Board of Governors of the Federal Reserve System

Background

In September 2024, the Federal Reserve conducted a Senior Financial Officer Survey (SFOS) to systematically gather views from a representative sample of banks on their reserve balance management strategies and practices, their expectations for potential changes in both the size and composition of their balance sheets, their deposit pricing strategies, and their views regarding Federal Reserve facilities.

The September SFOS was distributed to senior financial officers at 100 banks, representing a wide range of asset sizes and business models, on September 20, 2024, with replies due by October 4, 2024. This summary includes responses from 97 banks, comprising 61 domestic banks and 36 foreign banking organizations. In aggregate, respondents held over 80 percent of total reserve balances in the banking system at the time of the survey.

Part 1: Questions about Reserves and Balance Sheet Management

(Questions 1–4)

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

• More than two-thirds of respondents reported that their bank expects the size of its balance sheet to remain roughly unchanged (plus or minus 2 percent) over the next six months. More than one-fifth of respondents reported that their bank expects the size of its balance sheet to increase over the same period.¹
• When asked about their bank's strategy regarding balance sheet management, around one-third of respondents indicated that their bank expects to take actions intended to increase, or limit the decline in, the size of its balance sheet and around one-third of respondents indicated that their bank expects to take actions intended to maintain the current size of its balance sheet.
• For each of the 10 liability categories, excluding respondents who reported "Not applicable (N/A)," a plurality of respondents indicated that their bank is not expecting a level change (plus or minus 2 percent) over the next six months. More than one-fifth of respondents reported slight increases (more than 2 percent and less than or equal to 5 percent) in retail deposits over the next six months, while more than 10 percent of respondents reported anticipated decreases of greater than 5 percent in brokered retail deposits/brokered retail certificates of deposit (CDs).
• For all of the asset categories except "other securities," more than half of respondents, excluding respondents who reported "Not applicable (N/A)," indicated that their bank is not expecting a change in the level of that asset over the next six months. For the "other securities" category, approximately half of respondents indicated that they do not have this asset type.

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

• A majority of respondents that participated in this survey and the previous survey in March 2024 reported no change to their LCLOR estimate.
• Of the respondents who reported that their bank prefers to hold additional reserves above its LCLOR (hereafter, additional reserves), over half reported that their bank's preferred additional reserves level is equal to or less than 50 percent of their LCLOR. One-fifth of respondents reported that their bank does not have an additional reserves amount. As with LCLOR estimates, a majority of respondents reported no change in their bank's additional reserves since the previous survey in March 2024.
• Respondents who reported an increase or decrease in their bank's LCLOR since the March 2024 survey cited changes in retail deposit outflow assumptions or changes to broader market conditions as somewhat important factors in affecting that change. For respondents reporting a change in their bank's additional reserves level since the March 2024 survey, changes to broader market conditions were again rated as a somewhat important factor in affecting the change.
• When asked about their bank's recent reserve management strategy over the past few months, just more than one-third of respondents reported that their bank has taken actions intended to maintain the current amount of reserves, while just less than one-third of respondents reported that their bank has taken limited or no actions intended to affect the amount of its reserves.
• Respondents whose bank's average daily reserve balances over the past few months were above preferred reserve levels (the sum of its reported LCLOR and additional reserves) rated the relative or risk-adjusted rate of return between reserves and other assets as a very important or somewhat important factor resulting in their bank holding reserves above that level. Holding reserves to earn the spread between interest on reserves and overnight borrowings was rated as very or somewhat important.
• When asked about how their bank's reserve strategy would change given hypothetical changes in the level of overnight interest rates relative to the interest rate on reserve balances (IORB), a majority of respondents reported that, under each rate scenario, their bank's reserve management strategy would likely be the same as it has been over the past few months. Respondents were then asked to provide an approximate forecast of their bank's reserve balances under those same interest rate scenarios. For the interest rate scenarios where the constellation of overnight interest rates relative to IORB was 2 basis points and 4 basis points higher than it was over the past month, a majority of respondents forecast a reserve level that was unchanged from their bank's recent reserve level for both scenarios. When the constellation of overnight interest rates was, relative to IORB, 6 basis points and 8 basis points higher than it was over the past month, about 40 percent of respondents reported a reserve level that was unchanged from their bank's recent reserve level, and around one-third of respondents, concentrated among respondents from foreign banks, reported a reserve level that was 1 to 25 percent lower than their bank's recent reserve level.
• Respondents who indicated that their bank would be likely to adjust its reserve management strategy to (further) decrease, or limit the growth in, its reserves in at least one of the interest rate scenarios were asked about their bank's most likely action. Respondents were roughly split between those who reported that their bank would change the composition of assets by decreasing reserves and those who reported that their bank would reduce the size of its balance sheet by decreasing liabilities. Responses diverged by bank type, with domestic banks being more likely to take actions to change the composition of assets and foreign banks being more likely to reduce liabilities.

