By Jeff Bater
Nov. 17 — A banking industry group is urging the Federal Reserve to give big lenders more time to adapt to proposed changes for a form used by the regulator to gather information for the Comprehensive Capital Analysis and Review (CCAR) exercise process.
The Financial Services Roundtable (FSR) said the FR Y-14 forms are complex and that the group wants to ensure the Fed receives quality data. In a letter commenting on proposed Fed changes to the FR Y-14, the group pressed regulators to allow banks at least six months to adapt to any new information requirements pertaining to the form in order to ensure the accuracy of the information submitted.
Data collected through the FR Y-14 forms is used as part of the CCAR and stress testing processes for 33 banks. Estimates collected by the Roundtable from banks indicate the Fed's projections vastly underestimate the time necessary to complete the FR Y-14 forms, according to the industry group.
“The Federal Reserve's own burden projections estimate it takes banks more than 700,000 total industry employee hours to submit the requested data,” the FSR said in a news release. “On average, banks report needing 170,000 hours each to collect, prepare, and submit the requested information. This translates into a total regulatory burden of 5.6 million hours for the 33 banks (the equivalent of 2,800 full-time employees).”
The Roundtable also urged the Fed to re-evaluate its burden projections for the FR Y-14 forms and reduce the number of changes associated with its information requests.
“Since the inception of this process, the Board has made regular changes to the schedules,” the FSR wrote in the comment letter. “Each change, no matter how minor, adds to the reporting burden of respondents. Each change requires a respondent to manually modify data collection procedures or recode systems. More importantly, frequent changes impair the quality of the data and prevent the maturation of this reporting requirement.”
The FSR is also asking the Fed to take steps to improve communication channels with banks, correct inconsistencies that exist within the form, and improve the Fed's process for accepting and reviewing FR Y-14 data.
The group said the Fed continues to make changes to the FR Y-14 form, while “setting tight deadlines for data submission.” It said the ability of banks to prepare and submit accurate data is “vitally important as the Fed is increasingly reliant on stress testing to measure the strength of the financial system.”
To contact the reporter on this story: Jeff Bater in Washington at email@example.com
To contact the editor on this story: Mike Ferullo in Washington at firstname.lastname@example.org
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)