FR2046_20230228_omb

Supporting Statement for the
Selected Balance Sheet Items for Discount Window Borrowers
(FR 2046; OMB No. 7100-0289)
Summary
The Board of Governors of the Federal Reserve System (Board), under authority
delegated by the Office of Management and Budget (OMB), has extended for three years,
without revision, the Selected Balance Sheet Items for Discount Window Borrowers (FR 2046;
OMB No. 7100-0289). The Board’s Regulation A - Extensions of Credit by Federal Reserve
Banks (12 CFR Part 201) requires that Reserve Banks review balance sheet data in determining
whether to extend credit and to help ascertain whether undue use is made of such credit. Balance
sheet data are collected on the FR 2046 report from certain institutions that borrow from the
discount window in order to monitor discount window borrowing.
The estimated total annual burden for the FR 2046 is 90 hours. The forms and
instructions are available on the Board’s public website at
https://www.federalreserve.gov/apps/reportingforms.
Background and Justification
The Board’s Regulation A establishes rules under which Federal Reserve Banks may
extend credit to depository institutions and defines three basic lending programs: primary credit,
secondary credit, and seasonal credit. The FR 2046 is only mandatory when requested by a
Reserve Bank and a Reserve Bank may request that the FR 2046 be provided in connecton with
any of the three lending programs. Primary credit is designed as a back-up funding source to
assist depository institutions in meeting very short-term needs (usually overnight). Secondary
credit is designed as a back-up funding source for depository institutions that do not qualify for
primary credit. Such credit may be provided to meet temporary funding needs of an institution if
such a credit extension would be consistent with the institution’s timely return to a reliance on
market funding sources, or if such credit would facilitate the orderly resolution of serious
financial difficulties of the borrowing institution. Seasonal credit is designed to assist smaller
institutions in meeting longer-term funding needs arising from regular intra-year patterns in
deposits and loans. Regulation A requires that Reserve Banks ensure that the borrower’s funding
need is truly seasonal in nature and that it will persist for at least four weeks.1 Seasonal credit is
provided at an interest rate that is based on market rates.
There are cases in which discount window borrowing might be considered inappropriate
and inconsistent with the Board’s Regulation A. For example, using the primary or secondary
credit programs as a primary funding source, or using seasonal credit to meet a non -seasonal
funding need, would be considered inappropriate. To guard against such situations, Regulation A
(12 CFR 201.3(c)(2)-(3)) requires Reserve Banks to consider the balance sheet information of
borrowers in determining whether to extend credit and to ensure that any credit provided is used
for an appropriate purpose. In 1998, the Subcommittee on Credit, Reserves, and Risk
Management (SCRRM) requested standardized data reporting for discount window monitoring
1

12 CFR 201.4(c)(1).

as part of its broader effort to promote greater uniformity across the Federal Reserve System in
the administration of the discount window.2 There had been considerable variation across the
twelve Federal Reserve Districts in the specific data elements collected, in the time periods for
which data were requested, and in the formats in which data were reported. The implementation
of the FR 2046 report standardized these aspects of data collection across Reserve Banks and, in
many cases, reduced reporting burden relative to that under the previous data reporting
procedures. The FR 2046 report and instructions have undergone a number of revisions since
1998.3
In practice, the FR 2046 report is primarily used to assess appropriate use of seasonal
credit. Although seasonal credit is provided at a market-related rate, borrowers may still find the
rate charged on seasonal credit attractive relative to the rates they would be charged for
comparable credit arrangements from market sources. Therefore, while borrowing at the discount
window, seasonal borrowers must agree to limit their net federal funds sales to an amount
consistent with their usual operating pattern. 4 The information obtained on federal funds sold and
purchased on the FR 2046 is used by discount officers to assess whether a seasonal borrower’s
position in the federal funds market is consistent with normal operations.
Similarly, information on a seasonal borrower’s total assets, loans, securities and deposits
is used to monitor whether seasonal credit loans are being used for the program’s intended
purpose. Total loans and total deposits are used in monitoring a seasonal credit borrower’s net
funds availability (defined as total deposits less total loans) during the period of borrowing.
Historical data on net funds availability is a key variable used in establishing an institution ’s
seasonal credit line. Discount officers monitor net funds availability during the period of
borrowing to ensure that an institution’s actual funding need during the year is consistent with its
seasonal credit line. Many seasonal credit borrowers, for example, exhibit a marked increase in
their loan portfolios over the first three quarters in each year, reflecting increased agricultural
credit demands. Later in the year, loan demand at these banks subsides as farmers sell their crops
and repay their outstanding bank loans with the proceeds. Deviations from this typical pattern
might indicate that seasonal credit was being used inappropriately. For example, if a seasonal
borrower’s total loans increased only modestly during the year while its securities portfolio
expanded sharply, discount officers might contact the institution to verify whether it remained
eligible for the seasonal credit program.
Seasonal credit is typically extended over lengthy periods, and the borrower’s funding
need is expected to change slowly over the term of the borrowing. Therefore, Reserve Banks can
obtain an adequate picture of a borrower’s balance sheet trends by collecting only one day of
data per week. In cases where seasonal credit is extended to institutions in marginal financial
condition, increased monitoring of the borrower is required, and daily data may b e collected at
the Reserve Bank’s discretion.
2