Part 3: Questions about Deposit Rates

(Questions 10–11)

The questions in Part 3 asked respondents about their bank's outlook for cumulative deposit betas through March 2025.³

• When asked about the rationale that most closely aligns with their bank's deposit rate-setting strategy, a majority of respondents across all three deposit types (retail deposits, wholesale operational deposits, and wholesale non-operational deposits) reported that betas will be set to maintain deposit balances.

Part 4: Questions about Federal Reserve Facilities and Intraday Credit

(Questions 12–16)

The questions in Part 4 asked respondents about their bank's views regarding the discount window and intraday credit. Respondents for banks with Bank Term Funding Program (BTFP) advances outstanding at the time of the survey were also asked about their bank's expected actions upon the maturity of these advances.

• When asked to rate their bank's willingness to borrow from the discount window in several scenarios, respondents, on average, reported that their banks would be somewhat unwilling to borrow from the discount window in each of the scenarios. Among the scenarios provided, the average rating for banks' willingness to borrow was highest (i.e., more willing to borrow) in the two scenarios where other funding sources became more expensive than the primary credit rate due to firm-specific stress or due to marketwide stress.
• Respondents were asked to rate the burden associated with several operational requirements or features of the discount window or the Federal Reserve's provision of intraday credit. Respondents rated the operational burden between minimal and moderate, on average. Respondents who rated any of the provided features as somewhat burdensome, burdensome, or very burdensome were asked to elaborate on their ratings. Of respondents who provided an answer, just less than half mentioned various aspects of the process for pledging or withdrawing loans as collateral. Some respondents also characterized submitting legal documents to their Federal Reserve Bank as a burdensome process.
• When asked about the cumulative effect of the burden associated with discount window operational requirements and features, three-fourths of respondents reported that the burden does not negatively affect their bank's willingness to maintain or increase preparedness to borrow from the discount window.
• Respondents whose bank had outstanding BTFP advances at the time of the survey were asked about their bank's expected actions when those advances mature. The most commonly reported actions were borrowing from a Federal Home Loan Bank and paying off a BTFP advance before its scheduled maturity without replacing funding.

This document was prepared by Samantha Carmean-Adams, Courtney Demartini, Elizabeth Ellis, Lyle Kumasaka, Matthew Malloy, and Nicole Trachman, Division of Monetary Affairs, Board of Governors of the Federal Reserve System; and Sean Fulmer, Brian Gowen, Jonathan Hill, Natalie Leonard, Dina Marchioni, Jason Miu, and Zack Youngblood, 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: Balance Sheet Management

Questions in Part 1 ask about your bank's expectations for balance sheet management over the next six months. For context, the results of the July 2024 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 to decrease by approximately $200 billion from the end of September 2024 through the end of March 2025. 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 repurchase agreement (repo) balances.

Question 1: Looking ahead over the next six months, which statement best characterizes your bank's expectations for the size of its balance sheet? My bank expects the size of its balance sheet to: (select one)

Question 2: Looking ahead over the next six months, which statement best characterizes your bank's most likely strategy regarding its balance sheet? My bank expects to: (select one)

Question 3: 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 in September 2024 compared with the average level in March 2025 in the context of your previous responses. My bank expects the level will: (select one; if your bank does not have the liability type, and does not intend to over the next six months, please select "Remain roughly unchanged.")

