Senior Financial Officer Surveys

R E S E A R C H & A N A LY S I S

Senior Financial Officer
Survey Results
March 2024

B O A R D O F G OV E R N O R S O F T H E
F E D E R A L R E S E RV E S Y S T E M

The Federal Reserve System is the central
bank of the United States. It performs five key
functions to promote the effective operation
of the U.S. economy and, more generally, the
public interest.
The Federal Reserve
■ conducts the nation’s monetary policy to promote maximum employment
and stable prices in the U.S. economy;
■ promotes the stability of the financial system and seeks to minimize
and contain systemic risks through active monitoring and engagement in
the U.S. and abroad;
■ promotes the safety and soundness of individual financial institutions
and monitors their impact on the financial system as a whole;
■ fosters payment and settlement system safety and efficiency through
services to the banking industry and U.S. government that facilitate
U.S.-dollar transactions and payments; and
■ promotes consumer protection and community development through
consumer-focused supervision and examination, research and analysis of
emerging consumer issues and trends, community economic development
activities, and administration of consumer laws and regulations.
To learn more about us, visit www.federalreserve.gov/aboutthefed.htm.

i

Contents
Background ....................................................................................................................... 1
Part 1: Questions about Reserves and Balance Sheet Management ...................................... 1
Part 2: Questions about Preferred Reserve Levels ................................................................ 2
Part 3: Questions about Deposit Rates ................................................................................ 3

Results ............................................................................................................................... 5
Part 1: Balance Sheet Management .................................................................................... 5
Part 2: Preferred Reserve Levels ....................................................................................... 14
Part 3: Deposit Rates ....................................................................................................... 20

1

Background
In March 2024, the Federal Reserve conducted a Senior Financial Officer Survey (SFOS) to systematically gather views from a representative sample of banks on their reserve balance management
strategies and practices, their deposit pricing strategies, and their expectations for changes in
both the size and composition of their balance sheets.
The March SFOS was distributed to senior financial officers at 98 banks, representing a wide
range of asset sizes and business models, on March 22, 2024, with replies due by April 5, 2024.
This summary includes responses from 92 banks, comprising 59 domestic banks and 33 foreign
banking organizations. In aggregate, respondents held more than three-fourths of total reserve balances in the banking system at the time of the survey.

Part 1: Questions about Reserves and Balance Sheet Management
(Questions 1–4)
The questions in Part 1 asked respondents about their bank’s balance sheet strategy and its
expectations for changes to the levels of various liability and asset categories over the next
six months.
• Over two-thirds of respondents reported that their bank expects the size of its balance sheet to
remain roughly unchanged (plus or minus 2 percent) over the next six months. Just over onefifth of respondents reported that their bank expects the size of its balance sheet to increase
over the same time period.1
• When asked about their bank’s strategy regarding balance sheet management, a plurality of
respondents indicated that their bank expects to take actions intended to maintain the current
size of its balance sheet. Just under one-third of respondents reported that their bank expects
to take actions intended to increase, or limit the decline in, its balance sheet.
• For each of the 10 liability categories, excluding respondents who reported “Not Applicable
(N/A),” a plurality of respondents indicated that their bank is not expecting a level change (plus
or minus 2 percent) over the next six months.
• For all asset categories except for loans, more than half of respondents, excluding respondents
who reported N/A, indicated that their bank is not expecting a change in the level of that asset
over the next six months. For the loans category, respondents were roughly split between those

1

The survey asked respondents to consider the differences between average values in March 2024 and their expectations
for average values in September 2024.

2

Senior Financial Officer Survey Results

reporting that their bank expects the level to remain roughly unchanged and those reporting that
their bank expects an increase of more than 2 percent and less than or equal to 5 percent.
• When asked about their bank’s strategy regarding the same set of asset categories, a plurality
of respondents reported that their bank expects to take actions to maintain the level of reserve
balances, Level 1 high-quality liquid assets (HQLA), and Level 2 HQLA. A plurality of respondents
reported that their bank expects to take no actions on the level of federal funds sold, reverse
repurchase agreements (repos), or other securities. Just under half of respondents reported
that their bank expects to take actions to increase or limit the decline in the level of loans.

Part 2: Questions about Preferred Reserve Levels
(Questions 5–10)
The questions in Part 2 asked respondents about their bank’s lowest comfortable level of
reserves (LCLOR), which is defined in the survey as the lowest dollar level of reserves that their
bank would feel comfortable holding before taking actions to maintain or increase its reserve
balances.2
• A majority of respondents reported a LCLOR estimate that was unchanged from their LCLOR
estimate on the previous survey.
• Of respondents who reported that their bank prefers to hold additional reserves above its
LCLOR, hereafter “additional reserves,” over half reported that their bank’s preferred additional
reserves level is equal to 11 to 50 percent of their LCLOR. Most of the remaining respondents
reported a number that was more than 50 percent of their bank’s LCLOR. Just under one-fourth
of respondents reported that their bank does not have an additional reserves amount.
• Respondents who reported an increase or decrease in their bank’s LCLOR since the September 2023 survey most commonly listed changes to broader market conditions, changes in
retail deposit outflow assumptions, and changes in the composition or level of liabilities as
somewhat important factors in affecting that change. For respondents reporting a change in
their bank’s additional reserves level since the September 2023 survey, changes to broader
market conditions and changes in retail deposit outflow assumptions were again rated as somewhat important factors in affecting the change.
• Respondents whose bank’s average daily reserve balances were above the sum of its reported
LCLOR and additional reserves most commonly reported that their bank has either taken
actions to maintain the current amount of reserves or has taken limited or no actions intended
to affect the amount of its reserves. These respondents also reported the relative or riskadjusted rate of return between reserves and other assets as a somewhat important factor that
has resulted in their bank holding reserves above its LCLOR plus additional reserves.
2

“Taking action” is defined in the survey as taking active steps to intervene and raise funds to replenish reserves.