This subcommittee is now known as SCRM (Subcommittee on Credit Risk Management). SCRM is a
subcommittee of the Conference of Presidents of the Federal Reserve Banks’ Committee on Credit and Risk
Management.
3
See 75 FR 33807 (June 15, 2010) (describing revisions being implemented); 78 FR 28846 (May 16, 2013)
(describing proposed revisions); and 78 FR 44952 (July 25, 2013) (implementing proposed revisions).
4
See S-Letter 2487, March 1985.

2

Secondary credit borrowers are not in generally sound condition and are subject to a
higher level of administration by the lending Reserve Bank. 5 For example, if the loan is
requested for a reason other than to cover an unexpected overdraft, the borrower is not allowed
to increase its net exposure to other depository institutions—such as by selling federal funds—
without permission. The FR 2046 data are not routinely collected from secondary credit
borrowers, as adequate information on the need for funding and the reason for borrowing from
the Federal Reserve is usually available from other sources, such as direct contacts with banking
regulators. The FR 2046 report may be required if the Reserve Bank becomes concerned about
the frequency or size of the institution’s borrowing. Secondary credit is generally extended for
one day at a time; therefore, daily data are necessary to capture the borrower’s balance sheet
trends.6
Description of Information Collection
Table 1, below, lists the data items on the FR 2046 report. All data are reported for the
borrower’s domestic offices only and reported in thousands of dollars. The data elements include
the amounts of total securities, federal funds sold and securities purchased under agreements to
resell, total loans, total assets, total deposits, and federal funds purchased and securities sold
under agreements to repurchase.
Seasonal credit borrowers generally must submit FR 2046 reports for each two-week
period in which a borrowing is outstanding, and report daily data for Wednesdays only.7
Seasonal credit borrowers that already report total securities, federal funds sold and resale
agreements, total loans, total deposits, and total assets weekly on the Weekly Report of Selected
Assets and Liabilities of Domestically Chartered Commercial Banks and U.S. Branches and
Agencies of Foreign Banks (FR 2644; OMB No. 7100-0075) do not need to provide these data
on the FR 2046.
If requested by a Reserve Bank, primary or secondary credit borrowers report daily data
for the week requested.

5

12 CFR 201.4(b).
Primary credit borrowers are in generally sound financial condition and, as noted above, there is usually little or no
administrative burden on their borrowing, so the FR 2046 will usually not be collected from them. However, the
FR 2046 may be required from a primary credit borrower in very unusual circumstances, such as frequent borrowing
or if there is information to suggest that undue use is being made of the credit. In these cases, information on federal
funds sold and purchased (including resale and repurchase agreements, respectively) would be important in
identifying situations in which an institution might be attempting to substitute borrowing at the discount window for
its normal market sources of funding. In addition, information on total assets, loans, deposits, and securities could be
used to assess the borrower’s funding need or use of the credit. Because primary credit is extended for very short
terms, daily data are necessary to capture the borrower’s balance sheet trends.
7
As noted earlier, in cases where increased monitoring of a seasonal credit borrower is required, daily data may be
collected at the Reserve Bank’s discretion.
6

