Comments sought on new call report items to monitor funding stability of sweep deposits

Comments are sought on a proposal issued jointly by the three federal banking agencies that would add items to call reports to help evaluate the funding stability of sweep deposits over time, according to a Financial Institution Letter (FIL) from the Federal Deposit Insurance Corp. (FDIC).

The aim of this evaluation is to determine appropriate treatment of such funds under liquidity regulations, it said, and to assess risk factors associated with sweep deposits for determining any implications for deposit insurance assessments.

The FDIC, Federal Reserve, and Office of the Comptroller of the Currency (OCC), according to a Federal Register notice, are requesting comment on revisions to the reporting forms and instructions for the Call Reports and the FFIEC 002 “related to the exclusion of sweep deposits and certain other deposits from reporting as brokered deposits, as indicated by the agencies in the Net Stable Funding Ratio (NSFR) final rule and by the FDIC in its Final Rule on Brokered Deposits and Interest Rate Restrictions (brokered deposits final rule), respectively.” The agencies, it states, are also proposing revisions to the Call Report and FFIEC 002 instructions addressing brokered deposits to align them with the brokered deposits final rule.

Comments are due April 6 on the proposed changes, which would take effect as of the June 30, 2021, report date.

The agencies propose to add, beginning with the June 30 call reports, five new data items for sweep deposits to Schedule RC-E, Deposit Liabilities on the three versions of the Call Report (FFIEC 031, FFIEC 041, and FFIEC 051). Also proposed are four new data items for sweep deposits from retail customers or counterparties to Schedule RC-E, Deposit Liabilities that would be reported by institutions with $100 billion or more in total assets on the FFIEC 031 report form.

FDIC FIL-11-2021

Federal Register notice

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