Background

• When asked about the smallest spread, persisting for less than one week, above the interest
rate on reserve balances (IORB) at which their bank would consider substituting reserves for
other assets, respondents commonly reported smaller spreads for overnight foreign exchange
swaps and Treasury securities, with overnight reverse repo, overnight USD deposits, and overnight federal funds sold typically at a higher spread. When asked the same question if the
spread to IORB were to persist for one to four weeks or one to three months, respondents
reported similar spreads for all assets except for overnight reverse repo, for which respondents
reported smaller spreads for the two longer time horizons.
• When asked about the likelihood that their bank would pursue certain actions if it had a funding
need for one day, respondents most commonly rated the following actions as likely: increase
advances from Federal Home Loan Banks (FHLB), borrow in secured funding markets (repo), and
borrow in federal funds/Eurodollar markets. If their bank had a funding need for 30 days,
respondents most commonly rated the following actions as very likely or likely: increase
advances from FHLBs, borrow via brokered deposits/brokered certificate of deposit (CD), issue
commercial paper/CD, and borrow in secured funding markets (repo).

Part 3: Questions about Deposit Rates
(Questions 11–14)
The questions in Part 3 asked respondents about their bank’s cumulative deposit betas from
March 2022 to March 2024 and its outlook for cumulative deposit betas through September 2024.3
• Respondents who take retail deposits as part of their bank’s regular course of business
reported, on average, cumulative retail deposit betas of 40 percent from March 2022 to
March 2024. For the period through September 2024, the average of expected cumulative retail
deposit betas was 42 percent.
• From March 2022 to March 2024, respondents who take wholesale operational deposits and
wholesale non-operational deposits as part of their bank’s regular course of business reported,
on average, cumulative betas of 58 percent and 77 percent, respectively. For the period through
September of this year, respondents, on average, expect wholesale operational and wholesale
non-operational deposits betas to remain mostly steady, reporting, on average, cumulative betas
of 59 percent and 76 percent, respectively.
• When asked about their bank’s expectations for the top of the target range for the federal funds
rate at the end of September of this year, more than two-thirds of respondents reported an
expectation that the rate would be between 5 and 5.25 percent.
3

For the purpose of this survey, “deposit beta” was defined as the basis point change in a bank’s average deposit rate on
deposits with maturities of seven days or fewer relative to the basis point change in the target range for the federal
funds rate.

3

4

Senior Financial Officer Survey Results

• When asked about the rationale that most closely aligns with their bank’s deposit beta setting
strategy, roughly three-fourths of respondents reported that across all three deposit types (retail
deposits, wholesale operational deposits, and wholesale non-operational deposits) betas will be
set to maintain deposit balances.
This document was prepared by Courtney Demartini, Elizabeth Ellis, Matthew Malloy, Pasha
Takmakov, and Nicole Trachman, Division of Monetary Affairs, Board of Governors of the Federal
Reserve System; and Brian Gowen, Michael Koslow, Natalie Leonard, Dina Marchioni, Jason Miu, and
Navya Sharma, Federal Reserve Bank of New York.

5

Results
The following results include the instructions provided to the survey respondents. Please note
that percentages are based on the number of financial institutions that gave responses other than
“Not applicable (N/A).” Components may not sum to totals because of rounding.

Part 1: Balance Sheet Management
Questions in Part 1 ask about your bank’s expectations for balance sheet management over the next six
months. For context, the results of the January 2024 Survey of Primary Dealers showed cumulative
median dealer expectations for the size of the Federal Reserve’s holdings of U.S. Treasury securities and
agency mortgage-backed securities (MBS) to decrease by approximately $316 billion from the end of
March 2024 through the end of September 2024. These projections would be consistent with a similar
decline in the amount of Federal Reserve liabilities, including, but not limited to, reserve balances in the
banking system and overnight reverse repurchase agreement (repo) balances.
Question 1: Looking ahead over the next six months, which statement best characterizes your
bank’s expectations for the size of its balance sheet? My bank expects the size of its balance
sheet to: (select one)
All respondents
Banks

Percent

Domestic

Foreign

Banks

Percent

Banks

Decrease

8

8.7

7

11.9

1

Percent
3.0

Increase

20

21.7

12

20.3

8

24.2

Remain roughly unchanged (plus or minus 2 percent)

64

69.6

40

67.8

24

72.7

Total

92

100.0

59

100.0

33

100.0

Question 2: Which statement best characterizes your bank’s most likely strategy regarding its balance sheet? My bank expects to: (select one)
All respondents
Banks

Percent

Domestic
Banks

Foreign

Percent

Banks

Percent

Take actions intended to decrease, or limit the growth in, the
size of its balance sheet

6

6.5

5

8.5

1

3.0

Take actions intended to increase, or limit the decline in, the
size of its balance sheet

29

31.5

20

33.9

9

27.3

Take actions intended to maintain the current size of its
balance sheet

36

39.1

23

39.0

13

39.4

Take no specific actions to affect the size of its balance sheet

21

22.8

11

18.6

10

30.3

Total

92

100.0

59

100.0

33

100.0

6

Senior Financial Officer Survey Results

Question 3: This question asks about changes to the projected level of different liabilities on your
bank’s balance sheet.
For each of the liability categories listed, please indicate your bank’s expectation about the potential change in the average level in March 2024 compared with the average level in September 2024 in the context of your previous responses. My bank expects the level will: (select
one; please select “N/A” only if your bank does not have or is not eligible/cannot have the
liability type)
1. Retail deposits
All respondents
Banks