3

Table 1 - Data Items on the FR 2046

Type of
Credit

Primary
or
Secondary

Data Elements

Qualifications

Definition Source*

Total securities

None

Call Report /
NCUA 5300

Federal funds sold and resale
agreements

None

Call Report

Total loans

All

None

Call Report /
NCUA 5300
Call Report /
NCUA 5300
Call Report /
NCUA 5300

Total assets

None

Total deposits

None

Federal funds purchased and
repurchase agreements
(exclude FRB borrowings)

None

Call Report

When not reported on
FR 2644
When not reported on
FR 2644
When not reported on
FR 2644
When not reported on
FR 2644
When not reported on
FR 2644

Call Report /
NCUA 5300
Call Report

Total securities
Federal funds sold and resale
agreements
Total loans
Seasonal

Days of
Report
Period for
which Data
are Provided

Total assets
Total deposits

Wednesday
only
Wednesday
only
Wednesday
only
Wednesday
only
Wednesday
only

FR 2644 or Call
Report / NCUA 5300
Call Report /
NCUA 5300
Call Report /
NCUA 5300
Call Report

Federal funds purchased and
Wednesday
repurchase agreements
None
only
(exclude FRB borrowings)
* Source of definition:
Call Reports = U.S. commercial bank Consolidated Reports of Condition and Income (FFIEC 031, FFIEC 041,
and FFIEC 051; OMB No. 7100-0036) or Report of Assets and Liabilities of U.S. Branches and
Agencies of Foreign Banks (FFIEC 002; OMB No. 7100-0032)
NCUA 5300 = Statement of Financial Condition (NCUA 5300; OMB No. 3133-0004)
FR 2644 = Weekly Report of Selected Assets and Liabilities of Domestically Chartered Commercial Banks
and U.S. Branches and Agencies of Foreign Banks (FR 2644; OMB No. 7100-0075)

Data Content
As shown in Table 2, below, the definitions of the data items “total assets,” “total
securities,” “total loans,” and “total deposits” correspond to relevant definitions of these data
items in the quarterly Call Reports filed by each type of institution.8
Most institutions that borrow at the discount window are banks and hence file the
commercial bank Call Reports (FFIEC 031, FFIEC 041, and FFIEC 051). Thus, these definitions
8

For U.S. branches and agencies of foreign banks that file a consolidated condition report, it is likely that discount
officers would request FR 2046 data for the particular branch that borrows.

4

should be familiar to the vast majority of discount window borrowers. Moreover, the commercial
bank Call Report definitions are fully adequate for discount window monitoring purposes; they
include federal funds purchased and sold on an overnight basis or rolled over daily under a
continuing contract and also include most overnight and term funding under repurchase
agreements, the instruments that are likely alternative market sources of short-term funds for
most discount window borrowers.
Table 2 - Definitions of Securities, Loans, Assets, and Deposits on the FR 2046

FR 2046
data item

Total
securities

U.S. commercial banks and others:

U.S. branches and agencies of
foreign banks:

Credit unions:

FFIEC 031

FFIEC 041

FFIEC 051

FFIEC 002 9

NCUA 5300

Schedule RC
Balance Sheet,
Domestic office
portion of:
+ Held-tomaturity securities, item 2.a
+ Available-forsale debt securities, item 2.b
+ Equity
securities with
readily
determinable
fair values not
held for trading,
item 2.c
+ Trading
assets, item 5

Schedule RC
Balance Sheet
+ Held-tomaturity securities, item 2.a
+ Available-forsale debt securities, item 2.b
+ Equity
securities with
readily
determinable
fair values not
held for trading,
item 2.c
+ Trading
assets, item 5

Schedule RC
Balance Sheet
+ Held-tomaturity securities, item 2.a
+ Available-forsale debt securities, item 2.b
+ Equity
securities with
readily
determinable fair
values not held
for trading, item
2.c
+ Trading assets,
item 5

