1. Home
  2. Data
  3. Senior Financial Officer Survey

Senior Financial Officer Survey

PDF

May 2023 Senior Financial Officer Survey Results

Background

In May 2023, the Federal Reserve conducted a Senior Financial Officer Survey (SFOS) to gather views systematically from a number of banks on their reserve balance management strategies and practices, their deposit pricing strategies, their expectations for potential changes in both the size and composition of their balance sheets, and their views regarding Federal Reserve facilities.

The May SFOS was distributed to 98 banks, representing a wide range of asset sizes and business models. The Federal Reserve sent the survey to senior financial officers at these banks on May 5, 2023, with replies due by May 19, 2023. Responses were received from 92 banks, comprising 58 domestic banks and 34 foreign banking organizations (FBOs). In aggregate, respondents held more than three-fourths of total reserve balances in the banking system at the time of the survey.

Part 1: Questions about Reserves and Balance Sheet Management

The questions in Part 1 asked respondents about their bank's strategy over the next six months regarding its balance sheet, and its expectations for changes to the levels of various liability and asset categories.

  • Nearly one-third of respondents reported that their bank plans to take actions intended to maintain the current size of its balance sheet over the next six months. One-quarter reported that their bank plans to take actions intended to increase, or limit the decline in, the size of its balance sheet, while the same fraction reported that their bank had neither plans to increase nor decrease the size of its balance sheet. A smaller number of respondents reported that their bank plans to take actions to decrease, or limit the growth in, the size of the balance sheet over the same period.1
  • For each of the 10 liability and 6 asset categories, excluding respondents who reported "Not applicable (N/A)," at least a plurality of respondents indicated that their bank is not expecting the level of such liability or asset to change over the next six months. Among the categories with respondents reporting changes, the most notable were brokered deposits and CDs and loans. On the liability side, more than one-third of respondents, excluding responses of N/A, reported an expected increase in brokered deposits and brokered CDs of more than 5 percent. For assets, just under one-third of respondents reported an expected increase between 2 and 5 percent in loans.
  • When asked about any notable adjustments that their bank made to its balance sheet or funding strategy in response to the banking system stress episode in March 2023, nearly half of respondents reported increased borrowing from Federal Home Loan Banks (FHLB) and a similar number reported an increase in wholesale deposit rates. Among the respondents who reported that their bank takes retail deposits in the course of regular business, a narrow majority reported increasing retail deposit rates.

Part 2: Questions about Preferred Reserve Levels

(Questions 5–9)

The questions in Part 2 asked respondents about their bank's lowest comfortable level of reserves (LCLOR), which is defined in the survey as the lowest dollar level of reserves that their bank would feel comfortable holding before taking actions to maintain or increase its reserve balances.2

  • Roughly 40 percent of respondents reported an increase in their bank's LCLOR since November 2022, 5 percent reported a decrease, and about half of the respondents reported that their bank's LCLOR has not changed.
  • Factors cited by at least a majority of respondents as either very important or important in determining the respondent's bank's LCLOR include satisfying liquidity-testing metrics, meeting projected liquidity outflows over a certain window (more than one business day and under normal market conditions), meeting intraday payment or settlement needs, and the amount of less-stable deposits as a portion of total liabilities.
  • When compared to the last survey that asked respondents about the level of their bank's LCLOR, which was in February of 2020, more than half of the respondents that participated in both surveys reported an increase in their LCLOR estimate in this survey of 20 percent or more than their previously reported value in 2020. Most of the remaining respondents reported an estimate that reflects a smaller increase, while only a small number of respondents reported an estimate that reflects a decrease from their previously reported value.
  • Seventy-eight percent of total respondents reported that their bank prefers to hold additional reserves above its LCLOR (hereafter referred to as additional reserves), with 35 percent of total respondents preferring to hold additional reserves of at least 50 percent above their LCLOR. Twenty-two percent of total respondents reported preferring not to hold additional reserves.
  • Roughly three-quarters of respondents reported that their bank does not allow reserves to fluctuate below its LCLOR. Of the respondents that indicated their bank prefers to hold additional reserves, about three-quarters reported that their bank does allow reserves to fluctuate below its reported additional reserves level.

Part 3: Questions about Deposit Rates

(Questions 10–13)

The questions in Part 3 asked respondents about their bank's cumulative deposit betas from March 2022 to April 2023, and its outlook for deposit betas through November 2023.3

  • Among respondents that reported taking retail deposits as part of their bank's regular course of business, a majority reported cumulative retail deposit betas of 20 percent or lower from March 2022 to April 2023. Looking ahead to November of this year, respondents most commonly indicated that their bank expects that cumulative retail deposit betas will be 30 percent or lower.
  • From March 2022 to April 2023, respondents that reported taking wholesale operational deposits and/or wholesale non-operational deposits reported deposit betas for both wholesale operational deposits and wholesale non-operational deposits that were generally higher than for retail deposits and were more widely distributed. Looking ahead to the period of April through September of this year, respondents reported similar widely distributed responses for wholesale operational and wholesale non-operational deposits, with deposit betas of 80 percent and 100 percent being the most commonly reported responses, respectively. These projected cumulative deposit betas represent an increase compared to the earlier time period of March 2022 to April 2023.
  • When asked about the rationale for deposit betas that most closely aligns with their bank's strategy for each deposit type, betas being set to either increase or maintain deposit balances were the most commonly reported responses across all three deposit types (retail, wholesale operational, and wholesale non-operational).
  • A majority of respondents reported that the events of March 2023 did not influence their bank's decisionmaking on how it determines its deposit betas. Of the 28 respondents who elaborated on this question in the provided comment box, a plurality of the commenters noted that there was increased competition surrounding deposits during this time period.

Part 4: Questions about Federal Reserve Facilities

(Questions 14–19)

The questions in Part 4 asked respondents about their bank's usage of and views regarding the Bank Term Funding Program (BTFP) and the discount window.

  • Over three-fourths of respondents from domestic banks indicated that their bank had either arranged program documentation, pledged collateral, or borrowed from the BTFP.
  • When asked about the factors that contribute to their bank's decisionmaking process when considering whether to sign up for or borrow from the BTFP, collateral valuation at par was most commonly rated as strongly encouraging, while public disclosure was mostly commonly rated as strongly discouraging.
  • A significant majority of respondents indicated that their bank's view of the discount window had not changed during the March 2022 to April 2023 period.
  • When asked about the factors that contribute to their bank's decisionmaking process when considering whether to sign up for/borrow from the discount window, respondents were neutral on nearly all aspects with the exception of public disclosure, which was most commonly rated as strongly discouraging.

This document was prepared by Courtney Demartini, Elizabeth Ellis, David Lowe, Matthew Malloy, and Nicole Trachman, Division of Monetary Affairs, Board of Governors of the Federal Reserve System; and Jack Coolbaugh, Brian Gowen, Natalie Leonard, Jason Miu, Dante Turkow, and Leonard Wei, Federal Reserve Bank of New York.