Percent

Domestic
Banks

Foreign

Percent

Banks

Percent

Decrease more than 5 percent

4

4.3

4

6.8

0

0.0

Decrease more than 2 percent and less than
or equal to 5 percent

2

2.2

2

3.4

0

0.0

Remain roughly unchanged

31

33.7

28

47.5

3

9.1

Increase more than 2 percent and less than
or equal to 5 percent

18

19.6

17

28.8

1

3.0

7

7.6

7

11.9

0

0.0

Increase more than 5 percent
N/A

30

32.6

1

1.7

29

87.9

Total

92

100.0

59

100.0

33

100.0

Percent

Banks

2. Wholesale operational deposits
All respondents
Banks

Percent

Domestic
Banks

Foreign
Percent

Decrease more than 5 percent

2

2.2

2

3.4

0

0.0

Decrease more than 2 percent and less than
or equal to 5 percent

2

2.2

2

3.4

0

0.0

Remain roughly unchanged

40

43.5

30

50.8

10

30.3

Increase more than 2 percent and less than
or equal to 5 percent

18

19.6

13

22.0

5

15.2

2

2.2

2

3.4

0

0.0

Increase more than 5 percent
N/A

28

30.4

10

16.9

18

54.5

Total

92

100.0

59

100.0

33

100.0

Results

3. Wholesale non-operational deposits
All respondents
Banks

Percent

Domestic
Banks

Foreign

Percent

Banks

Percent

Decrease more than 5 percent

1

1.1

1

1.7

0

0.0

Decrease more than 2 percent and less than
or equal to 5 percent

9

9.8

7

11.9

2

6.1

Remain roughly unchanged

49

53.3

27

45.8

22

66.7

Increase more than 2 percent and less than
or equal to 5 percent

14

15.2

10

16.9

4

12.1

2

2.2

2

3.4

0

0.0

Increase more than 5 percent
N/A

17

18.5

12

20.3

5

15.2

Total

92

100.0

59

100.0

33

100.0

Banks

Percent

Banks

8

13.6

0

0.0

4. FHLB advances (“N/A” if your bank is not an FHLB member)
All respondents
Banks
Decrease more than 5 percent
Decrease more than 2 percent and less than
or equal to 5 percent
Remain roughly unchanged
Increase more than 2 percent and less than
or equal to 5 percent
Increase more than 5 percent

8

Percent
8.7

Domestic

Foreign
Percent

5

5.4

5

8.5

0

0.0

34

37.0

33

55.9

1

3.0

3

3.3

3

5.1

0

0.0

6

6.5

6

10.2

0

0.0

N/A

36

39.1

4

6.8

32

97.0

Total

92

100.0

59

100.0

33

100.0

5. Overnight unsecured borrowings (for example, federal funds, Eurodollars, etc.)
All respondents
Banks
Decrease more than 5 percent
Decrease more than 2 percent and less than
or equal to 5 percent
Remain roughly unchanged
Increase more than 2 percent and less than
or equal to 5 percent
Increase more than 5 percent

0

Percent
0.0

Domestic
Banks
0

Foreign

Percent
0.0

Banks
0

Percent
0.0

3

3.3

2

3.4

1

3.0

68

73.9

39

66.1

29

87.9

1

1.1

1

1.7

0

0.0

0

0.0

0

0.0

0

0.0

N/A

20

21.7

17

28.8

3

9.1

Total

92

100.0

59

100.0

33

100.0

7

8

Senior Financial Officer Survey Results

6. Commercial paper (CP)/ Institutional/negotiable certificates of deposit (CDs)
All respondents
Banks

Percent

Domestic
Banks

Foreign

Percent

Banks

Percent

Decrease more than 5 percent

3

3.3

3

5.1

0

0.0

Decrease more than 2 percent and less than
or equal to 5 percent

2

2.2

0

0.0

2

6.1

Remain roughly unchanged

33

35.9

16

27.1

17

51.5

Increase more than 2 percent and less than
or equal to 5 percent

8

8.7

1

1.7

7

21.2

Increase more than 5 percent

4

4.3

2

3.4

2

6.1

N/A

42

45.7

37

62.7

5

15.2

Total

92

100.0

59

100.0

33

100.0

Percent

Banks

7. Brokered deposits/brokered CDs
All respondents
Banks
Decrease more than 5 percent
Decrease more than 2 percent and less than
or equal to 5 percent
Remain roughly unchanged
Increase more than 2 percent and less than
or equal to 5 percent
Increase more than 5 percent

3

Percent
3.3

Domestic
Banks
3

Foreign
5.1

Percent

0

0.0

1

1.1

1

1.7

0

0.0

56

60.9

33

55.9

23

69.7

4

4.3

2

3.4

2

6.1

2

2.2

2

3.4

0

0.0

N/A

26

28.3

18

30.5

8

24.2

Total

92

100.0

59

100.0

33

100.0

8. Short-term repurchase agreements (repos)
All respondents

Domestic

Foreign

Banks

Percent

Banks

Percent

Banks

Decrease more than 5 percent

14

15.2

14

23.7

0

Decrease more than 2 percent and less than
or equal to 5 percent

10

10.9

10

16.9

0

0.0

Remain roughly unchanged

30

32.6

16

27.1

14

42.4

Increase more than 2 percent and less than
or equal to 5 percent

10

10.9

8

13.6

2

6.1

Increase more than 5 percent

Percent
0.0

8

8.7

7

11.9

1

3.0

N/A

20

21.7

4

6.8

16

48.5

Total

92

100.0

59

100.0

33

100.0

Results

9. Fed facilities (discount window, standing repo facility (SRF))
All respondents
Banks

Percent

Domestic
Banks

Foreign

Percent

Banks

Percent

Decrease more than 5 percent

5

5.4

5

8.5

0

0.0

Decrease more than 2 percent and less than
or equal to 5 percent

0

0.0

0

0.0

0

0.0

Remain roughly unchanged

13

14.1

12

20.3

1

3.0

Increase more than 2 percent and less than
or equal to 5 percent

0

0.0

0

0.0

0

0.0

Increase more than 5 percent

0

0.0

0

0.0

0

0.0

N/A

74

80.4

42

71.2

32

97.0

Total

92

100.0

59

100.0

33

100.0

10. Bank Term Funding Program (BTFP; “N/A” if your institution does not have a BTFP loan outstanding)
All respondents
Banks
Decrease more than 5 percent
Decrease more than 2 percent and less than
or equal to 5 percent
Remain roughly unchanged
Increase more than 2 percent and less than
or equal to 5 percent
Increase more than 5 percent

