"Year 2000 Readiness Disclosure"
Modification of September 1999 Shifts
In View of Approaching Century Date Change
To All Depository Institutions in the Second Federal Reserve District:
The following is from a statement by the Board of Governors of the Federal Reserve System:
Because of the approaching century date change, the Federal Reserve Board has announced that this year it would not require some depository institutions to shift to more frequent and detailed reporting of their deposits in September.
Normally, institutions may be required to switch to a new reporting category each September, depending on growth in their level of deposits and reservable liabilities. The Federal Reserve collects deposit data - either weekly, quarterly, or annually - in order to administer reserve requirements and measure the money supply. In general, the larger the institution, the more detailed and more frequent is its reporting.
This year, in effect, deposit reporting requirements for most institutions will be frozen, thus reducing the need for depository institutions to modify their data processing systems as the century change approaches. The Board and other supervisory agencies required institutions to have their data processing systems ready for the century change by June 30 and to manage any subsequent changes in their systems with great care.
One exception to the freeze in changes to the deposit-reporting schedule applies to institutions that will become subject to reserve requirements this year because of growth in their reservable liabilities. Those institutions will be required to report quarterly on form FR 2900. (For some of these institutions, deposit growth normally would require weekly reporting.) This exception is necessary because of the Board's responsibility to administer reserve requirements.
In addition, institutions that usually would have been required to shift from annual to quarterly reporting (for institutions exempt from reserve requirements) and from quarterly to weekly reporting (for institutions subject to reserve requirements) can instead remain in the less-frequent reporting category for the coming year.
Finally, depository institutions that qualify to shift to a less burdensome reporting category may do so. Such downshifts are never compulsory.
In September 2000, the procedures for adjusting institutions' deposit-reporting schedules will revert to the usual practice.
Affected depository institutions will be notified by their Federal Reserve Bank.
The Board's official notice, as published in the Federal Register of July 21, 1999 is available as a file. Questions on this matter may be directed, at this Bank, to Debra Kuntz, Staff Director, Deposit Reports Division.