Schedule RAL Assets and Liabilities ,
Assets
+ U.S. Treasury securities,
item 1.b.(1)
+ U.S. government agency
obligations, item 1.b.(2)
+ Securities of foreign governments
and official institutions, item 1.c.(1),
Col. A minus Col. B
+ Mortgage-backed securities issued
or guaranteed by U.S. Govt.
agencies, item 1.c.(2)(a), Col. A
minus Col. B
+ Other mortgage-backed securities,
item 1.c.(2)(b), Col. A minus Col. B
+ Other asset-backed securities, Item
1.c.(3), Column A minus Column B
+ All other bonds, notes, debentures,
and corporate stock (including state
and local securities), Item 1.c.(4),
Column A minus Column B
+ Trading assets, U.S. Treasury and
Agency securities, item 1.f.(1), Col.
A minus Col. B
+ Trading assets: Mortgage-backed
securities issued or guaranteed by
U.S. Govt. agencies, item 1.f.(2)(a),
Col. A minus Col. B
+ Trading assets: Other mortgagebacked securities, item 1.f.(2)(b),
Col. A minus Col. B
+ Trading assets: Other asset-backed
securities, item 1.f.(3), Col. A minus
Col. B
+ Trading assets: Other securities ,
item 1.f.(4), Col. A minus Col. B
+ Trading assets: Other trading
assets, item 1.f.(5), Col. A minus
Col. B

Statement of Financial
Condition, Assets,
Investments:
+Trading Debt Securities,
item 7
+Available-for-Sale Debt
Securities, item 8
+Held-to-Maturity Debt
Securities, item 9

Excluding transactions of the reporting institution’s own International Banking Facilities (IBFs) with nonrelated
parties and related depository institutions.
9

5

FR 2046
data item

U.S. commercial banks and others:

U.S. branches and agencies of
foreign banks:

Credit unions:

FFIEC 031

FFIEC 041

FFIEC 051

FFIEC 002 9

NCUA 5300

Total
loans

Schedule RC-C
Loans and Lease
Financing
Receivables,
Part I. Total
loans and leases
held for
investment and
held for sale,
Column B, item
12

Schedule RC-C
Loans and Lease
Financing
Receivables,
Part I. Total
loans and leases
held for
investment and
held for sale,
Column B, item
12

Schedule RC-C
Loans and Lease
Financing
Receivables,
Part I. Total
loans and leases
held for
investment and
held for sale,
item 12

Schedule RAL Assets and Liabilities,
Assets, Loans and leases held for
investment and held for sale, item
1.e, Col. A minus Col. B

Statement of Financial
Condition, Assets,
Investments, Total
Loans & Leases,
item 15, amount

Total
assets

Schedule RC-H
Selected Balance Sheet Items
for Domestic
Offices
+ Net due from
own foreign
offices, Edge
and agreement
subsidiaries, and
IBFs, item 6
+ Total assets
(excludes net
due from own
foreign offices,
Edge and
agreement
subsidiaries, and
IBFs), item 8

Schedule RC
Balance Sheet,
Total Assets,
item 12

Schedule RC
Balance Sheet,
Total Assets,
item 12

Schedule RAL Assets and Liabilities,
Assets, Total Assets, item 3, Col. A
minus Col. B

Statement of
Financial Condition,
Assets, Total Assets,
item 23

Total
deposits

Schedule RC
Balance Sheet,
Deposits in
domestic offices,
item 13.a

Schedule RC
Balance Sheet,
Deposits in
domestic
offices, item
13.a

Schedule RC
Balance Sheet,
Deposits in
domestic
offices,
item 13.a

Schedule RAL Assets and Liabilities,
Liabilities, Total deposits and credit
balances, item 4.a, Col. A minus
Col. B

Statement of Financial
Condition, Liabilities,
Shares/Deposits, Total
shares and deposits,
item 7

Reporting Panel
Any depository institution that maintains reservable deposits is eligible to borrow at the
discount window. Approximately 10,200 depository institutions are eligible to borrow at the
discount window, including domestic insured commercial banks, insured savings banks, savings
and loan associations, insured credit unions, U.S. branches and agencies of foreign banks, and
others.10 However, in any given week, only a relatively small number of depositories borrow from
the discount window. 11