Results

The following results include the instructions provided to the survey respondents. Please note that percentages are based on the number of financial institutions that gave responses other than "Not applicable (N/A)." Components may not sum to totals because of rounding.

Part 1: Reserves and Balance Sheet Management

Questions in Part 1 ask about your bank's expectations for balance sheet management over the next six months.4 For context, the results of the March 2023 Survey of Primary Dealers showed cumulative median dealer expectations for the size of the Federal Reserve's holdings of U.S. Treasury securities and agency mortgage-backed securities (MBS) to decrease by approximately $480 billion from the end of March 2023 to the end of September 2023.5 These projections would be consistent with a similar decline in the amount of Federal Reserve liabilities, including, but not limited to, reserve balances in the banking system and overnight reverse repo balances.

Question 1: Looking ahead to the next six months, which statement best characterizes your bank's most likely strategy regarding its balance sheet? My bank expects:

  All respondents Domestic Foreign
Banks Percent Banks Percent Banks Percent
To take actions intended to decrease, or limit the growth in, the size of its balance sheet 16 17.4 14 24.1 2 5.9
To take actions intended to maintain the current size of its balance sheet 30 32.6 17 29.3 13 38.2
To take actions intended to increase, or limit the decline in, the size of its balance sheet 23 25.0 18 31.0 5 14.7
Not to take specific actions to affect the size of its balance sheet 23 25.0 9 15.5 14 41.2
Total 92 100.0 58 100.0 34 100.0

Question 1b: As you responded to the preceding question by selecting one of the first three options, please describe in the comment box below the specific actions your bank expects to take to accomplish that strategy.

Sixty-five respondents provided substantive comments. Most comments were in line with or elaborated on the survey responses. Some respondents provided more context for their bank's planned actions or lack of actions, but these comments did not have common themes.

Question 2: This question asks about changes to the projected level of different liabilities on your bank's balance sheet. For each of the liability categories listed, please indicate your bank's expectation about the potential change in the average level during April 2023 compared to the average level during October 2023 in the context of your previous responses. (Please select N/A only if your bank does not or cannot have the liability type.) My bank expects the level will:

  1. Retail deposits

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 2 3.3 2 3.6 0 0.0
    Decrease more than 2 percent and less than or equal to 5 percent 11 18.3 11 19.6 0 0.0
    Remain roughly unchanged (plus or minus 2 percent) 30 50.0 26 46.4 4 100.0
    Increase more than 2 percent and less than or equal to 5 percent 13 21.7 13 23.2 0 0.0
    Increase more than 5 percent 4 6.7 4 7.1 0 0.0
    N/A (only if bank does not or cannot have this liability type) 0 0.0 0 0.0 0 0.0
    Total 60 100.0 56 100.0 4 100.0

  2. Wholesale operational deposits

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 2 3.3 1 2.3 1 5.9
    Decrease more than 2 percent and less than or equal to 5 percent 6 9.8 6 13.6 0 0.0
    Remain roughly unchanged (plus or minus 2 percent) 36 59.0 25 56.8 11 64.7
    Increase more than 2 percent and less than or equal to 5 percent 13 21.3 9 20.5 4 23.5
    Increase more than 5 percent 3 4.9 2 4.5 1 5.9
    N/A (only if bank does not or cannot have this liability type) 1 1.6 1 2.3 0 0.0
    Total 61 100.0 44 100.0 17 100.0

  3. Wholesale non-operational deposits

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 8 10.5 5 10.6 3 10.3
    Decrease more than 2 percent and less than or equal to 5 percent 14 18.4 13 27.7 1 3.4
    Remain roughly unchanged (plus or minus 2 percent) 30 39.5 16 34.0 14 48.3
    Increase more than 2 percent and less than or equal to 5 percent 18 23.7 10 21.3 8 27.6
    Increase more than 5 percent 5 6.6 2 4.3 3 10.3
    N/A (only if bank does not or cannot have this liability type) 1 1.3 1 2.1 0 0.0
    Total 76 100.0 47 100.0 29 100.0

  4. FHLB advances (N/A if your bank is not an FHLB member)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 11 12.0 11 19.0 0 0.0
    Decrease more than 2 percent and less than or equal to 5 percent 6 6.5 5 8.6 1 2.9
    Remain roughly unchanged (plus or minus 2 percent) 22 23.9 22 37.9 0 0.0
    Increase more than 2 percent and less than or equal to 5 percent 4 4.3 4 6.9 0 0.0
    Increase more than 5 percent 11 12.0 11 19.0 0 0.0
    N/A (only if bank does not or cannot have this liability type) 38 41.3 5 8.6 33 97.1
    Total 92 100.0 58 100.0 34 100.0

  5. Commercial paper

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 2 2.2 0 0.0 2 5.9
    Decrease more than 2 percent and less than or equal to 5 percent 0 0.0 0 0.0 0 0.0
    Remain roughly unchanged (plus or minus 2 percent) 30 32.6 13 22.4 17 50.0
    Increase more than 2 percent and less than or equal to 5 percent 6 6.5 0 0.0 6 17.6
    Increase more than 5 percent 4 4.3 1 1.7 3 8.8
    N/A (only if bank does not or cannot have this liability type) 50 54.3 44 75.9 6 17.6
    Total 92 100.0 58 100.0 34 100.0

  6. Institutional/negotiable CDs

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 2 2.2 1 1.7 1 3.0
    Decrease more than 2 percent and less than or equal to 5 percent 3 3.3 1 1.7 2 6.1
    Remain roughly unchanged (plus or minus 2 percent) 40 44.0 20 34.5 20 60.6
    Increase more than 2 percent and less than or equal to 5 percent 7 7.7 2 3.4 5 15.2
    Increase more than 5 percent 8 8.8 6 10.3 2 6.1
    N/A (only if bank does not or cannot have this liability type) 31 34.1 28 48.3 3 9.1
    Total 91 100.0 58 100.0 33 100.0

  7. Short-term repurchase agreements (repos)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 5 5.4 4 6.9 1 2.9
    Decrease more than 2 percent and less than or equal to 5 percent 1 1.1 1 1.7 0 0.0
    Remain roughly unchanged (plus or minus 2 percent) 51 55.4 30 51.7 21 61.8
    Increase more than 2 percent and less than or equal to 5 percent 6 6.5 2 3.4 4 11.8
    Increase more than 5 percent 3 3.3 3 5.2 0 0.0
    N/A (only if bank does not or cannot have this liability type) 26 28.3 18 31.0 8 23.5
    Total 92 100.0 58 100.0 34 100.0

