Hallelujah, this is the best regulatory news in 2020. We spend on average about 2 1/2 weeks putting together the call report each quarter. Untold hours and costs 4X a year and only seen by a few industry personnel and the government. I have often wondered "we give them information in a download for loan data for exams. Why can't we do that for call report information?"
For our IRR vendor, we give them a download of all information as of quarter-end. Within 15-20 days after submission, we have a report that shows balance sheet and income information and other interest rate risk data. I am sure they can come up with some type of download from core systems that will eliminate this burden, while also keeping a close eye on key data and trends in the banking industry. As Jean Luc Picard said "Things are only impossible, until they are not."
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Jon Drake
Senior EVP & CFO
Peoples Bank
Lubbock TX
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Original Message:
Sent: 06-29-2020 10:21
From: Barb Rehm
Subject: Tuesday Topic: The End of Call Reports?
We all woke up Monday to The Wall Street Journal headline, "FDIC Considers Scrapping Quarterly Bank Reports." Wow. These reports have been collected for 150 years, surely the newspaper misunderstood FDIC Chair Jelena McWilliams. Nope. "What we would like to do is frankly make the call reports obsolete, and not because we wouldn't have the data but because we would have better data and we would have more timely data," McWilliams told the Journal. The FDIC has invited 20 data and technology firms to create prototypes to collect more timely and targeted data about banks' credit exposures and deposit information. The FDIC expects to have these protypes in six months. Banks would be incentivized to use the new reporting system, but the agency isn't expected to mandate its use, according to the story. What's your reaction? Would you welcome dumping the 60-page call report? Or would this be too disruptive?
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Barb Rehm
Senior Managing Director
Promontory Interfinancial Network, LLC
Arlington VA
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