1. Retail deposits

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	4	4.1	4	6.6	0	0.0
   Increase more than 2 percent and less than or equal to 5 percent	21	21.6	21	34.4	0	0.0
   Remain roughly unchanged	34	35.1	30	49.2	4	11.1
   Decrease more than 2 percent and less than or equal to 5 percent	4	4.1	4	6.6	0	0.0
   Decrease more than 5 percent	1	1.0	1	1.6	0	0.0
   N/A	33	34.0	1	1.6	32	88.9
   Total	97	100.0	61	100.0	36	100.0

2. Wholesale operational deposits

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	1	1.0	1	1.6	0	0.0
   Increase more than 2 percent and less than or equal to 5 percent	16	16.5	11	18.0	5	13.9
   Remain roughly unchanged	43	44.3	33	54.1	10	27.8
   Decrease more than 2 percent and less than or equal to 5 percent	4	4.1	3	4.9	1	2.8
   Decrease more than 5 percent	0	0.0	0	0.0	0	0.0
   N/A	33	34.0	13	21.3	20	55.6
   Total	97	100.0	61	100.0	36	100.0

3. Wholesale non-operational deposits

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	1	1.0	0	0.0	1	2.8
   Increase more than 2 percent and less than or equal to 5 percent	14	14.4	11	18.0	3	8.3
   Remain roughly unchanged	55	56.7	30	49.2	25	69.4
   Decrease more than 2 percent and less than or equal to 5 percent	3	3.1	2	3.3	1	2.8
   Decrease more than 5 percent	3	3.1	3	4.9	0	0.0
   N/A	21	21.6	15	24.6	6	16.7
   Total	97	100.0	61	100.0	36	100.0

4. Deposits in reciprocal deposit placement networks

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	2	2.1	2	3.3	0	0.0
   Increase more than 2 percent and less than or equal to 5 percent	6	6.2	6	9.8	0	0.0
   Remain roughly unchanged	87	89.7	51	83.6	36	100.0
   Decrease more than 2 percent and less than or equal to 5 percent	2	2.1	2	3.3	0	0.0
   Decrease more than 5 percent	0	0.0	0	0.0	0	0.0
   N/A	0	0.0	0	0.0	0	0.0
   Total	97	100.0	61	100.0	36	100.0

5. Federal Home Loan Bank (FHLB) advances

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	10	10.3	10	16.4	0	0.0
   Increase more than 2 percent and less than or equal to 5 percent	5	5.2	5	8.2	0	0.0
   Remain roughly unchanged	29	29.9	29	47.5	0	0.0
   Decrease more than 2 percent and less than or equal to 5 percent	6	6.2	6	9.8	0	0.0
   Decrease more than 5 percent	7	7.2	7	11.5	0	0.0
   N/A	40	41.2	4	6.6	36	100.0
   Total	97	100.0	61	100.0	36	100.0

6. Overnight unsecured borrowings (for example, federal funds, Eurodollars, etc.)

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	0	0.0	0	0.0	0	0.0
   Increase more than 2 percent and less than or equal to 5 percent	4	4.1	2	3.3	2	5.6
   Remain roughly unchanged	89	91.8	57	93.4	32	88.9
   Decrease more than 2 percent and less than or equal to 5 percent	3	3.1	2	3.3	1	2.8
   Decrease more than 5 percent	1	1.0	0	0.0	1	2.8
   N/A	0	0.0	0	0.0	0	0.0
   Total	97	100.0	61	100.0	36	100.0

7. Commercial paper (CP) or institutional/negotiable certificates of deposit (CDs)

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	4	4.1	2	3.3	2	5.6
   Increase more than 2 percent and less than or equal to 5 percent	6	6.2	0	0.0	6	16.7
   Remain roughly unchanged	78	80.4	53	86.9	25	69.4
   Decrease more than 2 percent and less than or equal to 5 percent	4	4.1	2	3.3	2	5.6
   Decrease more than 5 percent	5	5.2	4	6.6	1	2.8
   N/A	0	0.0	0	0.0	0	0.0
   Total	97	100.0	61	100.0	36	100.0