  8. Brokered deposits/brokered CDs

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 7 7.7 6 10.3 1 3.0
    Decrease more than 2 percent and less than or equal to 5 percent 2 2.2 2 3.4 0 0.0
    Remain roughly unchanged (plus or minus 2 percent) 30 33.0 16 27.6 14 42.4
    Increase more than 2 percent and less than or equal to 5 percent 10 11.0 8 13.8 2 6.1
    Increase more than 5 percent 24 26.4 23 39.7 1 3.0
    N/A (only if bank does not or cannot have this liability type) 18 19.8 3 5.2 15 45.5
    Total 91 100.0 58 100.0 33 100.0

  9. Bank Term Funding Program (BTFP; N/A if your bank does not have documentation in place to access the BTFP)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 0 0.0 0 0.0 0 0.0
    Decrease more than 2 percent and less than or equal to 5 percent 0 0.0 0 0.0 0 0.0
    Remain roughly unchanged (plus or minus 2 percent) 42 45.7 36 62.1 6 17.6
    Increase more than 2 percent and less than or equal to 5 percent 1 1.1 1 1.7 0 0.0
    Increase more than 5 percent 1 1.1 1 1.7 0 0.0
    N/A (only if bank does not or cannot have this liability type) 48 52.2 20 34.5 28 82.4
    Total 92 100.0 58 100.0 34 100.0

  10. Other liabilities (please describe)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 3 3.6 2 4.1 1 2.9
    Decrease more than 2 percent and less than or equal to 5 percent 1 1.2 0 0.0 1 2.9
    Remain roughly unchanged (plus or minus 2 percent) 22 26.5 12 24.5 10 29.4
    Increase more than 2 percent and less than or equal to 5 percent 1 1.2 1 2.0 0 0.0
    Increase more than 5 percent 4 4.8 4 8.2 0 0.0
    N/A (only if bank does not or cannot have this liability type) 52 62.7 30 61.2 22 64.7
    Total 83 100.0 49 100.0 34 100.0

Sixteen respondents provided comments, excluding responses of N/A or that specified that there were no additional comments. Most comments were in line with or elaborated on the survey responses. Some respondents provided more context on their bank's liabilities, but these comments did not have common themes.

Question 3: This question asks about changes to the projected level of different assets on your bank's balance sheet.6 For each of the asset categories listed, please indicate your bank's expectation about the potential change in the average level during April 2023 compared to the average level during October 2023 in the context of your previous responses . (Please select N/A only if your bank does not have the asset type.) My bank expects the level will:

  1. Reserves

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 17 18.5 13 22.4 4 11.8
    Decrease more than 2 percent and less than or equal to 5 percent 5 5.4 2 3.4 3 8.8
    Remain roughly unchanged (plus or minus 2 percent) 56 60.9 32 55.2 24 70.6
    Increase more than 2 percent and less than or equal to 5 percent 7 7.6 6 10.3 1 2.9
    Increase more than 5 percent 7 7.6 5 8.6 2 5.9
    N/A (only if bank does not or cannot have this asset type) 0 0.0 0 0.0 0 0.0
    Total 92 100.0 58 100.0 34 100.0

  2. Level 1 securities

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 7 7.6 7 12.1 0 0.0
    Decrease more than 2 percent and less than or equal to 5 percent 12 13.0 12 20.7 0 0.0
    Remain roughly unchanged (plus or minus 2 percent) 56 60.9 31 53.4 25 73.5
    Increase more than 2 percent and less than or equal to 5 percent 10 10.9 6 10.3 4 11.8
    Increase more than 5 percent 5 5.4 2 3.4 3 8.8
    N/A (only if bank does not or cannot have this asset type) 2 2.2 0 0.0 2 5.9
    Total 92 100.0 58 100.0 34 100.0

  3. Level 2 HQLA

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 5 5.4 5 8.6 0 0.0
    Decrease more than 2 percent and less than or equal to 5 percent 17 18.5 17 29.3 0 0.0
    Remain roughly unchanged (plus or minus 2 percent) 55 59.8 32 55.2 23 67.6
    Increase more than 2 percent and less than or equal to 5 percent 3 3.3 2 3.4 1 2.9
    Increase more than 5 percent 1 1.1 0 0.0 1 2.9
    N/A (only if bank does not or cannot have this asset type) 11 12.0 2 3.4 9 26.5
    Total 92 100.0 58 100.0 34 100.0

  4. Other securities

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 6 6.6 5 8.8 1 2.9
    Decrease more than 2 percent and less than or equal to 5 percent 3 3.3 3 5.3 0 0.0
    Remain roughly unchanged (plus or minus 2 percent) 61 67.0 40 70.2 21 61.8
    Increase more than 2 percent and less than or equal to 5 percent 1 1.1 1 1.8 0 0.0
    Increase more than 5 percent 2 2.2 1 1.8 1 2.9
    N/A (only if bank does not or cannot have this asset type) 18 19.8 7 12.3 11 32.4
    Total 91 100.0 57 100.0 34 100.0

  5. Loans

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 2 2.2 1 1.7 1 2.9
    Decrease more than 2 percent and less than or equal to 5 percent 5 5.4 5 8.6 0 0.0
    Remain roughly unchanged (plus or minus 2 percent) 42 45.7 21 36.2 21 61.8
    Increase more than 2 percent and less than or equal to 5 percent 30 32.6 21 36.2 9 26.5
    Increase more than 5 percent 13 14.1 10 17.2 3 8.8
    N/A (only if bank does not or cannot have this asset type) 0 0.0 0 0.0 0 0.0
    Total 92 100.0 58 100.0 34 100.0

  6. Other assets (please describe)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Decrease more than 5 percent 1 1.2 1 2.0 0 0.0
    Decrease more than 2 percent and less than or equal to 5 percent 1 1.2 1 2.0 0 0.0
    Remain roughly unchanged (plus or minus 2 percent) 23 27.7 13 26.0 10 30.3
    Increase more than 2 percent and less than or equal to 5 percent 0 0.0 0 0.0 0 0.0
    Increase more than 5 percent 0 0.0 0 0.0 0 0.0
    N/A (only if bank does not or cannot have this asset type) 58 69.9 35 70.0 23 69.7
    Total 83 100.0 50 100.0 33 100.0

Question 4: Please indicate in the table below any notable adjustment your bank made to its balance sheet or funding strategy in response to the banking system stress episode of March 2023.

