Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 6538

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes the outstanding balance of all fixed-term deposits as follows:

1. Fixed-rate deposits with early withdrawal penalties of at least one month's interest for each year of remaining contractual maturity or fraction thereof are included in the maturity/repricing column corresponding to the remaining contractual maturity of the account;

2. Fixed-rate deposits (a) without early withdrawal penalties or (b) with early withdrawal penalties less stringent than those specified in (1) above are reported in the Three Months or Less column, except where specified in (3) through (7) below;

3. Fixed-rate deposits bearing interest rates at least 200 basis points above current market/offered rates on new fixed-rate deposits with comparable terms and remaining contractual maturity are reported in the maturity/repricing column corresponding to the remaining contractual maturity of the account without regard to the existence or nature of any early withdrawal penalties;

4. Fixed-rate deposits with an option to raise interest rates are reported in the maturity/repricing column corresponding to the point in time at which the option may be exercised. Once the option has been exercised, assuming that no further adjustment options exist and that adequate early withdrawal penalties exist, these CDs are reported in the maturity/repricing column corresponding to their remaining contractual maturity;

5. Variable-rate deposits are included in the maturity/repricing column corresponding to the remaining time before the account reprices;

6. Notice accounts are included in the maturity/repricing column corresponding to the remaining term of the notice period; and

7. Consecutive monthly payment accounts are included in the maturity/repricing column corresponding to the remaining term required to qualify for the "bonus" rate.

Caps on Fixed-Maturity Deposit Rates

Deposit accounts with embedded rate caps can slow the growth in interest costs for thrifts during periods of rising rates. In this way, these deposit-rate caps are of value to the thrift and behave similarly to the purchase of an interest-rate cap, given sufficient withdrawal penalties on the accounts.

The total reported on Line H801 equals the sum of Lines G010 through G050 (Deposit Balances in Accounts with Fixed Maturity (items 0989, 0991, 0992, 0993 and 0994).

NOTE:

This item is reported as confidential.

Embedded caps are reported as follows. If an account has sufficient withdrawal penalties (see Fixed-Maturity Deposits instructions) and annual periodic interest rate caps, determine how far the fixed-maturity deposit rate is from its annual cap (the number of basis points the embedded cap is "out of the money"). Using the cap table provided by the ICR coordinator, of which a sample is shown on p. H-56 of the instructions the percentage of the deposits that can be considered to have a rate cap is determined. This percentage can be determined based upon the length of time implicit in the embedded cap and the number of basis points out-of-the-money. This percentage is then multiplied by the deposit balance and the product represents the effective hedge resulting from the embedded cap. This effective hedge is reported in the impact of off-balance-sheet activity lines, Lines H932 through H948 (items 6549 and 7252). This effective hedging amount is subtracted from the 3-month maturity column and added to the maturity column corresponding to the remaining term in the cap period, not the remaining deposit term. For example, if the cap resets, in one year, then the positive entry is placed in the Six Month through One Year maturity/repricing column. The rate entered under both liability hedging entries would be the cap rate for the current cap period.
If a lifetime cap exists on an account with sufficient withdrawal penalties, the reporting is the same except that the positive entry is placed in the maturity column corresponding to the term of the deposit, rather that at the column corresponding to the next cap reset date. Important: if both periodic and lifetime caps exist, the embedded cap reported is most likely to be hit initially. For example, if the periodic cap is lower than the lifetime cap, reported is the effective periodic cap "purchased", and subsequently reported is the allowable lifetime, "purchased" cap. The amount of "purchased" embedded caps reported should never exceed 100% of the amount of the underlying deposit.

Data reported under mnemonics SVG1 thru SVG9 began 19890630.