8. Brokered retail deposits/brokered retail CDs

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	5	5.2	5	8.2	0	0.0
   Increase more than 2 percent and less than or equal to 5 percent	11	11.3	9	14.8	2	5.6
   Remain roughly unchanged	27	27.8	25	41.0	2	5.6
   Decrease more than 2 percent and less than or equal to 5 percent	8	8.2	8	13.1	0	0.0
   Decrease more than 5 percent	13	13.4	13	21.3	0	0.0
   N/A	33	34.0	1	1.6	32	88.9
   Total	97	100.0	61	100.0	36	100.0

9. Short-term repos

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	3	3.1	2	3.3	1	2.8
   Increase more than 2 percent and less than or equal to 5 percent	3	3.1	1	1.6	2	5.6
   Remain roughly unchanged	87	89.7	54	88.5	33	91.7
   Decrease more than 2 percent and less than or equal to 5 percent	0	0.0	0	0.0	0	0.0
   Decrease more than 5 percent	4	4.1	4	6.6	0	0.0
   N/A	0	0.0	0	0.0	0	0.0
   Total	97	100.0	61	100.0	36	100.0

10. Fed facilities (discount window, standing repo facility)

    	All respondents		Domestic		Foreign
    	Banks	Percent	Banks	Percent	Banks	Percent
    Increase more than 5 percent	0	0.0	0	0.0	0	0.0
    Increase more than 2 percent and less than or equal to 5 percent	0	0.0	0	0.0	0	0.0
    Remain roughly unchanged	92	94.8	56	91.8	36	100.0
    Decrease more than 2 percent and less than or equal to 5 percent	0	0.0	0	0.0	0	0.0
    Decrease more than 5 percent	5	5.2	5	8.2	0	0.0
    N/A	0	0.0	0	0.0	0	0.0
    Total	97	100.0	61	100.0	36	100.0

Question 4: This question asks about changes to the projected level of different assets on your bank's balance sheet. For each of the asset categories listed, please indicate your bank's expectation about the potential change in the average level in September 2024 compared with the average level in March 2025 in the context of your previous responses. My bank expects the level will: (select one; please select "N/A" only if your bank does not or cannot have the asset type)

1. Reserve balances

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	3	3.1	2	3.3	1	2.8
   Increase more than 2 percent and less than or equal to 5 percent	7	7.2	6	9.8	1	2.8
   Remain roughly unchanged	63	64.9	32	52.5	31	86.1
   Decrease more than 2 percent and less than or equal to 5 percent	9	9.3	8	13.1	1	2.8
   Decrease more than 5 percent	15	15.5	13	21.3	2	5.6
   N/A	0	0.0	0	0.0	0	0.0
   Total	97	100.0	61	100.0	36	100.0

2. Federal funds sold

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	0	0.0	0	0.0	0	0.0
   Increase more than 2 percent and less than or equal to 5 percent	0	0.0	0	0.0	0	0.0
   Remain roughly unchanged	56	57.7	43	70.5	13	36.1
   Decrease more than 2 percent and less than or equal to 5 percent	1	1.0	1	1.6	0	0.0
   Decrease more than 5 percent	0	0.0	0	0.0	0	0.0
   N/A	40	41.2	17	27.9	23	63.9
   Total	97	100.0	61	100.0	36	100.0

3. Reverse repo

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	2	2.1	0	0.0	2	5.6
   Increase more than 2 percent and less than or equal to 5 percent	2	2.1	1	1.6	1	2.8
   Remain roughly unchanged	69	71.1	44	72.1	25	69.4
   Decrease more than 2 percent and less than or equal to 5 percent	0	0.0	0	0.0	0	0.0
   Decrease more than 5 percent	1	1.0	1	1.6	0	0.0
   N/A	23	23.7	15	24.6	8	22.2
   Total	97	100.0	61	100.0	36	100.0

4. Loans

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	9	9.3	5	8.2	4	11.1
   Increase more than 2 percent and less than or equal to 5 percent	35	36.1	24	39.3	11	30.6
   Remain roughly unchanged	50	51.5	30	49.2	20	55.6
   Decrease more than 2 percent and less than or equal to 5 percent	1	1.0	1	1.6	0	0.0
   Decrease more than 5 percent	1	1.0	1	1.6	0	0.0
   N/A	1	1.0	0	0.0	1	2.8
   Total	97	100.0	61	100.0	36	100.0