Actions (Liabilities):

  1. Borrowing in overnight unsecured markets (fed funds and/or Eurodollars)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 7 7.6 6 10.3 1 2.9
    Decrease 7 7.6 2 3.4 5 14.7
    No adjustment 78 84.8 50 86.2 28 82.4
    Total 92 100.0 58 100.0 34 100.0

  2. Issuing CP/CD

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 11 12.2 7 12.5 4 11.8
    Decrease 5 5.6 2 3.6 3 8.8
    No adjustment 74 82.2 47 83.9 27 79.8
    Total 90 100.0 56 100.0 34 100.0

  3. Borrowing in secured funding markets (repurchase agreements)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 17 18.7 13 22.8 4 11.8
    Decrease 0 0.0 0 0.0 0 0.0
    No adjustment 74 81.3 44 77.2 30 88.2
    Total 91 100.0 57 100.0 34 100.0

  4. Borrowing from the discount window

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 4 4.4 4 7.0 0 0.0
    Decrease 0 0.0 0 0.0 0 0.0
    No adjustment 87 95.6 53 93.0 34 100.0
    Total 91 100.0 57 100.0 34 100.0

  5. Borrowing from the Bank Term Funding Program

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 7 7.7 7 12.3 0 0.0
    Decrease 0 0.0 0 0.0 0 0.0
    No adjustment 84 92.3 50 87.7 34 100.0
    Total 91 100.0 57 100.0 34 100.0

  6. Borrowing from FHLBs

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 41 44.6 40 69.0 1 2.9
    Decrease 3 3.3 3 5.2 0 0.0
    No adjustment 48 52.2 15 25.9 33 97.1
    Total 92 100.0 58 100.0 34 100.0

  7. Borrowing via brokered deposits/brokered CDs

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 36 39.6 34 58.6 2 6.1
    Decrease 0 0.0 0 0.0 0 0.0
    No adjustment 55 60.4 24 41.4 31 93.9
    Total 91 100.0 58 100.0 33 100.0

  8. Adjusting retail deposit rates

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 30 50.8 27 49.1 3 75.0
    Decrease 0 0.0 0 0.0 0 0.0
    No adjustment 29 49.2 28 50.9 1 25.0
    Total 59 100.0 55 100.0 4 100.0

  9. Adjusting attractiveness of non-rate terms on retail deposits

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 10 16.9 9 16.4 1 25.0
    Decrease 0 0.0 0 0.0 0 0.0
    No adjustment 49 83.1 46 83.6 3 75.0
    Total 59 100.0 55 100.0 4 100.0

  10. Adjusting wholesale deposit rates

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 38 47.5 20 41.7 18 56.3
    Decrease 0 0.0 0 0.0 0 0.0
    No adjustment 42 52.5 28 58.3 14 43.8
    Total 80 100.0 48 100.0 32 100.0

  11. Adjusting attractiveness of non-rate terms on wholesale deposits

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 9 11.3 8 16.7 1 3.1
    Decrease 0 0.0 0 0.0 0 0.0
    No adjustment 71 88.8 40 83.3 31 96.9
    Total 80 100.0 48 100.0 32 100.0

  12. Borrowing in FX swap market to swap non-U.S. dollar reserves for U.S. dollar reserves

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 6 6.6 2 3.5 4 11.8
    Decrease 0 0.0 0 0.0 0 0.0
    No adjustment 85 93.4 55 96.5 30 88.2
    Total 91 100.0 57 100.0 34 100.0

  13. Drawing on revolving credit facilities

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 1 1.1 1 1.8 0 0.0
    Decrease 0 0.0 0 0.0 0 0.0
    No adjustment 90 98.9 56 98.2 34 100.0
    Total 91 100.0 57 100.0 34 100.0

  14. Borrowing in long-term debt markets

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 2 2.2 1 1.8 1 2.9
    Decrease 0 0.0 0 0.0 0 0.0
    No adjustment 88 97.8 55 98.2 33 97.1
    Total 90 100.0 56 100.0 34 100.0

  15. Other (please describe)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 4 7.0 1 3.3 3 11.1
    Decrease 1 1.8 0 0.0 1 3.7
    No adjustment 52 91.2 29 96.7 23 85.2
    Total 57 100.0 30 100.0 27 100.0

Actions (Assets):

  1. Lending in short-term debt markets (for example, reverse repurchase agreements)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 2 2.2 1 1.8 1 2.9
    Decrease 6 6.6 4 7.0 2 5.9
    No adjustment 83 91.2 52 91.2 31 91.2
    Total 91 100.0 57 100.0 34 100.0

  2. Reserve balances

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 39 42.4 32 55.2 7 20.6
    Decrease 4 4.3 1 1.7 3 8.8
    No adjustment 49 53.3 25 43.1 24 70.6
    Total 92 100.0 58 100.0 34 100.0

  3. Non-reserve HQLA holdings

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 2 2.2 2 3.5 0 0.0
    Decrease 7 7.7 7 12.3 0 0.0
    No adjustment 82 90.1 48 84.2 34 100.0
    Total 91 100.0 57 100.0 34 100.0

  4. Non-HQLA security holdings

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 2 2.2 2 3.5 0 0.0
    Decrease 6 6.6 6 10.5 0 0.0
    No adjustment 83 91.2 49 86.0 34 100.0
    Total 91 100.0 57 100.0 34 100.0

  5. Loan portfolio

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 5 5.5 3 5.3 2 5.9
    Decrease 2 2.2 2 3.5 0 0.0
    No adjustment 84 92.3 52 91.2 32 94.1
    Total 91 100.0 57 100.0 34 100.0

  6. Other (please describe)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Increase 0 0.0 0 0.0 0 0.0
    Decrease 1 1.7 0 0.0 1 3.6
    No adjustment 57 98.3 30 100.0 27 96.4
    Total 58 100.0 30 100.0 28 100.0

Seven respondents provided comments, excluding responses of N/A or that specified that there were no additional comments. Most comments were in line with or elaborated on the survey responses. Some respondents noted using funding from within their organizations.

Part 2: Preferred Reserve Levels

Questions in Part 2 ask about your bank's lowest comfortable level of reserves (LCLOR)—the lowest dollar level of reserve balances your bank would feel comfortable holding before it takes action to maintain or increase its reserve balances. "Taking action" is defined as taking active steps to intervene and raise funding in the market to replenish reserves. Examples of active steps could include, but are not limited to, borrowing in the fed funds or other wholesale funding markets or bidding more aggressively in those markets, reducing holdings of other liquid assets, or raising deposit rates.

Question 5: What is the estimated lowest comfortable level of reserves (LCLOR) (in $ millions) your bank would feel comfortable holding before it takes action to maintain or increase its reserves balance position?

LCLOR by depository institution type (estimated dollar ranges)

  All respondents Domestic Foreign
Banks Percent Banks Percent Banks Percent
$0–1 billion 21 22.8 15 25.9 6 17.6
$1–5 billion 33 35.9 23 39.7 10 29.4
$5–10 billion 8 8.7 4 6.9 4 11.8
$10–20 billion 15 16.3 7 12.1 8 23.5
$20 billion or more 15 16.3 9 15.5 6 17.6
Total 92 100.0 58 100.0 34 100.0

Question 6: Please rate on a scale from 1 (not important) to 5 (very important) the factors that determine your bank's LCLOR.