0

Percent
0.0

Domestic
Banks
0

Foreign

Percent

Banks

0.0

0

Percent
0.0

0

0.0

0

0.0

0

0.0

58

63.0

35

59.3

23

69.7

1

1.1

1

1.7

0

0.0

1

1.1

1

1.7

0

0.0

N/A

32

34.8

22

37.3

10

30.3

Total

92

100.0

59

100.0

33

100.0

Question 4a: This question asks about changes to the projected level of different assets on your
bank’s balance sheet.
For each of the asset categories listed, please indicate your bank’s expectation about the potential change in the average level in March 2024 compared with the average level in
September 2024 in the context of your previous responses. My bank expects the level will: (select
one; please select “N/A” only if your bank does not or cannot have the asset type)

9

10

Senior Financial Officer Survey Results

1. Reserve balances
All respondents
Decrease more than 5 percent
Decrease more than 2 percent and less than
or equal to 5 percent
Remain roughly unchanged

Domestic

Foreign

Banks

Percent

Banks

Percent

Banks

16

17.4

15

25.4

1

Percent
3.0

9

9.8

4

6.8

5

15.2

60

65.2

34

57.6

26

78.8

Increase more than 2 percent and less than
or equal to 5 percent

5

5.4

5

8.5

0

0.0

Increase more than 5 percent

2

2.2

1

1.7

1

3.0

N/A

0

0.0

0

0.0

0

0.0

Total

92

100.0

59

100.0

33

100.0

Percent

Banks

2. Federal funds sold
All respondents
Banks
Decrease more than 5 percent
Decrease more than 2 percent and less than
or equal to 5 percent
Remain roughly unchanged
Increase more than 2 percent and less than
or equal to 5 percent
Increase more than 5 percent

1

Percent
1.1

Domestic
Banks
0

Foreign
0.0

1

Percent
3.0

1

1.1

1

1.7

0

0.0

40

43.5

31

52.5

9

27.3

0

0.0

0

0.0

0

0.0

0

0.0

0

0.0

0

0.0

N/A

50

54.3

27

45.8

23

69.7

Total

92

100.0

59

100.0

33

100.0

Percent

Banks

3. Reverse repo
All respondents
Banks
Decrease more than 5 percent
Decrease more than 2 percent and less than
or equal to 5 percent
Remain roughly unchanged
Increase more than 2 percent and less than
or equal to 5 percent
Increase more than 5 percent

1

Percent
1.1

Domestic
Banks
1

Foreign
1.7

0

Percent
0.0

0

0.0

0

0.0

0

0.0

47

51.1

27

45.8

20

60.6

4

4.3

1

1.7

3

9.1

2

2.2

1

1.7

1

3.0

N/A

38

41.3

29

49.2

9

27.3

Total

92

100.0

59

100.0

33

100.0

Results

4. Level 1 high-quality liquid assets (HQLA) securities
All respondents
Banks
Decrease more than 5 percent

Percent

Domestic
Banks

Foreign

Percent

Banks

Percent

1

1.1

1

1.7

0

0.0

Decrease more than 2 percent and less than
or equal to 5 percent

11

12.0

11

18.6

0

0.0

Remain roughly unchanged

53

57.6

26

44.1

27

81.8

Increase more than 2 percent and less than
or equal to 5 percent

20

21.7

16

27.1

4

12.1

7

7.6

5

8.5

2

6.1

Increase more than 5 percent
N/A

0

0.0

0

0.0

0

0.0

Total

92

100.0

59

100.0

33

100.0

Percent

Banks

5. Level 2 HQLA securities
All respondents
Banks
Decrease more than 5 percent

Percent

Domestic
Banks

Foreign
Percent

1

1.1

1

1.7

Decrease more than 2 percent and less than
or equal to 5 percent

17

18.5

17

28.8

0

0.0

Remain roughly unchanged

52

56.5

30

50.8

22

66.7

7

7.6

6

10.2

1

3.0

Increase more than 2 percent and less than
or equal to 5 percent
Increase more than 5 percent

0

0.0

2

2.2

2

3.4

0

0.0

N/A

13

14.1

3

5.1

10

30.3

Total

92

100.0

59

100.0

33

100.0

Percent

Banks

6. Other securities
All respondents
Banks
Decrease more than 5 percent
Decrease more than 2 percent and less than
or equal to 5 percent
Remain roughly unchanged
Increase more than 2 percent and less than
or equal to 5 percent
Increase more than 5 percent

2

Percent
2.2

Domestic
Banks

Foreign

2

3.4

0

Percent
0.0

6

6.5

6

10.2

0

0.0

20

21.7

16

27.1

4

12.1

0

0.0

0

0.0

0

0.0

0

0.0

0

0.0

0

0.0

N/A

64

69.6

35

59.3

29

87.9

Total

92

100.0

59

100.0

33

100.0

11

12

Senior Financial Officer Survey Results

7. Loans
All respondents
Banks

Percent

Domestic
Banks

Foreign

Percent

Banks

Percent

Decrease more than 5 percent

0

0.0

0

0.0

0

0.0

Decrease more than 2 percent and less than
or equal to 5 percent

5

5.4

5

8.5

0

0.0

Remain roughly unchanged

38

41.3

20

33.9

18

54.5

Increase more than 2 percent and less than
or equal to 5 percent

35

38.0

28

47.5

7

21.2

9

9.8

5

8.5

4

12.1

Increase more than 5 percent
N/A

5

5.4

1

1.7

4

12.1

Total

92

100.0

59

100.0

33

100.0

Question 4b: For each asset type, please indicate which statement best characterizes your bank’s
most likely strategy. I expect my bank to: (select one; please select “N/A” only if your bank does
not or cannot have the asset type)
1. Reserve balances
All respondents

Domestic

Foreign

Banks

Percent

Banks

Percent

Banks

Percent

Take action to decrease or limit the growth

19

20.7

15

25.4

4

12.1

Take action to increase or limit the decline

9

9.8

8

13.6

1

3.0

Take action to maintain

44

47.8

26

44.1

18

54.5

Take no action

20

21.7

10

16.9

10

30.3

N/A

0

0.0

0

0.0

0

0.0

Total

92

100.0

59

100.0

33

100.0

2. Federal funds sold
All respondents
Banks
Take action to decrease or limit the growth
Take action to increase or limit the decline