10

12 CFR 201.2(c).
From 2019 to 2021, the weekly number of primary credit borrowers ranged from 15 to 300, and the weekly
number of secondary credit borrowers ranged from 0 to 3.
11

6

As noted above, the FR 2046 report is usually not collected from primary credit
borrowers, and it is not routinely collected from secondary credit borrowers if necessary
information is available from other sources. The reporting panel consists almost entirely of
institutions that borrow seasonal credit. The number of seasonal credit borrowers varies
considerably over the year and has been less than 100 in any given week since 2007, even during
peak borrowing months.
Frequency
When borrowing seasonal credit, institutions must submit the FR 2046 for each week of
any reserve maintenance period—a 14-day period that begins on a Thursday and ends on a
Wednesday during which a depository institution must hold reserve balances to meet Federal
Reserve reserve balance requirements 12—in which the institution had an outstanding seasonal
credit loan on one or more days. For example, if an institution borrows on each day of a reserve
maintenance period, Reserve Banks collect the FR 2046 twice: once for data from first week of
the reporting period and a second time for data from the second week of the reporting period. If
an institution borrowed only during the first week of the maintenance period (or only during the
second week), the FR 2046 is still collected for each of the two weeks of that maintenance period.
Reserve Banks indicate to the borrowers the dates for which FR 2046 data are required.
If requested by a Reserve Bank, primary and secondary credit borrowers would submit a
weekly report that covers the five business days of daily data for the week ending on Wednesday.
Time Schedule for Information Collection
Depository institutions file the FR 2046 by the Wednesday following the end of the
reporting week. Generally, Reserve Banks receive the data via electronic transmission to the
discount window or statistics department.
Public Availability of Data
No data collected by this information collection are published.
Legal Status
The FR 2046 report is authorized pursuant to sections 4(8), 10B, and 19(b)(7) of the
Federal Reserve Act (FRA) (12 U.S.C. §§ 301, 347b, and 461(b)(7)), which authorize Federal
Reserve Banks to provide discounts or advances to a member bank or other depository institution
and to demand notes secured to the satisfaction of each Reserve Bank, and authorize the Board to
establish rules and regulations under which a Reserve Bank may extend such credit. 13
12

12 CFR 204.5(b)(1)-(2).
Section 142 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (Pub. L. 102 -242, Title I,
Subtitle E, § 142 (December 19, 1991)), amended section 10B of the FRA (12 U.S.C. § 347b(b)) to discourage
Reserve Banks from making advances to undercapitalized and critically undercapitalized depository institutions by
imposing liability on the Board for certain losses incurred by the funds administered by the Federal Deposit
Insurance Corporation. See 58 FR 45851 (August 31, 1993).
13