  1. Satisfying liquidity stress-testing metrics (meeting projected outflows under stressed market conditions)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    1 1 1.1 1 1.7 0 0.0
    2 2 2.2 1 1.7 1 2.9
    3 10 10.9 6 10.3 4 11.8
    4 15 16.3 10 17.2 5 14.7
    5 64 69.6 40 69.0 24 70.6
    Total 92 100.0 58 100.0 34 100.0

  2. Capacity to access liquidity in the market using non-reserve HQLA or other securities

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    1 17 18.7 7 12.3 10 29.4
    2 13 14.3 7 12.3 6 17.6
    3 17 18.7 10 17.5 7 20.6
    4 18 19.8 11 19.3 7 20.6
    5 26 28.6 22 38.6 4 11.8
    Total 91 100.0 57 100.0 34 100.0

  3. Capacity to access liquidity through Federal Reserve facilities like the standing repo facility (SRF) or discount window

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    1 38 41.3 20 34.5 18 52.9
    2 19 20.7 10 17.2 9 26.5
    3 17 18.5 13 22.4 4 11.8
    4 7 7.6 7 12.1 0 0.0
    5 11 12.0 8 13.8 3 8.8
    Total 92 100.0 58 100.0 34 100.0

  4. Broader market conditions (e.g., level of volatility or stress) that could affect the value of non-reserve HQLA, margin requirements, or other needs

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    1 12 13.2 7 12.3 5 14.7
    2 13 14.3 6 10.5 7 20.6
    3 27 29.7 11 19.3 16 47.1
    4 24 26.4 20 35.1 4 11.8
    5 15 16.5 13 22.8 2 5.9
    Total 91 100.0 57 100.0 34 100.0

  5. Amount of less-stable deposits as a portion of total liabilities

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    1 12 13.3 4 6.9 8 25.0
    2 9 10.0 4 6.9 5 15.6
    3 23 25.6 16 27.6 7 21.9
    4 30 33.3 20 34.5 10 31.3
    5 16 17.8 14 24.1 2 6.3
    Total 90 100.0 58 100.0 32 100.0

  6. Amount of less-stable or shorter-term wholesale liabilities (excluding deposits) as a portion of total liabilities

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    1 13 14.6 8 14.3 5 15.2
    2 17 19.1 9 16.1 8 24.2
    3 24 27.0 15 26.8 9 27.3
    4 26 29.2 17 30.4 9 27.3
    5 9 10.1 7 12.5 2 6.1
    Total 89 100.0 56 100.0 33 100.0

  7. Meeting projected liquidity outflows over a certain window (more than one business day and under normal market conditions)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    1 6 6.5 2 3.4 4 11.8
    2 8 8.7 4 6.9 4 11.8
    3 11 12.0 9 15.5 2 5.9
    4 26 28.3 13 22.4 13 38.2
    5 41 44.6 30 51.7 11 32.4
    Total 92 100.0 58 100.0 34 100.0

  8. Meeting routine intraday payment or settlement needs

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    1 7 7.7 1 1.8 6 17.6
    2 14 15.4 10 17.5 4 11.8
    3 11 12.1 8 14.0 3 8.8
    4 17 18.7 10 17.5 7 20.6
    5 42 46.2 28 49.1 14 41.2
    Total 91 100.0 57 100.0 34 100.0

  9. Relative rate of return between reserves and non-reserve HQLA

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    1 26 28.6 16 28.1 10 29.4
    2 21 23.1 14 24.6 7 20.6
    3 33 36.3 19 33.3 14 41.2
    4 9 9.9 6 10.5 3 8.8
    5 2 2.2 2 3.5 0 0.0
    Total 91 100.0 57 100.0 34 100.0

  10. Relative rate of return between reserves and other investable assets (loans, non-HQLA securities, etc.)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    1 29 31.5 19 32.8 10 29.4
    2 24 26.1 13 22.4 11 32.4
    3 24 26.1 15 25.9 9 26.5
    4 13 14.1 10 17.2 3 8.8
    5 2 2.2 1 1.7 1 2.9
    Total 92 100.0 58 100.0 34 100.0

  11. Lack of depth in late-day funding markets

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    1 23 25.6 12 21.1 11 33.3
    2 12 13.3 3 5.3 9 27.3
    3 20 22.2 15 26.3 5 15.2
    4 18 20.0 13 22.8 5 15.2
    5 17 18.9 14 24.6 3 9.1
    Total 90 100.0 57 100.0 33 100.0

  12. Other (please describe)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    1 2 40.0 0 0.0 2 66.7
    2 0 0.0 0 0.0 0 0.0
    3 1 20.0 1 50.0 0 0.0
    4 1 20.0 1 50.0 0 0.0
    5 1 20.0 0 0.0 1 33.3
    Total 5 100.0 2 100.0 3 100.0

Three respondents provided substantive comments. Most comments were in line with or elaborated on the survey responses but these comments did not have common themes.

Question 7: If your bank prefers to hold additional reserves above LCLOR, please provide an estimate (in $ millions) of the amount of total additional reserves your bank chooses to hold above LCLOR. If your bank does not prefer to hold additional reserves above LCLOR, enter 0.

Additional reserves as percent share of lowest comfortable level of reserves (LCLOR)

  All respondents Domestic Foreign
Banks Percent Banks Percent Banks Percent
0 20 22.0 15 26.3 5 14.7
1–10 6 6.6 3 5.3 3 8.8
11–25 19 20.9 11 19.3 8 23.5
26–50 14 15.4 10 17.5 4 11.8
More than 50 32 35.2 18 31.6 14 41.2
Total 91 100.0 57 100.0 34 100.0

Question 8: How has this value changed since November 2022? (Round to the nearest value; if percent change exceeds the range provided, please select the end of the range.)

Lowest comfortable level of reserves (LCLOR) by depository institution type (percent change since November 2022)

  All respondents Domestic Foreign
Banks Percent Banks Percent Banks Percent
Down more than 50 percent 1 1.1 0 0.0 1 3.0
Down 10–50 percent 2 2.2 1 1.8 1 3.0
Down 10 percent - Up 10 percent 58 65.2 30 53.6 28 84.8
Up 10–50 percent 14 15.7 13 23.2 1 3.0
Up more than 50 percent 14 15.7 12 21.4 2 6.1
Total 89 100.0 56 100.0 33 100.0

Additional reserves by depository institution type (percent change since November 2022)

  All respondents Domestic Foreign
Banks Percent Banks Percent Banks Percent
Down more than 50 percent 0 0.0 0 0.0 0 0.0
Down 10–50 percent 5 7.2 3 7.3 2 7.1
Down 10 percent - Up 10 percent 46 66.7 22 53.7 24 85.7
Up 10–50 percent 6 8.7 4 9.8 2 7.1
Up more than 50 percent 12 17.4 12 29.3 0 0.0
Total 69 100.0 41 100.0 28 100.0

Question 8b: Please explain the rationale for why this level (these levels) has (have) changed.