1

Percent
1.1

Domestic
Banks
1

Foreign

Percent

Banks

Percent

1.7

0

0.0

2

2.2

2

3.4

0

0.0

Take action to maintain

15

16.3

13

22.0

2

6.1

Take no action

24

26.1

16

27.1

8

24.2

N/A

50

54.3

27

45.8

23

69.7

Total

92

100.0

59

100.0

33

100.0

Results

3. Reverse repo
All respondents
Banks
Take action to decrease or limit the growth
Take action to increase or limit the decline

0

Percent

Domestic
Banks

0.0

0

Foreign

Percent

Banks

Percent

0.0

0

0.0

7

7.6

2

3.4

5

15.2

Take action to maintain

17

18.5

9

15.3

8

24.2

Take no action

30

32.6

19

32.2

11

33.3

N/A

38

41.3

29

49.2

9

27.3

Total

92

100.0

59

100.0

33

100.0

4. Level 1 high-quality liquid assets (HQLA) securities
All respondents
Banks

Percent

Domestic
Banks

Foreign

Percent

Take action to decrease or limit the growth

4

4.3

4

6.8

Take action to increase or limit the decline

30

32.6

23

Take action to maintain

40

43.5

22

Take no action

Banks

Percent

0

0.0

39.0

7

21.2

37.3

18

54.5

18

19.6

10

16.9

8

24.2

N/A

0

0.0

0

0.0

0

0.0

Total

92

100.0

59

100.0

33

100.0

Banks

Percent

Banks

5. Level 2 HQLA securities
All respondents
Banks

Percent

Domestic

Foreign
Percent

Take action to decrease or limit the growth

9

9.8

9

15.3

0

Take action to increase or limit the decline

11

12.0

10

16.9

1

0.0
3.0

Take action to maintain

32

34.8

18

30.5

14

42.4

Take no action

27

29.3

19

32.2

8

24.2

N/A

13

14.1

3

5.1

10

30.3

Total

92

100.0

59

100.0

33

100.0

Percent

Banks

6. Other securities
All respondents
Banks

Percent

Domestic
Banks

Foreign
Percent

Take action to decrease or limit the growth

4

4.3

4

6.8

0

0.0

Take action to increase or limit the decline

1

1.1

1

1.7

0

0.0

Take action to maintain

9

9.8

8

13.6

1

3.0

Take no action

14

15.2

11

18.6

3

9.1

N/A

64

69.6

35

59.3

29

87.9

Total

92

100.0

59

100.0

33

100.0

Thirteen respondents provided further information on their selection of “Other securities.” Some
respondents included asset-backed securities in their responses.

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Senior Financial Officer Survey Results

7. Loans
All respondents
Banks

Percent

Domestic

Foreign

Banks

Percent

Banks

Take action to decrease or limit the growth

6

6.5

6

10.2

0

Percent
0.0

Take action to increase or limit the decline

41

44.6

31

52.5

10

30.3

Take action to maintain

26

28.3

14

23.7

12

36.4

Take no action

14

15.2

7

11.9

7

21.2

N/A

5

5.4

1

1.7

4

12.1

Total

92

100.0

59

100.0

33

100.0

Sixty-three respondents provided substantive comments. Most comments were in line with or
elaborated on the survey responses. Some respondents provided more information on their bank’s
loan portfolio plans.

Part 2: Preferred Reserve Levels
Questions in Part 2 ask about your bank’s lowest comfortable level of reserves (LCLOR)—the lowest
dollar level of reserve balances your bank would feel comfortable holding before it began taking
active steps to maintain or increase its reserve balances. “Active steps” could include, but are not
limited to, borrowing in the federal funds or other wholesale funding markets or bidding more aggressively in those markets, reducing holdings of other liquid assets, or raising deposit rates.
Question 5: What is the estimated LCLOR your bank would feel comfortable holding before it
“takes active steps” to maintain or increase its reserve balance position?
All respondents

Domestic

Foreign

Banks

Percent

Banks

Percent

Banks

Percent

LCLOR less than $1 billion

19

20.7

15

25.4

4

12.1

LCLOR $1 billion to less than $5 billion

21

22.8

15

25.4

6

18.2

LCLOR $5 billion to less than $10 billion

18

19.6

10

16.9

8

24.2

LCLOR $10 billion to less than $20 billion

17

18.5

7

11.9

10

30.3

LCLOR $20 billion or more

17

18.5

12

20.3

5

15.2

Total

92

100.0

59

100.0

33

100.0

Results

Question 6: If your bank prefers to hold additional reserves above LCLOR, please provide an estimated amount of preferred additional reserves. If your bank does not prefer to hold additional
reserves above LCLOR, enter “0.”
All respondents
Banks

Domestic

Percent

Banks

Foreign

Percent

Banks

Percent

Additional reserves 0 to 10 percent of LCLOR

4

4.3

1

1.7

3

9.1

Additional reserves 11 to 25 percent of LCLOR

19

20.7

14

23.7

5

15.2

Additional reserves 26 to 50 percent of LCLOR

19

20.7

14

23.7

5

15.2

Additional reserves 51 to 75 percent of LCLOR

8

8.7

6

10.2

2

6.1

Additional reserves 76 to 100 percent
of LCLOR

3

5.1

5

15.2

8

8.7

Additional reserves greater than 100 percent
of LCLOR

12

13.0

4

6.8

8

24.2

No additional reserves

22

23.9

17

28.8

5

15.2

Total

92

100.0

59

100.0

33

100.0

Note: Question 7 was shown to respondents who reported a change in their LCLOR, a change in their
additional reserves level, or both since the September 2023 survey.
Question 7: Please rate on a scale of 1 (not important) to 5 (very important) the factors that
affected the change in your bank’s LCLOR and/or additional reserves level since September 2023.
(Please select “N/A” only if the factor does not apply to your bank.)
1. LCLOR
Factors driving change

Average rating
All respondents

Domestic

Foreign

A. Changes in retail deposit outflow assumptions

2.9 (n = 26)

2.8 (n = 25)

4.0 (n = 1)

B. Changes in wholesale liability outflow assumptions

2.4 (n = 30)

2.4 (n = 25)

2.8 (n = 5)

