FR2034_20190726_omb_B

Supporting Statement B for the
Senior Credit Officer Opinion Survey on Dealer Financing Terms
(FR 2034; OMB No. 7100-0325)
Summary
For all information collections that involve surveys or require a statistical methodology,
the Board of Governors of the Federal Reserve System (Board) is required to provide a complete
justification and explanation of the use of the methodology. For collections that employ surveys
without a statistical methodology, the Board should be prepared to justify its decision not to use
statistical methods in any case in which such methods might reduce burden or improve accuracy
of results.
This survey collects qualitative and limited quantitative information from senior credit
officers at responding financial institutions on (1) stringency of credit terms, (2) credit
availability and demand across the entire range of securities financing and over-the-counter
derivatives transactions, and (3) the evolution of market conditions and conventions applicable to
such activities. The FR 2034 survey will be conducted quarterly, along with the Senior Loan
Officer Opinion Survey on Bank Lending Practices (FR 2018; OMB No. 7100-0058). The
survey contains 79 core questions divided into three broad sections, as well as additional
questions on topics of timely interest.
Background
The FR 2034 survey is modeled after the long-established Senior Loan Officer Opinion
Survey on Bank Lending Practices (FR 2018), which provides qualitative information on
changes in the supply of, and demand for, bank loans to businesses and households. The
information obtained from the FR 2018, which has been conducted in different forms since 1964,
provides valuable insights on developments in the credit market and banking developments and
informs the formulation of monetary policy.
This information has been particularly valuable in recent years because it has provided
the Board with insight into the effects of financial conditions on the availability of credit to
households and businesses. However, the global financial crisis highlighted that a significant
volume of credit intermediation has moved outside of the traditional banking sector, which is the
primary focus of the FR 2018. In addition, some of the instruments that are commonly used in
connection with such intermediation (including for the financing of securities positions and overthe-counter derivatives) may have functioned as transmission mechanisms for financial distress
during the crisis by connecting together seemingly separate parts of the financial system. For
these reasons, the monetary policy responsibilities of the Board and the Board’s role in
promoting and maintaining the stability of the financial system,1 the Board decided to expand the
collection of qualitative information on the availability of credit and leverage beyond the
traditional banking sector to the extension of credit by dealers.2
1

For example, as a member of the Financial Stability Board formed at the behest of the G-20 Finance Ministers and
Central Bank Governors.
2
The Group of Twenty (G-20) consists of finance ministers and central bank governors from 19 systemically

On March 30, 2010, the Federal Reserve implemented FR 2034 to facilitate the regular
collection and analysis of information representing the informed judgment of market participants
on these additional forms of credit extension. Unlike the large domestically-chartered
commercial banks and branches and agencies of foreign banks that make up the pool of
respondents targeted by the FR 2018, this survey targets respondents of a different and smaller
subset of market participants, representing activities not conducted solely in a bank, but in
several different legal entities, focused on the consolidated entity.
Universe and Respondent Selection
The activities that are the focus of the adopted Senior Credit Officer Opinion Survey may
be conducted by large financial institutions through multiple business units. For example, a
significant volume of securities financing may be conducted from a prime brokerage platform,
but this does not preclude similar activities from also occurring on trading desks in order to make
markets in the securities being financed or on centralized securities financing desks. Similarly,
over-the-counter derivative transactions may occur on dedicated equity volatility or interest rate
derivatives desks that are primarily engaged in derivatives transactions, but also may occur in
entities that trade both derivatives and cash such as corporate credit or commodities units.
The panel of up to 25 firms includes, with respect to respondents that are primary dealers,
the consolidated entities affiliated thereof. Respondents may also include institutions that, while
not primary dealers, play a significant role in over-the-counter derivatives or securities financing
activities.
Procedures for Collecting Information
The FR 2034 is voluntary. The survey is conducted once each quarter by the Statistics
Function of the Federal Reserve Bank of New York. The Statistics Function electronically
transmits the survey responses to the Board, where the data are tabulated and summarized in a
public release, which is made available on the Board’s website. In addition, selected aggregate
survey results may be discussed in Governor’s speeches, and may be published in Federal
Reserve Bulletin articles and in the annual Monetary Policy Report to the Congress.
Methods to Maximize Response
A respondent may decline to answer a particular question when answering would entail
excessive burden. Experience has shown that only a small number of respondents decline to
answer any particular question. Response rates overall have been high and resulted in adequate
and informative answers.
Testing of Procedures
None.

important industrial and developing countries plus the European Union, who convene regularly to consider key
issues related to global economic stability.

2