Forty respondents provided substantive comments. Most respondents provided more context for their bank's LCLOR and additional reserves strategy. Some respondents who noted an increase in their LCLOR and additional reserves level cited banking-sector stress and volatility as the main drivers of this shift.

Question 9: Does your bank allow reserves to fluctuate below its:

LCLOR (Yes/No)

  All respondents Domestic Foreign
Banks Percent Banks Percent Banks Percent
No 71 77.2 45 77.6 26 76.5
Yes 21 22.8 13 22.4 8 23.5
Total 92 100.0 58 100.0 34 100.0

Additional reserves level (Yes/No)

  All respondents Domestic Foreign
Banks Percent Banks Percent Banks Percent
No 15 21.1 8 19.0 7 24.1
Yes 56 78.9 34 81.0 22 75.9
Total 71 100.0 42 100.0 29 100.0

Other reserves target (Yes/No)

  All respondents Domestic Foreign
Banks Percent Banks Percent Banks Percent
No 8 66.7 4 57.1 4 80.0
Yes 4 33.3 3 42.9 1 20.0
Total 12 100.0 7 100.0 5 100.0

Question 9b: Please elaborate on the duration and margin of fluctuation, tolerance for fluctuation, and how these fluctuations are managed internally in terms of governance processes.

Five respondents provided substantive comments, excluding responses of N/A or that specified that there were no additional comments. Most respondents cited holding additional cash balances in light of banking stress.

Part 3: Deposit Rates

Questions in Part 3 ask about deposit pricing strategies—in particular, the degree to which your bank passes through changes in the Federal Reserve policy rate to rates offered on deposits. For the purpose of this section, " deposit beta" is defined as the ratio of the basis point change in your bank's average deposit rates on deposits with maturities of seven days or fewer relative to the basis point change in the target range for the federal funds rate.

Question 10: For each of the deposit categories below, please indicate your bank's cumulative deposit beta from March 2022 through the end of April 2023. For reference, the target range for the federal funds rate over this period increased 475 basis points.

  1. Retail deposits

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    0–20 38 63.3 36 64.3 2 50.0
    21–40 9 15.0 9 16.1 0 0.0
    41–60 4 6.7 3 5.4 1 25.0
    61–80 8 13.3 7 12.5 1 25.0
    81–100 1 1.7 1 1.8 0 0.0
    Total 60 100.0 56 100.0 4 100.0

  2. Wholesale operational deposits

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    0–20 12 19.7 11 25.0 1 5.9
    21–40 13 21.3 13 29.5 0 0.0
    41–60 9 14.8 8 18.2 1 5.9
    61–80 15 24.6 9 20.5 6 35.3
    81–100 12 19.7 3 6.8 9 52.9
    Total 61 100.0 44 100.0 17 100.0

  3. Wholesale non-operational deposits

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    0–20 6 7.9 5 10.6 1 3.4
    21–40 12 15.8 10 21.3 2 6.9
    41–60 20 26.3 19 40.4 1 3.4
    61–80 12 15.8 7 14.9 5 17.2
    81–100 26 34.2 6 12.8 20 69.0
    Total 76 100.0 47 100.0 29 100.0

Question 11: Looking ahead to November 2023, please select your expectations for your bank's cumulative deposit beta since March 2022 for each of the deposit categories below.

  1. Retail deposits

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    0–20 16 26.7 14 25.0 2 50.0
    21–40 27 45.0 27 48.2 0 0.0
    41–60 7 11.7 6 10.7 1 25.0
    61–80 7 11.7 6 10.7 1 25.0
    81–100 3 5.0 3 5.4 0 0.0
    Total 60 100.0 56 100.0 4 100.0

  2. Wholesale operational deposits

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    0–20 6 9.8 5 11.4 1 5.9
    21–40 10 16.4 10 22.7 0 0.0
    41–60 13 21.3 12 27.3 1 5.9
    61–80 18 29.5 13 29.5 5 29.4
    81–100 14 23.0 4 9.1 10 58.8
    Total 61 100.0 44 100.0 17 100.0

  3. Wholesale non-operational deposits

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    0–20 4 5.3 3 6.4 1 3.4
    21–40 8 10.5 7 14.9 1 3.4
    41–60 11 14.5 10 21.3 1 3.4
    61–80 24 31.6 19 40.4 5 17.2
    81–100 29 38.2 8 17.0 21 72.4
    Total 76 100.0 47 100.0 29 100.0

Question 12: Looking ahead to November 2023, please select the rationale that most closely aligns with your bank's strategy for each of the deposit types listed.

  1. Retail

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Beta will be set in order to decrease deposit balances 1 1.7 1 1.8 0 0.0
    Beta will be set in order to maintain deposit balances 28 46.7 26 46.4 2 50.0
    Beta will be set in order to increase deposit balances 31 51.7 29 51.8 2 50.0
    Total 60 100.0 56 100.0 4 100.0

  2. Wholesale non-operational

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Beta will be set in order to decrease deposit balances 1 1.6 1 2.3 0 0.0
    Beta will be set in order to maintain deposit balances 32 52.5 21 47.7 11 64.7
    Beta will be set in order to increase deposit balances 28 45.9 22 50 6 35.3
    Total 61 100.0 44 100.0 17 100.0

  3. Wholesale operational

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    Beta will be set in order to decrease deposit balances 7 9.2 7 14.9 0 0.0
    Beta will be set in order to maintain deposit balances 47 61.8 24 51.1 23 79.3
    Beta will be set in order to increase deposit balances 22 28.9 16 34.0 6 20.7
    Total 76 100.0 47 100.0 29 100.0

Question 13: Have the events of March 2023 influenced your bank's decisionmaking on how it determines and sets its deposit betas?

  All respondents Domestic Foreign
Banks Percent Banks Percent Banks Percent
No 60 65.9 34 58.6 26 78.8
Yes 31 34.1 24 41.4 7 21.2
Total 91 100.0 58 100.0 33 100.0

Question 13b: Please describe how your bank considered these events when determining how to set the aforementioned deposit betas.

Twenty-eight respondents provided substantive comments. Most respondents cited increased competition and pressure to retain deposits as the main drivers for how the events of March 2023 influenced their bank's decisionmaking on setting deposit betas.

Part 4: Federal Reserve Facilities

Questions in Part 4 seek to gather information about the Federal Reserve's discount window and Bank Term Funding Program (BTFP). The BTFP offers loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging any collateral eligible for purchase by the Federal Reserve Banks in open market operations.7 The BTFP was established in March 2023 pursuant to section 13(3) of the Federal Reserve Act, and at the time of survey distribution, BTFP advances could be requested until at least March 1, 2024.