C. Changes in assumptions regarding off-balance sheet exposures

2.0 (n = 25)

2.0 (n = 21)

2.3 (n = 4)

D. Changes in assumptions for routine intraday payment or settlement needs

2.1 (n = 31)

2.1 (n = 26)

1.8 (n = 5)

E. Changes in capacity to access liquidity in the market using non-reserve HQLA or
other securities

2.0 (n = 31)

2.0 (n = 26)

2.2 (n = 5)

F. Changes in capacity to access liquidity through Federal Reserve facilities like the
SRF, BTFP, or discount window

1.8 (n = 31)

1.7 (n = 26)

2.0 (n = 5)

G. Changes in capacity to access liquidity via FHLB advances

2.0 (n = 24)

2.1 (n = 23)

1.0 (n = 1)

H. Changes in composition or level of liabilities

2.7 (n = 31)

2.8 (n = 26)

2.6 (n = 5)

I. Changes in composition or level of assets

2.4 (n = 31)

2.4 (n = 26)

2.6 (n = 5)

J. Changes in composition or level of off-balance sheet exposures

1.7 (n = 27)

1.6 (n = 23)

2.0 (n = 4)

K. Changes to balance sheet interest rate risk/duration of equity

1.8 (n = 31)

1.8 (n = 26)

1.8 (n = 5)

L. Changes to broader market conditions (for example, level of volatility or stress)

3.0 (n = 31)

3.0 (n = 26)

3.2 (n = 5)

M. Changes in the relative rate of return between reserves and other assets

2.2 (n = 31)

2.2 (n = 26)

2.2 (n = 5)

N. Changes to aggregate, banking system reserve levels

2.0 (n = 31)

1.9 (n = 26)

2.2 (n = 5)

Note: n represents the total number of respondents.

15

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Senior Financial Officer Survey Results

2. Additional reserves
Average rating

Factors driving change

All respondents

Domestic

Foreign

A. Changes in retail deposit outflow assumptions

2.7 (n = 29)

2.7 (n = 25)

2.8 (n = 4)

B. Changes in wholesale liability outflow assumptions

2.4 (n = 33)

2.4 (n = 25)

2.5 (n = 8)

C. Changes in assumptions regarding off-balance sheet exposures

2.0 (n = 30)

2.0 (n = 23)

2.0 (n = 7)

D. Changes in assumptions for routine intraday payment or settlement needs

2.2 (n = 36)

2.3 (n = 26)

1.9 (n = 10)

E. Changes in capacity to access liquidity in the market using non-reserve HQLA or
other securities

2.1 (n = 36)

2.1 (n = 26)

2.2 (n = 10)

F. Changes in capacity to access liquidity through Federal Reserve facilities like the
standing repo facility (SRF), BTFP, or discount window

1.9 (n = 36)

2.0 (n = 26)

1.6 (n = 10)

G. Changes in capacity to access liquidity via FHLB advances

2.3 (n = 25)

2.3 (n = 24)

1.0 (n = 1)

H. Changes in composition or level of liabilities

2.4 (n = 36)

2.4 (n = 26)

2.4 (n = 10)

I. Changes in composition or level of assets

2.2 (n = 36)

2.2 (n = 26)

2.2 (n = 10)

J. Changes in composition or level of off-balance sheet exposures

1.8 (n = 34)

1.8 (n = 25)

1.8 (n = 9)

K. Changes to balance sheet interest rate risk/duration of equity

1.9 (n = 36)

2.0 (n = 26)

1.7 (n = 10)

L. Changes to broader market conditions (for example, level of volatility or stress)

2.8 (n = 36)

2.8 (n = 26)

2.9 (n = 10)

M. Changes in the relative rate of return between reserves and other assets

2.3 (n = 36)

2.3 (n = 26)

2.2 (n = 10)

N. Changes to aggregate, banking system reserve levels

2.2 (n = 36)

2.2 (n = 26)

2.4 (n = 10)

Note: n represents the total number of respondents.

Note: Question 8 was shown to respondents who reported a LCLOR and additional reserves sum
that was lower than their bank’s average daily reserves balance.
Question 8: Your bank’s average daily reserve balances over the past few months have been
higher than the sum of the LCLOR plus preferred additional reserves as reported in Questions 5
and 6.
1. Which of the following statements best characterizes your bank’s recent reserve management
strategy (select one)?
All respondents

Domestic

Foreign

Banks

Percent

Banks

Percent

Banks

My bank has taken actions intended to decrease, or limit the
growth in, the amount of its reserves

Percent

11

16.9

10

27.0

1

3.6

My bank has taken actions intended to increase, or limit the
decline in, the amount of its reserves

9

13.8

8

21.6

1

3.6

My bank has taken actions intended to maintain the current
amount of its reserves

24

36.9

8

21.6

16

57.1

My bank has taken limited or no actions intended to affect the
amount of its reserves

21

32.3

11

29.7

10

35.7

Total

65

100.0

37

100.0

28

100.0

Results

2. Please rate on a scale of 1 (not important) to 5 (very important) the factors that have resulted
in your bank holding reserves above your LCLOR plus preferred additional reserves.
Factors

Average rating
All respondents

Domestic

Foreign

i. Relative or risk-adjusted rate of return between reserves and
other assets

3.0 (n = 54)

3.0 (n = 27)

2.9 (n = 27)

ii. Differential in foreign exchange (FX)/cross-currency basis resulting
in a preference for holding dollar reserves

1.7 (n = 54)

1.3 (n = 27)

2.1 (n = 27)

iii. Higher-than-expected uncertainty in my bank’s depositor
behavior/deposit outflows

2.3 (n = 54)

2.9 (n = 27)

1.7 (n = 27)

iv. Perceptions of banking sector health

2.4 (n = 54)

2.7 (n = 27)

2.0 (n = 27)

v. Low duration of reserves

2.1 (n = 54)

2.1 (n = 27)

2.0 (n = 27)

vi. Other

1.6 (n = 54)

1.7 (n = 27)

1.6 (n = 27)

Note: n represents the total number of respondents.