5. Level 1 high-quality liquid assets (HQLA) securities

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	10	10.3	6	9.8	4	11.1
   Increase more than 2 percent and less than or equal to 5 percent	20	20.6	15	24.6	5	13.9
   Remain roughly unchanged	56	57.7	30	49.2	26	72.2
   Decrease more than 2 percent and less than or equal to 5 percent	7	7.2	6	9.8	1	2.8
   Decrease more than 5 percent	3	3.1	3	4.9	0	0.0
   N/A	1	1.0	1	1.6	0	0.0
   Total	97	100.0	61	100.0	36	100.0

6. Level 2 HQLA securities

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	3	3.1	1	1.6	2	5.6
   Increase more than 2 percent and less than or equal to 5 percent	10	10.3	9	14.8	1	2.8
   Remain roughly unchanged	62	63.9	38	62.3	24	66.7
   Decrease more than 2 percent and less than or equal to 5 percent	8	8.2	8	13.1	0	0.0
   Decrease more than 5 percent	2	2.1	2	3.3	0	0.0
   N/A	12	12.4	3	4.9	9	25.0
   Total	97	100.0	61	100.0	36	100.0

7. Other securities

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Increase more than 5 percent	2	2.1	1	1.6	1	2.8
   Increase more than 2 percent and less than or equal to 5 percent	1	1.0	1	1.6	0	0.0
   Remain roughly unchanged	37	38.1	29	47.5	8	22.2
   Decrease more than 2 percent and less than or equal to 5 percent	4	4.1	4	6.6	0	0.0
   Decrease more than 5 percent	4	4.1	4	6.6	0	0.0
   N/A	49	50.5	22	36.1	27	75.0
   Total	97	100.0	61	100.0	36	100.0

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 began taking active steps to maintain or increase its reserve balances. "Active steps" could include, but are not limited to, borrowing in the federal 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 LCLOR your bank would feel comfortable holding before it "takes active steps" to maintain or increase its reserve balance position?

Question 6: If your bank prefers to hold additional reserves above its LCLOR, please provide an estimate of the amount of preferred additional reserves.

Question 7: Please rate on a scale of 1 (not important) to 5 (very important) the factors that affected the change in your bank's LCLOR and/or additional reserves level since March 2024. (Please select "N/A" only if the factor does not apply to your bank.)

1. LCLOR

   Factors driving change	Average rating (all)	Average rating (dom)	Average rating (fore)
   A. Changes in retail deposit outflow assumptions	3.0 (n = 21)	3.2 (n = 19)	1.5 (n = 2)
   B. Changes in wholesale liability outflow assumptions	2.3 (n = 22)	2.1 (n = 15)	2.6 (n = 7)
   C. Changes in assumptions regarding off-balance-sheet exposures (for example, outflows related to credit and liquidity facilities, unconsolidated net outflows related to derivative exposures and other collateral requirements)	2.3 (n = 23)	2.3 (n = 16)	2.1 (n = 7)
   D. Changes in assumptions for routine intraday payment or settlement needs	2.1 (n = 28)	2.1 (n = 19)	2.1 (n = 9)
   E. Changes in capacity to access liquidity in the market using non-reserve HQLA or other securities	1.7 (n = 28)	1.6 (n = 19)	2.0 (n = 9)
   F. Changes in capacity to access liquidity through Federal Reserve facilities like the standing repo facility (SRF), Bank Term Funding Program (BTFP), or discount window	1.7 (n = 28)	1.7 (n = 19)	1.7 (n = 9)
   G. Changes in capacity to access liquidity via FHLB advances	1.8 (n = 19)	1.8 (n = 18)	1.0 (n = 1)
   H. Changes in composition or level of liabilities	2.6 (n = 28)	2.3 (n = 19)	3.3 (n = 9)
   I. Changes in composition or level of assets	2.6 (n = 28)	2.3 (n = 19)	3.4 (n = 9)
   J. Changes in composition or level of off-balance-sheet exposures	1.5 (n = 24)	1.3 (n = 17)	1.9 (n = 7)
   K. Changes to balance sheet interest rate risk/ duration of equity	1.6 (n = 28)	1.7 (n = 19)	1.2 (n = 9)
   L. Changes to broader market conditions (for example, level of volatility or stress)	2.8 (n = 28)	2.7 (n = 19)	2.9 (n = 9)
   M. Changes in the relative rate of return between reserves and other assets	1.9 (n = 28)	1.8 (n = 19)	2.1 (n = 9)
   N. Changes to aggregate, banking system reserve levels	1.7 (n = 28)	1.7 (n = 19)	1.7 (n = 9)