7

Specifically, section 4(8) of the FRA requires each Reserve Bank to keep itself informed of the
general character and amount of the loans and investments of a depository institution “with a
view to ascertaining whether undue use is being made of bank credit,” and instructs that, “in
determining whether to grant or refuse advances, rediscounts, or other credit accommodations,
the Federal [R]eserve [B]ank shall give consideration to such information.” Section 10B of the
FRA permits Federal Reserve Banks to make advances to member banks “under rules and
regulations prescribed by the Board.” Section 19(b)(7) of the FRA provides that any depository
institution that holds reservable deposits is entitled to the same discount and borrowing
privileges as member banks.
In addition, section 9(6) of the FRA (12 U.S.C. § 324), which requires state member
banks to file reports of condition and of the payment of dividends with the Federal Reserve,
provides authority to collect balance sheet information from state member banks. Sections 2A
and 11 of the FRA (12 U.S.C. §§ 225a, 248(a)(2), and 248(i)), respectively, as well as section
7(c)(2) of the International Banking Act of 1978 (12 U.S.C. § 3105(c)(2)), authorize the Board to
collect balance sheet data from domestically chartered commercial banks and U.S. branches and
agencies of foreign banks. If requested by the lending Reserve Bank, a depository institution that
borrowed from the discount window must submit the FR 2046 report. Accordingly, the
obligation to respond is mandatory.
The Federal Reserve publishes aggregate data on discount window lending, which does
not identify individual borrowers. In addition, the Dodd-Frank Wall Street Reform and
Consumer Protection Act requires the Board to publish certain information on individual
discount window borrowers and transactions (i.e., the identity of the borrower, the amount that
was borrowed, the interest rate, and the types and amounts of collateral or assets pledged) after
an approximately two year lag. 14 The FR 2046 report is considered confidential until the fact that
the institution borrowed from the discount window is disclosed. Until this point, the fact that this
report was filed would constitute nonpublic commercial or financial information, which is both
customarily and actually treated as private by the respondent, because it would reveal the fact of
discount window borrowing, as only borrowers are required to file this form. Thus, this
information is kept confidential under exemption 4 of the Freedom of Information Act (FOIA)
(5 U.S.C. § 552(b)(4)), which protects from disclosure “trade secrets and commercial or financial
information obtained from a person and privileged or confidential.” Once the fact that an
institution borrowed from the discount window is disclosed, the FR 2046 report is no longer
considered confidential in the event a FOIA request is received.
Consultation Outside the Agency
There has been no consultation outside the agency.
Public Comments
On October 13, 2022, the Board published an initial notice in the Federal Register (87
FR 62098) requesting public comment for 60 days on the extension, without revision, of the
FR 2046. The comment period for this notice expired on December 12, 2022. The Board did not
14

See 12 U.S.C. § 248(s).

8

receive any comments. The Board adopted the extension, without revision, of the FR 2046 as
originally proposed. On February 28, 2023, the Board published a final notice in the Federal
Register (88 FR 12681).
Estimates of Respondent Burden
As shown in the table below, the estimated total annual burden of the FR 2046 is 90
hours. Because the report is event-generated, it is not possible to predict exactly how many
reports will be filed in a given year. As a result, the estimate of respondent burden is based on
recent historical discount window borrowing frequencies. As noted above, the FR 2046 data
usually are not collected from primary credit borrowers, and are not routinely collected from
secondary credit borrowers if necessary information is available from other sources. Therefore,
only a nominal burden is expected for these programs. The estimated number of respondents and
annual frequency for the seasonal credit program is based on borrowing activity in 2019 through
2021. The estimated average hours per response of 0.75 hours for primary and secondary credit
borrowers is attributed to the collection of daily data. The estimated average hours per response
of 0.25 hours for seasonal credit borrowers is attributed to the collection of weekly (Wednesday)
data. These reporting requirements represent less than 1 percent of the Board’s total paperwork
burden.

FR 2046
Primary and
Secondary Credit
Seasonal Credit
Seasonal Credit, borrower in
questionable financial
condition 16
Total

Estimated
number of
respondents15

Estimated
annual
frequency

Estimated
Estimated
average hours annual burden
per response
hours

1

1

0.75

1

32

11

0.25

88

1

1

0.75

1
90

The estimated total annual cost to the public for the FR 2046 is $5,441.17

15

Of these respondents, 32 are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $850 million in total assets), https://www.sba.gov/document/support-table-size-standards.
There are no special accommodations given to mitigate the burden on small institutions.
16
As noted above, in very unusual circumstances, a Reserve Bank may collect daily data on the FR 2046 from
seasonal credit borrowers in questionable financial condition.
17
Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $21, 45% Financial Managers at
$74, 15% Lawyers at $71, and 10% Chief Executives at $102). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor Statistics (BLS), Occupational Employment and Wages,
May 2021, published March 31, 2022, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined
using the BLS Standard Occupational Classification System, https://www.bls.gov/soc/.

9

Sensitive Questions
This collection of information contains no questions of a sensitive nature, as defined by
OMB guidelines.
Estimate of Cost to the Federal Reserve System
The ongoing annual cost of the FR 2046 is estimated to be $29,600 based on an estimate
of 20 minutes of staff time per filed report, plus 1 hour per Reserve Bank for weekly processing
(including panel maintenance, report generation, and report analysis), at $4 0 per hour. The data
are not subject to extensive editing or other manipulation and are not submitted to the Board of
Governors.

10