Question 14: With regard to the BTFP, my bank has to date:

  All respondents Domestic Foreign
Banks Percent Banks Percent Banks Percent
Arranged program documentation but not pledged collateral 16 17.4 11 19.0 5 14.7
Pledged collateral but not borrowed 23 25.0 21 36.2 2 5.9
Borrowed from the BTFP 14 15.2 13 22.4 1 2.9
None of the above 39 42.4 13 22.4 26 76.5
Total 92 100.0 58 100.0 34 100.0

Question 15: On a scale of -2 (strongly discourages) to +2 (strongly encourages), please rate the below factors to indicate the contribution each makes to your bank's decisionmaking process when considering whether or not to sign-up for/borrow from the BTFP.

  1. Enrollment process

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 0 0.0 0 0.0 0 0.0
    -1 2 2.2 1 1.7 1 2.9
    0 67 72.8 37 63.8 30 88.2
    1 4 4.3 4 6.9 0 0.0
    2 19 20.7 16 27.6 3 8.8
    Total 92 100.0 58 100.0 34 100.0

  2. Length of available term of funding

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 0 0.0 0 0.0 0 0.0
    -1 1 1.1 1 1.7 0 0.0
    0 35 38.0 22 37.9 13 38.2
    1 28 30.4 17 29.3 11 32.4
    2 28 30.4 18 31.0 10 29.4
    Total 92 100.0 58 100.0 34 100.0

  3. Eligible collateral asset classes

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 2 2.2 1 1.7 1 3.0
    -1 8 8.8 5 8.6 3 9.1
    0 36 39.6 21 36.2 15 45.5
    1 22 24.2 14 24.1 8 24.2
    2 23 25.3 17 29.3 6 18.2
    Total 91 100.0 58 100.0 33 100.0

  4. Collateral market valuation at par

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 0 0.0 0 0.0 0 0.0
    -1 0 0.0 0 0.0 0 0.0
    0 22 23.9 11 19.0 11 32.4
    1 17 18.5 11 19.0 6 17.6
    2 53 57.6 36 62.1 17 50.0
    Total 92 100.0 58 100.0 34 100.0

  5. Collateral margin of 100 percent

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 0 0.0 0 0.0 0 0.0
    -1 0 0.0 0 0.0 0 0.0
    0 36 39.6 21 36.2 15 45.5
    1 14 15.4 9 15.5 5 15.2
    2 41 45.1 28 48.3 13 39.4
    Total 91 100.0 58 100.0 33 100.0

  6. Interest rate

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 0 0.0 0 0.0 0 0.0
    -1 1 1.1 1 1.7 0 0.0
    0 43 46.7 27 46.6 16 47.1
    1 24 26.1 16 27.6 8 23.5
    2 24 26.1 14 24.1 10 29.4
    Total 92 100.0 58 100.0 34 100.0

  7. Ability to refinance loans at lower rate

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 1 1.1 1 1.7 0 0.0
    -1 1 1.1 1 1.7 0 0.0
    0 59 64.1 35 60.3 24 70.6
    1 16 17.4 11 19.0 5 14.7
    2 15 16.3 10 17.2 5 14.7
    Total 92 100.0 58 100.0 34 100.0

  8. Prepayment option

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 0 0.0 0 0.0 0 0.0
    -1 1 1.1 1 1.7 0 0.0
    0 33 35.9 18 31.0 15 44.1
    1 26 28.3 16 27.6 10 29.4
    2 32 34.8 23 39.7 9 26.5
    Total 92 100.0 58 100.0 34 100.0

  9. Availability of FHLB advances

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 16 17.4 15 25.9 1 2.9
    -1 15 16.3 14 24.1 1 2.9
    0 51 55.4 20 34.5 31 91.2
    1 5 5.4 4 6.9 1 2.9
    2 5 5.4 5 8.6 0 0.0
    Total 92 100.0 58 100.0 34 100.0

  10. Availability of the discount window

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 1 1.1 1 1.7 0 0.0
    -1 12 13.0 8 13.8 4 11.8
    0 68 73.9 40 69.0 28 82.4
    1 4 4.3 3 5.2 1 2.9
    2 7 7.6 6 10.3 1 2.9
    Total 92 100.0 58 100.0 34 100.0

  11. Supervisory or regulatory treatment

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 16 17.4 12 20.7 4 11.8
    -1 12 13.0 10 17.2 2 5.9
    0 50 54.3 29 50.0 21 61.8
    1 9 9.8 3 5.2 6 17.6
    2 5 5.4 4 6.9 1 2.9
    Total 92 100.0 58 100.0 34 100.0

  12. Public disclosure of borrower-level advance and data8

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 44 47.8 31 53.4 13 38.2
    -1 22 23.9 14 24.1 8 23.5
    0 21 22.8 10 17.2 11 32.4
    1 4 4.3 2 3.4 2 5.9
    2 1 1.1 1 1.7 0 0.0
    Total 92 100.0 58 100.0 34 100.0

  13. Federal Reserve public communications regarding the BTFP

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 13 14.1 11 19.0 2 5.9
    -1 8 8.7 7 12.1 1 2.9
    0 56 60.9 28 48.3 28 82.4
    1 12 13 9 15.5 3 8.8
    2 3 3.3 3 5.2 0 0.0
    Total 92 100.0 58 100.0 34 100.0

  14. Federal Reserve's recourse to borrowers (beyond collateral)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 8 8.7 5 8.6 3 8.8
    -1 14 15.2 13 22.4 1 2.9
    0 67 72.8 38 65.5 29 85.3
    1 2 2.2 1 1.7 1 2.9
    2 1 1.1 1 1.7 0 0.0
    Total 92 100.0 58 100.0 34 100.0

Question 16: Please add any additional comments regarding the BTFP in the box below.

Forty-four respondents provided comments, excluding responses of N/A or that specified that their bank is not eligible. Most comments elaborated on the survey responses and some respondents specified that public disclosure is a concern for usage. Some respondents also noted that their bank views the program as a good funding source regardless of if the bank has used or anticipates usage of the facility.

Question 17: In March 2020, the Federal Reserve announced changes to the discount window and encouraged depository institutions to use the discount window to meet unexpected funding needs and to support the flow of credit to households and businesses.9 Taking into account developments that have transpired between March 2020 and April 2023, please indicate how your bank's view of the discount window has changed (on net).

  All respondents Domestic Foreign
Banks Percent Banks Percent Banks Percent
Less likely to consider the discount window as a source, regardless of liquidity needs 4 4.3 3 5.2 1 2.9
More likely to consider the discount window as a source to meet liquidity needs 13 14.1 12 20.7 1 2.9
Unchanged 75 81.5 43 74.1 32 94.1
Total 92 100.0 58 100.0 34 100.0

Question 18: On a scale from -2 (strongly discourages) to +2 (strongly encourages), please rate the below factors to indicate the contribution each makes to your bank's decisionmaking process when considering whether or not to sign up for/borrow from the discount window.