   Note: n is used to represent the total number of respondents

2. Additional reserves

   Factors driving change	Average rating (all)	Average rating (dom)	Average rating (fore)
   A. Changes in retail deposit outflow assumptions	2.5 (n = 15)	2.7 (n = 13)	1.5 (n = 2)
   B. Changes in wholesale liability outflow assumptions	2.6 (n = 19)	2.7 (n = 12)	2.6 (n = 7)
   C. Changes in assumptions regarding off-balance-sheet exposures (for example, outflows related to credit and liquidity facilities, unconsolidated net outflows related to derivative exposures and other collateral requirements)	2.1 (n = 19)	2.1 (n = 12)	2.0 (n = 7)
   D. Changes in assumptions for routine intraday payment or settlement needs	2.2 (n = 21)	2.4 (n = 14)	2.0 (n = 7)
   E. Changes in capacity to access liquidity in the market using non-reserve HQLA or other securities	2.0 (n = 21)	2.1 (n = 14)	1.7 (n = 7)
   F. Changes in capacity to access liquidity through Federal Reserve facilities like the standing repo facility (SRF), BTFP, or discount window	2.0 (n = 21)	2.2 (n = 14)	1.6 (n = 7)
   G. Changes in capacity to access liquidity via FHLB advances	2.1 (n = 14)	2.2 (n = 13)	1.0 (n = 1)
   H. Changes in composition or level of liabilities	2.5 (n = 21)	2.4 (n = 14)	2.9 (n = 7)
   I. Changes in composition or level of assets	2.5 (n = 21)	2.4 (n = 14)	2.9 (n = 7)
   J. Changes in composition or level of off-balance-sheet exposures	1.7 (n = 19)	1.6 (n = 12)	1.9 (n = 7)
   K. Changes to balance sheet interest rate risk/ duration of equity	1.5 (n = 21)	1.6 (n = 14)	1.3 (n = 7)
   L. Changes to broader market conditions (for example, level of volatility or stress)	2.8 (n = 21)	2.8 (n = 14)	2.9 (n = 7)
   M. Changes in the relative rate of return between reserves and other assets	1.9 (n = 28)	1.8 (n = 19)	2.1 (n = 9)
   N. Changes to aggregate, banking system reserve levels	1.8 (n = 21)	1.8 (n = 14)	1.9 (n = 7)

   Note: n is used to represent the total number of respondents

Question 8: Which of the following statements best characterizes your bank's recent reserve management strategy over the past few months? (select one)

Note: Question 8a was only shown to banks whose average daily reserve balances over the past few months had been higher than the sum of the LCLOR plus preferred additional reserves as reported in Questions 5 and 6.

Question 8a: Please rate on a scale of 1 (not important or not applicable) to 5 (very important) the factors that have resulted in your bank holding reserves above its LCLOR plus preferred additional reserves.

Sixteen respondents elaborated on the factors that have resulted in their bank holding reserves above LCLOR plus preferred additional reserves. Most respondents provided more context for their bank's reserves strategy but these responses did not have a common theme.

Question 9a: For each hypothetical change in the level of overnight interest rates relative to the interest rate on reserve balances (IORB) shown in basis points (bps):

Please enter the letter corresponding to how your bank's reserve strategy would change relative to your bank's reserve strategy in the past few months as reported in Question 8.

Scenario 1: Relative to IORB, the constellation of overnight interest rates is 2 bps higher than it was over the past month

Scenario 2: Relative to IORB, the constellation of overnight interest rates is 4 bps higher than it was over the past month

Scenario 3: Relative to IORB, the constellation of overnight interest rates is 6 bps higher than it was over the past month

Scenario 4: Relative to IORB, the constellation of overnight interest rates is 8 bps higher than it was over the past month

Question 9b: For each hypothetical change in the level of overnight interest rates relative to the interest rate on reserve balances (IORB) shown in bps:

Please provide an approximate forecast of your bank's reserve balance in millions of dollars.

