FR2034_20220712_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 partially ad hoc 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 f inancing and over-thecounter 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.
The Board therefore 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. In 2010, the Federal Reserve implemented the 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 are respondents to the

FR 2018, the FR 2034 targets respondents representing activities not conducted solely in a bank,
but rather in several different legal entities, focused on the consolidated entity.
Given the Board’s interest in financial stability, the information this survey collects is
critical to the monitoring of credit markets and capital market activity. Information from the
survey is also considered by the Federal Open Market Committee (FOMC) as it sets monetary
policy.
Universe and Respondent Selection
The FR 2034 panel consists of up to 25 U.S. banking institutions and U.S. branches and
agencies of foreign banks, the majority of which are affiliated with a Primary Government
Securities Dealer;1 however, other types of respondents, such as other depository institutions,
bank holding companies, or other financial entities, may be surveyed when appropriate. With
respect to respondents that are primary dealers, the panel includes each primary dealer’s
consolidated entity, rather than the dealer itself. 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 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. The Board tabulates and summarizes the data in a public release, which is made
available on the Board’s website. 2 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 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
There is no testing of procedures.

1

A list of the current Primary Dealers in Government Securities is available at
https://www.newyorkfed.org/markets/primarydealers.html.
2
See https://www.federalreserve.gov/data/scoos.htm.

2