Twelve respondents elaborated on the factors that have resulted in their bank holding reserves
above LCLOR plus preferred additional reserves. Most respondents provided more context for their
bank’s reserves strategy but these responses did not have a common theme.
Question 9a: Question 9 asks about your bank’s willingness to substitute reserves for other
assets in a scenario where your bank’s reserve balances are greater than the amount you
reported in Questions 5 and 6.
What is the smallest spread (please respond in whole basis points) above the interest rate on
reserve balances (IORB) at which your bank would consider substituting reserves for other assets
in each of the scenarios outlined in the table? If under no circumstances you would be willing to
substitute reserves for that asset or if you do not have capacity to transact in an asset, please
type “N/A.”
Scenario 1: Spread to IORB persists for less than one week (basis points)
Median smallest spread (basis points)
All respondents

Domestic

Foreign

a. Overnight reverse repo; receiving U.S. Treasury securities

10 (n = 54)

15 (n = 33)

5 (n = 21)

b. Overnight federal funds sold

10 (n = 29)

25 (n = 21)

10 (n = 8)

c. Overnight US dollar deposits (such as Eurodollars)

20 (n = 20)

30 (n = 9)

10 (n = 11)

d. Overnight FX swaps

9.5 (n = 24)

20 (n = 9)

5 (n = 15)

e. Treasury securities (maturity of one year or less)

10 (n = 54)

10 (n = 33)

5 (n = 21)

Note: n represents the total number of respondents.

17

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Senior Financial Officer Survey Results

Scenario 2: Spread to IORB persists for one to four weeks (basis points)
Median smallest spread (basis points)
All respondents

Domestic

Foreign

10 (n = 55)

15 (n = 34)

5 (n = 21)

15 (n = 31)

25 (n = 23)

10 (n = 8)

17.5 (n = 20)

25 (n = 9)

10 (n = 11)

a. Overnight reverse repo; receiving U.S. Treasury securities
b. Overnight federal funds sold
c. Overnight US dollar deposits (such as Eurodollars)
d. Overnight FX swaps

10 (n = 24)

20 (n = 9)

5 (n = 15)

e. Treasury securities (maturity of one year or less)

10 (n = 60)

10 (n = 38)

7 (n = 22)

Note: n represents the total number of respondents.

Scenario 3: Spread to IORB persists for one to three months (basis points)
Median smallest spread (basis points)
All respondents

Domestic

Foreign

a. Overnight reverse repo; receiving U.S. Treasury securities

10 (n = 56)

15 (n = 36)

5 (n = 20)

b. Overnight federal funds sold

20 (n = 33)

25 (n = 25)

12.5 (n = 8)

c. Overnight US dollar deposits (such as Eurodollars)

15 (n = 21)

25 (n = 10)

10 (n = 11)

d. Overnight FX swaps

10 (n = 24)

20 (n = 9)

5 (n = 15)

e. Treasury securities (maturity of one year or less)

10 (n = 68)

10 (n = 45)

10 (n = 23)

Note: n represents the total number of respondents.

Question 9b: What non-economic factors would prevent your bank from reallocating reserves,
despite observing a spread at the level listed above?
Eighty respondents provided comments, excluding responses of N/A. Comments varied but some
respondents mentioned internal liquidity metrics and broader uncertainty as important noneconomic factors for their bank to consider.
Question 10: Suppose your bank has a funding need for the durations listed in the table below.
Please provide the likelihood that your bank would pursue the following actions on a scale of 1
(not likely) to 5 (very likely) to address that need. (Please select “N/A” only if your bank is not eligible or is unable to engage in the described activity.)

Results

1. Funding needed for 1 day
Action

Average rating
All respondents

Domestic

Foreign

i. Borrow in federal funds/Eurodollar market

3.3 (n = 79)

3.2 (n = 49)

3.5 (n = 30)

ii. Borrow in secured funding markets (repo)

3.4 (n = 80)

3.3 (n = 54)

3.7 (n = 26)

iii. Borrow via brokered deposits/brokered CDs

1.7 (n = 72)

1.5 (n = 55)

2.6 (n = 17)

iv. Issue CP/CD

2.1 (n = 60)

1.5 (n = 31)

2.8 (n = 29)

v. Increase advances from FHLBs ("N/A" for banks that are not FHLB members)

3.9 (n = 57)

3.9 (n = 56)

5.0 (n = 1)

vi. Borrow from the SRF (“N/A" for banks that are not SRF counterparties)

2.0 (n = 28)

2.1 (n = 19)

2.0 (n = 9)

vii. Borrow from the discount window

1.4 (n = 90)

1.5 (n = 59)

1.3 (n = 31)

viii. Reduce holdings of available-for-sale securities

1.3 (n = 85)

1.3 (n = 59)

1.3 (n = 26)

ix. Draw on revolving credit facilities

1.6 (n = 49)

1.8 (n = 34)

1.1 (n = 15)

x. Increase retail deposits by offering higher rates

1.3 (n = 60)

1.3 (n = 56)

1.8 (n = 4)

xi. Increase retail deposits by offering attractive, non-rate terms

1.2 (n = 59)

1.2 (n = 56)

1.3 (n = 3)

xii. Increase wholesale deposits by offering higher rates

1.7 (n = 79)

1.2 (n = 49)

2.6 (n = 30)

xiii. Increase wholesale deposits by offering attractive, non-rate terms

1.3 (n = 69)

1.2 (n = 48)

1.5 (n = 21)

xiv. Use the FX swap market to swap non-U.S. dollar reserves for U.S. dollar reserves

2.0 (n = 52)

1.8 (n = 26)

2.2 (n = 26)

xv. Other (please use comment box)

2.4 (n = 12)

2.4 (n = 5)

2.4 (n = 7)

Note: n represents the total number of respondents.