Scenario 1: Relative to IORB, the constellation of overnight interest rates is 2 bps higher than it was over the past month

Scenario 2: Relative to IORB, the constellation of overnight interest rates is 4 bps higher than it was over the past month

Scenario 3: Relative to IORB, the constellation of overnight interest rates is 6 bps higher than it was over the past month

Scenario 4: Relative to IORB, the constellation of overnight interest rates is 8 bps higher than it was over the past month

Note: Question 9c was only shown to banks that indicated that they would be likely to adjust their reserve management strategy to (further) decrease, or limit the growth in, its reserves in at least one of the above interest rate scenarios in Question 9a.

Question 9c: Please select your bank's most likely action:

Six respondents provided comments, excluding responses of N/A, but these responses did not have common themes.

Part 3: Deposit Rates

Questions in Part 3 ask about deposit pricing strategies.

Question 10: Looking ahead over the next six months, please select the rationale that most closely aligns with your bank's deposit rate-setting strategy for each of the deposit types listed. (select one)

1. Retail deposits

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Rate will be set to increase deposit balances	22	34.4	21	35.0	1	25.0
   Rate will be set to maintain deposit balances	41	64.1	38	63.3	3	75.0
   Rate will be set to decrease deposit balances	1	1.6	1	1.7	0	0.0
   Total	64	100.0	60	100.0	4	100.0

2. Wholesale operational deposits

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Rate will be set to increase deposit balances	11	17.2	9	18.8	2	12.5
   Rate will be set to maintain deposit balances	51	79.7	37	77.1	14	87.5
   Rate will be set to decrease deposit balances	2	3.1	2	4.2	0	0.0
   Total	64	100.0	48	100.0	16	100.0

3. Wholesale non-operational deposits

   	All respondents		Domestic		Foreign
   	Banks	Percent	Banks	Percent	Banks	Percent
   Rate will be set to increase deposit balances	6	7.9	6	13.0	0	0.0
   Rate will be set to maintain deposit balances	63	82.9	33	71.7	30	100.0
   Rate will be set to decrease deposit balances	7	9.2	7	15.2	0	0.0
   Total	76	100.0	46	100.0	30	100.0

Question 11: Please provide any additional information relevant to your bank's deposit strategy in the context of your bank's expectations for overnight interest rates over the next six months.

Fifty-seven respondents provided comments, excluding responses of N/A or that specified that there were no additional comments. Some respondents reported that they expect that their bank will decrease deposit betas alongside their expectation for overnight rates to decline. Other respondents reported that overnight rates will have little or no impact on their deposit strategy and cited other factors such as loans.

Part 4: Federal Reserve Facilities and Intraday Credit

Question 12: Please characterize your bank's willingness to borrow discount window primary credit under its existing terms in each of the following situations, on a scale of 1 (very unwilling to borrow) to 5 (very willing to borrow).

Question 13: How would you characterize the operational burden associated with the following operational requirements or features of the discount window or the Federal Reserve's provision of intraday credit, on a scale of 1 (minimal burden) to 5 (significant burden)?

Question 14: If you rated any of the discount window or intraday credit requirements or features in Question 13 as 3, 4, or 5, please describe the nature and/or extent of the operational burden.

Fifty-nine respondents provided substantive comments. Numerous respondents noted specific operational burdens connected with pledging or withdrawing loans as collateral. Many respondents expanded on the burden associated with submitting legal documents to their Federal Reserve Bank.

Question 15: Which of the following statements best characterizes the cumulative effect of the burden associated with discount window operational requirements or features on your bank's willingness to maintain or increase preparedness to borrow from the discount window? ("Preparedness to borrow" may include having pledged collateral or borrowing for test purposes.)

Note: Question 16 was only shown to banks with BTFP advances outstanding.

Question 16: Which of the following options characterize your bank's expected actions when its BTFP advances mature? I expect my bank will: (select up to three likely actions)

Footnotes