  1. Enrollment process

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 1 1.1 1 1.7 0 0.0
    -1 2 2.2 1 1.7 1 2.9
    0 77 83.7 46 79.3 31 91.2
    1 2 2.2 1 1.7 1 2.9
    2 10 10.9 9 15.5 1 2.9
    Total 92 100.0 58 100.0 34 100.0

  2. Length of available term of funding

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 1 1.1 1 1.7 0 0.0
    -1 7 7.6 4 6.9 3 8.8
    0 59 64.1 37 63.8 22 64.7
    1 13 14.1 8 13.8 5 14.7
    2 12 13.0 8 13.8 4 11.8
    Total 92 100.0 58 100.0 34 100.0

  3. Eligible collateral asset classes

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 2 2.2 1 1.7 1 3.0
    -1 2 2.2 1 1.7 1 3.0
    0 44 48.4 25 43.1 19 57.6
    1 18 19.8 14 24.1 4 12.1
    2 25 27.5 17 29.3 8 24.2
    Total 91 100.0 58 100.0 33 100.0

  4. Collateral valuation at market value

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 0 0.0 0 0.0 0 0.0
    -1 10 10.9 6 10.3 4 11.8
    0 64 69.6 42 72.4 22 64.7
    1 6 6.5 3 5.2 3 8.8
    2 12 13.0 7 12.1 5 14.7
    Total 92 100.0 58 100.0 34 100.0

  5. OMO eligible collateral margin of 100 percent

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 0 0.0 0 0.0 0 0.0
    -1 0 0.0 0 0.0 0 0.0
    0 70 76.1 43 74.1 27 79.4
    1 9 9.8 6 10.3 3 8.8
    2 13 14.1 9 15.5 4 11.8
    Total 92 100.0 58 100.0 34 100.0

  6. Interest rate

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 0 0.0 0 0.0 0 0.0
    -1 10 10.9 5 8.6 5 14.7
    0 69 75.0 46 79.3 23 67.6
    1 8 8.7 3 5.2 5 14.7
    2 5 5.4 4 6.9 1 2.9
    Total 92 100.0 58 100.0 34 100.0

  7. Prepayment option

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 0 0.0 0 0.0 0 0.0
    -1 0 0.0 0 0.0 0 0.0
    0 61 66.3 39 67.2 22 64.7
    1 17 18.5 11 19.0 6 17.6
    2 14 15.2 8 13.8 6 17.6
    Total 92 100.0 58 100.0 34 100.0

  8. Availability of BTFP

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 7 7.6 4 6.9 3 8.8
    -1 31 33.7 24 41.4 7 20.6
    0 46 50.0 25 43.1 21 61.8
    1 2 2.2 0 0.0 2 5.9
    2 6 6.5 5 8.6 1 2.9
    Total 92 100.0 58 100.0 34 100.0

  9. Availability of FHLB advances

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 17 18.5 16 27.6 1 2.9
    -1 16 17.4 15 25.9 1 2.9
    0 52 56.5 20 34.5 32 94.1
    1 2 2.2 2 3.4 0 0.0
    2 5 5.4 5 8.6 0 0.0
    Total 92 100.0 58 100.0 34 100.0

  10. Supervisory or regulatory treatment

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 20 21.7 13 22.4 7 20.6
    -1 16 17.4 13 22.4 3 8.8
    0 48 52.2 26 44.8 22 64.7
    1 4 4.3 3 5.2 1 2.9
    2 4 4.3 3 5.2 1 2.9
    Total 92 100.0 58 100.0 34 100.0

  11. Public disclosure of borrower-level advance and data10

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 49 53.3 34 58.6 15 44.1
    -1 20 21.7 11 19.0 9 26.5
    0 19 20.7 11 19.0 8 23.5
    1 3 3.3 1 1.7 2 5.9
    2 1 1.1 1 1.7 0 0.0
    Total 92 100.0 58 100.0 34 100.0

  12. Federal Reserve public communications regarding the discount window

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 15 16.3 13 22.4 2 5.9
    -1 13 14.1 11 19.0 2 5.9
    0 54 58.7 27 46.6 27 79.4
    1 8 8.7 5 8.6 3 8.8
    2 2 2.2 2 3.4 0 0.0
    Total 92 100.0 58 100.0 34 100.0

  13. Federal Reserve's recourse to borrowers (beyond collateral)

      All respondents Domestic Foreign
    Banks Percent Banks Percent Banks Percent
    -2 9 9.8 7 12.1 2 5.9
    -1 13 14.1 10 17.2 3 8.8
    0 66 71.7 38 65.5 28 82.4
    1 3 3.3 2 3.4 1 2.9
    2 1 1.1 1 1.7 0 0.0
    Total 92 100.0 58 100.0 34 100.0

Question 19: Please add any additional comments regarding the discount window in the box below.

Twenty-one respondents provided comments, excluding responses of N/A or that specified that there were no additional comments. Many respondents noted that public perception remains a hurdle for discount window usage at their bank.

Footnotes

1. The survey asked respondents to consider the differences between average values in April 2023 and respondents' expectations for the average values in October 2023. Return to text

2. "Taking action" is defined in the survey as taking active steps to intervene and raise funds to replenish reserves. Return to text

3. For the purpose of this survey, "deposit beta" was defined as the basis point change in a bank's average deposit rate on deposits with maturities of seven days or fewer relative to the basis point change in the target range for the federal funds rate. Return to text

4. For question 1, consider the potential differences between your bank's balance sheet, on average, in April 2023 and your expectation about your bank's balance sheet, on average, in October 2023. Return to text

5. The expected decrease is based on the sum of the medians of dealers' modal expectations for the monthly amount of net purchases of U.S. Treasury securities and agency MBS from the end of March 2023 to the end of September 2023. Return to text

6. Please refer to Regulation WW for high-quality liquid assets (HQLA) definitions. Return to text

7. See "Federal Reserve Board Announces It Will Make Available Additional Funding to Eligible Depository Institutions to Help Assure Banks Have the Ability to Meet the Needs of All Their Depositors," March 12, 2023, https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm. Return to text

8. Under section 11(s) of the Federal Reserve Act, the Federal Reserve will publicly disclose information concerning the program one year after it ends (the program is currently scheduled to end in March 2024). For further details, please consult the Federal Reserve's BTFP FAQs at https://www.federalreserve.gov/financial-stability/files/bank-term-funding-program-faqs.pdf. Return to text

9. See "Federal Reserve Actions to Support the Flow of Credit to Households and Businesses," March 15, 2020, https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315b.htm. Return to text

10. Under provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Federal Reserve provides detailed information about its loans to depository institutions and others. The Federal Reserve releases discount window transaction data quarterly, with an approximately two-year lag. For further details, please see the Federal Reserve's website (https://www.federalreserve.gov). Return to text

Back to Top
Last Update: December 18, 2023