2. Funding needed for 30 days
Action

Average rating
All respondents

Domestic

Foreign

i. Borrow in federal funds/Eurodollar market

2.2 (n = 79)

1.9 (n = 49)

2.5 (n = 30)

ii. Borrow in secured funding markets (repo)

3.1 (n = 80)

3.1 (n = 54)

3.1 (n = 26)

iii. Borrow via brokered deposits/brokered CDs

3.6 (n = 75)

3.5 (n = 58)

3.8 (n = 17)

iv. Issue CP/CD

3.4 (n = 62)

2.5 (n = 31)

4.3 (n = 31)

v. Increase advances from FHLBs ("N/A" for banks that are not FHLB members)

4.4 (n = 57)

4.4 (n = 56)

3.0 (n = 1)

vi. Borrow from the SRF (“N/A" for banks that are not SRF counterparties)

1.8 (n = 28)

1.7 (n = 19)

2.0 (n = 9)

vii. Borrow from the discount window

1.3 (n = 90)

1.3 (n = 59)

1.3 (n = 31)

viii. Reduce holdings of available-for-sale securities

1.9 (n = 88)

2.0 (n = 59)

1.7 (n = 29)

ix. Draw on revolving credit facilities

1.6 (n = 50)

1.8 (n = 34)

1.2 (n = 16)

x. Increase retail deposits by offering higher rates

2.7 (n = 62)

2.7 (n = 58)

2.3 (n = 4)

xi. Increase retail deposits by offering attractive, non-rate terms

1.9 (n = 61)

1.9 (n = 58)

2.0 (n = 3)

xii. Increase wholesale deposits by offering higher rates

3.0 (n = 81)

2.7 (n = 51)

3.4 (n = 30)

xiii. Increase wholesale deposits by offering attractive, non-rate terms

1.9 (n = 71)

2.0 (n = 50)

1.9 (n = 21)

xiv. Use the FX swap market to swap non-U.S. dollar reserves for U.S. dollar reserves

2.2 (n = 52)

1.8 (n = 26)

2.5 (n = 26)

xv. Other (please use comment box)

2.5 (n = 11)

2.4 (n = 5)

2.7 (n = 6)

Note: n represents the total number of respondents.

Eight respondents provided further information on their selection of “Other.” Some respondents
noted utilizing funding from within their organizations.

19

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Senior Financial Officer Survey Results

Part 3: Deposit Rates
Questions in Part 3 ask about deposit pricing strategies, in particular the degree to which your bank
passes through changes in the Federal Reserve policy rate to rates offered on deposits. For the purpose of this section, “deposit beta” is defined as the ratio of the basis point change in your bank’s
average rates on deposits with maturities of seven days or fewer relative to the basis point change in
the target range for the federal funds rate.
Question 11: For each of the deposit categories below, please indicate your bank’s cumulative
deposit beta from March 2022 through March 2024. For reference, the target range for the federal
funds rate over this period increased 525 basis points. (Sliding scale from 0% to 100%)
Average beta

Deposit type

All respondents

Domestic

Foreign

i. Retail deposits

40 (n = 62)

41 (n = 58)

40 (n = 4)

ii. Wholesale operational deposits

58 (n = 64)

53 (n = 49)

74 (n = 15)

iii. Wholesale non-operational deposits

77 (n = 75)

69 (n = 47)

89 (n = 28)

Note: n represents the total number of respondents.

Question 12: Looking ahead to the end of September 2024, what is your bank’s current forecast
for the top of the target range for the federal funds rate (in percent)? (select one)
Forecast for top of target range

All respondents

Domestic

Banks

Percent

Banks

Less than or equal to 4.5 percent

3

3.3

2

Between 4.51 and 4.75 percent

6

6.5

4

Between 4.76 and 5.0 percent

48

52.2

Between 5.1 and 5.25 percent

14

15.2

Between 5.26 and 5.5 percent

18
1
90

Greater than 5.5 percent
Total

Foreign

Percent

Banks

Percent

3.4

1

3.0

6.8

2

6.1

30

50.8

18

54.5

10

16.9

4

12.1

19.6

12

20.3

6

18.2

1.1

1

1.7

0

0.0

97.8

59

100.0

31

93.9

Question 13: Looking ahead to September 2024, please select your bank’s expectations for its
cumulative deposit beta since March 2022 for each of the deposit categories below.
Deposit type

Average beta
All respondents

Domestic

Foreign

i. Retail deposits

42 (n = 62)

42 (n = 58)

40 (n = 4)

ii. Wholesale operational deposits

59 (n = 64)

54 (n = 49)

75 (n = 15)

iii. Wholesale non-operational deposits

76 (n = 75)

68 (n = 47)

89 (n = 28)

Note: n represents the total number of respondents.

Results

Question 14: Looking ahead to September 2024, please select the rationale that most closely
aligns with your bank’s deposit beta-setting strategy for each of the deposit types listed.
(select one)
1. Retail deposits
All respondents
Banks

Percent

Domestic
Banks

Foreign

Percent

Banks

Percent

Beta will be set to decrease deposit balances

2

3.2

2

3.4

0

0.0

Beta will be set to increase deposit balances

16

25.8

16

27.6

0

0.0

Beta will be set to maintain deposit balances

44

71.0

40

69.0

4

100.0

Total

62

100.0

58

100.0

4

100.0

2. Wholesale operational deposits
All respondents
Banks

Percent

Beta will be set to decrease deposit balances

1

1.6

Beta will be set to increase deposit balances

12

Beta will be set to maintain deposit balances

51

Total

64

Domestic
Banks

Foreign

Percent

1

2.0

18.8

9

79.7

39

100.0

49

Banks

Percent

0

0.0

18.4

3

20.0

79.6

12

80.0

100.0

15

100.0

3. Wholesale non-operational deposits
All respondents

Domestic

Foreign

Banks

Percent

Banks

Percent

Banks

9

12.0

8

17.0

1

3.6

Beta will be set to increase deposit balances

9

12.0

6

12.8

3

10.7

Beta will be set to maintain deposit balances

57

76.0

33

70.2

24

85.7

Total

75

100.0

47

100.0

28

100.0

Beta will be set to decrease deposit balances

Percent

Question 15: Please provide any additional information relevant to your bank’s deposit strategy.
Thirty-five respondents provided comments, excluding responses of N/A or that specified that
there were no additional comments. Some respondents provided more information on their bank’s
deposit betas and some provided more information on their bank’s deposits strategy but these
comments did not have common themes.

21

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