all stakeholders have internet access and the capability to navigate these resources efficiently.

Impact on the Public

Broadly, the decision to extend and revise the FR 2644 report will likely not directly affect the general public, as this report primarily serves regulatory and analytical purposes within the banking sector. However, the data derived from this report is crucial for understanding economic trends, which can indirectly influence public policy and economic conditions that affect everyday life.

Impact on Specific Stakeholders

• Banking Industry: Banks, particularly those under $5 billion in assets, may benefit from reduced reporting frequency, which can lessen administrative burdens. However, they must ensure that their monthly reports are as detailed and accurate as weekly submissions to maintain data quality.

• Regulatory Bodies and Analysts: The revision could impact how regulatory bodies and analysts interpret banking data. Inconsistent reporting might lead to challenges in maintaining a clear and accurate picture of the banking landscape.

• Federal Reserve: As the primary beneficiary of the data collected, the Federal Reserve must ensure that the revisions do not compromise the consistency and reliability of the information they rely on for economic analysis and policy-making.

In summary, while the document's actions allow for some procedural efficiencies, particularly for smaller banks, they also present potential risks in terms of data integrity and stakeholder engagement. The Federal Reserve will need to carefully manage these revisions to ensure ongoing accuracy and stakeholder confidence.

In the Federal Register document under review, there is a specific financial reference concerning the report titled FR 2644. The Board of Governors of the Federal Reserve System has proposed a revision that specifically addresses banks with certain asset thresholds.

Financial Reference Summary

The document outlines a proposed revision to the FR 2644 report that would allow banks with under $5 billion in total assets as of the previous June 30 Call Report to have the option of reporting one week per month with data as of the first Wednesday of the month. This revision seemingly aims at reducing the reporting burden for these smaller banks, which can streamline their data submission process.

Relation to Identified Issues

1. Complex Language and Understanding: The financial reference, while addressing a reduction in reporting frequency, is embedded within a context of specialized financial language. For individuals not familiar with how asset thresholds and reporting periods are typically handled within the Federal Reserve System, this adjustment might not immediately convey its purpose or benefits.

2. Potential Confusion in Data Collection: The financial reference to banks under $5 billion and their new reporting option could indeed lead to initial confusion among both the banks and stakeholders who rely on consistent data. This emphasizes the need for clear communication to ensure that all parties understand how these financial parameters affect data collection.

3. Lack of Public Comment: The absence of public commentary on this proposed revision may indicate a gap in awareness or engagement. The financial threshold specified for reporting changes targets a particular subset of banks, which might not have been adequately informed or incentivized to participate in the public comment process.

4. Impact on Smaller Banks: The document does not elaborate on whether the adoption of this reporting flexibility for banks under $5 billion will impact the accuracy of financial data collected. There is also no discussion on whether these banks will face challenges in adapting their systems to align with this new schedule. This could ultimately affect the integrity of financial reports relying on this data.

Overall, while the financial reference offers a promising change in easing the operational requirements for smaller banks, the practical execution and understanding of this transition remain points of concern. Stakeholders, including bank personnel and those relying on financial data, require clearer guidance to navigate these adjustments effectively.