Deposit Information and Proposed Revision to FR 2420
Blog article
/ Deposit Information
The Federal Deposit Insurance Corporation (FDIC) is soliciting comments from interested parties on deposit data that is not currently reported in the Federal Financial Institutions Examination Council’s (FFIEC) Consolidated Reports of Condition and Income (Call Report) or other regulatory reports, including for uninsured deposits.
The FDIC seeks information on the characteristics that affect the stability and franchise value of different types of deposits—the value that a bank or financial institution assigns to its deposits beyond their face value, recognizing them as a stable and low-cost source of funding—and whether more detailed or more frequent reporting on these characteristics or types of deposits could enhance offsite risk—risks that are assessed without the physical presence of regulators or auditors at the bank. Instead, these risks are identified through offsite monitoring or remote supervision, where financial regulators and supervisory authorities use reports and data submitted by banks to monitor risk exposure and operational health—and liquidity monitoring, inform analysis of the benefits and costs associated with additional deposit insurance coverage for certain types of deposits, improve risk sensitivity in deposit insurance pricing, and provide analysts and the general public with accurate and transparent data. The initial deadline for comments October 7, 2024 has been extended to December 6, 2024.
/ FR 2420 Revision
The Board of Governors of the Federal Reserve System (Board) proposes a revision to FR 2420 with supporting information added to the FR 2420 instructions, to enhance money market monitoring. The FR 2420 is a transaction-based report that collects daily liability data on federal funds purchased, selected borrowings from non-exempt entities, Eurodollar transactions, and time deposits and certificates of deposits from:
- Domestically chartered commercial banks and savings associations that have $18 billion or more in total assets as well as those that have total assets above $5 billion but less than $18 billion and meet the activity threshold;
- U.S. branches and agencies of foreign banks with total third-party assets of $2.5 billion or more; and
- Significant banking organizations that are active participants in money markets.
- The Board proposes to add Part E to the reporting form to collect information on depository institutions’ secured borrowings via Federal Home Loan Banks (FHLBs) advances with 1 year or less to maturity at origination.
- An additional proposed section of the reporting form, Part F, serves to collect information on rates paid by depository institutions for certain non-maturity demand deposits by FHLBs.
- The Board proposes the addition of one new item in Part C of the reporting form that would denote whether reported time deposits represent brokered transactions.
The proposed FR 2420 revisions would be effective 12 months after the publication of a final notice in the Federal Register, with an approximate January 2026 as of date.
The comments are to be received no later than November 29, 2024.
/ Discover our Regulatory Reporting Solution
Our award winning reporting solution, AGILE, supports over 200 firms worldwide in meeting their regulatory risk and reporting obligations. With strong controls, customizable workflow, automation and a robust data management and analytical toolset, the modular design of AGILE ensures firms of all sizes can immediately benefit.
If you are interested in further discussing the changes to FR 2420, or wish to understand more about how we can help you with the challenges of regulatory reporting, please reach out to start a conversation.
