Statement of Governor Michelle W. Bowman on the proposal to expand the Report of Selected Money Market Rates (FR 2420)

October 11, 2024

The Board is proposing to require daily reporting by smaller banks for information related to Federal Home Loan Bank (FHLB) advances. The proposal does not provide sufficient justification for this burdensome information collection. Currently, a subset of information about FHLB advances is reported on a daily basis, but only by the largest banks as part of their FR 2052a reporting requirements. Smaller banks report some aggregate information related to FHLB advances on a much less frequent basis—either monthly or quarterly.

I am concerned that the frequency and granularity of this proposal will impose significant compliance burdens on smaller banks. This new proposed requirement would effectively expand the scope of reported FHLB activity and push down requirements for the largest banks to much smaller institutions. I strongly encourage commenters to closely examine and provide detailed feedback on this proposal.